berlin rite aid/walgreens 200 pleasant street, berlin, nh · 2018-08-28 · 4th option-...
TRANSCRIPT
Berlin Rite Aid/Walgreens200 Pleasant Street, Berlin, NH
John Gendron, CCIM207-939-8500
Table of Contents
Investment Details .................................................................................... 3
Professional Bio ....................................................................................... 4
Property Description ................................................................................ 5
Property Photos ........................................................................................ 6
Executive Summary .................................................................................. 7
Financial Indicators .................................................................................. 8
Annual Property Operating ................................................................. 10
Rite Aid Extension Letter ......................................................................... 12
Walgreens Letter ....................................................................................... 14
Walgreens Assigned Lease ................................................................ 16
INVESTMENT DETAILS Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH
ANALYSISAnalysis Date August 2018Scenario Parking Lot Included
PROPERTYProperty Berlin Rite Aid/WalgreensProperty Address 200 Pleasant Street
Berlin, NH
FINANCIAL INFORMATIONDown Payment $230,000Closing Costs $25,000LT Capital Gain 28.00%Federal Tax Rate 35.0%Discount Rate 6.00%
PURCHASE INFORMATIONProperty Type RetailPurchase Price $1,150,000Fair Market Value $1,150,000Tenants 2Total Rentable Sq. Ft. 7,520Resale Valuation 2.5% (annual appreciation)Resale Expenses 4.0%
LOANSType Debt Term Amortization Rate Payment LO CostsFixed $920,000 25 years 25 years 5.25% $5,513
INCOME & EXPENSESGross Operating Income $106,800Monthly GOI $8,900Total Annual Expenses ($9,109)Monthly Expenses ($759)
page - 3
PROFESSIONAL BIO Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH
John R. Gendron is a commercial real estate broker specializing in the selling,leasing and development of all types of commercial properties. He earned thedesignation of CCIM (Certified Commercial Investment Member) and holdsseveral real estate broker licenses including Maine, New Hampshire, New York,Massachusetts, Florida and Connecticut. He is a past President, Vice Presidentand Treasurer of the York County Board of Realtors, past President of MaineHomebuilders Association, past Director of the State of Maine RealtorsAssociation, past Director of Portland Chamber of Commerce, past Director ofGreater Portland Landmarks; past Member of Mercy Hospital Board ofTrustees, and past Director of McAuley Residence.
John Gendron has represented CVS & Rite Aid as a preferred Broker andpreferred developer during the 90s and 2000s. John represented CVS and RiteAid (at different time periods), primarily in Maine and New Hampshire forseveral years.
John has also represented numerous national companies over the years (I.E. Gannet Corp, Home Depot and manymore)!
page - 4
PROPERTY DESCRIPTION Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH
Rite Aid for Sale set to become Walgreens!!The subject property is comprised of two parcels in Berlin NH. One parcel is a corner lot located at the corner of MasonStreet and Pleasant St with an address of 200 Pleasant Street in Berlin, NH. the second parcel is a parking lot used foradditional parking. Current Tenant is Rite Aid. 7,520 +/- SF building and sits on .38 Acres of land. Approximately 18+/-parking spots. Current Lease extension period expires 1/31/19. Rite Aid just elected to renew the lease for anadditional 5 years, showing their commitment to this site extending the lease until 1/31/2024. Additionally, this store isset to be assumed by Walgreens!! Rite Aid has (1) additional 5-year option period remaining.
***Property is being valued based on the renewal rent of $106,800, effective 2/1/2019.
Rite Aid Rent Schedule:Current- 2/1/2014-1/31/2019 $84,000/Annually3rd Option **EXERCISED- 2/1/2019-1/31/2024 $96,600/Annually4th Option- 2/1/2024-1/31/2029 $111,090/Annually
The second lot is located next to the Rite Aid parcel on Pleasant St. It is a vacant lot used for additional parking. This isa 0.13 AC lot which runs until 1/31/19 has been extended to 1/31/2024. There are 2 remaining options to extended thislease agreement for 5 year periods pushing this lease out until 2034, should all renewals be used.
Parking Lot Rent Schedule:
Current (2nd Option)- 2/1/2014- 1/31/2019 $9,000/Annually3rd Option- 2/1/2019- 1/31/2024 $10,200/Annually4th Option- 2/1/2024-1/31/2029 $11,300/Annually5th Option- 2/1/2029- 1/31/2034 $12,400/ Annually
Total Lot Size between two parcel: 0.51 AC218 FT of Frontage on Pleasant Street130 FT of Frontage on Mason StreetBook/Page: 661/212 Approximately 5,800 +/- cars a day!
page - 5
PROPERTY PHOTOS Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH
Front View Rear View
Inside
Inside Citizens Across Street
page - 6
EXECUTIVE SUMMARY Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH
Acquisition CostsPurchase Price, Points and Closing Costs $1,175,000Investment - Cash $256,500First Loan $920,000
Investment InformationPurchase Price $1,150,000Price per Tenant $575,000Price per Sq. Ft. $152.93
Income, Expenses & Cash FlowGross Scheduled Income $106,800Total Vacancy and Credits $0Operating Expenses ($9,109)Net Operating Income $97,692Debt Service ($66,157)Cash Flow Before Taxes $31,535(After Tax Results)
Total Interest (Debt Service) ($47,864)Depreciation and Amortization ($28,870)Taxable Income (Loss) $20,958Tax Savings (Costs) ($7,335)Cash Flow After Taxes $24,199
Financial IndicatorsCash on Cash Return Before Taxes 12.29%Optimal Internal Rate of Return (yr 7) 16.41%Debt Coverage Ratio 1.48Capitalization Rate 8.49%Gross Income / Square Feet $14.20Gross Expenses / Square Feet ($1.21)Operating Expense Ratio 8.53%
page - 7
FINA
NCIA
L IN
DICA
TORS
Berli
n Ri
te A
id/W
algr
eens
200
Plea
sant
Stre
et |
Ber
lin, N
H
Desc
riptio
nYe
ar 1
Year
2Ye
ar 3
Year
4Ye
ar 5
Year
6Ye
ar 7
Year
8Ye
ar 9
Year
10
Gro
ss R
ent M
ultip
lier
11.0
411
.31
11.6
011
.89
12.1
812
.49
11.9
311
.45
11.7
312
.03
Capi
taliz
atio
n Ra
te8.
49%
8.49
%8.
49%
8.49
%8.
49%
8.49
%9.
17%
9.85
%9.
85%
9.85
%
Cash
On
Cash
Ret
urn
b/t
12.2
9%12
.29%
12.2
9%12
.29%
12.2
9%12
.29%
15.3
3%18
.37%
18.3
7%18
.37%
Cash
On
Cash
Ret
urn
a/t
9.43
%9.
47%
9.33
%9.
18%
9.02
%8.
86%
10.6
6%12
.45%
12.2
6%12
.05%
Debt
Cov
erag
e Ra
tio1.
481.
481.
481.
481.
481.
481.
591.
711.
711.
71
Gro
ss In
com
e pe
r Sq.
Ft.
$14.
20$1
4.20
$14.
20$1
4.20
$14.
20$1
4.20
$15.
24$1
6.28
$16.
28$1
6.28
Expe
nses
per
Sq.
Ft.
($1.
21)
($1.
21)
($1.
21)
($1.
21)
($1.
21)
($1.
21)
($1.
21)
($1.
21)
($1.
21)
($1.
21)
Net I
ncom
e M
ultip
lier
12.0
712
.37
12.6
812
.99
13.3
213
.65
12.9
612
.37
12.6
813
.00
Ope
ratin
g Ex
pens
e Ra
tio8.
53%
8.53
%8.
53%
8.53
%8.
53%
8.53
%7.
95%
7.44
%7.
44%
7.44
%
Loan
To
Valu
e Ra
tio76
.50%
73.0
4%69
.61%
66.2
3%62
.88%
59.5
6%56
.28%
53.0
2%49
.79%
46.5
9%
*b/t
= be
fore
taxe
s; a
/t =
afte
r tax
es
page
- 8
FINA
NCIA
L IN
DICA
TORS
Berli
n Ri
te A
id/W
algr
eens
200
Plea
sant
Stre
et |
Ber
lin, N
H
Desc
riptio
nYe
ar 1
1Ye
ar 1
2Ye
ar 1
3Ye
ar 1
4Ye
ar 1
5Ye
ar 1
6Ye
ar 1
7Ye
ar 1
8Ye
ar 1
9Ye
ar 2
0
Gro
ss R
ent M
ultip
lier
12.3
312
.04
11.7
812
.07
12.3
712
.68
13.0
013
.33
13.6
614
.00
Capi
taliz
atio
n Ra
te9.
85%
10.3
8%10
.91%
10.9
1%10
.91%
10.9
1%10
.91%
10.9
1%10
.91%
10.9
1%
Cash
On
Cash
Ret
urn
b/t
18.3
7%20
.75%
23.1
3%23
.13%
23.1
3%23
.13%
23.1
3%23
.13%
23.1
3%23
.13%
Cash
On
Cash
Ret
urn
a/t
11.8
4%13
.16%
14.4
7%14
.21%
13.9
5%13
.67%
13.3
8%13
.06%
12.7
4%12
.23%
Debt
Cov
erag
e Ra
tio1.
711.
801.
901.
901.
901.
901.
901.
901.
901.
90
Gro
ss In
com
e pe
r Sq.
Ft.
$16.
28$1
7.09
$17.
90$1
7.90
$17.
90$1
7.90
$17.
90$1
7.90
$17.
90$1
7.90
Expe
nses
per
Sq.
Ft.
($1.
21)
($1.
21)
($1.
21)
($1.
21)
($1.
21)
($1.
21)
($1.
21)
($1.
21)
($1.
21)
($1.
21)
Net I
ncom
e M
ultip
lier
13.3
212
.95
12.6
312
.95
13.2
713
.60
13.9
414
.29
14.6
515
.02
Ope
ratin
g Ex
pens
e Ra
tio7.
44%
7.09
%6.
77%
6.77
%6.
77%
6.77
%6.
77%
6.77
%6.
77%
6.77
%
Loan
To
Valu
e Ra
tio43
.40%
40.2
4%37
.10%
33.9
7%30
.85%
27.7
5%24
.65%
21.5
7%18
.49%
15.4
1%
*b/t
= be
fore
taxe
s; a
/t =
afte
r tax
es
page
- 9
ANNU
AL P
ROPE
RTY
OPE
RATI
NG D
ATA
Berli
n Ri
te A
id/W
algr
eens
200
Plea
sant
Stre
et |
Ber
lin, N
H
Desc
riptio
nYe
ar 1
Year
2Ye
ar 3
Year
4Ye
ar 5
Year
6Ye
ar 7
Year
8Ye
ar 9
Year
10
Rent
al In
com
e$1
06,8
00$1
06,8
00$1
06,8
00$1
06,8
00$1
06,8
00$1
06,8
00$1
14,5
95$1
22,3
90$1
22,3
90$1
22,3
90
GRO
SS S
CHED
ULED
INCO
ME
$106
,800
$106
,800
$106
,800
$106
,800
$106
,800
$106
,800
$114
,595
$122
,390
$122
,390
$122
,390
GRO
SS O
PERA
TING
INCO
ME
$106
,800
$106
,800
$106
,800
$106
,800
$106
,800
$106
,800
$114
,595
$122
,390
$122
,390
$122
,390
Expe
nses
Rep
lace
men
t Res
erve
s($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)
Par
king
Lot T
axes
($33
5)($
335)
($33
5)($
335)
($33
5)($
335)
($33
5)($
335)
($33
5)($
335)
Tax
es -
Real
Est
ate
($7,
274)
($7,
274)
($7,
274)
($7,
274)
($7,
274)
($7,
274)
($7,
274)
($7,
274)
($7,
274)
($7,
274)
TOTA
L O
PERA
TING
EXP
ENSE
S($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)
NET
OPE
RATI
NG IN
COM
E$9
7,69
2$9
7,69
2$9
7,69
2$9
7,69
2$9
7,69
2$9
7,69
2$1
05,4
87$1
13,2
82$1
13,2
82$1
13,2
82
page
- 10
ANNU
AL P
ROPE
RTY
OPE
RATI
NG D
ATA
Berli
n Ri
te A
id/W
algr
eens
200
Plea
sant
Stre
et |
Ber
lin, N
H
Desc
riptio
nYe
ar 1
1Ye
ar 1
2Ye
ar 1
3Ye
ar 1
4Ye
ar 1
5Ye
ar 1
6Ye
ar 1
7Ye
ar 1
8Ye
ar 1
9Ye
ar 2
0
Rent
al In
com
e$1
22,3
90$1
28,4
95$1
34,5
99$1
34,5
99$1
34,5
99$1
34,5
99$1
34,5
99$1
34,5
99$1
34,5
99$1
34,5
99
GRO
SS S
CHED
ULED
INCO
ME
$122
,390
$128
,495
$134
,599
$134
,599
$134
,599
$134
,599
$134
,599
$134
,599
$134
,599
$134
,599
GRO
SS O
PERA
TING
INCO
ME
$122
,390
$128
,495
$134
,599
$134
,599
$134
,599
$134
,599
$134
,599
$134
,599
$134
,599
$134
,599
Expe
nses
Rep
lace
men
t Res
erve
s($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)($
1,50
0)
Par
king
Lot T
axes
($33
5)($
335)
($33
5)($
335)
($33
5)($
335)
($33
5)($
335)
($33
5)($
335)
Tax
es -
Real
Est
ate
($7,
274)
($7,
274)
($7,
274)
($7,
274)
($7,
274)
($7,
274)
($7,
274)
($7,
274)
($7,
274)
($7,
274)
TOTA
L O
PERA
TING
EXP
ENSE
S($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)($
9,10
9)
NET
OPE
RATI
NG IN
COM
E$1
13,2
82$1
19,3
86$1
25,4
91$1
25,4
91$1
25,4
91$1
25,4
91$1
25,4
91$1
25,4
91$1
25,4
91$1
25,4
91
page
- 11
RITE AID EXTENSION LETTER Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH
EgnooKs2l
MAILING ADDRESSPO. Box 3165,Harrisburg, PA 17105OFFICE30 Hunter Lane,Camp Hill, PA 1701 1
volcE 717.761 .2633cAx 717.975.5952November 8, 2017
LEGAL DEPARTMENT
Vfu Certificd MaiL Retarn Receiol Reouesled
Berlin 200 Realty, LLC12 Brook StreetWellesley, Massachusetts 02482
Re: LEASE RENEWAL OPTION FOR RITE AID #102E72OO PLEASAI{T STREETBERLIN, NEW HAMPSHIRE
Ladies and Gentlemen:
Please be advised that MAXI DRUG, INC. hereby elects to exercise its option to extendthe temr of the Lease for the referenced premises for an additional five (5) years. Our new termwill commence on February l, 2019 and will expire on January 31,2024.
While your acknowledgment of receipt of this notice is not required for its validity, werequest that you do so by signing and retuming the copy of this letter in the postage-paidenvelope enclosed.
Very truly yours,
MAXI DRUG, INC.
((t^------'Joseph J. NotarianniVice President
JJN:llb
Acknowledged:
nv,-5.--L,l&-la".sf*a-*,y E or&.|f'kn-
page - 12
RITE AID EXTENSION LETTER Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH
page - 13
WALGREENS LETTER Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH
page - 14
WALGREENS LETTER Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH
page - 15
WALGREENS ASSIGNED LEASE LETTE Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH
page - 16
WALGREENS ASSIGNED LEASE LETTE Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH
page - 17