101-109 Summer Street Malden, MA

Exclusively Offered By

For Sale: $8,300,000

70-Unit Apartment

Building

303 Congress Street | Boston, MA 02210 | 617.457.3400 | ww.naihunneman.com

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Confidential Offering ............................................. pp. 3 Executive Summary ............................................. pp. 4 General Information Specifications .................................................... pp. 5 Layout ........................................................... pp. 6 Stacking Chart ................................................... pp. 7 Financial Information Rent Roll ........................................................... pp. 8-9 1-Year Financial Analysis .................................. pp. 10 Exterior Photographs ............................................ pp. 11-14 Interior Photographs ............................................. pp. 15-18 Aerial Photographs ............................................... pp. 19 Location ........................................................... pp. 20-21

Table of Contents 101-109 Summer Street │Malden, MA

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Carl Christie

EVP / Principal

617-457-3400 x.2169

cchristie@naihunneman.com

Dan McGee

Investment Sales

617-457-3400 x.2810

dmcgee@naihunneman.com

Confidential Offering Memorandum 101-109 Summer Street

Malden, MA This is a confidential presentation intended solely for your limited use when considering

whether to pursue negotiations to acquire the property. This document and its contents are

confidential and are not to be copied, circulated, or otherwise used or disclosed without the

express, prior written consent of NAI Hunneman Commercial. This investment brochure is

subject to errors, omissions, prior sale, price increase or other change, and withdrawal from

the market without notice. The material contained in this brochure is based in part upon

information supplied by the owner of the property and in part upon information obtained by

NAI Hunneman Commercial from sources it deems to be generally reliable. Summaries

contained herein of any legal documents are not intended to be comprehensive statements

of the terms of such documents but rather only outlines of some of the principal provisions

contained therein. No warranty or representation, expressed or implied, is made by NAI

Hunneman Commercial or any of its subsidiaries as to the accuracy or completeness of the

information.

Note: This property is exclusively listed with NAI Hunneman, Brokers from other firms may

not copy, circulate, disburse, or otherwise disclose this property information without prior

written consent from the listing broker. Cooperating brokers must complete “client registration

form” (available upon request). Cooperating brokers may only share this information with

clients listed on the “client registration form.”

PLEASE CONTACT:

Confidential Offering 101-109 Summer Street │Malden, MA

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Overview: NAI Hunneman, as exclusive agent, is pleased to present for sale a tremendous investment opportunity in the city of Malden. 101-109 Summer Street is a very attractive 70-unit brick building strategically located close to Malden Center. The property is located within walking distance of Malden Center Station (MBTA Orange Line) with direct access (10 minutes) to Boston. This selling point is very helpful in renting the units. There is currently one vacant unit and the property has enjoyed a strong occupancy history. There is upside potential of approximately 5-7% with existing below-market rents. 101-109 Summer Street is available for immediate acquisition with an asking price of $8,300,000. The property has been owned and managed by the same company for 20+ years and their pride in ownership shows throughout the property. The building has been well maintained including recent capital improvements to the roof, windows, and brick façade. A burner replacement is scheduled to convert from oil to gas, which is expected to reduce heating costs by approximately 30%. Property Profile 101-109 Summer Street is a 19,489 ± SF site improved with a 70-unit apartment building, built circa 1923. The four-story building contains four (4) studios, eight (8) two-room studios, forty-six (46) one-bedroom units, and twelve (12) two-bedroom units (see grid below).

Investment Highlights: Rare Opportunity to acquire a sizable brick apartment building in one of metro Boston’s core suburban

markets. Prime location for real estate investment. The subject property is strategically located within walking

distance of the Malden Center T. The neighborhood includes many other apartment buildings close to the subject property. The sought-after location keeps the vacancy rate low in this market.

Upside Potential from renovation and re-leasing. The opportunity exists to renovate the property to a

higher level and maximize market rental value. According to the owner, existing rents are approximately 5-7% below market.

Replacement Cost of this asset would likely rise above the current expected sales price. Attractive Financing for multifamily properties is available and interest rates are at all time lows -

translating into higher cash on cash yields for investors.

Executive Summary 101-109 Summer Street │Malden, MA

TYPE OF UNIT # of UNITS % TOTALStudios 4 5.7%

2-room Studios 8 11.4%1-bedroom units 46 65.7%2-bedroom units 12 17.1%

TOTALS 70 100.0%

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Specifications: Lot Size: 19,489 ± SF lot Utilities: Electricity, Municipal water & sewer, gas, cable, and telephone all serve the subject property Parking: Minimal off-street parking in the rear of the building. There is street parking available and excellent transportation within walking distance at the Malden Center Station (MBTA Orange Line). Building Description: Four-story + basement brick apartment building containing seventy (70) units. There are sixty-four (64) units on floors one through four and six (6) lower-level units Building Size (SF): 49,222 ± SF (gross building area); 43,319 ± SF (living area) - source The Warren Group www.thewarrengroup.com Construction: Brick and wood frame construction, recent brick work done to property Heat: Heat is provided by a single oil-fired boiler located in the lower level. Heat is steam by radiators. The existing burner will be replaced by the current owner and switched to a gas burner. The new system is assumed to reduce heating costs by 30%. Heat is paid by the landlord. Hot Water: Hot water is provided by a new gas hot water heater with three storage tanks. The system was added in 2009. Electricity: Electricity is separately metered and paid by the tenants. Gas: Most units have gas for cooking, except 4 units have electric stoves Windows: Replacement (Stergis) windows added approximately 7-8 years ago Roof: New flat rubber roof added in 2010 Laundry: Coin-operated laundry owned by Mac-Gray Intercom: Intercom buzzer system and fire alarm system Flooring: Hardwood, carpet, and tile flooring Storage: Tenant storage located in the lower level Other Capital Items: New Verizon FIOS, above ground steam returns added last year Units: Some units have newer kitchens and baths and some baths have older tubs on legs

General Information 101-109 Summer Street │Malden, MA

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Layout

General Information 101-109 Summer Street │Malden, MA

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107 105

101 Lower level

103 above

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Stacking Chart

General Information 101-109 Summer Street │Malden, MA

103 Summer4th Floor

103 Summer3rd Floor

103 Summer2nd Floor

103 Summer1st Floor

Unit 117 Unit 120Studio Studio

101 & 103 Summer StreetUnit 401 Unit 402 Unit 403

1-bed 1-bed 1-bedUnit 301 Unit 302 Unit 303

1-bed 1-bed 1-bed

1-bed

Unit 201 Unit 202 Unit 2031-bed 1-bed 1-bed

101 Summer Lower Level

Unit 101 Unit 102 Unit 103

Unit 1181-bed

Unit 1191-bed

1-bed 1-bed

105 Summer Unit 4084th Floor 2-rm Studio

105 Summer Unit 3083rd Floor 2-rm Studio

105 Summer Unit 2082nd Floor 2-rm Studio

105 Summer Unit 1081st Floor 2-rm Studio

105 Summer Lower Level

Systems, Storage, Laundry

1-bed 1-bed 1-bed

105 Summer Street

Unit 3071-bed 1-bed 1-bed 1-bed

Unit 404 Unit 405 Unit 406 Unit 4071-bed

Unit 1071-bed

Unit 204 Unit 205 Unit 206 Unit 2071-bed 1-bed 1-bed 1-bed

Unit 104 Unit 105 Unit 1061-bed 1-bed 1-bed

Unit 304 Unit 305 Unit 306

109 Summer4th Floor

109 Summer3rd Floor

109 Summer2nd Floor

109 Summer1st Floor

109 Summer Lower Level

109 Summer Street

Systems, Storage, Laundry

Unit 114 Unit 115 Unit 1162-bed 1-bed 2-bed

Unit 214 Unit 215 Unit 2162-bed 1-bed 2-bed

Unit 314 Unit 315 Unit 3162-bed 1-bed 2-bed

Unit 4142-bed

Unit 4151-bed

Unit 4162-bed

107 Summer Unit 4134th Floor 2-rm Studio

107 Summer Unit 3133rd Floor 2-rm Studio

107 Summer Unit 2132nd Floor 2-rm Studio

107 Summer Unit 1131st Floor 2-rm Studio

107 Summer StreetUnit 409 Unit 410 Unit 411 Unit 412

1-bed 1-bed 2-bed 1-bedUnit 309 Unit 310 Unit 311 Unit 312

1-bed 1-bed 2-bed 1-bedUnit 209 Unit 210 Unit 211 Unit 212

1-bed 1-bed 2-bed 1-bedUnit 109 Unit 110 Unit 111 Unit 112

1-bed 1-bed 2-bed 1-bedUnit 121 Unit 122Studio Studio

Systems, Storage, Laundry107 Summer Lower Level

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Rent Roll

Financial Information 101-109 Summer Street │Malden, MA

101 Summer StreetUnit # Floor Type Status $/Month Annualized117 LL Studio Occupied $875 $10,500118 LL 1-bed Occupied $1,000 $12,000119 LL 1-bed Occupied $965 $11,580120 LL Studio Occupied $880 $10,560

103 Summer Street101* 1st 1-bed Occupied $965 $11,580102* 1st 1-bed Occupied $975 $11,700103 1st 1-bed Occupied $975 $11,700201 2nd 1-bed Occupied $960 $11,520202 2nd 1-bed Occupied $975 $11,700203 2nd 1-bed Occupied $985 $11,820301 3rd 1-bed Occupied $950 $11,400302 3rd 1-bed Occupied $975 $11,700303* 3rd 1-bed Occupied $985 $11,820401 4th 1-bed Occupied $965 $11,580402 4th 1-bed Occupied $960 $11,520403 4th 1-bed Occupied $985 $11,820

105 Summer Street104 1st 1-bed Occupied $975 $11,700105 1st 1-bed Vacant $950 $11,400106* 1st 1-bed Occupied $955 $11,460107 1st 1-bed Occupied $975 $11,700108 1st 2-room Studio Occupied $835 $10,020204 2nd 1-bed Occupied $975 $11,700205 2nd 1-bed Occupied $950 $11,400206* 2nd 1-bed Occupied $955 $11,460207 2nd 1-bed Occupied $975 $11,700208 2nd 2-room Studio Occupied $800 $9,600304 3rd 1-bed Occupied $975 $11,700305 3rd 1-bed Occupied $925 $11,100306 3rd 1-bed Occupied $945 $11,340307 3rd 1-bed Occupied $975 $11,700308 4th 2-room Studio Occupied $850 $10,200404 4th 1-bed Occupied $985 $11,820405 4th 1-bed Occupied $955 $11,460406 4th 1-bed Occupied $955 $11,460407 4th 1-bed Occupied $975 $11,700408 4th 2-room Studio Occupied $825 $9,900

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Financial Information 101-109 Summer Street │Malden, MA

107 Summer Street109 1st 1-bed Occupied $960 $11,520110 1st 1-bed Occupied $965 $11,580111 1st 2-bed Occupied $1,075 $12,900112* 1st 1-bed Occupied $975 $11,700113 1st 2-room Studio Occupied $825 $9,900121 LL Studio Occupied $855 $10,260122 LL Studio Occupied $865 $10,380209 2nd 1-bed Occupied $975 $11,700210* 2nd 1-bed Occupied $960 $11,520211 2nd 2-bed Occupied $1,075 $12,900212 2nd 1-bed Occupied $975 $11,700213 2nd 2-room Studio Occupied $835 $10,020309 3rd 1-bed Occupied $975 $11,700310 3rd 1-bed Occupied $950 $11,400311* 3rd 2-bed Occupied $1,080 $12,960312 3rd 1-bed Occupied $975 $11,700313 3rd 2-room Studio Occupied $835 $10,020409 4th 1-bed Occupied $975 $11,700410 4th 1-bed Occupied $970 $11,640411 4th 2-bed Occupied $1,075 $12,900412 4th 1-bed Occupied $975 $11,700413 4th 2-room Studio Occupied $875 $10,500

109 Summer Street114 1st 2-bed Occupied $1,085 $13,020115 1st 1-bed Occupied $915 $10,980116 1st 2-bed Occupied $1,075 $12,900214 2nd 2-bed Occupied $1,075 $12,900215 2nd 1-bed Occupied $915 $10,980216 2nd 2-bed Occupied $1,095 $13,140314 3rd 2-bed Occupied $1,075 $12,900315 3rd 1-bed Occupied $900 $10,800316 3rd 2-bed Occupied $1,065 $12,780414 4th 2-bed Occupied $1,075 $12,900415 4th 1-bed Occupied $915 $10,980416* 4th 2-bed Occupied $1,090 $13,080

Totals $67,390 $808,680

Notes:* Units are subsidizedTenants are a mix of leases and tenants-at-will (TAW). After several years of occupancy the landlord will switch from a lease to a TAW. Right now the estimate, from the property manager, is 70/30 lease/TAW.

Rent Roll

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Financial Information 101-109 Summer Street │Malden, MA

1-Year Financial Analysis

Note: * Existing Base rents are approximately 5-7% below market. * The previous heating bill (oil) of $48,000 was reduced to $33,600 (30%) pro-jected new cost after gas conversion. Water/Sewer may also come down, because the boiler return lines were recently replaced. No estimate of new water/sewer bill was projected.

Assumptions & Conclusions:Asking Price $8,300,000$/Unit $118,571Number of Units 70

Mortgage Loan Amount $6,225,000Loan-to-Value Ratio 75%Interest Rate on Mortgage Loan 5.75%Amortization Period of Loan (Years) 30Equity Required $2,075,000

Income 2010 $/YrBase Rental Income @ full occupancy $808,680 *General Vacancy Rate 3.0% -$24,260Net Rental Income $784,420Laundry Income 7,000EFFECTIVE GROSS REVENUE (EGR) $791,420Operating Expenses % of EGR $/Unit 2010 $/YrReal Estate Taxes 6% $729 $51,000Water/Sewer 6% $714 $50,000Heat 4% $480 $33,600 *Hot Water 2% $171 $12,000Insurance 2% $171 $12,000Electricity 1% $114 $8,000Repairs & Maintenance 5% $571 $40,000Management 4% $429 $30,000Total Operating Expenses 30% $3,380 $236,600

NET OPERATING INCOME $554,820

Cash Flow Before Debt Service $554,820 Interest Payment $355,849 Principal Payment 80,080Total Annual Debt Service Payment $435,929Cash Flow After Debt Service $118,891Investment Perfomance MeasuresCash-on-Cash Return on Equity 5.73%Debt Coverage Ratio 1.27Going-In Capitalization Rate 6.68%

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Exterior Photographs 101-109 Summer Street │Malden, MA

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Exterior Photographs 101-109 Summer Street │Malden, MA

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Exterior Photographs 101-109 Summer Street │Malden, MA

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Exterior Photographs 101-109 Summer Street │Malden, MA

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Interior Photographs 101-109 Summer Street │Malden, MA

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Interior Photographs 101-109 Summer Street │Malden, MA

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Interior Photographs 101-109 Summer Street │Malden, MA

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Interior Photographs 101-109 Summer Street │Malden, MA

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Aerial Photographs 101-109 Summer Street │Malden, MA

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Location 101-109 Summer Street │Malden, MA

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Location 101-109 Summer Street │Malden, MA