offering memorandum - loopnet · marcus & millichap is excited to present 63 peckham street in...

63 PECKHAM STREET12-Apartments • Fall River, MA 02724

Offering Memorandum

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to

be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other

person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to

provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of

interest in the subject property. The information contained herein is not a substitute for a thorough due diligence

investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with

respect to the income or expenses for the subject property, the future projected financial performance of the

property, the size and square footage of the property and improvements, the presence or absence of contaminating

substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the

improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or

intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure

has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding

these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the

information provided. All potential buyers must take appropriate measures to verify all of the information set forth

herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017

Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in

this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply

affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or

subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for

the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

63 PECKHAM STREET

Fall River, MA

ACT ID Y0560506

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

Amenities Photo

FINANCIAL ANALYSIS 02Rent Roll Summary

Rent Roll Detail

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03Sales Comparables

MARKET OVERVIEW 04

Market Analysis

Demographic Analysis

63 PECKHAM STREET

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63 PECKHAM STREET

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INVESTMENT

OVERVIEW

63 PECKHAM STREET

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Curtain Lofts Ltd Partnership 3,300

Fall River Public School Dst 2,000

St Vincent Home 2,000

Charlton Memorial Hospital 1,799

CSC Investments Inc 1,193

St Annes Hospital 1,006

Enterprise The 881

Town of Somerset 833

Southcoast Health System Inc 743

Southcoast Hospitals Group Inc 673

Compensated Work Therapy 669

People Incorporated 558

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 33,468 91,129 131,145

2017 Census Pop 32,916 89,809 129,799

2017 Estimate HH 14,962 39,530 55,124

2017 Census HH 14,709 38,944 54,420

Median HH Income $30,621 $36,953 $44,620

Per Capita Income $18,971 $22,261 $26,013

Average HH Income $42,235 $50,927 $60,983

UNIT MIX

NUMBEROF UNITS

UNIT TYPE

6 Studio / One Bath

3 One Bed / One Bath

3 Two Bed / One Bath

12

5

VITAL DATA

Price $595,000 CURRENT YEAR 1

Loan Amount $446,250 CAP Rate 10.50% 12.02%

Loan Type Proposed New GRM 5.53 5.31

Interest Rate / Amortization 4.50% / 25 YearsNet Operating Income

$62,498 $71,542

Price/Unit $49,583Net Cash Flow After Debt Service

22.01% / $32,733 28.09% / $41,778

Price/SF $69.03 Total Return 28.65% / $42,619 35.04% / $52,118

Number of Units 12

Rentable Square Feet 8,619

Year Built 1900

Lot Size 0.16 acre(s)

63 PECKHAM STREET

OFFERING SUMMARY

▪ Twelve Unit Apartment Building

▪ Attractive Unit Mix of Studio, One and Two Bedrooms

▪ Upside to Increase Rents in Appreciating Market of Massachusetts

▪ Centrally located to Area Amenities and Major Roads

▪ Just 20 Minutes to Providence, Rhode Island and less than one hour to Boston

▪ MBTA Commuter Rail Extension planned for 2019

INVESTMENT HIGHLIGHTS

Marcus & Millichap is excited to present 63 Peckham Street in Fall River, Massachusetts. The property is approximately 8619 square feet on .16 acres of land and is

comprised 12 apartments including three two-bedrooms, three one-bedrooms and six studios. The apartments feature spacious layouts, carpet and hardwood floors,

ample storage and outdoor space. Tenants are responsible for all utilities except the studios which is included in the rent. Current ownership has upgraded the apartments

which have been well received based on the property's strong rental history and minimal vacancy.

Buyers have the ability to acquire a multifamily asset with double digit returns in a market that is comprised of 60%+ renters. The new owner will have the ability to

capitalize on the upside potential through raising the current below market rents resulting in over a 12% cap rate. Additionally, potential enhancements to the local

community including neighborhood amenities and local business and residential development continue to be encouraged by the FR Office of Economic Development.

The property is centrally located within walking distance to local amenities including restaurants, shopping, parks and local bus transit. Its less than one-mile to major

routes including I-195 and Route 24 to Providence, Rhode Island (20-minutes) and Boston, Massachusetts (less than 1-hour). Known as the leading textile manufacturing

city in the United States during the 19th century, Fall River is currently experiencing a re-branding phase with local development and city incentives; including the new

Amazon Fulfillment Center and SouthCoast Marketplace that has provided thousands of jobs to the local economy; and the planned Middleboro/Lakeville MBTA commuter

rail extension to Fall River planned for 2019 construction.

INVESTMENT OVERVIEW

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REGIONAL MAP

63 PECKHAM STREET

7

LOCAL MAP

63 PECKHAM STREET

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AERIAL PHOTO

63 PECKHAM STREET

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AMENITIES PHOTO

63 PECKHAM STREET

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63 PECKHAM STREET

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FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

63 PECKHAM STREET

RENT ROLL SUMMARY

12

RENT ROLL DETAIL

FINANCIAL ANALYSIS

63 PECKHAM STREET

OPERATING STATEMENT

13

FINANCIAL ANALYSIS

63 PECKHAM STREET

PRICING DETAIL

14

MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage

offices

$5.1 billion

total national

volume in 2016

Access to

more capital

sources than

any other firm

in the industry

Optimum financing solutions

to enhance value

Our ability to enhance

buyer pool by expanding

finance options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender

progress, insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,651

debt and equity

financings

in 2016

ACQUISITION FINANCING

63 PECKHAM STREET

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63 PECKHAM STREET

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MARKET

COMPARABLES

63 PECKHAM STREET

SALES COMPARABLES MAP

17

63 PECKHAM STREET

(SUBJECT)

70 Barrows St

33-45 Webster St

533 Locust St

302 Hope St

210-220 Bradford Ave

SALES COMPARABLES

1

2

3

4

5

PROPERTY NAME

MARKETING TEAM

63 PECKHAM STREET

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

1

Units Unit Type

Close Of Escrow: 8/2/2017 10 2 Bdr 1 Bath

Sales Price: $680,000

Price/Unit: $68,000

Price/SF: $69.74

Total No. of Units: 10

Year Built: 1969

70 BARROWS STREET70 Barrows St, Fall River, MA, 02724

Units Unit Type



Price/Unit: $50,000

Price/SF: $62.14

CAP Rate: 9.00%


Year Built: 1970

2

33-45 WEBSTER STREET33 Webster St, Fall River, MA, 02723

Units Unit Type

Offering Price: $595,000 6 Studio One Bath

Price/Unit: $49,583 3 One Bed One Bath

Price/SF: $69.03 3 Two Bed One Bath

CAP Rate: 10.50%

GRM: 5.53


Year Built: 1900

Underwriting Criteria

Income $96,876 Expenses $34,378

NOI $62,498 Vacancy ($10,764)

63 PECKHAM ST63 Peckham St, Fall River, MA, 02724

PROPERTY NAME

MARKETING TEAM

63 PECKHAM STREET

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


19

SALES COMPARABLES

Units Unit Type


Sales Price: $445,000 4 2 Bdr 1 Bath

Price/Unit: $55,625

Price/SF: $63.94

CAP Rate: 10.50%


Year Built: 1900

3

533 LOCUST STREET533 Locust St, Fall River, MA, 02720

4

Units Unit Type


Sales Price: $440,000 3 3 Bdr 1 Bath

Price/Unit: $73,333

Price/SF: $79.67


Year Built: 1900

302 HOPE STREET302 Hope St, Fall River, MA, 02721

Close Of Escrow: 8/31/2017


Price/Unit: $41,667

Price/SF: $31.30


Year Built: 1900

5

NOTES

NOTE: Sale includes 2 six-unit apartment buildings totaling 12 units

210-220 BRADFORD AVENUE210 Bradford Ave, Fall River, MA, 02721

63 PECKHAM STREET

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MARKET

OVERVIEW

MARKET OVERVIEW

OVERVIEW

PROVIDENCE

Covering most of Rhode Island, the Providence metro also incorporates

a portion of Southern Massachusetts. The market encompasses more

than 1.6 million residents and 630,000 households. It spans across six

counties: Providence, Bristol, Kent, Newport and Washington in Rhode

Island and Bristol in Massachusetts. The city of Providence was one of

the first cities in the nation, hosts an ivy league school and Fortune 500

companies, and houses the state capitol.

▪ The healthcare industry employs more than 23,000 workers through Care New England, Charter

Care Health Partners and Lifespan hospitals.

▪ Citizens Financial is a leading employer in the state, employing over 5,000 workers within 25

locations, including its company headquarters.

▪ Rhode Island has the highest concentration of jobs in the jewelry industry in the United States,

accounting for 18 percent of the state's manufacturing base.

▪ The metro is also the home of the Rhode Island School of Design and the RISD museum.

DEMOGRAPHICS

40.2

2016MEDIAN AGE:

U.S. Median:

37.7

$54,400

2016 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$57,200

1.6M

2016POPULATION:

Growth2016-2021*:

1.2%

630K

2016HOUSEHOLDS:

1.8%

Growth2016-2021*:

ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

63 PECKHAM STREET

IVY LEAGUE EDUCATION

Brown University enrolls 9,000 students and employs over 4,000. It has been

estimated off-campus student spending totals over $60 million annually.

DIVERSE ECONOMY

Providence is a major industrial, commercial, medical and financial center for

New England. The city is a major supplier of jewelry and silverware.

POPULATION CENTER

Founded in 1636, it is one of the oldest cities in the United States and today is

the third most populous city in New England after Boston and Worcester.

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PROPERTY NAME

MARKETING TEAM

63 PECKHAM STREET

DEMOGRAPHICS

Source: © 2016 Experian

Created on December 2017

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Population 33,349 91,086 131,747

▪ 2017 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2017 Estimate 27,015 82,109 121,478

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Households 15,089 39,950 56,034

▪ 2017 Estimate


Average (Mean) Household Size 2.23 2.26 2.32

▪ 2010 Census


▪ 2000 Census


Growth 2015-2020 0.85% 1.06% 1.65%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

▪ Occupied Units

2022 Projection 15,089 39,950 56,034

2017 Estimate 16,675 43,502 60,035

Owner Occupied 3,758 14,187 26,061

Renter Occupied 11,203 25,343 29,063

Vacant 1,713 3,971 4,911

▪ Persons In Units

2017 Estimate Total Occupied Units 14,962 39,530 55,124

1 Person Units 36.92% 34.64% 31.95%

2 Person Units 29.70% 31.39% 32.80%

3 Person Units 16.25% 16.54% 16.81%

4 Person Units 11.20% 11.44% 12.09%

5 Person Units 3.78% 3.91% 4.23%

6+ Person Units 2.15% 2.08% 2.13%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2017 Estimate

$200,000 or More 0.40% 1.20% 2.06%

$150,000 - $199,000 1.65% 1.99% 2.83%

$100,000 - $149,000 5.77% 8.46% 11.72%

$75,000 - $99,999 8.50% 10.25% 12.03%

$50,000 - $74,999 13.50% 16.13% 17.20%

$35,000 - $49,999 14.15% 13.96% 13.21%

$25,000 - $34,999 13.47% 11.32% 10.07%

$15,000 - $24,999 16.80% 14.61% 12.51%

Under $15,000 25.75% 22.08% 18.36%

Average Household Income $42,235 $50,927 $60,983

Median Household Income $30,621 $36,953 $44,620

Per Capita Income $18,971 $22,261 $26,013

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2017 Estimate Total Population 33,468 91,129 131,145

Under 20 24.35% 22.69% 22.00%

20 to 34 Years 24.22% 22.33% 20.62%

35 to 39 Years 6.66% 6.48% 6.16%

40 to 49 Years 12.18% 12.81% 12.97%

50 to 64 Years 17.36% 19.04% 20.24%

Age 65+ 15.23% 16.65% 18.01%

Median Age 36.01 38.81 40.99

▪ Population 25+ by Education Level

2017 Estimate Population Age 25+ 22,838 64,282 93,481

Elementary (0-8) 15.28% 11.96% 9.85%

Some High School (9-11) 15.79% 13.69% 12.00%

High School Graduate (12) 31.37% 32.22% 31.83%

Some College (13-15) 15.95% 17.03% 17.51%

Associate Degree Only 7.33% 7.67% 8.12%

Bachelors Degree Only 7.03% 9.63% 11.73%

Graduate Degree 3.00% 4.74% 6.33%

▪ Population by Gender

2017 Estimate Total Population 33,468 91,129 131,145

Male Population 47.63% 47.66% 47.96%

Female Population 52.37% 52.34% 52.04%

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Income

In 2016, the median household income for your selected geography is

$44,620, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 28.57%

since 2000. It is estimated that the median household income in your

area will be $52,027 five years from now, which represents a change

of 16.60% from the current year.

The current year per capita income in your area is $26,013, compare

this to the US average, which is $30,982. The current year average

household income in your area is $60,983, compare this to the US

average which is $81,217.

Population

In 2016, the population in your selected geography is 131,145. The

population has changed by -0.24% since 2000. It is estimated that

the population in your area will be 131,747.00 five years from now,

which represents a change of 0.46% from the current year. The

current population is 47.96% male and 52.04% female. The median

age of the population in your area is 40.99, compare this to the US

average which is 37.83. The population density in your area is

1,666.66 people per square mile.

Households

There are currently 55,124 households in your selected geography.

The number of households has changed by 2.71% since 2000. It is

estimated that the number of households in your area will be 56,034

five years from now, which represents a change of 1.65% from the

current year. The average household size in your area is 2.32 persons.

Employment

In 2016, there are 52,873 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

51.66% of employees are employed in white-collar occupations in

this geography, and 48.34% are employed in blue-collar occupations.

In 2016, unemployment in this area is 7.67%. In 2000, the average

time traveled to work was 25.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

88.34% White, 3.42% Black, 0.04% Native American and 2.42%

Asian/Pacific Islander. Compare these to US averages which are:

70.42% White, 12.85% Black, 0.19% Native American and 5.53%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 7.03% of the current year

population in your selected area. Compare this to the US average of

17.88%.

PROPERTY NAME

MARKETING TEAM

63 PECKHAM STREET

Housing

The median housing value in your area was $277,517 in 2016,

compare this to the US average of $193,953. In 2000, there were

26,306 owner occupied housing units in your area and there were

27,362 renter occupied housing units in your area. The median rent at

the time was $372.

Source: © 2016 Experian

DEMOGRAPHICS

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63 PECKHAM STREET

DEMOGRAPHICS

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