SLADE’S MILL

Revere, MA Confidential Offering Memorandum

303 Congress Street | Boston, MA | 617.457.3400 | nailhunneman.com

Table of Contents Confidential Offering Memorandum pp. 3 Executive Summary pp. 4-5 Property Overview pp. 6-7 Financial Information pp.8-9 Location pp. 10-12 Photographs pp. 13-16 Plans pp. 17

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Confidential Offering Memorandum

FOR SALE: $2,160,000

Disclaimer: Information included or referred to herein is furnished by third parties and is not guaranteed as to its accuracy or completeness. You understand that all information included or referred to herein is confidential and furnished solely for the purpose of your review in connection with a potential purchase of the subject property. Independent estimates of pro forma income and expenses should be developed by you before any decision is made on whether to make any purchase. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual documents to which they relate. The asset owner(s), their servicers, representatives and/or brokers, including but not limited to NAI Hunneman and their respective agents, representatives, affiliates and employees, (i) make no representations or warranties of any kind, express or implied, as to any information or projections relating to the subject asset(s), and hereby disclaim any and all such warranties or representations, and (ii) shall have no liability whatsoever arising from any errors, omissions or discrepancies in the information. Any solicitation for offers to purchase the subject asset(s) is subject to prior placement and withdrawal, cancellation or modification without notice.

Carl Christie Dan McGee

EVP Investment Sales Associate

617.457.3400 x. 2169 617.457.3400 x.2810

cchristie@naihunneman.com dmcgee@naihunneman.com

770 Revere Beach Parkway Revere, MA

CONTACT INFORMATION

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Executive Summary

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OUTSTANDING INVESTMENT NAI Hunneman, as exclusive agent, is pleased to present for sale a unique investment opportunity. Slade’s Mill is an 18-unit rental property located at 770 Revere Beach Parkway in Revere, MA. This building was originally built in 1721 as a tidal-powered grist mill. The historic building was gut renovated in 2003 into its present use which includes one (1) office, twelve (12) studio apartments, and five (5) one-bedroom apartments. The building is fully occupied and generating over $207,000 in gross annual income. Slade’s Mill represents an excellent opportunity to acquire a stabilized income property with upside potential. It is available for immediate acquisition with an asking price of $2,160,000 EXCELLENT LOCATION 770 Revere Beach Parkway is well-located 13 minutes north of downtown Boston. There is convenient access to the interstate highways (I-93) via Route 1 and Route 1A. Route 1A provides a direct route to the Mass Pike and Logan Airport. The closest subway is the MBTA Blueline at Beachmont Station in Revere. Beachmont is only (1.3 miles) 3-4 minutes from the property. Slade Mill is a convenient location for commuters working in Boston and its excellent highway access makes it easy to get to area shops, restaurants and businesses throughout metro Boston.

ATTRACTIVE INTERIOR The renovation of the building incorporated some of the original features of the spice mill. The building houses pieces of historic equipment, artifacts, and signs. Most rental units feature the original hardwood floors and some have exposed wood/fixtures from when the mill was in operation. Other attractive features, in some units, include exposed brick walls, cathedral ceilings, and water views of Mill Creek. The office is rented to a tenant using it as an artist studio. The kitchens and baths are modern and functional for rental units. There may be upside potential by doing higher end kitchens, appliances, and baths. This building cannot be replicated in its current form and its distinctive features should continue to attract and retain tenants.

Executive Summary

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HISTORY 1721- 1734 The mill was built as a tidal-powered grist mill 1735-1827 Various owners 1827 Henry Slade acquired a share of the mill and began to grind snuff as well as corn 1837 Slade’s sons, David and Levi, joined the business and started to grind spices. 1850 - mid-1900s D&L Slade Company became the largest producer of spices in New England and an important part of Asian trade with New England 1918 D&L Slade Company acquired Bell’s Seasonings and consolidated manufacturing at the mill 1932 The mill was converted to electricity 1972 The mill was added to the National Register of Historic Places. In any award of priority medals to tide-mills Massachusetts looms large. On the creek between Chelsea and Revere, adjoining the Revere Beach Parkway, stands the Slade Spice Mill after a genesis that turns back the pages of time to the year 1721. Except for brief interruptions due to fire, this tide-mill has been in continuous operation for almost 200 years. By an ancient provision in the original charter, it must at all times hold itself ready to grind corn for any citizen of Chelsea, provided the corn is Chelsea raised! It is to be feared, however, that if the plant depended for its business upon the present-day crop of Chelsea its time-honored career would abruptly terminated! Serenely it rests even as of yore on the edge of the marshes in the shadow of old Power Horn Hill, steeped in the glamorous romance of pioneer days. Despite the fact that more than half the mill now has modern electrical equipment, the tide-driven machinery is steadfastly retained and operated daily. An old stone dam spans the tidewater creek and creates an ideal mill-pond for water storage. Great gates in the sluice-way are hinged with dowels of stout wood. On the flow the pressure of the in sweeping tide opens these gates. At the ebb they close and the reservoir of imprisoned water holds them shut. From this head of eight to ten feet is obtained the tidal urge that turns the wheels. source: “Tide-Mills in New England.” By Alfred Elden. In Old-Time New England, XXV, no. 4, April 1935. .

Property Overview

Site Information Building Specifications

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Year Built: Circa 1734, renovated in 2003-2004

Description: Eighteen (18) rental units; seventeen (17) residential and one (1) office unit

Occupancy: 100% occupied

Construction: Wood frame construction, wood shingles, pitched asphalt shingle roof

Building Area: 12,930 ± SF gross area; 9,700 ± SF rentable area

Unit Mix: One (1) office, twelve (12) studios, and five (5) one-beds

Heating: Gas forced hot water baseboard heat; the boiler is less than a year old; the landlord pays heat and hot water

Electricity: Separately metered electric, tenants pay electricity

Windows: Wood and glass with storm windows

Laundry: Coin-operated laundry machines operated by Mac Gray

Lot Size (SF): 11,905 ± SF lot Zoning: TED District (Technology Enterprise District) Utilities: Electric, city water/sewer, telephone, cable (Comcast), Natural Gas (Nstar) Assessed Value: $987,100 (FY 2014) Parking: There are eighteen (18) parking spaces, including one canoe launch parking area.

Property Overview

Disclosure

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The property is listed on the National Register of Historic Places. There is a facade easement to the National Architectural Trust. There is a Chapter 91 easement/permit/rules that must be complied with pertaining to Mass Public Waterfront Act. There is a public walkway and canoe launch. The interior Historic Interpretive Center on the ground floor is to be open to the public by appointment (there has been no request for appointments since about 2005). The allowed use (under the certificate of use) is believed to be a lodging house, although to the owner’s knowledge there is no prohibition against operating the units similar to apartments with annual leases, etc. The property is believed to come with riparian rights to the river. There are no lead paint certificates, however the building was gut renovated in 2003-2004, so no lead paint (or a very minor amount on some of the historic artifacts) is believed to exist there. Any buyer must rely solely on his/her own due diligence on all matters related to this property, and not rely on any disclosures provided by seller.

Financial Information

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RENT ROLL

Unit Status Type Size (SF) Current RentOffice Occupied Office 300 $535101 Occupied 1 BR 920 $1,150201 Occupied Studio 400 $895202 Occupied Studio 400 $925203 Occupied Studio 400 $915204 Occupied Studio 400 $915205 Occupied Studio 400 $900206 Occupied Studio 400 $915207 Occupied 1 BR 920 $1,075208 Occupied 1 BR 920 $1,050301 Occupied Studio 400 $925302 Occupied Studio 400 $1,035303 Occupied Studio 400 $925304 Occupied Studio 400 $990305 Occupied Studio 400 $905306 Occupied Studio 400 $935307 Occupied 1 BR 920 $1,200308 Occupied 1 BR 920 $1,095

$17,285$207,420

TOTAL MONTHLYTOTAL ANNUALLY

Financial Information

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INCOME AND EXPENSES

The income is taken from the current rent roll. Laundry income is estimated. A 4% vacancy loss is deducted from the rental income. Operating expenses were provided from the owner from 2013 operations. The gas heating is estimated for 2014 based on the buildings recent conversion from oil to gas. Insurance is estimated for 2014 based on current premiums. The owner is out of state and uses local agents to rent the property. No leasing costs were assumed as a local owner may manage the property differently.

INCOME $/Mth $/YearRental Income $17,285 $207,420Laundry Income $1,979Potential Gross Income $17,285 $209,399Vacancy & Credit Loss (% of Rents) 4.00% ($8,297)EFFECTIVE GROSS REVENUE: $201,102OPERATING EXPENSES $/Unit $/YearManagement $600 $10,800Property Taxes $853 $15,349Cleaning & Maintenance $739 $13,310Insurance $755 $13,586Electricity $194 3,500Gas Heating $611 11,000Water & Sewer $576 10,366Total Operating Expenses $4,328 $77,911NET OPERATING INCOME $123,191

Location Metro Boston 770 Revere Beach Parkway is located in Revere, MA . Revere is a city located in Suffolk County, about 5 miles north of Boston’s CBD. Logan International Airport is approximately 4 miles south of Revere. The city has multiple MBTA train stops from the three Blue Line Stations. 770 Revere Beach Parkway is fortunate to be well-located in the close-in suburbs of Boston. Boston is the state capital and regional hub of New England. Boston, with its diverse array of cultural attractions, exciting recreational opportunities, and numerous world-class sports venues, routinely scores very high in quality-of-life studies. In addition to being a vibrant 24-hour city, Boston is also most well-known for its history and its place at the very forefront of American history.

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Boston is a prosperous and very dynamic center of high-tech industry, state-of-the-art medical services, and advanced education. With a global reputation as a bastion of trusted guardians of endowment, trust, retirement, and institutional savings, Metropolitan Boston is also home to scores of investment management and financial services firms. Metropolitan Boston has long been considered one of the most innovative areas in the world with a resilient economy, excellent infrastructure, and dozens of internationally renowned universities. Boston and neighboring Cambridge are home to more than 20 colleges including two of the highest ranked universities in the world, Harvard and M.I.T.; in addition to more than 30 hospitals and research facilities such as Massachusetts General Hospital, Brigham and Women’s, and Beth Israel Deaconess Medical Center.

Location According to the bureau of Labor statistics, the unemployment rate in Massachusetts was 6% in April, 2014. The rate was 5.2% in the city of Boston and the US rate was 6.3% at the same time. “The Mass economy added more than 10,000 jobs in December 2013 as the state capped its best year for job growth since the dot-com era. Massachusetts added 55,000 jobs for the year despite any negative effects of the government shutdown and sequestration. In December, the biggest job gains came in professional, scientific and business services sector, which includes technology, scientific research, and consulting firms and added 4,700 jobs. Trade, transportation, and utilities, which includes retailers, added 4,300 jobs last month. Leisure and hospitality, which includes hotels and restaurants, added 2,600 jobs over the month.” - source the Boston Globe

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Metro Boston Continued In addition to its large education and health care sector – which accounts for more than 20% of all jobs within the region – Boston is also supported by its strong performing high technology sector, which has posted significant job gains and has helped to drive the state’s innovative “knowledge-based” economy. Massachusetts’ steady production of goods and services, a common measure of economic growth, is also driving the state’s economic improvement, which is further supported by a high concentration of manufacturing and technology firms within the region.

Location

Revere The property is located on Revere Beach Parkway, which has a variety of commercial, retail, and multifamily properties. There are numerous restaurants (see map), bars, and other entertainment options within close proximity. In addition, it is only a short drive to the Atlantic Ocean with beaches, swimming, fishing, an other outdoor recreation opportunities.

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Demographics

Photographs

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Photographs

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Photographs

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Photographs

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Plans

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The following pages include a site plan and floor plans for the property