Goman_&_York_Economic_Report_(1).pdf

111 Founders Plaza East Hartford, CT 06108 Tel: (860) 841-3271 Fax: (877) 741-7210 gomanyork.com

Prepared for the Town of Manchester, CT

October 2022

Programming Analysis and Economic Review 942/1050 Main Street | Manchester, CT

Table of Contents

Assignment and Project Overview 2

Review of Development Concepts 11

APPENDIX: Supplemental Pro forma Financial Workbooks 21

1Financial Analysis: 942/1050 Main Street Manchester, CT

Goman+York was engaged to analyze the financial feasibility of a proposed redevelopment of the property at 942/1050 Main Street for the Town of Manchester, CT. Our analysis includes:

1. Providing four (4) conceptual layouts showing how the property may be utilized, with a focus on mixed-use.

2. The development of preliminary budgets for two (2) of the conceptual projects, including projections for site work, building/redevelopment costs, leasing revenue, operating expenses, projections of expected Net Operating Income, and investor Internal Rates of Return assuming the acquisition of the project is funded through the State grant process and the development is undertaken by a private developer.

3. Estimating the total redevelopment costs.

4. Estimating the cash flow of the property upon the completion of the redevelopment.

The Assignment

942/1050 Main Street | Manchester, CT

Professional Team

Mike Goman

CRX, CLS, CSM

Principal

David Correia Data Scientist

Alyssa Fleming Research & Data

Analyst

Dusty McMahan SVP, Planning &

Design

Financial Analysis: 942/1050 Main Street Manchester, CT

Project Overview Source: Town of Manchester

Concept B Key Facts

• 2.38-acre property

• One structure

• 154,988 sf New Residential

Construction (99 units)

• 7,750 sf New Commercial Space

• 147 Parking Spaces

Concept B Unit Mix

• 22% (22 units) 1 Bedroom Units

• Includes 5 Affordable Units

• 67% (67 units) 2 Bedroom Units

• Includes 13 Affordable Units

• 10% (10 units) 3 Bedroom Units

• Includes 2 Affordable Units

The Town of Manchester intends to purchase the property at 942 Main St. According to the available information, the building at 942 Main St is 39,632 sf, with commercial units accounting for 19,616 sf on the basement floor and 19,616 sf of retail space on the first floor. The property also contains a 13-space parking lot to the rear of the building.

We offer a full analysis on two conceptual redevelopments of 942/1050 Main Street. Concept A is based on HBM’s report and would involve the demolition of the existing building and reconstruction of a 45,174 sf building on the same footprint. Concept B involved the demolition of the existing building and construction of a 154,988 sf mixed-use building with three floors of residential apartments (20% affordable), retail space, and garage parking.

Site Overview

Site viewed from Main St, south of existing Webster Bank location

The left/west half of the picture illustrates a break in Main Street development and in the street-front façades. Just north of the site, across Forest Street, is St James Church. This traditional New England church and steeple upon a hill is a well-maintained landscape that keeps with the appearance of the Park further north. The right/east half of Main Street, to the north, is a continuation of Downtown Main Street’s character.

Site viewed from Main St, from midpoint adjacent to the parking lot

The Town maintained the hardscapes/sidewalks in front of the parking lot and has activated the lot with events such as Farmer’s Markets, the annual Thanksgiving Day Road Race, and other Main Street activities. The 942 Main Street building shows signs of wear and tear and of deferred maintenance. The building does not contribute to or compliment the design and feel of Downtown Manchester’s Main Street.

Community Overview Downtown Manchester Community Overview

Manchester’s Main Street is a well preserved Rockwellian “Main Street America” scene.

As illustrated in HBM’s recent relocation study for the library, Goman+York’s Economic Impact study of the library, and previously in Goman+York’s “Architectural Design Guidelines”; while there is a range of building types from American Gothic and Civil War Era to Art Deco and Mid-Century Modern, the result is a compatible gallery of façades and uses. The Town’s ongoing regulatory oversight and the building owners’ commitment to preservation and maintenance of the area, is a testament to preserving the character of Downtown Manchester.

The building and site, including the parking lot, under review in this analysis, are part of a “gap” in the continuity and character of the downtown experience. This analysis provides an opportunity to address that “gap”, and to further strengthen the concept to be marketed to the development community.

(i.e., better guaranteeing the appropriate type, scale and “permit-ability” of the proposed solution)

St James Church

Webster Bank (current location)

Bennet Academy

CVS

Mary Cheney Library

(current location)

942/1050 Main St Parcel

Cheney Mill District

Center Memorial Park

Community Overview Downtown Manchester Community Overview

Downtown Manchester Community Overview

Household Incomes

Separately, we examined the visitors to both Downtown Manchester, and The Mills Apartments. Using cell phone geo-location data, we can know who is frequenting the area and where they live. Using this information, we ran an Income Profile analysis on the frequent visitors to Downtown Manchester and residents of The Mills.

We can see that frequent visitors to downtown have an average income of $96,000/year and residents of the Cheney Mill District have an average income of $100,000/year.

© Goman York Property Advisors 2022

-6.8% 14.4%

78.3% -12.5%

18.8% -8.5%

26.2% 129.7%

-34.0% -21.3%

-11.5% -21.6%

-14.0% -8.7%

-30.9% -26.5%

-31.3% 5.5%

-24.1% -12.5%

-19.6% 42.6%

6.3% 49.8%

-37.0% -1.9%

-15.0% -15.3%

21.2% -18.8%

14.7% 31.5%

-60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0%

Overview Automobile Dealers

Other Motor Vehicle Dealers Automotive Parts, Accessories, & Tire Stores

Furniture Stores Home Furnishings Stores

Building Material & Supplies Dealers Lawn & Garden Equipment & Supplies Stores

Grocery Stores Specialty Food Stores

Beer, Wine, & Liquor Stores Health & Personal Care Stores

Gasoline Stations Department Stores

Other General Merchandise Stores Clothing Stores

Shoe Stores Jewelry, Luggage, & Leather Goods Stores

Electronics & Appliance Stores Sporting Goods, Hobby, & Musical Instrument Stores

Book, Periodical, & Music Stores Florists And Miscellaneous Store Retailers

Office Supplies, Stationery, & Gift Stores Electronic Shopping & Mail-Order Houses

Used Merchandise Stores Full-Service Restaurants

Limited-Service Eating Places Special Food Services

Bars/Drinking Places (Alcoholic Beverages) Other Miscellaneous Store Retailers

Vending Machine Operators (Nonstore Retailers) Direct Selling Establishments

2022 Leakage/Surplus Factor by Industry Group

Financial Analysis: 942/1050 Main Street Manchester, CT

According to the latest immediate area (15-minute) surplus/leakage report, which compares available supply of each retail industry group and estimated demand by population, the there are many industry groups with unmet demand, indicating strong opportunity.

Retail Leakage/Surplus Analysis Downtown Manchester Market

Review of Development Concepts

As a benchmark, this report will refer to the library relocation study submitted by HBM in May of 2022.

That report shows the newly proposed library location displacing the Webster Bank and relocating it to the southern portion of the 942/1050 Main Street parcels. It also addressed the opportunity to replace the existing single-story building to the north with a larger multi-level building along with associated parking and sidewalk improvements.

The purpose of this analysis is to examine that concept further through demographic and economic reviews to determine the highest and best use of the parcel and parking lot. This will include a population study of the existing residential count on Main Street, within the Downtown Central Business District and adjacent developments such as the condominiums directly adjacent to the west and the larger complex of apartments at the Mills further up Forest Street. This will determine the potential for new residential development and the associated improvements to better facilitate neighborhood interaction with the service providers along Main St.

With respect to the continuity of previous work(s), we are referencing HBM’s library location plan and its subsequent design concept for 942/1050 Main Street as “Concept A”.

The economic modeling of that program will be used as a starting point for further expansion of that idea.

Point of Reference HBM Library Location Study and 942/1050 Main Concept

Concept A Conceptual Site Plan

The above plan is included in the HBM report. That plan places the new library on the current Webster Bank site and relocates the bank across the street to the south end of the 942/1050 Main Street parcel. It also replaces the building to the north with a new 36,000SF multi-level building in contrast to the current single-story structure. This vertical expansion provides for more programable square footage on the parcels and the taller façade blends into the structure of the existing Main Street buildings.

Financial Analysis: 942/1050 Main Street Manchester, CT

Public and Private Parking

Concept A Conceptual Street View

Existing Residential Development

Surface Parking Open to the Public

Existing 942/1050 Main St.

Building Main St. Continued Façades typical of Main St.

Current Webster

Bank Location

Financial Analysis: 942/1050 Main Street Manchester, CT

“Garden Park” at Army & Navy Club and Bank Corner

New Webster Bank with Drive-Thru

New Multi-level Mixed Use

Continued Façades typical of Main St.

Proposed Library Project

Existing Residential Development

(behind)

Surface Parking Open to the Public (between buildings

& behind bank)

Cycle Lane Denoted in Front of Building

(level with paving)

Similar to Concept A, Concept B respects the future development plans of the bike path, median and sidewalk improvements.

However, it brings the façade up to the street-front building line in keeping with the Town of Manchester’s Architectural Design Guidelines as is typical of most other buildings along Main Street.

The north corner of the building is anchored with leasable storefront with the center portion of the site providing covered parking beneath the residential units above. The residential units are comprised of two levels behind the street-frontage façade with a third level set back behind a mansard roof to reduce the vertical height of the façade as seen from pedestrian view at sidewalk level (see elevation studies on the next page).

Like Concept A, this scheme shows the relocated Webster Bank as a single-story stand-alone structure on the southern end of the property with public access parking between the buildings and behind the bank.

Concept B Conceptual Site Plan

Financial Analysis: 942/1050 Main Street Manchester, CT

1st Floor Commercial Space

Parking Under Structure

Proposed Main Street Improvements (including cycle lane)

Surface Parking Open to Public

Relocated Webster Bank

The difference between the existing single-story structure and the building in Concept B will be dramatic. The critical consideration is how any new building on Main Street will provide the highest and best use and contribution to Downtown Manchester’s economic viability, and how well it will blend with the existing character of the Main Street architecture.

There are buildings, typography and other elements of comparable scale that establish precedent for a building of this size in this Downtown location, they are:

• The retaining wall on the west end of the property which is approximately 20 feet tall.

• To the north, St James Church sits approximately 25 feet uphill

• To the south, the Bennett Apartments built in a former school are 3 ½ stories, only slightly smaller in height due to the exaggerated floor-to-floor dimensions typical of school designs of the time.

• The height of new library across the street would be of relative scale to the new brick façade proposed here.

Floors 2-3 Standard Floorplate

Upper Mansard Floorplate and Terraces

Upper Floors as seen from the Condos, looking East (above the improved retaining wall)

Elevation Along Main Street Looking West

Bennett Apartments (converted to housing)

Corner Retail with Entrance to Elevator Lobby with

Residential Above

Extension of Covered Parking with

Residential Above

Army & Navy Club

Stand Alone Webster Bank Branch with

2-floors of Studios Above

St James Church

Concept B Envelope Study

Concept B Conceptual Street View

Existing Residential Development

Surface Parking Open to the Public

Existing 942/1050 Main St.

Building Main St. Continued Façades typical of Main St.

Current Webster

Bank Location

Financial Analysis: 942/1050 Main Street Manchester, CT

New Multi-level Mixed Use Extended

Further South

Proposed Library Project

“Garden Park” at Army & Navy Club and Bank Corner

Existing Residential Development

(behind)

New Webster Bank with Drive-Thru

Surface Parking Open to the Public (between buildings

& behind bank)

Continued Façades typical of Main St.

Cycle Lane Denoted in Front of Building

(level with paving)

Concept C Conceptual Site Plan

The north corner of the building is anchored with leasable storefront with the center portion of the site providing covered parking beneath the residential units above. The residential units are comprised of two levels behind the street front façade with a third level set back behind a mansard roof to reduce the vertical height of the façade as seen from pedestrian view at sidewalk level and keep it in scale with the rest of Main St. The relocated Webster Bank is located on the lower level within the structure on the southern end of the property with public access parking in between the buildings and behind the bank.

ELEVATION ALONG MAIN STREET LOOKING WEST

Webster Bank Branch within Building plus Additional Leasable

Space and Residential Above Army & Navy Club

Extension of Covered Parking with

Residential Above

Corner Retail with Entrance to Elevator Lobby with

Residential Above

Financial Analysis: 942/1050 Main Street Manchester, CT

1st Floor Commercial Space

Parking Under Structure

Proposed Main Street Improvements (including cycle lane)

Concept D Conceptual Site Plan

The north corner of the building is anchored with leasable storefronts with the center portion of the site providing covered parking beneath the residential units above. The residential units are comprised of two levels behind the street front façade with a third level set back behind a mansard roof to reduce the vertical height of the façade as seen from pedestrian view at sidewalk level. The Webster Bank is shown as a 3-story stand-alone structure on the southern end of the property with adjacent leasable space and studios apartments on the upper 2 floors.

Webster Bank Branch Stand Alone with

2-floors of Studios Above Army & Navy Club

Extension of Covered Parking with

Residential Above

ELEVATION ALONG MAIN STREET LOOKING WEST

Corner Retail with Entrance to Elevator Lobby with

Residential Above

Financial Analysis: 942/1050 Main Street Manchester, CT

1st Floor Commercial Space

Parking Under Structure

Proposed Main Street Improvements (including cycle lane)

Conceptual Redevelopment – Concept B Pro forma Development Costs

For the purposes of this study, Goman+York created a preliminary project cost estimate and cash flow estimate for the redeveloped project. We considered in our analysis certain information provided by Gary Anderson, Director of Planning & Economic Development for the Town of Manchester.

After accounting for the following expenses; Land & Site, Construction, Soft costs, Financing & Leasing, and Developer Fees, Goman+York estimates the Total Development Cost to be $45,909,682.

Using the rental rates below and $14 rent per sf of commercial space, we estimate the Effective Gross Revenue to be $2,452,856. Operating Expenses are projected to be $760,105, resulting in a Net Operating Income of $1,692,751. Assuming a 7.00% Capitalization Rate, this values the property at $24.18 million.

Residential Unit Mix Unit Type # Units SF/Unit $/Unit $/SF

1 Bedroom 17 850 $1,870 2.20 1 Bedroom - Affordable 5 850 $1,190 1.40 2 Bedroom 54 1,250 $2,375 1.90 2 Bedroom - Affordable 13 1,250 $1,480 1.18 3 Bedroom 8 1,500 $2,550 1.70 3 Bedroom - Affordable 2 1,500 $1,800 1.20

APPENDIX:

Supplemental Pro forma

Financial Workbooks

Financial Summary – Concept A Goman+York estimates

Financial Analysis: 942/1050 Main Street Manchester, CT

Project Summary & Assumptions Sources $ $/Unit $/SF % Total Stabilized Operating Income $ $/Unit Project Name Senior Construction Loan $7,384,952 $492,330 $297.5 60.0% Gross Potential Rent $1,141,044 $76,070 Address Equity $4,923,301 $328,220 $198.4 40.0% Retail Income $330,000 $22,000 # Units Total Sources $12,308,253 $820,550 $495.90 100.0% Office Income $540,000 $36,000 Retail NRSF CAM Income $271,044 $18,070 Office NRSF Development Costs $ $/Unit $/SF % Total Vacancy (27,104)$ (1,807)$ Surface Parking Spaces 53 Land & Site Costs $2,148,200 $143,213 $47.55 17.5% Effective Gross Revenue $1,113,940 $74,263 Construction Period Construction Costs $7,804,482 $520,299 $172.76 63.4% Time to Stabilization Soft Costs $1,219,435 $81,296 $26.99 9.9% Operating Expenses $ $/Unit Tax Abatement Terms Financing & Leasing Costs $682,765 $45,518 $15.11 5.5% Administrative & Payroll $57,052 $3,803

Developer Fees $453,371 $30,225 $10.04 3.7% Residential Real Estate Taxes $199,683 $13,312 Unit Mix Total Development Cost $12,308,253 $820,550 $272.46 100.0% Marketing $3,300 $220 Unit Type # Units SF/Unit $/Unit $/SF Utilities $9,900 $660

Retail Space 5 3,000 $5,500 22.00 Insurance $15,609 $1,041 Office Space 10 3,000 $4,500 18.00 Financing Maintenance $13,200 $880 TOTAL 15 3000 $5,000 $20.00 Deal Terms Property Management $16,500 $1,100

Construction Interest Rate Commercial - CAM $135,522 $9,035 Loan-to-Value 65% Commercial - Property Taxes $135,522 $9,035 Capitalization Rate 7.00% Total Operating Expenses $586,288 $39,086 Stabilized Valuation $7,537,882

Net Operating Income Operating Expense Ratio Return on Cost

$527,652 51.4% 4.3%

6.5%

Concept A 942/1050 Main Street, Manchester, CT

15,058 30,116

24 Months 9 Months

No Abatement

Public-Private Partnership

Development Costs – Concept A Goman+York Numbers

Financial Analysis: 942/1050 Main Street Manchester, CT

Costs Units Unit Desc. $/Unit Cost to

Complete ($)

Land Costs:

Purchase Price 2.38 acre 735,294.12 1,750,000

Site Costs:

Survey & Topo 12,500

Environmental Reports 20,000 Environmental Remediation 75,000

Geo-Tech Reports 22,500 Sitework & Demolition 63,025 acre 150,000

Utility & Infrastructure Improvements 82.0 unit 1,000 82,000 Site Cost: Contingency % 0.10 36,200

Sub-Total: Land/Site 2,148,200

Construction:

Commercial Space 45,174 $/sq.ft. 140 6,324,360 Manchester Permits/ Fees 94,880 Surface Parking 53 spaces 18000 954,000 Parking Lot Lighting 18,550 sf 2 37,100 Landscaping & Wayfinding 22,500 Construction Cost Contingency 5% % 0.05 371,642 Sub-Total: Construction 7,804,482

Development Costs 2 – Concept A Goman+York Numbers

Financial Analysis: 942/1050 Main Street Manchester, CT

Soft Costs:

Architectural 5% % 497,634 Engineering 5% % 497,634 Legal 25,000 Consultants 45,000 Property Taxes - Construction Period 40,490 Tenant Buy Out 10,000 per/tenant 4 40,000 Insurance per $100 0.2 15,609 Contingency: Soft Costs 5% % 0.05 58,068 Sub-Total: Soft Costs 1,219,435

Leasing Costs Lease Commissions - Commercial 5% % 43,500 Sub-Total: Leasing Costs 43,500

Financing:

Interest - Constr. Period 6.5% % 301,259 Interest Reserve 301,259 Construction Loan: Fees 0.75% % 36,747 Sub-Total: Financing 639,265

Development Fees 0.05 % 0.05 453,371

Total: Development Costs 12,308,253$ Total: Development Costs - P.S.F. 272.46$

Stabilized Operating Cash Flow – Concept A Goman+York Numbers

Financial Analysis: 942/1050 Main Street Manchester, CT

Income: Rental Retail Space $/ Sq. Ft. 22.00 330,000 Office Space $/ Sq. Ft. 18.00 540,000 CAM $/Sq. Ft. 6.0 271,044

Income: Total Rental 1,141,044

Commercial Vacancy % 10% (27,104) Gross Rental Income 1,113,940

Operating Expenses:

Administrative & Payroll % 5% 57,052

RE Taxes % 17.5% 199,683 Marketing % 1% 3,300

Utilities % 3.0% 9,900 Insurance $/$100 0.20$ 15,609

Maintenance % 4.0% 13,200 Property Management % 5% 16,500

Commercial - CAM $/Sq. Ft. 3.00 135,522 Commercial - Property Taxes $/Sq. Ft. 3.00 135,522

Gross Operating Expenses % 51.4% 586,288

Net Operating Income (NOI) 527,652

Net Cash Flow Before Debt Service 527,652 Stabilized Valuation Cap. Rate 7.00% 7,537,882

Permanent Loan - 1.15 DSCR 6,215,597 Debt Service - Permanent Loan (458,828)

Net Cash Flow - Annual 68,824

Financial Summary – Concept B Goman+York estimates

Financial Analysis: 942/1050 Main Street Manchester, CT

Project Summary & Assumptions Sources $ $/Unit $/SF % Total Stabilized Operating Income $ $/Unit Project Name Senior Construction Loan $27,545,809 $278,240 $1,109.8 60.0% Gross Potential Rent $2,641,730 $26,684 Address Equity $18,363,873 $185,494 $739.9 40.0% Residential Income $452,880 $4,575 # Units Total Sources $45,909,682 $463,734 $1,849.71 100.0% Commercial Income $108,500 $1,096 Residential NRSF CAM Income $23,250 $235 Commercial NRSF Development Costs $ $/Unit $/SF % Total (Vacancy/Bad Debt) (188,874)$ (1,908)$ Surface Parking Spaces 0 Land & Site Costs $2,927,000 $29,566 $18.89 6.4% Effective Gross Revenue $2,452,856 $24,776 Garage Parking Spaces Construction Costs $34,811,783 $351,634 $224.61 75.8% Construction Period Soft Costs $4,040,024 $40,808 $26.07 8.8% Operating Expenses $ $/Unit Time to Stabilization Financing & Leasing Costs $2,181,739 $22,038 $14.08 4.8% Administrative & Payroll $132,087 $1,334 Tax Abatement Terms Developer Fees $1,949,137 $19,688 $12.58 4.2% Real Estate Taxes $462,303 $4,670

Total Development Cost $45,909,682 $463,734 $296.21 100.0% Marketing $3,815 $39 Residential Unit Mix Utilities $11,444 $116 Unit Type # Units SF/Unit $/Unit $/SF Insurance $69,624 $703

1 Bedroom 17 850 $1,870 2.20 Financing Maintenance $15,259 $154 1 Bedroom - Affordable 5 850 $1,190 1.40 Deal Terms Property Management $19,074 $193 2 Bedroom 54 1,250 $2,375 1.90 Construction Interest Rate Commercial - CAM $23,250 $235 2 Bedroom - Affordable 13 1,250 $1,480 1.18 Loan-to-Value 65% Commercial - Property Taxes $23,250 $235 3 Bedroom 8 1,500 $2,550 1.70 Capitalization Rate 7.00% Total Operating Expenses $760,105 $7,678 3 Bedroom - Affordable 2 1,500 $1,800 1.20 Stabilized Valuation $24,182,160 TOTAL 99 1487 $1,878 $1.60 Net Operating Income

Operating Expense Ratio Return on Cost

$1,692,751 28.8% 3.7%

6.5%

Concept B 42/1050 Main Street, Manchester, CT

147,238

7,750

24 Months

9 Months No Abatement

Public-Private Partnership

Development Costs – Concept B Goman+York Numbers

Financial Analysis: 942/1050 Main Street Manchester, CT

Costs Units Unit Desc. $/Unit Cost to Complete

Land Costs:

Purchase Price 2.38 acre 735,294 1,750,000

Site Costs;

Survey & Topo 12,500

Environmental Reports 20,000 Environmental Remediation 75,000

Geo-Tech Reports 22,500 Sitework & Demolition 360,504 acre 858,000

Utility & Infrastructure Improvements 82.0 unit 1,000 82,000 Site Cost: Contingency % 0.10 107,000

Sub-Total: Land/Site 2,927,000

Construction:

Residential Apartments 147,238 $/sq.ft. 180 26,502,840 Retail Space 7,750 $/sq.ft. 125 968,750 Manchester Permits/ Fees 412,089 Garage Parking 147 spaces 35000 5,145,000 Parking Lot Lighting 51,450 sf 2 102,900 Landscaping & Wayfinding 22,500 Construction Cost Contingency 5% % 0.05 1,657,704 Sub-Total: Construction 34,811,783

Development Costs 2 – Concept B Goman+York Numbers

Financial Analysis: 942/1050 Main Street Manchester, CT

Soft Costs:

Architectural 5% % 1,740,589 Engineering 5% % 1,886,939 Legal 25,000 Consultants 45,000 Property Taxes - Construction Period 40,490 Tenant Buy Out 10,000 per/tenant 4 40,000 Insurance per $100 0.2 69,624 Contingency: Soft Costs 5% % 0.05 192,382 Sub-Total: Soft Costs 4,040,024

Leasing Costs Lease Commissions - Residential 5% % 125,499 Lease Commissions - Commercial 5% % 5,425 Sub-Total: Leasing Costs 130,924

Financing:

Interest - Constr. Period 6.5% % 966,464 Interest Reserve 966,464 Construction Loan: Fees 0.75% % 117,888 Sub-Total: Financing 2,050,815

Development Fees 0.05 % 0.05 1,949,137

Total: Development Costs 45,909,682$ Total: Development Costs - P.S.F. 296.21$

Stabilized Operating Cash Flow – Concept B Goman+York Numbers

Financial Analysis: 942/1050 Main Street Manchester, CT

Income: Rental 1 Bedroom $/ Sq. Ft. 2.20 381,480 1 Bedroom - Affordable $/ Sq. Ft. 1.40 71,400 2 Bedroom $/ Sq. Ft. 1.90 1,539,000 2 Bedroom - Affordable $/ Sq. Ft. 1.18 230,100 3 Bedroom $/ Sq. Ft. 1.70 244,800 3 Bedroom - Affordable $/ Sq. Ft. 1.20 43,200

Commercial: Retail $/Sq. Ft. 14.0 108,500 Commercial: CAM $/Sq. Ft. 3.0 23,250

Income: Total Rental 2,641,730

Residential Vacancy/Bad Debt Loss % 7% (175,699) Commercial Vacancy % 10% (13,175)

Gross Rental Income 2,452,856

Operating Expenses:

Administrative & Payroll % 5% 132,087

Real Estate Taxes % 17.5% 462,303 W Marketing % 1% 3,815

Utilities % 3.0% 11,444 Insurance $/$100 0.20$ 69,624

Maintenance % 4.0% 15,259 Property Management % 5% 19,074

Commercial - CAM $/Sq. Ft. 3.00 23,250 Commercial - Property Taxes $/Sq. Ft. 3.00 23,250

Gross Operating Expenses % 28.8% 760,105

Net Operating Income (NOI) 1,692,751

Net Cash Flow Before Debt Service 1,692,751 Stabilized Valuation Cap. Rate 7.00% 24,182,160

Thank You!

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East Hartford, CT 06108 Fax: (877) 741-7210 http://gomanyork.com