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Table of Contents
Investment Details .................................................................................... 3
Professional Bio ....................................................................................... 4
Property Description ................................................................................ 5
Property Photos ........................................................................................ 6
Demographics ........................................................................................... 7
Competition Map ....................................................................................... 9
Maps and Aerials ...................................................................................... 10
Executive Summary .................................................................................. 12
Financial Indicators .................................................................................. 13
Annual Property Operating ................................................................. 14
Loan Analysis ........................................................................................... 15
INVESTMENT DETAILS 55 Main St. Pittsfield55 Main St. | Pittsfield, NH
ANALYSISAnalysis Date August 2018Scenario 11/18/2015
PROPERTYProperty 55 Main St. PittsfieldProperty Address 55 Main St.
Pittsfield, NH
FINANCIAL INFORMATIONDown Payment $115,000Closing Costs $15,000LT Capital Gain 34.00%Federal Tax Rate 39.6%Discount Rate 6.00%
PURCHASE INFORMATIONProperty Type CommercialPurchase Price $575,000Fair Market Value $575,000Tenants 1Total Rentable Sq. Ft. 2,214Resale Valuation 2.0% (annual appreciation)Resale Expenses 4.0%
LOANSType Debt Term Amortization Rate Payment LO CostsFixed $460,000 25 years 25 years 4.5% $2,557
INCOME & EXPENSESGross Operating Income $38,579Monthly GOI $3,215Total Annual Expenses ($2,000)Monthly Expenses ($167)
page - 3
PROFESSIONAL BIO 55 Main St. Pittsfield55 Main St. | Pittsfield, 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 55 Main St. Pittsfield55 Main St. | Pittsfield, NH
Pittsfield is a community of about 4,500 residents. The historic downtown village offers schools, a town library, 2 banks(this property one of the banks), restaurants, auto repairs shops, gas station, dentist office, post office, drug store,hardware store, NH state liquor store and many other small businesses within walking distance of each other in thedowntown district of Pittsfield, NH.
The subject property is located at 55 Main St in Pittsfield, NH. The current use is as a bank branch which has 4 yearsremaining on the original lease expiring in October 31, 2022. The tenant has 3 (5) five years options to renew. Thestarting rent is $37,200.00 and remains at this rate for the first five years of the lease. In year 5 (2017), the annual rentshall be changed by a percentage equal to the annual change in the Boston/Brockton/Nashua, ME-NH-NE-CTConsumer Price Index maintained by the U.S. Department of Labor. Starting in 2017, the rent changes to an annualincrease based on the CPI for the remaining lease term and renewal options.
Landlord is responsible for roof, structure, 33% or more of all resurfacing or replacement of roadways, walkways,parking, repair and replacement of water/sewer systems, repair and replacement fo HVAC and repairs and replacementof water heater.
Property Information:Building Size: 2,214 SFLot Size: 1.21 ACFrontage:55 FT on Main St./ 115FT on Joy Street (back of parcel)Zoned: Commercial
page - 5
PROPERTY PHOTOS 55 Main St. Pittsfield55 Main St. | Pittsfield, NH
61486-PP-1.jpg 61486-PP-2.jpg
61486-PP-3.jpg
61486-PP-4.jpg 61486-PP-5.jpg
page - 6
DEMOGRAPHICS 55 Main St. Pittsfield55 Main St. | Pittsfield, NH
Population 1 Mile 3 Mile 5 MileMale N/A 2,020 (48.66 %) 3,382 (48.95 %)Female N/A 2,131 (51.34 %) 3,527 (51.05 %)Total Population N/A 4,151 6,909
Age Breakdown 1 Mile 3 Mile 5 MileAges 0-4 N/A 186 (4.48 %) 294 (4.26 %)Ages 5-9 N/A 252 (6.07 %) 407 (5.89 %)Ages 10-14 N/A 265 (6.38 %) 441 (5.89 %)Ages 15-19 N/A 282 (6.79 %) 492 (7.12 %)Ages 20-24 N/A 292 (7.03 %) 494 (7.15 %)Ages 25-29 N/A 280 (6.75 %) 456 (6.60 %)Ages 30-34 N/A 264 (6.36 %) 403 (5.83 %)Ages 35-39 N/A 250 (6.02 %) 388 (5.62 %)Ages 40-44 N/A 271 (6.53 %) 442 (6.40 %)Ages 45-49 N/A 302 (7.28 %) 512 (7.41 %)Ages 50-54 N/A 312 (7.52 %) 541 (7.83 %)Ages 55-59 N/A 297 (7.15 %) 507 (7.34 %)Ages 60-64 N/A 258 (6.22 %) 440 (6.37 %)Ages 65-69 N/A 195 (4.70 %) 342 (4.95 %)Ages 70-74 N/A 157 (3.78 %) 272 (3.94 %)Ages 75-79 N/A 119 (2.87 %) 203 (2.94 %)Ages 80-84 N/A 74 (1.78 %) 118 (1.71 %)Ages 85+ N/A 95 (2.29 %) 157 (2.27 %)
page - 7
DEMOGRAPHICS 55 Main St. Pittsfield55 Main St. | Pittsfield, NH
Household Income 1 Mile 3 Mile 5 MileMedian Income N/A $60,634 $65,911Less than $10,000 N/A 30 42$10,000 -$14,999 N/A 151 221$15,000 - $19,999 N/A 94 94$20,000 -$24,999 N/A 53 71$25,000 - $29,999 N/A 28 68$30,000 - $34,999 N/A 57 121$35,000 - $39,999 N/A 174 208$40,000 - $44,999 N/A 71 119$45,000 - $49,999 N/A 9 26$50,000 - $59,999 N/A 202 266$60,000 - $74,999 N/A 168 292$75,000 - $99,999 N/A 327 602$100,000 - $124,999 N/A 98 235$125,000 - $149,999 N/A 56 92$150,000 - $199,999 N/A 52 70Greater than $200,000 N/A 26 62
Housing 1 Mile 3 Mile 5 MileHousing Units N/A 1,821 2,907Occupied Units N/A 1,625 2,645Owner Occupied Units N/A 1,084 1,939Renter Occupied Units N/A 541 706Vacant Units N/A 196 262
Race Demographics 1 Mile 3 Mile 5 MilePopulation Non Hispanic White N/A 4,138 6,894Population Black N/A N/A N/APopulation Am In/Ak Nat N/A N/A N/A
page - 8
COM
PETI
TIO
N M
AP55
Mai
n St
. Pitt
sfie
ld55
Mai
n St
. | P
ittsf
ield
, NH
PITT
SFIE
LD N
H- C
OM
PETI
TIO
N M
AP
54 M
ain
St-a
cros
s the
St.
from
Nor
thw
ay B
ank
$48,
467,
000
in d
epos
its
Subj
ect P
rope
rty-
55
Mai
n St
. $2
7,93
5,00
0 in
Dep
osits
page
- 9
MAP
S AN
D AE
RIAL
S55
Mai
n St
. Pitt
sfie
ld55
Mai
n St
. | P
ittsf
ield
, NH
page
- 10
MAP
S AN
D AE
RIAL
S55
Mai
n St
. Pitt
sfie
ld55
Mai
n St
. | P
ittsf
ield
, NH
page
- 11
EXECUTIVE SUMMARY 55 Main St. Pittsfield55 Main St. | Pittsfield, NH
Acquisition CostsPurchase Price, Points and Closing Costs $590,000Investment - Cash $130,000First Loan $460,000
Investment InformationPurchase Price $575,000Price per Tenant $575,000Price per Sq. Ft. $259.71
Income, Expenses & Cash FlowGross Scheduled Income $38,579Total Vacancy and Credits $0Operating Expenses ($2,000)Net Operating Income $36,579Debt Service ($30,682)Cash Flow Before Taxes $5,897(After Tax Results)
Total Interest (Debt Service) ($20,492)Depreciation and Amortization ($13,082)Taxable Income (Loss) $3,006Tax Savings (Costs) ($1,190)Cash Flow After Taxes $4,707
Financial IndicatorsCash on Cash Return Before Taxes 4.54%Optimal Internal Rate of Return (yr 8) 11.68%Debt Coverage Ratio 1.19Capitalization Rate 6.36%Gross Income / Square Feet $17.43Gross Expenses / Square Feet ($0.90)Operating Expense Ratio 5.18%
page - 12
FINA
NCIA
L IN
DICA
TORS
55 M
ain
St. P
ittsf
ield
55 M
ain
St. |
Pitt
sfie
ld, 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
15.2
015
.19
15.1
715
.16
15.1
415
.13
15.1
115
.10
15.0
815
.07
Capi
taliz
atio
n Ra
te6.
36%
6.50
%6.
65%
6.79
%6.
94%
7.10
%7.
25%
7.41
%7.
58%
7.74
%
Cash
On
Cash
Ret
urn
b/t
4.54
%5.
16%
5.80
%6.
45%
7.11
%7.
79%
8.48
%9.
18%
9.90
%10
.64%
Cash
On
Cash
Ret
urn
a/t
3.62
%4.
03%
4.26
%4.
50%
4.74
%4.
98%
5.21
%5.
45%
5.69
%5.
77%
Debt
Cov
erag
e Ra
tio1.
191.
221.
251.
271.
301.
331.
361.
391.
421.
45
Gro
ss In
com
e pe
r Sq.
Ft.
$17.
43$1
7.79
$18.
16$1
8.55
$18.
94$1
9.33
$19.
74$2
0.15
$20.
58$2
1.01
Expe
nses
per
Sq.
Ft.
($0.
90)
($0.
90)
($0.
90)
($0.
90)
($0.
90)
($0.
90)
($0.
90)
($0.
90)
($0.
90)
($0.
90)
Net I
ncom
e M
ultip
lier
16.0
316
.00
15.9
715
.93
15.9
015
.87
15.8
415
.81
15.7
815
.75
Ope
ratin
g Ex
pens
e Ra
tio5.
18%
5.08
%4.
97%
4.87
%4.
77%
4.67
%4.
58%
4.48
%4.
39%
4.30
%
Loan
To
Valu
e Ra
tio76
.69%
73.4
1%70
.14%
66.8
9%63
.66%
60.4
4%57
.24%
54.0
4%50
.86%
47.6
8%
*b/t
= be
fore
taxe
s; a
/t =
afte
r tax
es
page
- 13
ANNU
AL P
ROPE
RTY
OPE
RATI
NG D
ATA
55 M
ain
St. P
ittsf
ield
55 M
ain
St. |
Pitt
sfie
ld, 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$3
8,57
9$3
9,39
0$4
0,21
7$4
1,06
1$4
1,92
4$4
2,80
4$4
3,70
3$4
4,62
1$4
5,55
8$4
6,51
4
GRO
SS S
CHED
ULED
INCO
ME
$38,
579
$39,
390
$40,
217
$41,
061
$41,
924
$42,
804
$43,
703
$44,
621
$45,
558
$46,
514
GRO
SS O
PERA
TING
INCO
ME
$38,
579
$39,
390
$40,
217
$41,
061
$41,
924
$42,
804
$43,
703
$44,
621
$45,
558
$46,
514
Expe
nses
Rep
lace
men
t Res
erve
s($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)
Man
gem
ent F
ee($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)($
1,00
0)
TOTA
L O
PERA
TING
EXP
ENSE
S($
2,00
0)($
2,00
0)($
2,00
0)($
2,00
0)($
2,00
0)($
2,00
0)($
2,00
0)($
2,00
0)($
2,00
0)($
2,00
0)
NET
OPE
RATI
NG IN
COM
E$3
6,57
9$3
7,39
0$3
8,21
7$3
9,06
1$3
9,92
4$4
0,80
4$4
1,70
3$4
2,62
1$4
3,55
8$4
4,51
4
page
- 14
LOAN
ANA
LYSI
S55
Mai
n St
. Pitt
sfie
ld55
Mai
n St
. | P
ittsf
ield
, NH
Desc
riptio
nYe
ar 1
Year
2Ye
ar 3
Year
4Ye
ar 5
Year
6Ye
ar 7
Year
8Ye
ar 9
Year
10
LOAN
1De
bt S
ervic
e An
alys
is P
rincip
al P
aym
ents
$10,
190
$10,
659
$11,
148
$11,
660
$12,
196
$12,
756
$13,
342
$13,
955
$14,
596
$15,
267
Int
eres
t Pay
men
ts$2
0,49
2$2
0,02
3$1
9,53
4$1
9,02
2$1
8,48
6$1
7,92
6$1
7,34
0$1
6,72
7$1
6,08
6$1
5,41
5
Tot
al D
ebt S
ervic
e$3
0,68
2$3
0,68
2$3
0,68
2$3
0,68
2$3
0,68
2$3
0,68
2$3
0,68
2$3
0,68
2$3
0,68
2$3
0,68
2
Prin
cipal
Bal
ance
Ana
lysis
Beg
inni
ng P
rincip
al B
alan
ce$4
60,0
00$4
49,8
10$4
39,1
51$4
28,0
03$4
16,3
42$4
04,1
46$3
91,3
90$3
78,0
48$3
64,0
92$3
49,4
96
Prin
cipal
Red
uctio
ns$1
0,19
0$1
0,65
9$1
1,14
8$1
1,66
0$1
2,19
6$1
2,75
6$1
3,34
2$1
3,95
5$1
4,59
6$1
5,26
7
End
ing
Prin
cipal
Bal
ance
$449
,810
$439
,151
$428
,003
$416
,342
$404
,146
$391
,390
$378
,048
$364
,092
$349
,496
$334
,229
page
- 15
