FREESTANDING NORWOOD MEDICAL OFFICE · 2018. 8. 21. · FREESTANDING NORWOOD MEDICAL OFFICE SALES COMPARABLES rentpropertyname1 rentpropertyaddress1 rentpropertyname1 rentpropertyaddress1

FREESTANDING NORWOOD MEDICAL OFFICE480 Washington St • Norwood, MA 02062

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. © 2018 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.

FREESTANDING NORWOOD MEDICAL OFFICE

Norwood, MA

ACT ID Z0560093

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

Floor Plan

FINANCIAL ANALYSIS 02

Tenant Summary

Lease Expiration Summary

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03

Sales Comparables

Lease Comparables

MARKET OVERVIEW 04

Market Analysis

Demographic Analysis


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4

INVESTMENT

OVERVIEW


#

OFFERING SUMMARY

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EXECUTIVE SUMMARY

EXPENSES

Current $/SF

Electric $11,010 $0.86

Janitorial $2,940 $0.23

*Water/Sewer $596 $0.05

Heat $5,464 $0.43

Trash Removal $1,566 $0.12

Repairs & Maintenance $1,171 $0.09

Landscaping/Plow $4,300 $0.33

Security $1,467 $0.11

Insurance $3,791 $0.30

Real Estate Taxes $24,234 $1.88

Total Expenses $56,539 $4.40

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 13,899 54,255 127,138

2017 Census Pop 13,607 52,680 121,932

2017 Estimate HH 6,112 21,523 49,768

2017 Census HH 5,948 20,795 47,472

Median HH Income $74,991 $94,319 $95,243

Per Capita Income $45,354 $52,807 $52,723

Average HH Income $102,730 $132,635 $133,971

VITAL DATA

PRO FORMA

Price $2,375,000 Pro Forma Cap Rate 7.86%

Down Payment 25% / $593,750 Net Operating Income $186,654

Loan Amount $1,781,250 Net Cash Flow After Debt Service 12.44% / $73,860

Loan Type Proposed New Total Return 17.21% / $102,197

Interest Rate / Amortization 4.85% / 30 Years

Rentable SF 12,839

Price/SF $184.98

Parking Spaces 36

Year Built/Renovated 1959/2009

Lot Size 0.57 acre(s)


OFFERING SUMMARY

▪ Walking Distance to Norwood Depot Commuter Rail Station

▪ Modern Medical Buildout

▪ Flexible Occupancy, Keep Current Tenants or Occupy the Entire Building

▪ Under One Mile From Norwood Hospital

▪ Amenity Rich Location

▪ Ample Private Parking

INVESTMENT HIGHLIGHTS

Marcus & Millichap as exclusive listing agent is pleased to present 480 Washington Street. This freestanding medical office building is ideally situated in Downtown

Norwood. Located just a few blocks from the MBTA's Norwood Depot station patients, clients and employees can easily be in Downtown Boston in just 25 minutes.

Other ammenities within walking distance include over a dozen restaurants, a grocery store, CVS and Norwood Hospital.

Current ownership occupies 4,800 square feet which they are willing to either continue leasing or vacate upon sale. This space features a full modern medical buildout,

private bathrooms, reception and efficiently arranged exam rooms. Other tenants include a financial services firm, massage therapist and social worker. The 4,467 square

foot sublevel can be accessed directly from the parking lot or via a central staircase. Elevator service for this level can easily be added in order to make the space ADA

Compliant.

INVESTMENT OVERVIEW

6

REGIONAL MAP


7

LOCAL MAP


8

AERIAL PHOTO


9

FLOOR PLANS


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11

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


PRICING DETAIL

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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

$5.63 billion

total national

volume in 2017

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 1,707

debt and equity

financings

in 2017

ACQUISITION FINANCING


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14

MARKET

COMPARABLES


SALES COMPARABLES MAP

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FREESTANDING NORWOOD MEDICAL

OFFICE

(SUBJECT)

66 Winter Office

Carematrix Office

100 High Dental Office

SALES COMPARABLES

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2

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PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

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SALES COMPARABLES

Asking Price $2,375,000

Price/SF $184.98

CAP Rate 3.99%

Year Built 1959

Occupancy 52%

Parking Ratio 2.80 per 1,000 SF

480 WASHINGTON MEDICAL OFFICE480 Washington St, Norwood, MA, 02062

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Close of Escrow 6/9/2017

Sales Price $610,000

Rentable SF 3,315

Price/SF $184.01

Year Built 1905

Parking Ratio 2.41

NOTES

Comparable was sold "off market". The buyer utilized SBA financing and

will be occupying the property.

66 WINTER OFFICE66 Winter St, Norwood, MA, 02062

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Sales Price $8,300,000

Rentable SF 39,391

Price/SF $210.71

Year Built 1996

NOTES

Comparable is a class A office building. The buyer will likely occupy a

portion of the property. The seller was a local investment fund.

CAREMATRIX OFFICE20 Carematrix Dr, Dedham, MA, 02026

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

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SALES COMPARABLES

NOTES

Comparable is a new building that was outfitted for the tenant, a dental

practice. The property was purchased by the dental practice/tenant.

3


Days On Market 225

Sales Price $2,450,000

Rentable SF 7,406

Price/SF $330.81

Year Built 1903

Occupancy 97%

100 HIGH DENTAL OFFICE100 High St, Westwood, MA, 02090


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MARKET

OVERVIEW

MARKET OVERVIEW

Norwood, MAOVERVIEW

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Norwood is a town of 30,602 situated twenty miles from Downtown

Boston. Traditionally an upper middle class town, Norwood has seen

an influx of affluent residents lately due to its proximity to Boston. Top

employers in Norwood include Analog Devices and medical software

firm MEDITECH. Norwood is also home to the largest collection of

auto dealerships in the state, known as “The Auto Mile”.

Improving demographics have spurred development in the area.

Multiple retail and apartment developments are expected to be

completed in 2018-2019.

MARKET OVERVIEW

METRO HIGHLIGHTS

Educated Workforce

Many educated workers decide to live in Norwood

while working at one of the numerous high tech

companies located in the area.

Proximity to Transit

Norwood has two commuter rail stations and

excellent access to Interstate 95, known as the

Technology Highway.

Concentration of Medical

Norwood has a high concentration of doctors

servicing many of the surrounding towns.


PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2017 Experian

Created on May 2018

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Population 14,129 55,141 129,708

▪ 2017 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2017 Estimate 16,496 72,805 147,399

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Households 6,290 22,165 51,443

▪ 2017 Estimate


Average (Mean) Household Size 2.22 2.48 2.52

▪ 2010 Census


▪ 2000 Census


HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2017 Estimate

$200,000 or More 8.13% 14.72% 15.18%

$150,000 - $199,999 8.60% 11.29% 12.26%

$100,000 - $149,000 20.55% 21.20% 20.25%

$75,000 - $99,999 12.71% 12.28% 12.23%

$50,000 - $74,999 16.37% 14.10% 13.05%

$35,000 - $49,999 9.33% 8.04% 8.01%

$25,000 - $34,999 8.05% 5.91% 5.67%

$15,000 - $24,999 8.10% 6.16% 6.20%

Under $15,000 8.68% 7.06% 7.69%

Average Household Income $102,730 $132,635 $133,971

Median Household Income $74,991 $94,319 $95,243

Per Capita Income $45,354 $52,807 $52,723

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2017 Estimate Total Population 13,899 54,255 127,138

Under 20 21.23% 24.25% 25.01%

20 to 34 Years 19.04% 16.16% 15.80%

35 to 39 Years 7.03% 6.01% 5.73%

40 to 49 Years 12.51% 13.56% 13.73%

50 to 64 Years 20.21% 20.90% 21.76%

Age 65+ 19.98% 19.12% 17.98%

Median Age 42.31 42.93 42.80

▪ Population 25+ by Education Level

2017 Estimate Population Age 25+ 10,257 38,488 88,910

Elementary (0-8) 3.31% 2.03% 1.85%

Some High School (9-11) 2.12% 2.29% 2.84%

High School Graduate (12) 25.41% 21.02% 21.65%

Some College (13-15) 16.82% 14.63% 14.87%

Associate Degree Only 9.00% 8.39% 8.41%

Bachelors Degree Only 27.78% 30.59% 29.33%

Graduate Degree 14.85% 20.56% 20.62%

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FREESTANDING NORWOOD MEDICAL OFFICE · 2018. 8. 21. · FREESTANDING NORWOOD MEDICAL OFFICE SALES COMPARABLES rentpropertyname1 rentpropertyaddress1 rentpropertyname1 rentpropertyaddress1