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I N V E S T M E N T O V E R V I E W
THE OFFERING
Marcus & Millichap is pleased to offer 545 West148th Street, a 36-unit elevator building locatedbetween Broadway and Amsterdam Avenue inHamilton Heights. The property (block 2080, lot 11)is built 67 by 89 feet and features eleven two-bedrooms, 22 three-bedrooms, and three four-bedrooms. The building totals 39,845 square feetand is zoned R6A and under tax class 2.
THE OPPORTUNITY
Economies of Scale. Spanning 39,845 square feet,this 36 unit property provides an opportunity toacquire a sizeable housing stock in a market starvedfor quality rental housing.
Immediate Value Add. With 72% of the buildingrent regulated at an average rent of $1,013 there isa ton of upside remaining in these units. Theremaining 28% of free market units will benefit fromthe rising rental demand in the neighborhoodfueled by City College and Columbia Universitystudents. Two, three, and four bedroomsapartments are in heavy demand and will enablethese units to practically rent themselves.
545 West 148th StreetIs being offered at
| $14,500,000
O F F E R I N G M E M O R A N D U M
Amenities and Location. The property is steps awayfrom the bustling Broadway retail corridor and easilyaccessible to the 1 subway line at 145th Street. Theproperty boasts new finishes with stainless steelappliances, hardwood floors, and dishwashers.Outfitted with a doorman, bike room, and laundry inthe building, this property is a desirable place to livein the gentrifying market of Northern Manhattan.
LISTING METRICS
36TOTAL UNITS
$364PRICE /SF
3.3%CAP RATE
67'FRONTAGE
39,845TOTAL SQUARE FEET
$106,834PROJECTED TAXES
19.9GRM
0TOTAL AIR RIGHTS
P R I C I N G & F I N A N C I A L A N A LY S I S
F I NANCIAL OVERVI EW
P R I C I N G & F I N A N C I A L A N A LY S I S
Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyofthe information.Referencestosquarefootage orageareapproximate.Buyermustverifythe informationandbearsall riskforanyinaccuracies.Anyprojections,opinions,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus&MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2016Marcus&Millichap
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INCOME CURRENT PRO FORMAGross Potential Residential Rent $749,720 $775,510Gross Income $749,720 $775,510Vacancy/Collection Loss ($22,492) ($23,265)
PRICE PER SQUARE FOOT $364 Effective Gross Income $727,229 $752,245PRICE PER UNIT $402,778 Average Residential Rent/Month/Unit $1,735 $1,795TOTAL SQUARE FEET 39,845TOTAL UNITS 36CURRENT CAP RATE 3.3% EXPENSESCURRENT GRM 19.9 Property Taxes $106,834 $106,834PRO FORMA CAP RATE 3.4% Fuel $29,786 $29,786PRO FORMA GRM 19.3 Insurance $11,121 $11,121PRO FORMA CASH ON CASH RETURN 1.37% Water and Sewer $33,786 $33,786
Repairs and Maintenance $27,000 $27,000Common Electric (PPSF) $4,013 $4,013
PROPOSED DEBT Super Salary $10,000 $10,000Loan Amount $7,000,000 Management Fee $29,089 $30,090Interest Rate 3.75% Elevator Contract $4,000 $4,000Amortization 30 Total Expenses $255,629 $256,630Annual Debt Service ($392,613) Net Operating Income $471,600 $495,615Debt Coverage Ratio 1.20Net Cash Flow After Debt Service $103,002
UPSIDE ANALYSIS SCHEDULE OF INCOMEUNIT BREAKDOWN TOTAL % OF TOTAL RENTStudio 0 0% $01 Bedroom 0 0% $02 Bedroom 12 33% $1,7163 Bedroom 21 58% $1,6304 Bedroom 3 8% $2,5495 Bedroom 0 0% $06 Bedroom 0 0% $0SRO 0 0% $0
$/SF CAP RATEGRM
19.9439,845 $364 3.3%SQUARE FEET
GROSS TOTAL SF
$14,500,000OFFERING PRICE
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
Studio 1Bedroom
2Bedroom
3Bedroom
4Bedroom
5Bedroom
6Bedroom
SRO
Current Avg RS UnitsMarket RentsCurrent Avg FM Rents
P R I C I N G & F I N A N C I A L A N A LY S I S
RENT ROLL
Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyofthe information.Referencestosquarefootage orageareapproximate.Buyermustverifythe informationandbearsall riskforanyinaccuracies.Anyprojections,opinions,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus&MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2016Marcus&Millichap
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RESIDENTIAL RENTUNIT# LEASE STATUS NOTES BEDROOMS ROOMS EXPIRATION ACTUAL PRO FORMA Legal1A RS 2 Bedroom 4 Apr-18 $2,150 $2,150 $2,1501B RS 3 Bedroom 5 Jul-17 $1,330 $1,330 $1,3301C RS 2 Bedroom 4 Jun-17 $1,552 $1,552 $1,5521D FM 3 Bedroom 5 Apr-17 $2,850 $3,200 $2,8501E RS 3 Bedroom 5 Feb-17 $1,074 $1,074 $1,0742A RS 3 Bedroom 5 Aug-16 $2,093 $2,093 $2,0932B FM Two Bath 4 Bedroom 6 Nov-17 $3,050 $3,600 $3,0502C RS 2 Bedroom 4 Jul-17 $2,010 $2,010 $2,0102D RS 3 Bedroom 5 Nov-16 $1,154 $1,154 $1,1542E FM Two Bath 2 Bedroom 4 Sep-17 $3,200 $3,328 $3,2003A FM Two Bath 4 Bedroom 6 Apr-18 $3,250 $3,600 $3,2503B RS 3 Bedroom 5 Mar-18 $1,297 $1,297 $1,2973C RS 2 Bedroom 4 Sep-17 $1,034 $1,034 $1,0343D FM Vacant 3 Bedroom 5 $3,000 $3,000 $3,0003E RS Two Bath 3 Bedroom 5 Feb-17 $2,327 $2,327 $2,3274A RS Pref Rent - PF is Legal 3 Bedroom 5 Sep-18 $1,551 $1,520 $1,5514B RS 4 Bedroom 6 Oct-18 $1,347 $1,347 $1,3474C RC 2 Bedroom 4 $396 $396 $3964D FM 3 Bedroom 5 Apr-17 $2,850 $3,200 $2,8504E FM Two Bath 2 Bedroom 4 Apr-17 $3,000 $3,120 $3,0005A RS 3 Bedroom 5 Jul-18 $704 $704 $7045B RS 3 Bedroom 5 Aug-18 $1,255 $1,255 $1,2555C RS 2 Bedroom 4 Jan-17 $812 $812 $8125D RS 3 Bedroom 5 Jun-18 $1,215 $1,215 $1,2155E RS Section 8 3 Bedroom 5 Nov-17 $844 $844 $8446A FM Two Bath 3 Bedroom 5 Apr-18 $3,000 $3,200 $3,0006B FM Vacant - Two Bath 3 Bedroom 5 Aug-17 $3,300 $3,432 $3,3006C RS Section 8 2 Bedroom 4 Sep-18 $576 $576 $5766D RS 3 Bedroom 5 Sep-18 $1,005 $1,005 $1,0056E FM Two Bath 2 Bedroom 4 Jul-17 $3,075 $3,075 $3,0757A RS Section 8 3 Bedroom 5 Feb-18 $1,393 $1,393 $1,3937B RC 3 Bedroom 5 $499 $499 $4997C RS 2 Bedroom 4 Oct-16 $1,856 $1,856 $1,8567D RC 3 Bedroom 5 $336 $336 $3367E RS 3 Bedroom 5 Dec-17 $1,162 $1,162 $1,162BSMT RS 2 Bedroom 4 Dec-16 $931 $931 $931MONTHLY RESIDENTIAL REVENUE 99 171 $62,477 $64,626
ACTUAL PRO FORMATOTAL ANNUAL REVENUE $749,720 $775,510There are currently 2 vacant units in the building. The super lives in the basement (no rental income allocated on rent roll).
P R I C I N G & F I N A N C I A L A N A LY S I S
INCOME AND EXPENSE ANALYSIS
Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyofthe information.Referencestosquarefootage orageareapproximate.Buyermustverifythe informationandbearsall riskforanyinaccuracies.Anyprojections,opinions,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus&MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2016Marcus&Millichap
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GROSS POTENTIAL INCOME ACTUAL PRO FORMA%EGI $/UNIT %EGI $/UNIT
Gross Potential Residential Rent $749,720 100% $20,826 $775,510 100% $21,542Gross Potential Commercial Rent $0 0% $0 $0 0% $0Gross Income $749,720 $20,826 $775,510 $21,542Vacancy/Collection Loss ($22,492) 3% ($625) ($23,265) 3% ($646)Other Income $0 $0 $0 $0Effective Gross Income $727,229 $20,201 $752,245 $20,896Average Residential Rent/Month/Unit $1,735 $1,795
EXPENSESProperty Taxes $106,834 15% $2,968 $106,834 14% $2,968Dual - Fuel + Gas $29,786 4% $827 $29,786 4% $827Insurance $11,121 2% $309 $11,121 1% $309Water and Sewer $33,786 5% $939 $33,786 4% $939Repairs and Maintenance $27,000 4% $750 $27,000 4% $750Common Electric (PPSF) $4,013 0.6% $0.10 $4,013 0.5% $0.10Super Salary $10,000 1% $278 $10,000 1% $278Management Fee $29,089 4% $808 $30,090 4% $836Elevator Contract $4,000 1% $111 $4,000 1% $111Total Expenses $255,629 35% $7,101 $256,630 34% $7,129Net Operating Income $471,600 $495,615
LEASE STATUS MIXUNIT BREAKDOWN % OF TOTAL RENT TOTAL AVG. RENTTotal Units 100% $62,477 36 $1,735Total RS Units 64% $30,671 23 $1,334Total RC Units 8% $1,231 3 $410Total FM Units 28% $30,575 10 $3,058Total Commercial 0% $0 0 $0
RENTAL ANALYSIS BY UNIT TYPETYPE % OF TOTAL RENT TOTAL AVG. RENTStudio 0% $0 0 $01 Bedroom 0% $0 0 $02 Bedroom 33% $20,592 12 $1,7163 Bedroom 58% $34,238 21 $1,6304 Bedroom 8% $7,647 3 $2,5495 Bedroom 0% $0 0 $06 Bedroom 0% $0 0 $0SRO 0% $0 0 $0
UPSIDE ANALYSIS
TAXES AS PERCENT OF EGI
15%
EXPENSE RATIO
35%
28%
AVERAGE RENTPER MONTH
$1,735PERCENT
FAIR MARKET
$0$500
$1,000$1,500$2,000$2,500$3,000$3,500$4,000
Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom 6 Bedroom SRO
Current Avg RS Units Market Rents Current Avg FM Rents
S U B J E C T P R O P E RT Y
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P R O P E R T Y D E S C R I P T I O N | P R O P E R T Y P H O T O S
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P R O P E R T Y D E S C R I P T I O N | P R O P E R T Y P H O T O S
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P R O P E R T Y D E S C R I P T I O N | I N T E R I O R P H O T O S
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P R O P E R T Y D E S C R I P T I O N | I N T E R I O R P H O T O S
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Peter Von Der Ahe260 Madison Avenue, 5th Floor
New York, NYTel: (212) 430-5114Fax: (646) 349-3308
Seth Glasser260 Madison Avenue, 5th Floor
New York, NY 10016Tel: (212) 430-5136Fax: (917) 210-3165
Rafi Moskowitz260 Madison Avenue, 5th Floor
New York, NY 10016Tel: (212) 430-6146Fax: (212) 430-5110
Joe Koicim 260 Madison Avenue, 5th Floor
New York, NY 10016Tel: (212) 430-5147Fax: (917) 210-3165
