Portfolio of 13 Income Producing Properties

Portfolio of 13 Income Producing Properties

York, Pennsylvania

Confidentiality Disclaimer

This Investment Offering Memorandum has been prepared for use by a limited number of parties, and does not purport to provide a necessarily accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information that prospective investors may need or desire. All projections have been developed by designated sources and are based upon assumptions relating to the general economy, competition and other factors beyond the control of Seller, and therefore are subject to variation. Seller or Alliance Commercial Realty makes no representation as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, Seller, Alliance Commercial Realty and its employees, disclaim any responsibility for inaccuracies, and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Alliance Commercial Realty, Seller and its employees, disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omission from, the Investment Offering Memorandum, or any other written or oral communication transmitted or made available to the recipient. The Investment Offering Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation of the Investment Offering Memorandum have remained the same. Analysis and verification of the information contained in the Investment Offering Memorandum is solely the responsibility of the prospective purchaser.

Seller and Alliance Commercial Realty each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any entity at any time with or without notice. Seller shall have no legal commitment or obligations to any entity reviewing the Investment Offering Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, a written agreement for the purchase of the Property has been fully executed, delivered and approved by Seller and its legal counsel, and any conditions to Seller’s obligations there under have been satisfied or waived.

This Investment Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Investment Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, and that you will not disclose the Investment Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Alliance Commercial Realty, and that you will not use the Investment Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Alliance Commercial Realty.

We obtained the information from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

A Principal of the Seller is a licensed PA Real Estate Agent.

All content subject to errors & omissions.

1. 111 N. Penn Street, York, PA 17401

2. 305 N. Penn Street, York, PA 17401

3. 141 N. Newberry Street, York, PA 17401



6. 521 N. Beaver Street, York, PA 17404

7. 502 N. Beaver Street, York, PA 17404

8. 524 N. Pershing Avenue, York, PA 17404

9. 604 N. Pershing Avenue, York, PA 17404

10. 613 S. Pershing Avenue, York, PA 17401

11. 620 W. King Street, York, PA 17401

12. 630 E. Prospect Street, York, PA 17403

13. 412 E. College Avenue, York, PA 17403

Property Overview

Alliance Commercial Realty is proud to offer for sale, an investment opportunity consisting of 13 residential homes located in York, Pennsylvania. All 13 homes were renovated within the last 10 years and are currently below market rents, providing an incredible opportunity for immediate upside to the investor. All of the properties are within a 15 minute drive of each other and are centrally located in York City surrounding the business district. Most of the tenants are long term 3+ years and there is currently a waiting list for tenants once vacancy becomes available. Five and Six bedroom rental units are very limited within York city creating a high demand for these properties.

Investment Analysis

Area Overview

York Pennsylvania is located as a central hub to a number of major cities. With access in under 10 minutes to either I-83 or Route 30, you can reach Baltimore in 1 hour, Harrisburg (The State Capital), or Lancaster in 45 minutes, Philadelphia or Washington D.C. in 2 hours, and Pittsburgh, New York City, or Richmond in 4 hours. Over the last 5 years major expansion has happened in the immediate surrounding area bringing a great deal of attention to York.

Education in the Area

Also located within five minutes of the properties is the York Academy Regional Charter School, an International Baccalaureate World school with an unrelenting focus on academic excellence, making its grand opening in 2011, and is now home to 850 students.

The York College campus is located less than ten minutes from most of the properties. York College is a rapidly expanding private college founded in 1787. Their current campus encompasses over 190 acres and is home to 4,050 undergraduate students.

Within a ten minute drive is Penn State York, one of more that 22 Penn State campuses across PA. They have a beautiful 51 acre campus and offer over 275 academic programs.

HACC, which is the largest and oldest of Pennsylvania’s community colleges, has a York campus located within 5 minutes of several the properties and offers over 60 associate degrees, certificate, and diploma programs.

YTI Career Institute was established in York in 1967. It is a career college now serving over 1,750 students at its York location and is rapidly expanding with three campuses in PA.

Health Care in the Area

OSS Orthopedic Hospital has been rapidly expanding with over 10 locations currently. They have been awarded countless awards over the last 5 years including Physician Hospital of the Year Award, Excellence in Care Achievement Award, Pinnacle of Excellence Award, and the The Press Ganey Guardian of Excellence Award to name a few.

WellSpan’s York Hospital is also located less than ten minutes from the properties. They currently employ over 5,000 workers and have just announced a $255 Million expansion which once completed, will place them among the top 10 largest hospitals in the state of Pennsylvania.

Located within ten minutes from the properties, UPMC has recently spend $290 Million to finish construction on a new 220,000 SF hospital - UPMC Memorial, which opened its doors August 2019 and employs over 650 people.

Industrial in the area

York is home to the Harley Davidson factory, employing over 1,000 workers and producing 60% of the world’s Harley Motorcycles. This is their main factory, one of only two in the US and four in the world.

Johnson Control recently expanded its footprint in York, constructing a $150MM 357,000 SF complex off I-83 which is the newest and most advanced engineering and testing facility for chillers in the world. It will employ over 500 people.

Since 2011, ARM & HAMMER’S LEED-Silver facility located in York became its top producing location for ARM & HAMMER laundry products, and it is recognized as the most sustainable building they own.

Expansion In the Area

Located less than five minutes from the properties, United Fiber and Data recently purchased the old York County Prison. Their current plan is to repurpose the asset into a data center, that will accompany a 400 Mile fiber-optic network, spanning from New York to Virginia.

Located steps away, the newly renamed the Appell Center for the Performing Arts, which offers world class performances and shows, has recently undergone a $2 Million facelift, its first major renovation since 1920, driving incredible traffic to the downtown 450 seat theater and surrounding eateries.

Peoples Bank Park, home to the York Revolution baseball team, is just steps away from the properties. It has a 5,200 seats and the York Revolutions took home the ALPB championship in 2017. The facility is used year-round to host multiple events for the community and businesses.

Rental Comparables

It is extremely difficult to find 5 and 6 bedroom houses for rent in York City which is why there is a waiting list for these properties. Inherently vacancy is at an absolute minimum. Once turnover is complete, rental usually occurs the following month.

242 Chestnut Street – 5 bed 1 Bath - $1,150/month

328 S. Pershing Ave – 3 Bed 1 Bath - $1,000/month

212 S. Pershing Ave – 4 Bed 2 Bath - $1,100/month

121 Arch Street – 4 Bed 1 Bath - $1,095/month

111 N. Penn Street

111 N. Penn Street is a 4 bedroom 2 bathroom house with back balcony, rear yard, and basement for storage. The property underwent a full gut renovation in 2018. There is 2nd floor laundry as well as basement hook-ups.

It is currently rented for $1,050/month and tenant is in the process of renewing a one year lease. Current tenant has been in the property since 2018.

Market rate for the property is $1,200/month.

Income Annual

Rent $ 12,600.00

Total Gross $ 12,600.00

Expenses

Taxes $ 425.29

School Taxes $ 579.24

Insurance $ 531.00

Maintenance $ 756.00

Total Expenses $ 2,291.53

Total Net Income $ 10,308.47

305 N. Penn Street

305 N. Penn Street is a 5 bedroom 1 ½ bathroom house with a rear yard and basement for storage. The property was renovated in 2015.

The property is currently rented for $870/month and their lease is MTM, however the current tenant has been there since 2015.

Market rate for the property is $1,200/month.

Income Annual

Rent $ 10,440.00


Expenses

Taxes $ 534.04


Insurance $ 621.00




141 N. Newberry Street

141 N. Newberry Street is a 5 bedroom 2 bathroom house with a basement for storage, rear yard, and detached garage with alley access. The property was renovated in 2014 with the front mansard roof replaced in 2019.

Rent is currently $1,020/month with the garage included. The current lease expires October 2020.

Market rent for the house is $1,200/month and an additional $200/month for the garage.

Income Annual

Rent $ 12,240.00

Garage $ -


Expenses

Taxes $ 960.05

School Taxes $ 1,307.57

Insurance $ 549.00





321 N. Newberry Street is a stand-alone 6 bedroom2 bathroom house. The property has a back yard along with the walls and foundation for a detached garage that was partially torn down to make a parking area.

Rent is currently $600/month. The property was purchased from, and leased back to the current tenants.

Market rent for the house is $1,300/month and an additional $200/month for the garage once rebuilt.

Income Annual

Rent $ 7,200.00

Garage $ -


Expenses

Sewer $ 198.00

Taxes $ 609.54


Trash $ 96.25

Electric $ 189.21


Insurance $ 621.00




324 N. Newberry Street is a 4 bedroom1 bathroom house that underwent a full gut renovation in 2018. The property features off street parking in the rear of the property.

Rent is currently $950/month. The current lease expires September 2020.

Market rent for the house is $1,200/month.

Income Annual

Rent $ 11,400.00


Expenses

Taxes $ 48.55


Insurance $ 684.00


$ -



521 N. Beaver Street

521 N. Beaver Street is a stand-alone 5 bedroom 2 bathroom house and full basement that was renovated in 2016. The property comes with an additional tax lot for off street parking in the rear. The mansard roof and dormers were replaced in August 2020.

Rent is currently $950/month. The current lease is MTM and tenant has been there since 2016.


Income Annual

Rent $ 11,400.00


Expenses

Taxes $ 1,256.85


Insurance $ 613.00




502 N. Beaver Street

502 N. Beaver Street is a 5 bedroom 1 bathroom house with a basement for storage and rear yard. The property underwent a full gut renovation in 2017 including the transition from boiler radiator heat to new furnace and forced hot air.

Rent is currently $970/month. The current lease expires October 2020, and tenant has been there since 2017.


Income Annual

Rent $ 11,640.00


Expenses

Taxes $ 786.99


Insurance $ 651.00




524 N. Pershing Avenue

524 N. Pershing Avenue is a two family house with side and rear yard and a large, recently build, detached garage.

The 1st floor unit is a two bedroomone bathroom with basement access for laundry and storage. The 1st floor is currently rented for $600/month with the lease expiring June 2021.

The 2nd and 3rd floor duplex unit is a 4 bedroom, 1 bathroom with laundry, and currently rented for $675/month. Lease is MTM.

The garage is rented for $250/month with the lease expiring July 2021.

The house recently underwent a full rehab in 2020.

Market rent for the 1st floor is $725, $850 for the 2nd and 3rd floor, and $250 for the garage.

Income Annual

1st Floor $ 7,200.00

2nd Floor $ 8,100.00

Garage $ 3,000.00


Expenses

Water $ 724.47

Sewer $ 774.99

Taxes $ 72.82


Trash $ 328.20

Insurance $ 749.00

Maintenance $ 1,098.00



604 N. Pershing Avenue

604 N. Pershing Avenue is a 6 bedroom 1 bathroom house with a basement for storage and rear yard. There is also a detached garage that needs rebuilt. The property just underwent a full gut rehab finished July 2020.

Rent is currently $1,100/month and the lease expires September 2021.

Income Annual

Rent $ 13,200.00


Expenses

Taxes $ 854.47


Insurance $ 662.00




613 S. Pershing Avenue

613 S. Pershing Avenue is a 5bedroom, 1 bathroom house with a basement and rear yard as well as private parking in rear. The property was renovated in 2016.

Current rent is $900/month and current lease is MTM. Current tenant has been there since 2017.

Market rate is $1,300/month.

Income Annual

Rent $ 10,800.00


Expenses

Sewer $ 774.99

Taxes $ 747.66


Trash $ 328.20

Insurance $ 542.00




620 W. King Street620 W. King Street is a two family house with a basement, rear yard, and detached garage.

The 1st floor unit is a two bedroom one bathroom with basement access for laundry and storage. It is currently rented for $600/month with the lease expiring January 2021.

The 2nd and 3rd floor duplex unit is a 4 bedroom one bathroom currently rented for $645/month and the lease is MTM. The tenant has been there for 13 years.

Market rent for the 1st floor is $725, $850 for the 2nd and 3rd floor, and $250 for the garage.

Income Annual

1st Floor $ 7,200.00

2nd Floor $ 7,740.00

Garage $ -


Expenses

Water $ 787.14

Sewer $ 1,058.07

Taxes $ 1,100.36


Trash $ 656.40

Insurance $ 677.00




630 E. Prospect Street

630 E. Prospect Street is a 3 bedroom 2 bathroom house with a rear yard and detached garage. The current rent for the house is $825/month and the lease is MTM. The tenant has been there since 2011.

The garage is rented for $250/month and the lease is MTM. Tenant has been there since 2017.

Market rent for the house is $1,200 and $250 for the garage.

Income Annual

Rent $ 9,900.00

Garage $ 3,000.00


Expenses

Sewer $ 262.51

Taxes $ 1,066.75


Trash $ 328.20

Insurance $ 600.00




412 E. College Avenue

412 E. College Avenue is a 5 bedroom 1 bathroom house with basement, rear yard, and detached garage.

The current rent for the house is $1,060/month with the garage included. The current lease expires June 2021.

Market rent for the house is $1,200 and $250 for the garage.

Income Annual

Rent $ 12,720.00

Garage $ -


Expenses

Taxes $ 710.28


Insurance $ 536.00




Asking Price $1,670,240

CAP RATE 6.5%

NOI: $108,565

Terry Sutton

(717) 718-4100

Documents

Portfolio of 13 Income Producing Properties