VIEW THE VIDEO 30 Batterson Park Road€¦ · tenants, with varying expirations and a provable upward trend in occupancy and NOI. Currently 90% leased with a weighted average remaining

CONFIDENTIAL OFFERING MEMORANDUM

30 Batterson Park Road FARMINGTON, CT

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https://vimeo.com/234921264/e5e4618822

Offering Memorandum DisclaimerThis Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement (the

“Confidentiality Agreement”) signed by you and constitutes part of the Confidential Information (as defined in the Confidentiality Agreement).

It is being given to you for the sole purpose of evaluating the possible investment in 30 Batterson Park Road, Farmington, Connecticut

(the “Project”), and is not to be used for any other purpose or made available to any other party without the prior written consent of KAL

Farmington Limited Partnership (“Owner”), or its exclusive broker, Cushman & Wakefield. This Memorandum was prepared by Cushman &

Wakefield based primarily on information supplied by Owner. It contains select information about the Project and the real estate market but

does not contain all the information necessary to evaluate the Project. The financial projections contained herein (or in any other Confidential

Information) are for general reference only. They are based on assumptions relating to the overall economy and local competition, among other

factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate

your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. While

the information contained in this Memorandum and any other Confidential Information is believed to be reliable, neither Cushman & Wakefield

nor Owner guarantees its accuracy or completeness. Because of the foregoing and since the investment in the Project is being offered on an

“As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to facilitate

the prospective purchaser’s investigation, must make its independent investigations, projections and conclusions regarding the investment in

the Project without reliance on this Memorandum or any other Confidential Information. Although additional Confidential Information, which

may include engineering, environmental or other reports, may be provided to qualified parties as the marketing period proceeds, prospective

purchasers should seek advice from their own attorneys, accountants, engineers and environmental experts. Neither Cushman & Wakefield

nor Owner guarantees the accuracy or completeness of the information contained in this Memorandum or any other Confidential Information

provided by Cushman & Wakefield and Owner. Owner expressly reserves the right, at its sole discretion, to reject any offer to invest in the

Project or to terminate any negotiations with any party at any time with or without written notice. Owner shall have no legal commitment or

obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Owner

and any conditions to Owner’s obligations thereunder have been satisfied or waived. Owner has retained Cushman & Wakefield as its exclusive

broker and will be responsible for any commission due to Cushman & Wakefield in connection with a transaction relating to the Project

pursuant to a separate agreement. Cushman & Wakefield is not authorized to make any representation or agreement on behalf of Owner. Each

prospective investor will be responsible for any claims for commissions by any other broker in connection with an investment in the Project

if such claims arise from acts of such prospective investor or its broker. This Memorandum is the property of Owner and all parties approved

by Owner and may be used only by parties approved by Owner. No portion of this Memorandum may be copied or otherwise reproduced or

disclosed to anyone except as permitted under the Confidentiality Agreement.

For more information, please contact

one of the following individuals:

Joel GriecoExecutive Director+1 860 616 [email protected] licensed real estate broker in CTLicensee affiliated with Cushman & Wakefield of Connecticut, Inc.

Table of ContentsExecutive Summary .....................................................4

Investment Highlights .................................................6

Asset Summary ..............................................................8

Tenancy Overview ...................................................... 12

Market Overview ......................................................... 14

Financials ....................................................................... 18

cushmanwakefield.com4

Executive SummaryAs exclusive advisor, Cushman & Wakefield is pleased to offer an opportunity to acquire a

stabilized asset in Hartford County’s strongest submarket. 30 Batterson Park Road (“30

Batterson” or “Property”) is a 3-story, 77,370 rsf, multi-tenant office building located directly

on I-84 in Farmington, Connecticut. Its rent roll provides a mix of large and medium-sized

tenants, with varying expirations and a provable upward trend in occupancy and NOI.

Currently 90% leased with a weighted average remaining lease term of 5.5 years, the

building offers dependable contractually increasing income, with meaningful upside.

Even the shorter-term leases can be viewed positively given the desirability and

historically strong performance of the Farmington submarket.

Farmington is perhaps Hartford County’s most consistently strong office

market. It is part of the Western submarket, which boasts a current

vacancy rate of 9.8% for class A space after 3 years of positive absorption.

The Western market offers great highway access, a positive mix of

high-end and mid-priced housing (the majority of Hartford-area

executives live in the Western market), high-performing schools,

and the most complete amenity mix around Hartford County.

Corporate neighbors include United Technologies, Carrier, Otis,

Connecticare, TRUMPF, General Re, Jackson Labs, and Bank

of America.

30 Batterson Park Road fits its market well, and has an

enviable history of occupancy. It has relatively large

floorplates for the Hartford market, yet the floors are

easily divided as needed. It is the sort of building

that will always garner leasing activity when

vacancies arise.

The property is being offered to qualified

investors, free and clear of existing financing.

30 Batterson Park Road 5

77,370 SF RENTABLE BUILDING AREA

$825,000 YEAR 2 NOI

90% LEASED

5 EXISTING TENANTS

Investment Highlights

Stabilized Cash Flow with Upside Opportunity

With two recent new leases (Aerotek and RBC), 30 Batterson Park Road is now 90% leased, with an in-place NOI that will

contractually increase significantly in Year 2. Three tenants, representing 54,000 sf or 70% of the building, have lease

commitments in excess of 67 months. The small remaining vacancy of 7,585 rsf, and the near-term expiration of 15,787 rsf,

provide upside potential to the cash flow.

Desirable Tenant Mix

Five existing tenants, two of which are new, provide a favorable mix of size, industry, and lease expirations. Beazley

USA, the largest tenant, Carrier/United Technologies, and RBC are all publicly traded, strong credit companies. Aerotek

is a global recruiting and staffing company, recently ranked by Forbes as one of the top 500 Large Employers in the U.S.

NeoPost is a digital communications, shipping and mail company with more than 6,000 employees in 29 countries.

Five existing tenants, two of which are new, provide a favorable mix of size, industry, and lease expirations

TENANT MIX


Unbeatable Access

30 Batterson Park Road sits along I-84, with immediate access at a full interchange at Exit 37. Just 9 miles from downtown Hartford, 20 miles from Bradley International Airport,

and surrounded by Hartford County’s most robust mix of amenities, services, strong schools, hospitals, and an educated workforce, the building is positioned to always attract

and retain tenants.

Strongest Office Market in Hartford County

The Western submarket has historically been the strongest office market around Connecticut’s Capital City, boasting the highest occupancy rates, highest suburban rents, and

largest density of corporate users. Farmington’s low taxes, great highway access, pro-business environment, strong schools, and rich amenity base continue to make it a top

performing town within the Western submarket.

30 BATTERSON PARK ROADFARMINGTON, CT

17.2% VACANCY

17.6% CLASS A VACANCY

$20.89 ASKING RENT

$22.36 CLASS A ASKING RENTS

HARTFORD COUNTY

WESTERN HARTFORD

13.0% VACANCY


$19.53 ASKING RENT


10.2% VACANCY


$21.03 ASKING RENT


FARMINGTON


Asset Summary

SITE DESCRIPTIONBuilding Address 30 Batterson Park Road, Farmington, CT 06032

Land Area 7.68 acres

Building Square Footage 77,370 rentable square feet

Year Built 1983

Number of Floors 3

Parking Spaces 305 total - 3.94 per 1,000 RSF (11 handicap designated))

Zoning PR – Professional Office BUILDING SYSTEMSElevators 1 Otis hydraulic passenger - modernized in early 2000’s.

Electrical 1,600 amp service, 120/480 volts. Lighting on dedicated 277 volt circuit.

HVAC System6 rooftop AHU’s with digital thermostats and a Carrier I-VU Energy Management System. Supplemental hot water loop on each floor fed by an HB Smith Series 28 cast iron boiler. Fully-ducted supplies and returns with VAV boxes. All ducting has smoke detectors.

Plumbing City water and sewer.

Life Safety Fully sprinklered. Fully-addressable fire/life safety (notifier 2456).

Other Underground irrigation system.

Back-up generator 1,040 KW generator serves entire building. 1,000 gallon underground tank.

UPS 150 KVA Liebert UPS system. 38 cell battery rack with supplemental A/C. UTILITIESElectricity Eversource

Gas CNG

Water MDC CONSTRUCTIONType Structural steel frame, concrete slab on expanded mesh deck, and poured-in-place concrete foundation.

Roof Carlisle single-ply rubber membrane, EPDM. 12 years old.

Windows Dual pane with metal mullions. Full height on 1st floor.

Ceilings/Walls Acoustic tiles / sheetrock walls.

Site Improvements Detention pond, newly-expanded parking lot with LED lighting.

Asset Summary


NO PARKING

BATTERSON PARK ROAD

Site Plan 84


Asset Summary

Second Floor

Executive Summary


Third Floor


Tenancy Overview

Beazley USA Services, Inc. Carrier Corporation RBC Capital Markets, LLC Aerotek, Inc. Neopost New England, Inc.

Square Feet 32,995 9,738 11,143 9,860 6,049

% of Building 55.2% 12.6% 14.4% 12.7% 7.8%

In-Place Rent PSF $22.25 $24.50 $20.25 $22.00 $23.48

Lease Expiration Date 4/30/24 11/30/18 4/30/25 3/31/23 6/30/19

Notes Beazley USA Services, Inc. pro-vides insurance agent and broker services. The Company offers coverage for world’s largest confer-ences, exhibitions, festivals, music tours and sporting events to far smaller scale events in local com-munities. Beazley USA Services serves customers worldwide. Beaz-ley PLC (London stock exchange – BEZ) is the parent company and, in 2016, underwrote gross premiums worldwide of $2,195.6 million.

Early termination option as of 12/31/21 with notice by 12/31/20.

Carrier is a world leader in high-technology heating, air-condi-tioning and refrigeration solutions. Carrier experts provide sustainable solutions, integrating energy-effi-cient products, building controls, and energy services for residential, commercial, retail, transport and food service customers. Carrier is a part of UTC Climate, Controls & Se-curity, a unit of United Technologies Corp. (NYSE - UTX), a leading pro-vider to the aerospace and building systems industries worldwide.

RBC Capital Markets is part of Royal Bank of Canada (NYSE – RY), the fifth largest bank in North America and the 11th largest bank globally as measured by market capitalization. RBC Capital Markets is a global investment bank pro-viding services in banking, finance and capital markets to corporations, institutional investors, asset man-agers and governments globally. The company was founded in 1909 and is based in New York, New York with additional offices in Australia, Asia, Caribbean, Europe, Canada, and United States. RBC Capital Markets LLC operates as a subsidiary of RBC USA Holdco Corporation.

Aerotek is a recruiting and staffing company that works with 17,000 clients and 300,000 contract em-ployees. Headquartered in Hanover, Md., it operates a network of more than 230 non-franchised offices. It is an operating company of the global talent solutions provider Allegis Group. In 2017, Forbes ranked Aerotek as one of America’s best large employers and ranked them #2 among Professional Search Recruiters.

Early termination option as of 3/30/21 with notice by 6/30/20.

Neopost USA provides mailing, shipping and document manage-ment solutions. They help custom-ers send, receive and connect via physical mail, parcels and digital communications.

Note that Neopost has recently started marketing its space for sublease.

TENANT SUMMARY 90%90% of the building is leased


42,733 SF 9,738 SF11,143 SF 9,860 SF 6,049 SF

VACANT 7,585 SF


Market OverviewGREATER HARTFORD SUBURBAN OFFICE MARKET

WEST HARTFORD SUBURBAN OFFICE MARKET

Market OverviewGreater Hartford’s suburban office market is made up of more than 17 million

square feet, and is split into the Eastern, Western, Southern, and Northern suburban

markets. The area offers access to one of the nation’s most educated workforces,

with rents far more reasonable than the sky high figures seen in other northeast

metros such as New York and Boston. Overall vacancy in the market is 17.2%, but

this is held up by higher vacancy in the urban submarkets - in the suburbs there is

a 15.3% vacancy rate.

30 Batterson Park Road sits in the Western Hartford County submarket. Extending

from West Hartford west to Bristol, and from Southington up to Simsbury, the

market consists of more than 6 million square feet of office space, making it by

far the largest of Hartford’s suburban markets. With an overall vacancy rate of just

13.0% (9.8% Class A), it is also one of the tightest. The submarket is known for low

taxes, great highway access, great schools, West Farms Mall (regional mall with

160 stores), corporate tenants, and bucolic scenery with traditional New England

housing. The Western submarket has seen positive absorption over the past 3 years,

and as the market has tightened rents have risen, from $17.50 in 2014 to $19.53

today, the largest jump seen in any suburban market over that time period.

Farmington itself is ideally located directly off Route 84, less than 10 minutes from

the city of Hartford and close to some of Connecticut’s most desirable bedroom

communities. The town’s ease of access, low tax rates, and high quality of life

have attracted diverse and dynamic companies that have contributed to a thriving

corporate ecosystem. Farmington is home to more than 25,000 people, a daytime

workforce of nearly 30,000 people, and many notable companies, including United

Technologies, Carrier, Otis, ConnectiCare, Jackson Labs and TRUMPF. The University

of Connecticut Health Center, which provides clinical care as well as biomedical

research and academic education, also makes its home in Farmington, and is by far

the largest employer in the town. In 2011, Governor Malloy made an $864 million

dollar investment in Bioscience CT, an economic development initiative aimed at

making CT one of the leaders in bioscience research and discovery. Bioscience CT is

making University of Connecticut Health Center a hub of research and clinical work

in the bioscience arena

OTHER DEMOGRAPHIC CHARACTERISTICS

Farmington Hartford County ConnecticutLand Area 28.02 sq. mi. 735.09 sq. mi. 4,842.33 sq. mi.

Population Density 912 pop/sq. mi. 1,220 pop/sq. mi. 742 pop/sq. mi.

Poverty Status 5.5% (±1.3%) 11.9% (±0.4%) 10.5% (±0.2%)

Total Households 10,343 (±214) 346,362 (±1,467) 1,352,583 (±23,661)

Median Household Income $91,712 (±4,642) $66,935 (±$636) $70,331 (±$409)

Median Age 4.34 (±0.6) 40.1 (±0.1) 40.4 (±0.1)

GREATER HARTFORD SUBURBAN OFFICE MARKET

WEST HARTFORD SUBURBAN OFFICE MARKET

FARMINGTON

WEST HARTFORDHARTFORD

EAST HARTFORD

91

84

91

291

384

84

17.2% HARTFORD VACANCY

15.3% SUBURB VACANCY

13.0% WEST MARKET VACANCY

30 BATTERSON PARK ROAD

Market Overview


84

84

84

9

91

91

5

4

6

WEST HARTFORD CENTEROVER 200 RESTAURANTS AND SHOPS

CORBIN’S CORNER RETAIL

DOWNTOWN HARTFORD

30 BATTERSON PARK ROAD

Area Amenities

Market Overview


84

84

84

9

91

91

5

4

6

WEST HARTFORD CENTEROVER 200 RESTAURANTS AND SHOPS

CORBIN’S CORNER RETAIL

DOWNTOWN HARTFORD

Financials


Financials

Cash Flow

Financials10-YEAR HOLDING PERIOD BEGINNING 01/01/2018 FOR CALENDAR YEAR ENDING DECEMBER 31

YEAR 1 PSF

1 2018

2 2019

3 2020

4 2021

5 2022

6 2023

7 2024

8 2025

9 2026

10 2027

11 2028

Project Size 77,370Wtd Avg. Prevailing Fsg Market Rate Psf/Yr. $19.54 $19.88 $20.19 $20.59 $21.00 $21.42 $21.85 $22.29 $22.73 $23.19 $23.65 $6,119,891 Fsg Scheduled Base Rental Income Psf/Yr. $20.36 $21.71 $22.85 $23.85 $24.38 $24.17 $22.15 $24.38 $25.66 $25.91 $25.64 Total Operating Expenses Per Year $10.59 $10.92 $11.27 $11.59 $11.82 $11.95 $11.79 $12.36 $12.79 $13.05 $13.20 Absorption & Turnover Vacancy % 1.2% 5.2% 2.0% 0.0% 0.0% 2.2% 12.9% 3.9% 0.0% 0.0% 2.3%INCOMEPotential Rental Revenue $19.89 $1,538,747 $1,707,003 $1,734,910 $1,766,880 $1,797,672 $1,820,237 $1,885,967 $1,931,403 $1,942,440 $1,942,440 $1,955,045Less Absorption & Turnover Vacancy ($0.23) (18,056) (87,058) (35,007) 0 0 (40,370) (210,138) (73,233) 0 0 (44,572)Base Rent Abatements ($1.52) (117,881) (13,813) (36,187) 0 0 (15,139) (78,802) (27,463) 0 0 (16,714)Scheduled Base Rental Revenue $18.13 1,402,810 1,606,132 1,663,716 1,766,880 1,797,672 1,764,728 1,597,027 1,830,707 1,942,440 1,942,440 1,893,759Expense Reimbursement Revenue $0.71 54,628 59,957 67,978 78,640 88,484 89,823 38,109 28,295 42,982 61,929 73,106% Recovered 7.0% 7.0% 7.4% 8.1% 9.2% 10.1% 10.1% 4.4% 3.1% 4.5% 6.4% 7.5%POTENTIAL GROSS INCOME $18.84 $1,457,438 $1,666,089 $1,731,694 $1,845,520 $1,886,156 $1,854,551 $1,635,136 $1,859,002 $1,985,422 $2,004,369 $1,966,865General Vacancy ($0.72) (55,719) (599) (53,328) (92,276) (94,308) (54,376) 0 (23,379) (99,271) (100,218) (56,000)Average 11-yr Vacancy (%) is 4.6% 5.1% 5.3% 5.1% 5.0% 5.0% 5.1% 0.0% 5.2% 5.0% 5.0% 5.1%EFFECTIVE GROSS INCOME $18.12 $1,401,719 $1,665,490 $1,678,366 $1,753,244 $1,791,848 $1,800,175 $1,635,136 $1,835,623 $1,886,151 $1,904,151 $1,910,865 OPERATING EXPENSESCleaning $0.97 74,770 80,409 86,931 91,958 93,798 92,046 80,705 93,104 101,529 103,560 101,626R&M $1.26 97,710 99,664 101,657 103,691 105,764 107,880 110,037 112,238 114,483 116,772 119,108Security $0.00 0 0 0 0 0 0 0 0 0 0 0Utilities $4.47 345,886 357,620 370,389 381,526 389,156 392,724 382,935 405,328 421,235 429,660 433,599Grounds $0.42 32,380 33,028 33,688 34,362 35,049 35,750 36,465 37,194 37,938 38,697 39,471Insurance $0.15 11,495 11,725 11,959 12,199 12,443 12,691 12,945 13,204 13,468 13,738 14,012G&A $1.17 90,190 91,994 93,834 95,710 97,625 99,577 101,569 103,600 105,672 107,785 109,941Taxes $1.69 130,732 133,347 136,014 138,734 141,509 144,339 147,225 150,170 153,173 156,237 159,362TOTAL REIMBURSABLE EXPENSES $10.12 $783,163 $807,787 $834,472 $858,180 $875,344 $885,007 $871,881 $914,838 $947,498 $966,449 $977,119Misc.Non-Reimbursable $0.47 36,000 36,720 37,454 38,203 38,968 39,747 40,542 41,353 42,180 43,023 43,884TOTAL NON-REIMBURSABLE EXPENSES $0.47 $36,000 $36,720 $37,454 $38,203 $38,968 $39,747 $40,542 $41,353 $42,180 $43,023 $43,884TOTAL OPERATING EXPENSES $10.59 $819,163 $844,507 $871,926 $896,383 $914,312 $924,754 $912,423 $956,191 $989,678 $1,009,472 $1,021,003NET OPERATING INCOME $7.53 $582,556 $820,983 $806,440 $856,861 $877,536 $875,421 $722,713 $879,432 $896,473 $894,679 $889,862LEASING COSTSTenant Improvements $1.96 151,700 124,160 125,868 0 0 136,078 708,327 246,853 0 0 150,241Leasing Commissions $0.88 68,384 51,150 51,566 0 0 33,636 175,087 61,018 0 0 33,011Capital Reserves $1.00 77,370 78,917 80,496 82,106 83,748 85,423 87,131 88,874 90,651 92,464 94,314TOTAL LEASING COSTS $3.84 $297,454 $254,227 $257,930 $82,106 $83,748 $255,137 $970,545 $396,745 $90,651 $92,464 $277,566NET CASH FLOW $3.68 $285,102 $566,756 $548,510 $774,755 $793,788 $620,284 -$247,832 $482,687 $805,822 $802,215 $612,296

UNLEVERAGED YIELD ANALYSISYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

Unleveraged NOI Yields - Midpoint Value 6.9% 9.8% 9.6% 10.2% 10.4% 10.4% 8.6% 10.5% 10.7% 10.7% 10.6%Unleveraged NCF Yields - Midpoint Value 3.4% 6.7% 6.5% 9.2% 9.4% 7.4% -3.0% 5.7% 9.6% 9.6% 7.3%

Cash Flow


10-YEAR HOLDING PERIOD BEGINNING 01/01/2018 FOR CALENDAR YEAR ENDING DECEMBER 31

YEAR 1 PSF

1 2018

2 2019

3 2020

4 2021

5 2022

6 2023

7 2024

8 2025

9 2026

10 2027

11 2028

Project Size 77,370Wtd Avg. Prevailing Fsg Market Rate Psf/Yr. $19.54 $19.88 $20.19 $20.59 $21.00 $21.42 $21.85 $22.29 $22.73 $23.19 $23.65 $6,119,891 Fsg Scheduled Base Rental Income Psf/Yr. $20.36 $21.71 $22.85 $23.85 $24.38 $24.17 $22.15 $24.38 $25.66 $25.91 $25.64 Total Operating Expenses Per Year $10.59 $10.92 $11.27 $11.59 $11.82 $11.95 $11.79 $12.36 $12.79 $13.05 $13.20 Absorption & Turnover Vacancy % 1.2% 5.2% 2.0% 0.0% 0.0% 2.2% 12.9% 3.9% 0.0% 0.0% 2.3%INCOMEPotential Rental Revenue $19.89 $1,538,747 $1,707,003 $1,734,910 $1,766,880 $1,797,672 $1,820,237 $1,885,967 $1,931,403 $1,942,440 $1,942,440 $1,955,045Less Absorption & Turnover Vacancy ($0.23) (18,056) (87,058) (35,007) 0 0 (40,370) (210,138) (73,233) 0 0 (44,572)Base Rent Abatements ($1.52) (117,881) (13,813) (36,187) 0 0 (15,139) (78,802) (27,463) 0 0 (16,714)Scheduled Base Rental Revenue $18.13 1,402,810 1,606,132 1,663,716 1,766,880 1,797,672 1,764,728 1,597,027 1,830,707 1,942,440 1,942,440 1,893,759Expense Reimbursement Revenue $0.71 54,628 59,957 67,978 78,640 88,484 89,823 38,109 28,295 42,982 61,929 73,106% Recovered 7.0% 7.0% 7.4% 8.1% 9.2% 10.1% 10.1% 4.4% 3.1% 4.5% 6.4% 7.5%POTENTIAL GROSS INCOME $18.84 $1,457,438 $1,666,089 $1,731,694 $1,845,520 $1,886,156 $1,854,551 $1,635,136 $1,859,002 $1,985,422 $2,004,369 $1,966,865General Vacancy ($0.72) (55,719) (599) (53,328) (92,276) (94,308) (54,376) 0 (23,379) (99,271) (100,218) (56,000)Average 11-yr Vacancy (%) is 4.6% 5.1% 5.3% 5.1% 5.0% 5.0% 5.1% 0.0% 5.2% 5.0% 5.0% 5.1%EFFECTIVE GROSS INCOME $18.12 $1,401,719 $1,665,490 $1,678,366 $1,753,244 $1,791,848 $1,800,175 $1,635,136 $1,835,623 $1,886,151 $1,904,151 $1,910,865 OPERATING EXPENSESCleaning $0.97 74,770 80,409 86,931 91,958 93,798 92,046 80,705 93,104 101,529 103,560 101,626R&M $1.26 97,710 99,664 101,657 103,691 105,764 107,880 110,037 112,238 114,483 116,772 119,108Security $0.00 0 0 0 0 0 0 0 0 0 0 0Utilities $4.47 345,886 357,620 370,389 381,526 389,156 392,724 382,935 405,328 421,235 429,660 433,599Grounds $0.42 32,380 33,028 33,688 34,362 35,049 35,750 36,465 37,194 37,938 38,697 39,471Insurance $0.15 11,495 11,725 11,959 12,199 12,443 12,691 12,945 13,204 13,468 13,738 14,012G&A $1.17 90,190 91,994 93,834 95,710 97,625 99,577 101,569 103,600 105,672 107,785 109,941Taxes $1.69 130,732 133,347 136,014 138,734 141,509 144,339 147,225 150,170 153,173 156,237 159,362TOTAL REIMBURSABLE EXPENSES $10.12 $783,163 $807,787 $834,472 $858,180 $875,344 $885,007 $871,881 $914,838 $947,498 $966,449 $977,119Misc.Non-Reimbursable $0.47 36,000 36,720 37,454 38,203 38,968 39,747 40,542 41,353 42,180 43,023 43,884TOTAL NON-REIMBURSABLE EXPENSES $0.47 $36,000 $36,720 $37,454 $38,203 $38,968 $39,747 $40,542 $41,353 $42,180 $43,023 $43,884TOTAL OPERATING EXPENSES $10.59 $819,163 $844,507 $871,926 $896,383 $914,312 $924,754 $912,423 $956,191 $989,678 $1,009,472 $1,021,003NET OPERATING INCOME $7.53 $582,556 $820,983 $806,440 $856,861 $877,536 $875,421 $722,713 $879,432 $896,473 $894,679 $889,862LEASING COSTSTenant Improvements $1.96 151,700 124,160 125,868 0 0 136,078 708,327 246,853 0 0 150,241Leasing Commissions $0.88 68,384 51,150 51,566 0 0 33,636 175,087 61,018 0 0 33,011Capital Reserves $1.00 77,370 78,917 80,496 82,106 83,748 85,423 87,131 88,874 90,651 92,464 94,314TOTAL LEASING COSTS $3.84 $297,454 $254,227 $257,930 $82,106 $83,748 $255,137 $970,545 $396,745 $90,651 $92,464 $277,566NET CASH FLOW $3.68 $285,102 $566,756 $548,510 $774,755 $793,788 $620,284 -$247,832 $482,687 $805,822 $802,215 $612,296

RESIDUAL VALUE2028 NOI $889,862Terminal Cap Rate 9.00%

Gross Residual Value $9,887,356Less: Seller Costs of 3.500%

($346,057)

Net Residual Value $9,541,298 Net Residual Value PSF $123

VALUATION SUMMARY

Price range Price psf In-place cap rate

Year 2 cap rate

Year 5 cap rate

10 Year avg. Cap rate

5 Year avg. Cash on cash

10 Year avg. Cash on cash Irr year 5 Irr year 7 Irr year 10

$8,800,000 $114 6.6% 9.3% 10.0% 9.3% 6.7% 6.2% 7.9% 6.5% 6.9%$8,600,000 $111 6.8% 9.5% 10.2% 9.6% 6.9% 6.3% 8.4% 6.9% 7.2%$8,400,000 $109 6.9% 9.8% 10.4% 9.8% 7.1% 6.5% 9.0% 7.4% 7.5%$8,200,000 $106 7.1% 10.0% 10.7% 10.0% 7.2% 6.6% 9.6% 7.8% 7.8%$8,000,000 $103 7.3% 10.3% 11.0% 10.3% 7.4% 6.8% 10.2% 8.3% 8.2%

Exit PSF $121 $122 $123 Cap Rate 9.00% 9.00% 9.00%

Financials


Financials


Notes to Cash Flow Projection

*Four storage units are assumed to lease up quarterly.

PROPERTY ASSUMPTIONS

Rentable Building Area 77,370

Growth Rates Operating Expenses 2% Real Estate Taxes 2%

General Vacancy 5%

Lease Terms (New & Renewal) 5 years Renewal Probability 75%

Downtime Period 9 months

Capital Reserves $1.00 PSF/YR

Analysis Start January 1, 2018

Analysis Period 10 years

MARKET LEASING ASSUMPTIONS

Market Rental Rates Office $23.00grossFS Renewal $22.00 gross FS

Tenant Improvements New $20.00 Renewal $10.00

Future Leasing Commissions Years 1-5 Years 6-10 New 7.5% 3.75% Renewal 3.75% 2.5%

Rent Abatement New 3 months Renewal none

Vacant Space Lease Up Size 7,585 RSF Start September 2018 OPERATING EXPENSE ASSUMPTIONS

Operating Expense Source Owner Operating Expenses $8.90 / SF Taxes $1.69 / SF Total $10.59 / SF

Financials


Rent Roll

Suite Tenant Leased Lease Begins Lease Expires Rent Changes On Current Recoveries

100 Neopost New England Dec-11 Jun-19 $22.50 $0.48

6,049 $23.00 Dec-2017

7.82%

110 Carrier - UTC $23.50

Office, Suite: 110 9,738 $24.50 Dec-2017 $0.00

Oct-2016 to Nov-2018 12.59%

26 Months

110A Beazley USA Services $21.50

Office, Suite: 110A 2,468 $22.00 Jul-2018 $1.22

Aug-2015 to Apr-2024 3.19% $22.50 Jul-2020

105 Months $23.00 Jul-2021

$23.50 Jul-2022

120 Beazley USA Services $21.50

Office, Suite: 120 3,976 $22.00 Jul-2018 $1.10

Aug-2015 to Apr-2024 5.14% $22.50 Jul-2020

105 Months $23.00 Jul-2021

$23.50 Jul-2022

200 Beazley USA Services $21.50

Office, Suite: 200 26,551 $22.00 Jul-2018 $1.67

Aug-2015 to Apr-2024 34.32% $22.50 Jul-2020

105 Months $23.00 Jul-2021

$23.50 Jul-2022

Financials


Suite Tenant Leased Lease Begins Lease Expires Rent Changes On Current Recoveries

300 Aerotek $22.00 free rent thru 3/18

Office, Suite: 300 9,860 $22.50 Mar-2019 $0.00

Nov-2017 to Apr-2023 12.74% $23.00 Mar-2020

66 Months $23.50 Mar-2021

$24.00 Mar-2022

350 RBC Capital $20.25 free rent thru 4/18

Office, Suite: 350 11,143 $20.75 May-2019 $0.00

Nov-2017 to Apr-2025 14.40% $21.25 May-2020

90 Months $21.75 May-2021

$22.25 May-2022

$22.75 May-2023

$23.25 May-2024

330 New Tenant $22.50 3 months free

Office, Suite: 330 7,585 $23.00 Sep-2019 $0.00

Sep-2018 to Dec-2023 9.80% $23.50 Sep-2020

64 Months $24.00 Sep-2021

$24.50 Sep-2022

$25.00 Sep-2023

Rent Roll

Broker NameExecutive Managing Director+1 234 567 [email protected]



Broker NameExecutive Managing Director+1 234 567 [email protected] Cushman & Wakefield

of Connecticut, Inc.280 Trumbull Street 22nd FloorHartford, CT 06103 860 249 0900 cushmanwakefield.com

Joel GriecoExecutive Director+1 860 616 [email protected] licensed real estate broker in CTLicensee affiliated with Cushman & Wakefield of Connecticut, Inc.

Documents

VIEW THE VIDEO 30 Batterson Park Road€¦ · tenants, with varying expirations and a provable upward trend in occupancy and NOI. Currently 90% leased with a weighted average remaining