CONFIDENTIAL OFFERING MEMORANDUM
30 Batterson Park Road FARMINGTON, CT
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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
30 Batterson Park Road 7
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
9.8% CLASS A VACANCY
$19.53 ASKING RENT
$21.11 CLASS A ASKING RENTS
10.2% VACANCY
9.9% CLASS A VACANCY
$21.03 ASKING RENT
$21.78 CLASS A ASKING RENTS
FARMINGTON
cushmanwakefield.com8
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
30 Batterson Park Road 9
NO PARKING
BATTERSON PARK ROAD
Site Plan 84
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Asset Summary
Second Floor
Executive Summary
30 Batterson Park Road 11
Third Floor
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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
30 Batterson Park Road 13
42,733 SF 9,738 SF11,143 SF 9,860 SF 6,049 SF
VACANT 7,585 SF
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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
cushmanwakefield.com16
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
30 Batterson Park Road 17
84
84
84
9
91
91
5
4
6
WEST HARTFORD CENTEROVER 200 RESTAURANTS AND SHOPS
CORBIN’S CORNER RETAIL
DOWNTOWN HARTFORD
Financials
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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
30 Batterson Park Road 19
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
cushmanwakefield.com20
Financials
30 Batterson Park Road 21
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
cushmanwakefield.com22
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
30 Batterson Park Road 23
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]
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.