new brighton center - loopnet...property description new brighton center 1005 3rd avenue new...

NEW BRIGHTON CENTER1005 3rd AvenueNew Brighton, PA 15066

William [email protected]

Table of Contents

Property Description ................................................. 3

Annual Property Operating .................................. 4

Lease Rent Roll ......................................................... 5

Base Rent Report ...................................................... 6

Loan Analysis ............................................................. 7

Detailed General .......................................... 8

Cash Flow Analysis ................................................... 9

Investment Return ......................................... 10

Financial Indicators ................................................... 11

Annual Property Operating Data per Sq. ................. 12

Cumulative Analysis .................................................. 13

Operating Income .......................................... 14

Equity vs. Debt ........................................................... 15

Property Equity Analysis ........................................... 16

Cumulative Wealth ......................................... 17

Property DescriptionNew Brighton Center

1005 3rd AvenueNew Brighton, PA 15066

NEW BRIGHTON CENTER | A TRIPLE NET INVESTMENT

The Investors Commercial Realty Group is proud to offer for sale 1005 Third Avenue. A 4,854 square foot triple-

net leased property. Perfect for an investor looking to start their portfolio. Great tenant with an even better

business plan. 100% leased by “Tightwad Tobacco”, a local company with stores in Pennsylvania and Ohio.

Tightwad has been in this location since 2010 and has just renewed a five-year triple-net lease with substantial

increases proving this is to be one of their most profitable locations. The lease is strong with both corporate and

personal guarantees. The tenant does have one five-year option to renew. Building is located on the corner of

Third Avenue and 10th Street in the center of the town of New Brighton, Pennsylvania. The New Brighton Center is

a focal point of the town. Third Avenue is a four-lane state highway also known as State Routes 65 and 18. This is

a high traffic highly visible location. The building is approximately 10 years old built of masonry construction. Both

on-street and off-street parking lot for 12 vehicles provides easy access for drive-in and walk-up customers.

Sidewalks have recently replaced. Parking lot will be sealed and striped as soon as weather permits. Nothing for

an investor to do but collect the rent.

page 3

Annual PropertyNew Brighton Center


Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Rental Income $46,113 $46,113 $46,497 $50,724 $50,724 $50,724 $50,724 $51,149 $55,821 $55,821

Expense Reimbursements $12,135 $12,135 $12,135 $12,135 $12,135 $12,135 $12,135 $12,135 $12,135 $12,135

Owner Management Fee $1,212 $1,212 $1,212 $1,212 $1,212 $1,212 $1,212 $1,212 $1,212 $1,212

GROSS SCHEDULED INCOME $59,460 $59,460 $59,844 $64,071 $64,071 $64,071 $64,071 $64,496 $69,168 $69,168

GROSS OPERATING INCOME $59,460 $59,460 $59,844 $64,071 $64,071 $64,071 $64,071 $64,496 $69,168 $69,168

Expenses

Replacement Reserves ($1,214) ($1,214) ($1,214) ($1,214) ($1,214) ($1,214) ($1,214) ($1,214) ($1,214) ($1,214)

Building Insurance ($1,600) ($1,600) ($1,600) ($1,600) ($1,600) ($1,600) ($1,600) ($1,600) ($1,600) ($1,600)

Misc ($645) ($645) ($645) ($645) ($645) ($645) ($645) ($645) ($645) ($645)

Taxes - Real Estate ($6,690) ($6,690) ($6,690) ($6,690) ($6,690) ($6,690) ($6,690) ($6,690) ($6,690) ($6,690)

Snow Removal ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200)

TOTAL OPERATING EXPENSES ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349)

NET OPERATING INCOME $46,112 $46,112 $46,496 $50,723 $50,723 $50,723 $50,723 $51,148 $55,820 $55,820

page 4

Lease Rent RollNew Brighton Center


Suite Tenant Start Date Expire Date RSF $/RSF Annualized Tenant Commissions Renewal Renewal Notes

Tightwad Tobacco 12/01/2018 11/30/2023 4,854 $9.50 $46,113 $0.00 $0.00 5 years $0.00

page 5

Base Rent ReportNew Brighton Center



Total Income $46,113 $46,113 $46,497 $50,724 $50,724 $50,724 $50,724 $51,149 $55,821 $55,821

Tightwad Tobacco $46,113 $46,113 $46,497 $50,724 $50,724 $50,724 $50,724 $51,149 $55,821 $55,821

page 6

Loan AnalysisNew Brighton Center



LOAN 1

Debt Service Analysis

Principal Payments $11,596 $12,220 $12,877 $13,569 $14,299 $15,068 $15,879 $16,733 $17,632 $18,581

Interest Payments $20,677 $20,054 $19,397 $18,704 $17,974 $17,205 $16,395 $15,541 $14,641 $13,693

Total Debt Service $32,273 $32,273 $32,273 $32,273 $32,273 $32,273 $32,273 $32,273 $32,273 $32,273

Principal Balance Analysis

Beginning Principal Balance $399,120 $387,524 $375,304 $362,428 $348,858 $334,559 $319,491 $303,612 $286,880 $269,248

Principal Reductions $11,596 $12,220 $12,877 $13,569 $14,299 $15,068 $15,879 $16,733 $17,632 $18,581

Ending Principal Balance $387,524 $375,304 $362,428 $348,858 $334,559 $319,491 $303,612 $286,880 $269,248 $250,667

page 7

Detailed GeneralNew Brighton Center



Total Expenses ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349)

Replacement Reserves ($1,214) ($1,214) ($1,214) ($1,214) ($1,214) ($1,214) ($1,214) ($1,214) ($1,214) ($1,214)

Building Insurance ($1,600) ($1,600) ($1,600) ($1,600) ($1,600) ($1,600) ($1,600) ($1,600) ($1,600) ($1,600)

Misc ($645) ($645) ($645) ($645) ($645) ($645) ($645) ($645) ($645) ($645)

Taxes - Real Estate ($6,690) ($6,690) ($6,690) ($6,690) ($6,690) ($6,690) ($6,690) ($6,690) ($6,690) ($6,690)

Snow Removal ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200) ($3,200)

page 8

Cash Flow AnalysisNew Brighton Center



GROSS SCHEDULED INCOME $59,460 $59,460 $59,844 $64,071 $64,071 $64,071 $64,071 $64,496 $69,168 $69,168

Total Operating Expenses ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349) ($13,349)

NET OPERATING INCOME $46,112 $46,112 $46,496 $50,723 $50,723 $50,723 $50,723 $51,148 $55,820 $55,820

Loan Payment ($32,273) ($32,273) ($32,273) ($32,273) ($32,273) ($32,273) ($32,273) ($32,273) ($32,273) ($32,273)

NET CASH FLOW (b/t) $13,838 $13,838 $14,222 $18,449 $18,449 $18,449 $18,449 $18,874 $23,546 $23,546

Cash On Cash Return b/t 12.49% 12.49% 12.84% 16.65% 16.65% 16.65% 16.65% 17.04% 21.26% 21.26%

* b/t = before taxes;a/t = after taxes

page 9

Investment ReturnNew Brighton Center



Cash Flow - To Date $13,838 $27,676 $41,899 $60,348 $78,798 $97,247 $115,697 $134,571 $158,117 $181,663

Net Resale Proceeds $112,577 $126,011 $140,101 $154,884 $170,396 $186,678 $203,770 $221,716 $240,562 $260,356

Invested Capital ($110,778) ($110,778) ($110,778) ($110,778) ($110,778) ($110,778) ($110,778) ($110,778) ($110,778) ($110,778)

Net Return on Investment $15,638 $42,909 $71,222 $104,454 $138,416 $173,147 $208,689 $245,509 $287,901 $331,242

Internal Rate of Return 14.12% 18.78% 19.87% 20.68% 20.88% 20.82% 20.63% 20.41% 20.32% 20.17%

Modified IRR 14.12% 17.79% 18.00% 18.06% 17.60% 16.98% 16.34% 15.72% 15.29% 14.84%

NPV (cash flow + reversion) $15,638 $42,909 $71,222 $104,454 $138,416 $173,147 $208,689 $245,509 $287,901 $331,242

PV (NOI + reversion) $545,000 $591,111 $637,607 $688,330 $739,053 $789,775 $840,498 $891,646 $947,465 $1,003,285

* a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating Income

page 10

Financial IndicatorsNew Brighton Center



Gross Rent Multiplier 8.39 8.39 8.34 7.79 7.79 7.79 7.79 7.74 7.21 7.21

Capitalization Rate 9.24% 9.24% 9.32% 10.17% 10.17% 10.17% 10.17% 10.25% 11.19% 11.19%

Cash On Cash Return b/t 12.49% 12.49% 12.84% 16.65% 16.65% 16.65% 16.65% 17.04% 21.26% 21.26%

Cash On Cash Return a/t 12.49% 12.49% 12.84% 16.65% 16.65% 16.65% 16.65% 17.04% 21.26% 21.26%

Debt Coverage Ratio 1.43 1.43 1.44 1.57 1.57 1.57 1.57 1.58 1.73 1.73

Gross Income per Sq. Ft. $12.25 $12.25 $12.33 $13.20 $13.20 $13.20 $13.20 $13.29 $14.25 $14.25

Expenses per Sq. Ft. ($2.75) ($2.75) ($2.75) ($2.75) ($2.75) ($2.75) ($2.75) ($2.75) ($2.75) ($2.75)

Net Income Multiplier 10.82 10.82 10.73 9.84 9.84 9.84 9.84 9.75 8.94 8.94

Operating Expense Ratio 22.45% 22.45% 22.31% 20.83% 20.83% 20.83% 20.83% 20.70% 19.30% 19.30%

Loan To Value Ratio 77.68% 75.23% 72.65% 69.93% 67.06% 64.04% 60.86% 57.50% 53.97% 50.25%

* b/t = before taxes; a/t = after taxes

page 11

Annual PropertyNew Brighton Center



Rental Income $9.50 $9.50 $9.58 $10.45 $10.45 $10.45 $10.45 $10.54 $11.50 $11.50

Expense Reimbursements $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 $2.50

Miscellaneous Income $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25

GROSS SCHEDULED INCOME $12.25 $12.25 $12.33 $13.20 $13.20 $13.20 $13.20 $13.29 $14.25 $14.25

GROSS OPERATING INCOME $12.25 $12.25 $12.33 $13.20 $13.20 $13.20 $13.20 $13.29 $14.25 $14.25

Expenses

Replacement Reserves ($0.25) ($0.25) ($0.25) ($0.25) ($0.25) ($0.25) ($0.25) ($0.25) ($0.25) ($0.25)

Building Insurance ($0.33) ($0.33) ($0.33) ($0.33) ($0.33) ($0.33) ($0.33) ($0.33) ($0.33) ($0.33)

Misc ($0.13) ($0.13) ($0.13) ($0.13) ($0.13) ($0.13) ($0.13) ($0.13) ($0.13) ($0.13)

Taxes - Real Estate ($1.38) ($1.38) ($1.38) ($1.38) ($1.38) ($1.38) ($1.38) ($1.38) ($1.38) ($1.38)

Snow Removal ($0.66) ($0.66) ($0.66) ($0.66) ($0.66) ($0.66) ($0.66) ($0.66) ($0.66) ($0.66)

TOTAL OPERATING EXPENSES ($2.75) ($2.75) ($2.75) ($2.75) ($2.75) ($2.75) ($2.75) ($2.75) ($2.75) ($2.75)

NET OPERATING INCOME $9.50 $9.50 $9.58 $10.45 $10.45 $10.45 $10.45 $10.54 $11.50 $11.50

page 12

Cumulative AnalysisNew Brighton Center



Equity (appreciation) ($12) ($12) ($12) ($12) ($12) ($12) ($12) ($12) ($12) ($12)

Equity (loan reduction) $11,596 $23,816 $36,692 $50,262 $64,561 $79,629 $95,508 $112,240 $129,872 $148,453

CASH FLOW (a/t) $13,838 $27,676 $41,899 $60,348 $78,798 $97,247 $115,697 $134,571 $158,117 $181,663

Totals - To Date $25,422 $51,480 $78,579 $110,598 $143,346 $176,864 $211,192 $246,799 $287,978 $330,105

Invested Capital ($110,778) ($110,778) ($110,778) ($110,778) ($110,778) ($110,778) ($110,778) ($110,778) ($110,778) ($110,778)

ROIC - To Date 22.95% 46.47% 70.93% 99.84% 129.40% 159.66% 190.64% 222.79% 259.96% 297.99%

* a/t = after taxes; ROIC = Return On Invested Capital

page 13

Operating IncomeNew Brighton Center


Year 1 2 3 4 5 6 7 8 9 10

$7,000

$14,000

$21,000

$28,000

$35,000

$42,000

$49,000

$56,000

$63,000

$70,000

Legend

GROSS OPERATING INCOME NET OPERATING INCOME NET CASH FLOW (b/t)

page 14

Equity vs. DebtNew Brighton Center


Year 1 2 3 4 5 6 7 8 9 10

$39,000

$78,000

$117,000

$156,000

$195,000

$234,000

$273,000

$312,000

$351,000

$390,000

Legend

Equity Loan Principal Balance

page 15

Property EquityNew Brighton Center


Year 1 2 3 4 5 6 7 8 9 10

$25,000

$50,000

$75,000

$100,000

$125,000

$150,000

$175,000

$200,000

$225,000

$250,000

Legend

Initial Equity Equity (loan reduction) Equity (appreciation)

page 16

Cumulative WealthNew Brighton Center


Year 1 2 3 4 5 6 7 8 9 10

$34,000

$68,000

$102,000

$136,000

$170,000

$204,000

$238,000

$272,000

$306,000

$340,000

Legend

Equity (loan reduction) Equity (appreciation) CASH FLOW (a/t)

page 17

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