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
1005 3rd AvenueNew Brighton, PA 15066
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
1005 3rd AvenueNew Brighton, PA 15066
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
1005 3rd AvenueNew Brighton, PA 15066
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
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
1005 3rd AvenueNew Brighton, PA 15066
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
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
1005 3rd AvenueNew Brighton, PA 15066
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
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
1005 3rd AvenueNew Brighton, PA 15066
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
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
1005 3rd AvenueNew Brighton, PA 15066
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
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
1005 3rd AvenueNew Brighton, PA 15066
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
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
1005 3rd AvenueNew Brighton, PA 15066
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
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
1005 3rd AvenueNew Brighton, PA 15066
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
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
1005 3rd AvenueNew Brighton, PA 15066
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
1005 3rd AvenueNew Brighton, PA 15066
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
1005 3rd AvenueNew Brighton, PA 15066
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
1005 3rd AvenueNew Brighton, PA 15066
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