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Huntington Ridge Apartments—Norwich, CT
100 Unit Apartment Community
Offering Price: $11,300,000
OFFERING MEMORANDUM
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Huntington Ridge Apartments
Exclusive Offering Memorandum
Exclusively Presented by:
Chozick Realty, Inc.
100 Wells Street STE 1D
Hartford, CT 06103
(860) 247-7400 phone
(860) 247-7401 fax
www.chozickrealty.com
All information contained herein is from sources deemed reliable; however, no representations or
warranties are made as to accuracy or completeness and is provided subject to errors, omission,
change, prior sale and withdrawal from market, all without notice. This information is confidential
and is provided strictly as background information for the sole use of the prospective purchaser and
its representatives. All interested parties are encouraged to make their own independent review
and investigation of the property.
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Huntington Ridge Apartments
Confidentiality Agreement
The information contained in this offering memorandum is offered to you under the following terms.
Your acceptance of this offering memorandum shall be deemed to be acceptance of the terms
herein. Should you not agree to these terms, please return this offering memorandum to Chozick
Realty, Inc. This information is provided to you for your sole use and the use of your partners, investors
and advisors in assisting you with the review and potential purchase of the property. You agree to
keep this information confidential and shall instruct any others that you must share this information with
of this agreement and ensure that they too will be bound by these terms. This offering memorandum
is intended to provide an overview of the property offering. While information is from sources deemed
reliable, it is offered subject to errors, omissions, change, prior rental or sale, or withdrawal from the
market, all without notice. No representations or warranties of any kind are made by Chozick Realty,
Inc. or the Owner. You represent that you are a qualified and knowledgeable investor and that any
and all review, investigation or confirmation of this information and property related information both
physical and financial is your sole responsibility. While Buyer Broker participation is welcomed, neither
Chozick Realty, Inc. nor the owner will pay any referral, brokerage, finder or other fee to another
Broker or Finder. Any fee due to any broker or finder other than Chozick Realty, Inc. shall be paid by
Buyer if you so choice to engage a buyer’s broker or finder.
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Chozick Realty, Inc. (860) 247-7400 [email protected]
Introduction
Chozick Realty, Inc. is pleased to offer Huntington Ridge Apartments. This Class A rental community offers
100 units built in 2006 located just one exit from Mohegan Sun Resort & Casino in Norwich, CT
OPPORTUNITY
Huntington Ridge is a 100 unit apartment community
constructed in 2006, making it one of Norwich’s newest
residential addresses. This 100 unit community is situated at
exit 80 off of I-395, just one exit from the Mohegan Sun
Resort and Casino. Located in a residential setting, yet just
minutes away from a wealth of employment, entertainment
and historical venues offered in Southeastern Connecticut,
Huntington Ridge offers an outstanding location in which to
live and invest.
The spacious residences offered at Huntington Ridge consist
of 21 one bed/one bath, 61 two bed/two bath and 18 three
bedroom apartment homes. Unit sizes range from 700 to
1,192 SF. All apartments have resident paid high efficiency
HVAC systems, well appointed GE applicanced kitchens and
resident amenities include a clubhouse and playground.
Offering Summary
Price $11,300,000
Total Units 100
Net Rentable Area +/- 90,106
Number of Buildings 4
Construction 2006
Parcel Size 13.4 Acres
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Chozick Realty, Inc. (860) 247-7400 [email protected]
INVESTMENT HIGHLIGHTS
100 Unit Apartment Community Constructed in 2006 - Immediate upside room in rental rates supported by market survey
Large Apartment Homes with 21 one bed 700-800 sf; 48 two bed, two bath 850-980 sf; 18 three bed two bath 1192 sf
Amenities include Club House with Fitness Room, Meeting Room, Kitchen, On Site Office, Laundry, Playground, Fully
applianced Kitchens, Generous Closet Space, 13 units with vaulted ceilings and onsite parking for 152 cars
High efficiency resident paid gas fired heating and central air conditioning
13.37 acre site
Ideal location at exit 80, just one exit from the Mohegan Sun Resort Casino
Original site plan has location for swimming pool
Condominium public offering statement completed and ready to file if condo sales are a desired exit strategy
NORWICH HIGHLIGHTS
Norwich is located in Vibrant New London County with a growing population of 273,723
Norwich Population is 40,378 as of 2014, projected to grow to 45,132 by 2020
The Norwich/Groton/New London market is home to such employers as Pfizer, General Dynamics Submarine ship yard,
US Navy Submarine Base, Foxwoods Resort Casino, Mohegan Sun Resort Casino and the US Coast Guard Academy
Midway between Boston (100 miles) and New York (136 miles). Just 15 miles to Groton and New London, 42 miles to
Hartford and 51 miles to Providence RI
Serviced by Amtrak rail service, Groton/New London Airport, Intestate 95 and 395 as well as Routes 2,12,32,82,165 and
169
Median Household Income over $70,000 within a three mile radius of Stonington Estates
Huntington Ridge Apartments
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Chozick Realty, Inc. (860) 247-7400 [email protected]
PROPERTY SUMMARY Huntington Ridge Apartments is a Class A 100 unit multifamily complex completed in 2006. Set in a residential setting, yet only one
highway exit away from the Mohegan Sun Resort Casino, Huntington Ridge offers a location second to none. The four attractive
colonial style buildings offer spacious garden style apartments with 21 one bedroom, 61 two bedroom and 18 three bedroom residences,
with two and three bedroom units having two bathrooms. Each residence is equipped with individual tenant paid Carrier high efficiency
gas heat and central air conditioning. The buildings on this 13.37 acre site are terraced into a rolling hillside, offering an attractive site
design, while maximizing the efficiency of the buildings. Huntington Ridge offers
a free standing office/clubhouse building and a fully equipped playground.
As a relatively new community, together with a size and style of apartments and
outstanding location, the property lends itself to condominium conversion. While
00% of the property is owned and operated as a rental community, Huntington
Ridge has a full public offering statement completed and ready to file, offering
flexibility to the investor in providing a highly profitable exit strategy as
condominium ownership is warranted in the Norwich market.
Huntington Ridge Apartments
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Chozick Realty, Inc. (860) 247-7400 [email protected]
Apartment units are fully equipped and well designed. Kitchens offer wall and base cabinets, GE appliances including refrigerator,
dishwasher, electric stove and laminate countertops. Apartments have wall to wall carpeting throughout the unit with laminate floor
covering in bathrooms and kitchens. Units are large with one bedrooms ranging from 700-800 SF, two bedrooms ranging from 850-980
SF and three bedroom units ranging from 950-1,192 SF. Thirteen upper floor apartments have highly attractive vaulted ceilings.
Sixteen apartment units are considered handicapped accessible with grab bars in bathrooms and emergency strobe lights. The site has
152 surface parking spaces. There are grills for resident use and a fully remodeled and renovated laundry facility owned by the property.
Roofs are pitched asphalt shingle. Heat is supplied by resident paid Carrier gas HVAC systems. Windows are double hung with storm
and screens.
Huntington Ridge Apartments
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Chozick Realty, Inc. (860) 247-7400 [email protected]
Address 31-61 Henry Street
Norwich, CT 06360
Total Units 100
SF Finished Area 122,040 SF (90,106 SF Net Rentable)
Unit Mix Unit Type No. Units Size (SF)
1BR, 1BA 17 700
1BR, 1BA 4 800
2BR, 2BA 18* 850 *2 units with vaulted ceilings
2BR, 2BA 30* 980 *11 units with vaulted ceilings
3BR, 2BA 13 950
3BR, 2BA 2 1,192
3BR, 1BA 3 1,192
Handicap Units 18 Handicap units; 4 1BRs & 14 2BRs
Equipped with grab bars & call switches in bathrooms and emergency strobe lights
Parking 152 spaces
Year Built 2006
Number of Buildings Four Residential, One Clubhouse/Office
Construction Wood frame with vinyl siding
Foundation Poured Concrete
Roof Pitched asphalt shingle
Windows Double pane, double hung, vinyl
Doors Unity entry doors are solid core. Interior doors are six panel wood
Walls/Ceilings Painted Sheetrock; 13 units offer vaulted ceilings
Heat/AC Individual resident paid Carrier Gas
HVAC units in each apartment
Hot Water Individual resident paid
40 Gallon capacity AO Smith hot water heaters in each unit
Electrical Individual resident paid
Circuit panels located in each unit
Water/Sewer Municipal
Available Utilities Electric, Gas, High Speed Internet, Cable Television, Telephone
Executive Summary
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Chozick Realty, Inc. (860) 247-7400 [email protected]
Executive Summary
Floor Covering Wall to wall carpet
Vinyl & tile in kitchens and baths
Carpet in common areas
Kitchens Raised oak panel wall and base cabinets
Formica counter tops
Appliances Refrigerator, Electric Range, Hood, Dishwasher & Garbage Disposal
Bathrooms 1 & 2BR units with three fixture, combo tub/shower, water closet & sink/vanity
Handicap units have grab bars & call switches
Amenities Clubhouse/Office with fitness area, kitchen & sliders to a balcony
Equipped Playground
Laundry Washer/Dryer hookups have been installed in a limited number of units
Common laundry room located in Building 2 with 10 vender owned washers & dryers
Life Safety Each apartment contains sprinklers & each room contains a smoke detector
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Chozick Realty, Inc. (860) 247-7400 [email protected]
Typical Floor Plans
Huntington Ridge Apartments
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NORWICH, CONNECTICUT
Norwich is located on 28 square miles in southeastern Connecticut within New London
County. Both Norwich and New London County have growing populations, with Norwich
growing from 36,111 people in 2000 to an estimated population of 45,132 by 2020. The
Norwich population stands at 40,378 as of 2014, representing a healthy 11.8% growth rate
from 2014 to 2020.
The Norwich area and New London County are home to such major employers as Pfizer
Pharmaceuticals, with its world research center located in nearby Groton. Also in nearby
Groton is General Dynamics, one of only two submarine ship building yards in the United
States. With over $24 billion of new contracts since 2014, General Dynamics is in the
beginning stages of a generational expansion of the US Naval growth in the submarine
warfare preparedness through the revamping of the Virginia Class and development of the
new class of submarine to replace the Ohio Class. Other major employers in the area
include the US Navy submarine base, the US Coast Guard, Mohegan Sun Resort and
Casino and Foxwoods Resort and Casino. This dynamic area of the state is well served by
the highway system with Interstates 95 and 395 running through Norwich as well as Routes
2, 12, 32, 82, 9, 165 and 169 providing access to the surrounding communities as well as
the entire region.
Norwich—Location Description
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Chozick Realty, Inc. (860) 247-7400 [email protected]
PRO FORMA INTRODUCTION
Huntington Ridge Apartments is owned and operated by an investor whose main business is
outside of real estate ownership. As such the property is managed and operated by a family
member. While well run and maintained the property offers immediate upside potential from
tighter operations and maximization of current rental rates bringing them to the market level
as outlined in the rental survey following in this report.
The following Pro Forma operating statement utilizes a current September 2016 rent roll
annualized as well as a comparison column indicating operations at market rents. Expenses
are year end 2015 unless noted.
It should be noted that real estate taxes were increased during the 2013 revaluation process
and have not been challenged by current ownership even though the increase was substantial.
While no representation is made, tax savings may be a possibility through the appeal process
in the future should the purchaser wish to appeal after taking ownership.
Operating Statement
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Current Market
INCOME Scheduled Rent Rents Comments
Residential Gross Potential $1,299,000 $1,501,200 Current: Sept RR Annualized/Market $1075 1bed; $1275 2bed; $1375 3 bed
Less Vacancy & Loss -$51,960 -$60,048 4% of Gross Potential
Net Potential Rental Income $1,247,040 $1,441,152
Other Income
Laundry $11,768 $11,768 2016 YTD Annualized
Mis. Tenant Charges & Fees $11,250 $11,250 Estimate for late fees, transfer fees, Damages, Applications etc
Total Other Income $23,018 $23,018
TOTAL INCOME $1,270,058 $1,464,170
EXPENSES
Management/Leasing/Admin/Office $37,411 $43,235 Property is self managed by ownership. 3% of NPRI Used
Professional Fees $6,526 $6,526 2105 year end
Telephone/Internet/Data $2,880 $2,880 2015 year end adjusted for personal phones
Advertising $8,843 $8,843 2015 year end
Repairs & Maintenance $15,338 $15,338 2015 year end
Supplies $7,423 $7,423 2015 year end
Cleaning & Cleaning supplies $1,211 $1,211 2015 year end
Trash $15,178 $15,178 2015 year end
Landscaping $8,295 $8,295 2015 year end
Snow Removal $6,526 $6,526 2015 year end
Payroll $77,326 $77,326 2015 year end. One office staff; one full time super
Payroll Burden $15,465 $15,465 20% of payroll
Utilities $85,253 $85,253 2015 year end. Residents pay for heat, AC, Hot Water & Electricity
Insurance $40,448 $40,448 2015 year end
Real Estate Tax $275,028 $275,028 Current RE Tax from Norwich tax collect
TOTAL OPERATING EXPENSES $603,151 $608,975
NET OPERATING INCOME $666,907 $855,195
OFFERING PRICE $11,300,000 $11,300,000
INDICATED CAP RATE 5.90% 7.57%
Operating Statement
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Chozick Realty, Inc. (860) 247-7400 [email protected]
Rental Comps
1. Huntington Ridge Apartments
2. Stonington Estates Apartments 7. Rose Hill
5. Cambridge Estates 6. Summit Wood
3. Meadow Ridge 4. Thames River
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Chozick Realty, Inc. (860) 247-7400 [email protected]
Rental Comps
Name Units Rental Rates Square Footage Heat/HW Property Amenities
1. Huntington Ridge 100 1 Bed 1 Bath $900 700-800 sf Resident Paid Clubhouse, playground, fitness room
100 Henry St 2 Bed 2 Bath $1,100 850-980 sf Pet Friendly
Norwich, CT 3 Bed 2 Bath $1,200 950-1192 sf
BUILT 2006
2. Stonington Estates 71 2 Bed 1 Bath $1,275 850 sf Resident paid Fitness Center, Tennis Court, Balconies
102 Stonington Road Pet Friendly
Norwich, CT
BUILT 2005
3. Meadow Ridge 120 1 BR 1 Bath $1,095-$1105 900 sf Resident Paid Pool
4 Plumtree Dr 2 BR 2 Bath $1,170-$1,300 1,100 sf Pet Friendly
Norwich, Ct 2 BR TH 1.5 Bth $1280-1430 1,200 sf
BUILT 1985
4. Thames River 225 1Bed 1 Bath $975 850 sf Resident Paid Basketball, Playground, Fitness, Pool
495 Laurel Hill Rd 2Bed 1 Bath $1015-1,135 1000 sf Pet Friendly
Norwich, Ct 3 Bed 1 Bath $1,310 1250 sf
BUILT 1975
5. Cambridge Estates 92 1Bed 1 Bath $999 550-750 sf Property Paid Pool
9 Oxford Drive 2Bed 1.5 Bth$1,250-1,299 1,000 SF Pet Friendly
Norwich CT
BUILT 1977
6. Summitwoods Apts 120 1Bed 1 Bath $800 725 sf Resident Paid Playground, Basketball
3 Summitwood Drive 2 Bed 1 Bath $900 950 sf Pet Friendly
Norwich, CT 3 Bed 2 Bath $1,150 1326 sf
BUILT 1991
7. Rose Hill Apts 185 1 Bed 1 Bth $874-$980 708 sf Property Paid Clubhouse, Playground
10 Gregory Road 2 Bed 1 Bth $1012-1170 869 sf Pet Friendly
Norwich, CT 3 Bed 1 Bth $1455-$1530 1161 sf
BUILT 1972
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Name # of Units Sale Date Price/Unit Sale Price
1. Stonington Estates 71 8/23/2016 $95,775 $6,800,000
102 Stonington Rd
Norwich, CT Blt 2005 71 2 Bed; 1 bath
Name # of Units Sale Date Price/Unit Sale Price
2. Cambridg/Meadow Rdg 212 5/31/2016 $89,150 $18,900,000
4 Pumtree & 9 Oxford Dr
Norwich, CT Blt 1977/1986 90 1 bed; 122 2 bd
Name # of Units Sale Date Price/Unit Sale Price
3. 6-7 Woods Drive 25 4/5/2016 $106,875 $2,137,500
6-7 Woods Drive
Norwich, CT Blt 2011 5-2 bed; 15 3 bed
Name # of Units Sale Date Price/Unit Sale Price
4. Fieldstone Apts 60 6/21/2016 $80,833 $4,850,000
99 Grove Ave
Groton, CT Blt 1970 20 1 bed; 40 2 bed
Name # of Units Sale Date Price/Unit Sale Price
6. Ledges Apartments 339 9/24/2014 $142,330 $48,250,000
11 Ledgewood Dr
Groton, CT Built 2003
Sales Comps