173 Oxford Street Lynn, MA Confidential Offering Memorandum - 303 Congress Street | Boston, MA nailhunneman.com
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173 Oxford Street Lynn, MA Confidential Offering Memorandum 303 Congress Street | Boston, MA 617.457.3400 nailhunneman.com
CONFIDENTIAL OFFERING MEMORANDUM
FOR SALE: $845,000
173 Oxford Street
Lynn, MA
Disclaimer: Information included or referred to herein is furnished by third parties and is not guaranteed as to its accuracy or
completeness. You understand that all information included or referred to herein is confidential and furnished solely for the purpose of your
review in connection with a potential purchase of the subject property. Independent estimates of pro forma income and expenses should be
developed by you before any decision is made on whether to make any purchase. Summaries of any documents are not intended to be
comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual
documents to which they relate. The asset owner(s), their servicers, representatives and/or brokers, including but not limited to NAI
Hunneman and their respective agents, representatives, affiliates and employees, (i) make no representations or warranties of any kind,
express or implied, as to any information or projections relating to the subject asset(s), and hereby disclaim any and all such warranties or
representations, and (ii) shall have no liability whatsoever arising from any errors, omissions or discrepancies in the information. Any
solicitation for offers to purchase the subject asset(s) is subject to prior placement and withdrawal, cancellation or modification without notice.
CONTACT:
Carl Christie Dan McGee
EVP Associate
617.457.3400 x.2169 617.457.3400 x.2810
cchristie@naihunneman.com dmcgee@naihunneman.com
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY
Overview
Highlights
Location
II. GENERAL INFORMATION
Site Characteristics
Improvements
III. FINANCIAL INFORMATION
Projected Cash Flow Analysis
IV. PHOTOGRAPHS
Exterior Photographs
Interior Photographs
V. LOCATION
Aerial View
Location Maps
VI. FLOOR PLANS
I. EXECUTIVE SUMMARY Overview NAI Hunneman has been retained to act as the Exclusive Agent for the sale of 173 Oxford Street in Lynn, MA. The subject property includes a multi- tenant brick office building containing 16,680 ± SF on three floors, plus added space in the basement. The building was gut-renovated in 1996 and used as the data center and offices for Shore.net. Currently the building is partially occupied by several tenants, but the first and second floor are available. This attractive three-story office building has many modern amenities for an owner/user or future tenants. Investors could realize strong double digit returns if the building was fully stabilized. 173 Oxford Street is available for immediate acquisition and priced to sell at $845,000 (only $53/SF). Highlights Improvements: The numerous improvements to the infrastructure, power, and layout of this building has made it an ideal office location for other technology companies and data center operators. Flexibility: The building is currently best suited for office space. However, the zoning allows for other uses (mixed use / residential) that opens up other possibilities for future owners and developers. Below Replacement: Considering the improvements and added features of this building, the per square foot ($53) asking price is well below replacement cost. Location: The property is well-located in downtown Lynn, convenient to major thoroughfares, and accessible for commuters. The MBTA’s commuter train station is located one block from the subject property and provides parking and easy access to downtown Boston.
II. GENERAL INFORMATION
Site Characteristics
Land Area: 9,957 ± SF lot
Improvements: The site is improved with a three-story brick building and attached single-story annex building
Parking: Off-street parking for 2 vehicles
Zoning: CBD – Central Business District
Utilities: The site is serviced by Municipal water & sewer, electricity and gas, and telephone
Improvements
Description: Three-story brick office building with full basement, plus a single-story attached annex building
Year Built: Circa 1910, renovated 1996
Building Layout:
Section Square Footage Ceiling Height
3rd Floor 2,320 ± SF 10’0”
2nd Floor 5,520 ± SF 14’6” – 15’0”
1st Floor 5,520 ± SF 10’0”
Annex building 3,320 ± SF 10’0”
Basement 5,520 ± SF 10’0”
Totals 22,200 ± SF
Renovation: The building was a full gut renovation in 1996, new plumbing, electrical, HVAC, and roof were
installed. All new insulation and plaster was added. The build-out was to code and ADA compliant.
Structure: Brick and beam construction
Windows: About 75% of the windows were replaced during the renovation
Roof: Flat rubber membrane roof
II. GENERAL INFORMATION
Improvements
Electricity: 3 phase power, 480 volts, 1200 amps
Generators: Two (2) Katolight generators each with 150KVA
(kilo volt amps)
Data Storage: The building contains several data storage rooms
that were used by Shore.net
Room Size (SF) Capacity for A/C
Core 1,152 12 tons
Colo1 520 13 tons
Colo2 1,152 15 tons
Annex 3,300 21 tons
Fiber-optics: Dark fiber (Hibernia Atlantic) installed
Elevator: Passenger elevator services all floors
HVAC: Multiple gas-fired forced hot air heating systems;
central A/C provided by several condenser units
located outside and on the rooftop.
Sprinkler: The building is sprinklered
Security: 24/7 monitored security
Basement: Full basement with storage space and one month to month
tenant occupying an area as an art studio.
II. GENERAL INFORMATION
Improvements
Offices:
The first Floor has furnished offices with options for shared
or private offices; attractive interior detail with wood flooring
and four (4) bathrooms including a fully tiled shower. In
addition, the floor contains a conference room, a lounge,
and several computer/data rooms.
The second floor has a spectacular open-floor plan with
high ceilings, skylights, oversized windows, kitchenette, and
two (2) bathrooms. The space is currently vacant, but was
previously used as partitioned office space.
The 3rd floor does not have the same square footage as
the first and second floor, but it remains attractive office
space and is currently occupied. The third floor has elevator
access, 10’ ceilings, and a conference room.
III. FINANCIAL INFORMATION
Assumptions:
Projected Cash Asking Price $845,000
Flow Original Mortgage Loan Amount $633,750
Notes: Original Loan-to-Value Ratio 75%
Interest Rate on Mortgage Loan 5.00%
Income is based on
Amortization Period of Loan (Yrs) 25
existing rents and
Cash Flow Line Item PROJECTED
projections for vacant
INCOME Size (SF) LED $/SF $/Mth $/Yr
space. The roof antenna Art Studio (bsmt) - TAW $350 $4,200
is no longer in use and the Non-Profit Tenant 2,320 6/30/2015 $11.59 $2,240 $26,880
rent is currently being Roof Antenna Rights - 2/1/2016 $2,142 $25,704
paid, but not expected 1st Floor (vacant) 5,520 $10.00 $4,600 $55,200
beyond the lease 2nd Floor (vacant) 5,520 $10.00 $4,600 $55,200
expiration date. Annex (vacant) 3,320 $5.00 $1,383 $16,600
A 20% vacancy rate is EFFECTIVE GROSS INCOME: $183,784
applied to the gross Vacancy Rate (20% of EGI) (36,757)
income at 100% EFFECTIVE GROSS REVENUE (EGR) $147,027
occupied. Operating
expenses were supplied OPERATING EXPENSES $/SF $/Yr
by the owner and are Property tax $1.53 $33,940
assumed to be from Insurance $0.41 9,000
recent operations. Elevator $0.14 3,000
Fire safety $0.09 2,000
Financial information is Repairs/maint. $0.45 10,000
provided by the owner. Management Fees (5% of EGR) $0.33 7,351
No warranty or Total Operating Expenses $2.94 $65,291
representation is made as NET OPERATING INCOME $81,736
to the accuracy Cash Flow Before Debt Service $81,736
contained therein and Interest Payment 31,391
same is made subject to Principal Payment 13,067
errors and omissions, Cash Flow After Debt Service $37,278
change of price, or rental Investment Perfomance Measures
conditions. Cash-on-Cash Return on Equity 17.6%
Debt Coverage Ratio 1.84
Going-In Capitalization Rate 9.7%
IV. PHOTOGRAPHS Exterior
IV. PHOTOGRAPHS Interior
V. LOCATION
Aerial View 173 Oxford Street
Annex BuildingV. LOCATION Location Maps
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