TABLE OF CONTENTS
Gorham NH 177 Main St. | Gorham, NHReal Estate Investment Details ... 3
Property Description ... 4
Property Photos ... 5
Maps and Aerials ... 6
Biography... 8
Summary Lease Analysis ... 9
Executive Summary ... 10
Financial Indicators ... 11
Annual Property Operating Data ... 12
Loan Analysis ... 13
Property Equity Analysis ... 14
Equity vs. Debt ... 15
REAL ESTATE INVESTMENT DETAILS
Gorham NH 177 Main St. | Gorham, NHAnalysis
Analysis Date April 2017
Property
Property Gorham NH
Property Address 177 Main St.
Gorham, NH
Year Built 1985
Financial Information
Down Payment $59,000
Closing Costs $10,000
LT Capital Gain 28.00%
Federal Tax Rate 35.0%
State Tax Rate 5.0%
Discount Rate 6.00%
Purchase Information
Property Type Commercial
Purchase Price $295,000 Fair Market Value $295,000
Tenants 1
Total Rentable Sq. Ft. 3,453
Resale Valuation 2.0% (annual appreciation) Resale Expenses 4.0%
Loans
Type Debt Term Amortization Rate Payment LO Costs
Fixed $236,000 20 years 20 years 4.0% $1,430
Income & Expenses
Gross Operating Income $33,250
Monthly GOI $2,771
Total Annual Expenses ($1,875)
Monthly Expenses ($156)
Contact Information
John Gendron, CCIM 207-939-8500
page - 3
PROPERTY DESCRIPTION
Gorham NH 177 Main St. | Gorham, NHThe subject property is located at 177 Main St. in Gorham, NH. This building was a former bank branch and offers 3,453 SF of living space along with a drive thru. Come join the surrounding businesses of McDonalds, Burger King, Pizza Hut, Sears, Mr.
Pizza, and more!
Property Information:
Map/Lot: U6/7
Book/Page: 1265/733 Lot size: .81 Ac Year Built: 1985
Road Frontage: 182 FT
Total Assessed Value: 327,000 2014 Taxes: $10,032.36 Zone: CA-Commercial A
Average Daily Traffic Count: 15,000!
Demographics: Mile 1- 1,430 Median-Income: Mile 1 -$42,033 Demographics: Mile 3- 2,312 Median-Income: Mile 3 -$42,178 Demographics: Mile 5- 3,660 Median-Income: Mile 5 -$41,790
page - 4
PROPERTY PHOTOS
Gorham NH 177 Main St. | Gorham, NHDrive Thru Side Back of Building
Front of Building Rear Angle of Building
Front Angle of Building Rear Angle of Building
page - 5
MAPS AND AERIALS
Gorham NH 177 Main St. | Gorham, NH Parcel Aerial page - 6MAPS AND AERIALS
Gorham NH 177 Main St. | Gorham, NH page - 7BIOGRAPHY
Gorham NH 177 Main St. | Gorham, NHProfessional Bio
John R. Gendron is a commercial real estate broker specializing in the selling, leasing and development of all types of commercial properties. He earned the designation of CCIM (Certified Commercial Investment Member) and holds several real estate broker licenses including Maine, New Hampshire, New York, Massachusetts, Florida and Connecticut. He is a past President, Vice President and Treasurer of the York County Board of Realtors, past President of Maine Homebuilders Association, past Director of the State of Maine Realtors Association, past Director of Portland Chamber of Commerce, past Director of Greater Portland Landmarks; past Member of Mercy Hospital Board of Trustees, and past Director of McAuley Residence.
page - 8
SUMMARY LEASE ANALYSIS
Gorham NH 177 Main St. | Gorham, NH DescriptionYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10 Potential Lease Revenue Base Rental Income$35,000$35,263$36,320$37,410$38,532$39,688$40,879$42,105$43,368$44,669 Lease-up Vacancy$0$0$0$0$0$0$0$0$0$0 Rent Abatement$0$0$0$0$0$0$0$0$0$0 Turnover Vacancy$0$0$0$0$0$0$0$0$0$0 Expense Reimbursements$0$0$0$0$0$0$0$0$0$0 Potential Lease Costs Tenant Improvements$0$0$0$0$0$0$0$0$0$0 Lease Commissions$0$0$0$0$0$0$0$0$0$0 Net Lease Cash Flow$35,000$35,263$36,320$37,410$38,532$39,688$40,879$42,105$43,368$44,669 Additional Information Sq. Ft. Expires0000000000 Dollars Expires$0$0$0$0$0$0$0$0$0$0 page - 9EXECUTIVE SUMMARY
Gorham NH 177 Main St. | Gorham, NHA
CQUISITIONC
OSTSPurchase Price, Points and Closing Costs $305,000
Investment - Cash $70,000
First Loan $236,000
I
NVESTMENTI
NFORMATIONPurchase Price $295,000
Price per Tenant $295,000
Price per Sq. Ft. $85.43
I
NCOME,E
XPENSES &C
ASHF
LOWGross Scheduled Income $35,000
Total Vacancy and Credits ($1,750)
Operating Expenses ($1,875)
Net Operating Income $31,375
Debt Service ($17,161)
Cash Flow Before Taxes $14,214
Total Interest (Debt Service) ($9,297)
Depreciation and Amortization ($4,514)
Taxable Income (Loss) $17,564
Tax Savings (Costs) ($7,026)
Cash Flow After Taxes $7,188
F
INANCIALI
NDICATORSCash on Cash Return Before Taxes 20.31%
Optimal Internal Rate of Return (yr 5) 20.07%
Debt Coverage Ratio 1.83
Capitalization Rate 10.64%
Gross Income / Square Feet $10.14
Gross Expenses / Square Feet ($0.54)
Operating Expense Ratio 5.64%
page - 10
FINANCIAL INDICATORS
Gorham NH 177 Main St. | Gorham, NH DescriptionYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10 Gross Rent Multiplier8.608.708.628.548.458.378.298.218.138.05 Capitalization Rate10.64%10.72%11.05%11.39%11.74%12.11%12.48%12.86%13.26%13.67% Cash On Cash Return b/t20.31%20.65%22.05%23.49%24.97%26.50%28.07%29.69%31.36%33.08% Cash On Cash Return a/t10.27%10.41%11.05%11.72%12.40%13.10%13.83%14.57%15.32%16.00% Debt Coverage Ratio1.831.841.901.962.022.082.152.212.282.35 Gross Income per Sq. Ft.$10.14$10.21$10.52$10.83$11.16$11.49$11.84$12.19$12.56$12.94 Expenses per Sq. Ft.($0.54)($0.54)($0.55)($0.56)($0.57)($0.58)($0.59)($0.59)($0.60)($0.61) Net Income Multiplier9.599.719.609.509.409.309.209.119.018.92 Operating Expense Ratio5.64%5.62%5.53%5.45%5.36%5.28%5.21%5.13%5.06%4.99% Loan To Value Ratio75.82%71.66%67.54%63.44%59.36%55.31%51.27%47.26%43.26%39.28% Footnotes:b/t = before taxes; a/t = after taxes page - 11ANNUAL PROPERTY OPERATING DATA
Gorham NH 177 Main St. | Gorham, NH DescriptionYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10 Rental Income$35,000$35,263$36,320$37,410$38,532$39,688$40,879$42,105$43,368$44,669 GROSS SCHEDULED INCOME$35,000$35,263$36,320$37,410$38,532$39,688$40,879$42,105$43,368$44,669 General Vacancy($1,750)($1,763)($1,816)($1,870)($1,927)($1,984)($2,044)($2,105)($2,168)($2,233) GROSS OPERATING INCOME$33,250$33,499$34,504$35,539$36,606$37,704$38,835$40,000$41,200$42,436 Expenses Property Management Fee($875)($882)($908)($935)($963)($992)($1,022)($1,053)($1,084)($1,117) Replacement Reserves($1,000)($1,000)($1,000)($1,000)($1,000)($1,000)($1,000)($1,000)($1,000)($1,000) TOTAL OPERATING EXPENSES($1,875)($1,882)($1,908)($1,935)($1,963)($1,992)($2,022)($2,053)($2,084)($2,117) NET OPERATING INCOME$31,375$31,618$32,596$33,604$34,642$35,712$36,813$37,947$39,116$40,319 page - 12LOAN ANALYSIS
Gorham NH 177 Main St. | Gorham, NH DescriptionYear 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10 LOAN 1 Debt Service Analysis Principal Payments$7,865$8,185$8,518$8,865$9,227$9,603$9,994$10,401$10,825$11,266 Interest Payments$9,297$8,976$8,643$8,296$7,935$7,559$7,168$6,760$6,337$5,896 Total Debt Service$17,161$17,161$17,161$17,161$17,161$17,161$17,161$17,161$17,161$17,161 Principal Balance Analysis Beginning Principal Balance$236,000$228,135$219,951$211,432$202,567$193,340$183,738$173,744$163,343$152,518 Principal Reductions$7,865$8,185$8,518$8,865$9,227$9,603$9,994$10,401$10,825$11,266 Ending Principal Balance$228,135$219,951$211,432$202,567$193,340$183,738$173,744$163,343$152,518$141,253 page - 13PROPERTY EQUITY ANALYSIS
Gorham NH 177 Main St. | Gorham, NHYear 1 2 3 4 5 6 7 8 9 10
$22,000
$44,000
$66,000
$88,000
$110,000
$132,000
$154,000
$176,000
$198,000
$220,000 Legend Initial EquityEquity (loan reduction)Equity (appreciation) page - 14
EQUITY VS. DEBT
Gorham NH 177 Main St. | Gorham, NHYear 1 2 3 4 5 6 7 8 9 10
$23,000
$46,000
$69,000
$92,000
$115,000
$138,000
$161,000
$184,000
$207,000
$230,000 Legend EquityLoan Principal Balance page - 15
