Offering Memorandum- 119 Elm St, Amesbury, MA

Confidentiality & Disclaimer

All materials and information received or derived from KW Commercial - Faulkner Commercial Group its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters

Neither KW Commercial - Faulkner Commercial Group its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party KW Commercial - Faulkner Commercial Group will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial - Faulkner Commercial Group makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions KW Commercial - Faulkner Commercial Group does not serve as a financial advisor to any party regarding any proposed transaction All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property

Legal questions should be discussed by the party with an attorney Tax questions should be discussed by the party with a certified public accountant or tax attorney Title questions should be discussed by the party with a title officer or attorney Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies All properties and services are marketed by KW Commercial - Faulkner Commercial Group in compliance with all applicable fair housing and equal opportunity laws

Property Information 1

Value Add Investment: Well-maintained five-unit multifamily in a fantastic in-town location near the heart of Amesbury Four units are TAW, one unit has a recently signed lease The unit mix is four 2 bedroom, one 3 bedroom This is a value add investment, with the opportunity to move to market rents as tenants tur nover. The current gross income is $106,200, with an NOI of $81,690, which put the current cap rate at 6 4%

A large yard to the rear offers substantial parking and additional possibilities to expand the property Separately metered units, all tenants pay their own utilities Recent renovations include a newer roof, windows, and Unit 1 has been refreshed including appliances, hardwood, and a new furnace Elm Street recently underwent a complete transformation by the state with new paving, sidewalks, and bike lanes

Information was obtained from the seller and public records, prospective buyers are encouraged to perform due diligence in all aspects of a contemplated acquisition. Demographics and rental demand are very strong in Amesbury, a lovely, walkable city

Sale Price

Location Information

$1,290,000

Building Name Value Add Multifamily Investment Street Address 119 Elm Street City, State, Zip Amesbury, MA 01913

County Essex Market Boston Sub-market Amesbury Ipswich Cross-Streets Chestnut St & Elm St

Road Type Paved Market Type Small Nearest Highway Interstate 95, Interstate 495

Nearest Airport

Building Information

Boston Logan Airport and Manchester Boston Regional Airport

Property Information

Property Type

Multifamily

Property Subtype Mid-Rise Zoning R8 Lot Size 0 33 Acres

APN # 054-003 Lot Frontage 70 ft Lot Depth 225 ft

Corner Property No Traffic Count 12539

Traffic Count Street Elm Street Traffic Count Frontage 70

Power Yes

Parking & Transportation

Parking Type Surface Number of Parking Spaces 10

Building Size 5,859 SF

Occupancy % 100 0%

Tenancy Multiple Ceiling Height 9 ft Number of Floors 3

Year Built 1880 Year Last Renovated 2020

Gross Leasable Area 5,859 SF

Construction Status Existing Framing Wood Frame Condition Good Roof Asphalt Shingles- Newer Free Standing Yes

Utilities & Amenities

Broadband Cable Gas / Propane Yes

p. 5Property Information

Location Information 2

119 Elm Street

Financial Analysis 3

INVESTMENT ANALYSIS

119-121 Elm St, Amesbury, MA

INCOME

Current Current

Units Rent/ mo Rent/ yr

Unit 1- 2BR $1,850.00 $22,200.00

Unit 2- 3BR $2,050.00 $24,600.00

Unit 3- 2BR $2,000.00 $24,000.00

Unit 4- 2MR $1,250.00 $15,000.00

Unit 5- 2BR $1,700.00 $20,400.00

Gross Operating Income (GOI) $8,850.00 $106,200.00

EXPENSES

Taxes $13,356.63

Insurance $4,445.68

Water & Sewer $2,618.96 Electric $0.00 Landscaping $500.00

Snow Removal $2,310.31 Repairs/ Maintenance $1,278.00

TOTAL EXPENSES $24,509.58

RESERVES (on NOI)

Vacancy @ 5% $4,084.52 Capex Reserve @ 5% $4,084.52

Total Reserves $8,169.04

GOI $106,200.00 EXPENSES $24,509.58

Net Operating Income (NOI) $81,690.42 RESERVES $8,169.04

NET after reserves $73,521.38

CAP RATE

TARGET PRICE 0 0 6 4 $1 ,300,000.00

All calculations are estimates based on the information received from the Seller.

UNIT FLOOR ROOMS BED BATH SQ FT TENANT SINCE SECURITY DEPOSIT CURRENT RENT TYPE SUBSIDIZED? LEASE EXPIRATION

1 5 2 1 8/1/19

$1,850 TAW N

2 5 3 1 10/31/19 $2,050 TAW N

3 4 2 1 10/1/22 $2,000 LEASE N

4 4 2 1 4/1/20 $1,250 TAW N

5 4 2 1 10/15/19 $1,700 TAW N

Demographics 4

Building Type: 5,896 SF Building Size:

Avg Unit Size: # of Units:

Multi-Family

5

1179 SF

% Bldg Vacant:

Rent/SF/Yr: Total Available:

0 SF 0%

Radius 1 Mile 5 Mile 10 Mile

Population

2027 Projection 9,670 61,626 188,169 2022 Estimate 9,566 60,362 183,489 2010 Census 9,298 56,299 169,788 Growth 2022 - 2027 1.09% 2.09% 2.55% Growth 2010 - 2022 2.88% 7.22% 8.07%

2022 Population by Hispanic Origin 347 2,010 10,992 2022 Population 9,566 60,362 183,489 White 9,124 95.38% 57,512 95.28% 173,509 94.56% Black 145 1.52% 703 1.16% 3,269 1.78%

Am. Indian & Alaskan 31 0.32% 169 0.28% 538 0.29% Asian 88 0.92% 890 1.47% 2,868 1.56% Hawaiian & Pacific Island 4 0.04% 22 0.04% 97 0.05% Other 174 1.82% 1,067 1.77% 3,207 1.75% U.S. Armed Forces 0 23 89

Households

2027 Projection 4,024 25,004 76,268 2022 Estimate 3,979 24,509 74,287 2010 Census 3,871 23,030 68,542 Growth 2022 - 2027 1.13% 2.02% 2.67% Growth 2010 - 2022 2.79% 6.42% 8.38% Owner Occupied 2,423 60.89% 17,588 71.76% 53,760 72.37% Renter Occupied 1,556 39.11% 6,922 28.24% 20,526 27.63%

2022 Households by HH Income 3,978 24,511 74,287

Income: <$25,000 560 14.08% 2,791 11.39% 8,566 11.53% Income: $25,000 - $50,000 668 16.79% 3,479 14.19% 10,489 14.12% Income: $50,000 - $75,000 646 16.24% 3,421 13.96% 11,256 15.15%

Income: $75,000 - $100,000 652 16.39% 3,284 13.40% 10,587 14.25%

Income: $100,000 - $125,000 451 11.34% 2,656 10.84% 7,236 9.74% Income: $125,000 - $150,000 300 7.54% 2,086 8.51% 6,322 8.51% Income: $150,000 - $200,000 338 8.50% 2,809 11.46% 8,165 10.99% Income: $200,000+ 363 9.13% 3,985 16.26% 11,666 15.70%

2022 Avg Household Income $99,432 $122,064 $119,715

2022 Med Household Income $79,409 $94,522 $91,134

119 Elm St, Amesbury, MA 01913 All information furnished is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof. © 2022 CoStar Group - Licensed to KW Commercial - Faulkner Commercial - 665436.

Additional Information

Janet Ryan Faulkner

Outbuildings

2021 $593,200 $124,000 $717,200 2020 $575,500 $119,300 $694,800 2019 $354,100 $119,300 $473,400

BOARDOFREGISTRATIONOFREALESTATEBROKERSANDSALESPERSONS

http://www.mass.gov/ocabr/licensee/dpl-boards/re/ MASSACHUSETTSMANDATORYLICENSEE-CONSUMERRELATIONSHIPDISCLOSURE

THIS IS NOT A CONTRACT

Thisdisclosureisprovidedtoyou,theconsumer,bytherealestatelicenseelistedinthisdisclosure.

THETIMEWHENTHELICENSEEMUSTPROVIDETHISNOTICETOTHECONSUMER:

Allrealestatelicenseesmustpresentthisformtoyouatthefirstpersonalmeetingwithyoutodiscussaspecificresidentialproperty.If thereisnopersonalmeetingbetweenyouandthelicensee,thisformmustbepresentedelectronicallyorthroughsomeothermeans beforethelicenseeentersintoacontractwithaconsumer.Residentialpropertyisdefinedaslandwithabuildingintendedforuseasa onetofour-unitresidentialdwellingorthepurchaseorsaleoflandonwhichabuildingisintendedtobeconstructedforuseasaone-or two-unitresidentialdwelling.Intheeventthisrelationshipchangesanadditionaldisclosuremustbeprovidedandcompletedatthattime.

CONSUMERINFORMATIONANDRESPONSIBILITY:

Ifyouareabuyerorseller,youcanengagealicenseetoprovideadvice,assistanceandrepresentationtoyouasyouragent.The licenseecanrepresentyouastheseller(Seller'sAgent)orrepresentyouasthebuyer(Buyer'sAgent),orcanassistyouasaFacilitator.

Allrealestatelicensees,regardlessoftheworkingrelationshipwithaconsumermust,bylaw,presentpropertieshonestlyand accurately,anddiscloseknownmaterialdefectsintherealestate.

Thedutiesofarealestatelicenseedonotrelieveconsumersoftheresponsibilitytoprotecttheirowninterests.Ifyouneedadvicefor legal,tax,insuranceorlandsurveymattersitisyourresponsibilitytoconsultaprofessionalinthoseareas.Realestatelicenseesdonot andcannotperformhome,leadpaint,orinsectinspections,nordotheyperformsepticsystem,wetlandsorenvironmentalevaluations.

Donotassumethatarealestatelicenseeworkssolelyforyouunlessyouhaveanagreementforthatrelationship.

Formoredetaileddefinitionsanddescriptionsaboutrealestaterelationships,pleaseseepage2ofthisdisclosure.

SELLER'SAGENT

Asellercanengagetheservicesofarealestatelicenseetoactastheseller'sagentinthesaleoftheseller'sproperty.Thismeans thattherealestateagentrepresentstheseller,whoisaclient.Theagentowesthesellerclientundividedloyalty,reasonablecare, disclosure,obediencetolawfulinstruction,confidentialityandaccounting.Theagentmustputtheseller'sinterestsfirstand attempttonegotiatepriceandtermsacceptabletotheirsellerclient.Thesellermayauthorizesub-agentstorepresenthim/herin marketingitspropertytobuyers,howeverthesellershouldbeawarethatwrongfulactionbytherealestateagentorsub-agents maysubjectthesellertolegalliabilityforthosewrongfulactions.

BUYER'SAGENT

Abuyercanengagetheservicesofarealestatelicenseetoactasthebuyer'sagentinthepurchaseofaproperty.Thismeansthat therealestateagentrepresentsthebuyer,whoisaclient.Theagentowesthebuyerclientundividedloyalty,reasonablecare, disclosure,obediencetolawfulinstruction,confidentialityandaccounting.Theagentmustputthebuyer'sinterestsfirstand attempttonegotiatepriceandtermsacceptabletotheirbuyerclient.Thebuyermayalsoauthorizesub-agentstorepresent him/herinpurchasingproperty,howeverthebuyershouldbeawarethatwrongfulactionbytherealestateagentorsub-agents maysubjectthebuyertolegalliabilityforthosewrongfulactions.

(NON-AGENT)FACILITATOR

Whenarealestatelicenseeworksasafacilitatorthatlicenseeassiststhesellerand/orbuyerinreachinganagreementbutdoes notrepresenteitherthesellerorbuyerinthetransaction.Thefacilitatorandthebrokerwithwhomthefacilitatorisaffiliated,owe thesellerandbuyeradutytopresentallrealpropertyhonestlyandaccuratelybydisclosingknownmaterialdefectsandowea dutytoaccountforfunds.Unlessotherwiseagreed,thefacilitatorhasnodutytokeepinformationreceivedfromasellerorbuyer confidential.Shouldthesellerand/orbuyerexpresslyagree,afacilitatorrelationshipcanbechangedtoasellerorbuyerclient relationshipwiththewrittenagreementofthepersonsorepresented.

DESIGNATEDSELLER'SANDBUYER'SAGENT

Arealestatelicenseecanbedesignatedbyanotherrealestatelicensee(theappointingordesignatingagent)torepresentabuyer orseller,providedthebuyerorsellerexpresslyagreestosuchdesignation.Therealestatelicenseeoncesodesignatedisthenthe agentforthatbuyerorsellerwhobecomestheagent'sclient.Thedesignatedagentowesthebuyerclientorsellerclient, undividedloyalty,reasonablecare,disclosure,obediencetolawfulinstruction,confidentialityandaccounting.Theagentmustput theirclient'sinterestsfirst,andattempttonegotiatepriceandtermsacceptabletotheirclient.Nootherlicenseesaffiliatedwiththe samefirmrepresenttheclientunlessotherwiseagreeduponbytheclient.Insituationswheretheappointingagentdesignates anotheragenttorepresentthesellerandanagenttorepresentthebuyerinthesametransaction,thentheappointingagent becomesadualagent.Consequently,adualagentcannotfullysatisfythedutiesofloyalty,fulldisclosure,obediencetolawful instructions,whichisrequiredofasellerorbuyeragent.Onlyyourdesignatedagentrepresentsyourinterests. Writtenconsent fordesignatedagencymustbeprovidedbeforeapotentialtransactionisidentified,butinanyevent,nolaterthanpriortothe executionofawrittenagreementforpurchaseorsaleofresidentialproperty.Theconsentmustcontaintheinformationprovided forintheregulationsoftheMassachusettsBoardofRegistrationofRealEstateBrokersandSalespeople(Board).Asample consenttodesignatedagencyisavailableattheBoard'swebsiteatwww.mass.gov/dpl/re

DUALAGENT

Arealestatelicenseemayactasadualagentrepresentingboththesellerandthebuyerinatransactionbutonlywiththeexpress andinformedwrittenconsentofboththesellerandthebuyer.Adualagentshallbeneutralwithregardtoanyconflictinginterest ofthesellerandbuyer.Consequently,adualagentcannotsatisfyfullythedutiesofloyalty,fulldisclosure,obediencetolawful instructions,whichisrequiredofasellerorbuyeragent.Adualagentdoes,however,stilloweadutyofconfidentialityof materialinformationandaccountingforfunds.Writtenconsentfordualagencymustbeprovidedbeforeapotentialtransactionis identified,butinanyevent,nolaterthanpriortotheexecutionofawrittenagreementforpurchaseorsaleofresidentialproperty. TheconsentmustcontaintheinformationprovidedforintheregulationsoftheMassachusettsBoardofRegistrationofReal EstateBrokersandSalespeople(Board).AsampleconsenttodualagencyisavailableattheBoard'swebsiteat www.mass.gov/dpl/re.

LastRevisedSeptember20,2021