Assumptions:

Price:$15,160,000
NOI: $

Cashflows

Acquisition Price
Closing Costs
Legal/appraisal/environmental fees
Finder's Fee
Initial Costs
Net Operating Income
Discounted Amount
Increase in NOI
Depreciation
Tax Rate
Regarding Sale

Appreciation

1990: 1.53%
Sale
Closing Costs
OCF of sale
Tools
NPV
OCF
Payback Period
Discounted Payback
Discount amount

Address: 1150 Hall of Fame Avenue Springfield, MA

Occupancy: 88%

Property Type: Retail

Property Subtype:

Property 1

5%
31.5 years
30%

10 years: -.4%

5 years: .39%

Legel Fee
Broker 5%

$
$

10,000.00
910,752.72

Description: Former Basketball Hall of Fame

Year 0

Year 1

14,023,000.00

$
$
$

10,000.00
151,600.00
14,184,600.00

Year 2

$
$

1,065,151.00 $
85,212.08 $

1,118,408.55
89,472.68

445,174.60 $

445,174.60

185,992.92 $

201,970.18

Last 12 Months: 2.65%We choose the

appreciation rate from the last 12 months because
it is the highest
$ 14,023,000.00 $ 14,394,609.50

($6,608,586.06)
$
879,158.08
$ 13,119,449.00
$ 13,204,661.08
$
979,938.92

$
916,438.37
$ 12,001,040.45
$ 12,175,725.21
$ 1,028,935.87

Year 3

Year 4

Year 5

Year 6

$
$

1,174,328.98 $
93,946.32 $

1,233,045.43 $
98,643.63 $

1,294,697.70 $
103,575.82 $

1,359,432.58
108,754.61

445,174.60 $

445,174.60 $

445,174.60 $

445,174.60

218,746.31 $

236,361.25 $

254,856.93 $

274,277.39

$ 14,776,066.65 $ 15,167,632.42 $ 15,569,574.68 $ 15,982,168.41

$
955,582.67 $
$ 10,826,711.47 $
$ 11,095,342.55 $
$ 1,080,382.66 $

996,684.18
9,593,666.05
9,960,940.76
1,134,401.79

$
$
$
$

1,039,840.77
8,298,968.35
8,769,818.88
1,191,121.88

$
$
$
$

1,085,155.19
6,939,535.77
7,519,140.90
1,250,677.98

Year 7

Year 8

Year 9

Year 10

$
$

1,427,404.21 $
114,192.34 $

1,498,774.42 $
119,901.95 $

1,573,713.14 $
125,897.05 $

1,652,398.80
132,191.90

445,174.60 $

445,174.60 $

445,174.60 $

445,174.60

294,668.88 $

316,079.95 $

338,561.56 $

362,167.26

$ 16,405,695.87 $ 16,840,446.81 $ 17,286,718.65 $ 17,744,816.69

$
$
$
$

1,132,735.33
5,512,131.55
6,205,929.03
1,313,211.87

$
$
$
$

1,182,694.48
4,013,357.13
4,827,056.56
1,378,872.47

$
$
$
$

1,235,151.58
2,439,643.99
3,379,240.47
1,447,816.09

$
$
$
$

1,290,231.54
787,245.19
1,859,033.57
1,520,206.90

Year 11

$
$

1,735,018.74
138,801.50

445,174.60

386,953.24

$ 18,215,054.34
$ 18,215,054.34

$ 17,294,301.62

1,348,065.50
0.45 In 10.45 years this investment will pay back
Investment does not payback
1,596,217.24

Assumptions:

Price: $2,988,000
NOI: $122,795

Adress: 378-380Centre Street,

Jamiaca Plain,MA 02130
Occupancy: 100%

Cashflows
Acquisition Price
Closing Costs
Legal/Appraisal/ Environmental Fees
Finder's Fee
Initial Costs
Net Operating Income
Discounted Amount
Increase in NOI

5%

Depreciation
Tax Rate

Regarding Sale

1990: 3.28%
Closing Costs
Legal
Broker 5%
OCF from sale
Tools
NPV
OCF
Payback Period
Discounted Payback

27.5 years
30%
Closing Costs
Brokerage Fee
Legal Fee
Total Fees
Closing Cost
Appreciation

10 years: .66%

Property Type: Multi Family

Property Subtype: Restaurant

Description: Multiple Uses

Year 0
$

$
$
$

Year 1
2,763,900.00

10,000.00
29,880.00
2,803,780.00
$
$

122,795.00
112,971.40

$100,505.45
$
$
$
$

6,686.86

8,506.10
$10,000
18,506.10
151,615.83
$ 2,763,900.00

5 years:3.41%

Last 12 Months:5.9% We
choose the appreciation rate
from the last 12 months
because it is way higher then
any appreciation percent w
have seen yet

($1,825,187.04)
$
116,108.14
$ 2,680,985.00
$ 2,690,808.60

Year 2

$
$

Year 3

128,934.75 $
118,619.97 $

$100,505.45
$

8,528.79 $

Year 4

135,381.49 $
124,550.97 $

$100,505.45
10,462.81 $

Year 5

142,150.56 $
130,778.52 $

$100,505.45
12,493.53 $

149,258.09
137,317.44

$100,505.45
14,625.79

$ 2,926,970.100 $ 3,099,661.336 $ 3,282,541.355 $ 3,476,211.295

$
$
$

120,405.96 $
2,552,050.25 $
2,572,188.63 $

124,918.68 $
2,416,668.76 $
2,447,637.66 $

129,657.03 $
2,274,518.20 $
2,316,859.14 $

134,632.30
2,125,260.11
2,179,541.70

Year 6

$
$

Year 7

156,720.99 $
144,183.31 $

$100,359.48
$

16,908.46 $

Year 8

164,557.04 $
151,392.48 $

$100,359.48
19,259.27 $

Year 9

172,784.90 $
158,962.10 $

$100,359.48
21,727.63 $

181,424.14
166,910.21

$100,359.48
24,319.40

$ 3,681,307.761 $ 3,898,504.919 $ 4,128,516.709 $ 4,372,099.195

$
$
$

139,812.54 $
1,968,539.12 $
2,035,358.39 $

145,297.77 $
1,803,982.07 $
1,883,965.91 $

151,057.27 $
1,631,197.18 $
1,725,003.80 $

157,104.74
1,449,773.03
1,558,093.59

Year 10

$
$

Year 11

190,495.35 $
175,255.72 $

$100,359.48
$

200,020.12
184,018.51

$100,359.48

27,040.76 $

29,898.19

$ 4,630,053.047 $ 4,903,226.177

$
10,000.00
$
245,161.309
$ 4,648,064.868

$
$
$

163,454.59 $
1,259,277.69 $
1,382,837.87 $

170,121.92
1,059,257.57 Investment does not payback
(184,018.51) Investment does not payback

Project 1

1150 Hall of Fame Avenue is a retail type property, which is located in Springfield, MA in the Pionee
Memorial Basketball Hall of Fame. The entire development runs along the Connecticut River to the
from the new $1B MGM Casino and Entertainment Complex that is currently under construction. Th
intersects I-90 (the Massachusetts Turnpike) in West Springfield with a connecting highway, I-291 in
Canadian border and I-90 connects Boston to Albany. The traffic count on I-91 at the subject proper

The Pioneer Valley is that part of Western Mass where the Connecticut River flows through 3 counti
college area because Smith College, Amherst College, UMass, Hampshire College, and Mount Holyo
Universities in Western Mass including Williams College in Berkshire County. This fact, along with a
given rise to the name Knowledge Corridor to describe that stretch of real estate.
Centrally located with easy access to major freeways
Across from an upcoming casino
6,015 Annual property crimes/ chances of becoming a victim are 1 in 92
NPV
$ (9,967,049.47) 4.10
Payback Period
years

Project 2

378-380 Centre St is a mid-high rise located in Jamaica Plain and is a retail/mixed use property. It is
It totals 7,389 square feet with three floors and 7 total units. This property, which was built in 1910
It has an NPV of($2,583,277.38), a discounted payback of$2,619,761.49, and a payback period of
Recommendations
Near Whole Foods, Hyde Square, and the pond/Perrkins Market
Within walking distance of a pub and grocery store
Many possibilities for renting out yields high potential
Investment payed back in 2.05 years
Better NPV

ngfield, MA in the Pioneer Valley, directly across from, and shares parking with the Naismith
Connecticut River to the West and I-91 to the East. The development is across the I-91 freeway
y under construction. The region is known as the crossroads of New England because Interstate 91
necting highway, I-291 in Springfield. I-91 is the major highway running from Florida to the
91 at the subject property is approximately 100,000 cars per day.

r flows through 3 counties, Hampden, Hampshire, and Franklin. The area is also known as the 5
College, and Mount Holyoke are all located here. There are many other fine colleges and
y. This fact, along with all the technology companies stretching from Springfield to Hartford Ct has
estate.

/mixed use property. It is located on a street corner with a pub right across the street so it holds high potentia
, which was built in 1910, is currently selling for $2,988,000 which comes out to about $427,000 per unit.
and a payback period of 2.05 years. The property has a cap rate of 4.10%.

ond/Perrkins Market

h potential

he Naismith
he I-91 freeway
cause Interstate 91
orida to the

o known as the 5
ges and
to Hartford Ct has

street so it holds high potential in renting out as living space.

o about $427,000 per unit.

Assumptions: Three businesses in first floor retail space that brings in

over $7,000 a month. Plus four spacious residential units above, each
with 5 rooms, 2 plus bedrooms, separate systems, updates and
significant upside to rents (units rented well below market).
Strong income and rental history on first floor retail
Significant upside as upstairs residential units well below market

Residential Space
Remodel Kitchen
New Countertops
Refinished cabinets
Energy Saving Devices
New Plumbing
Update Electrical Work
New Sink
New Windows
New Island Bar

Cost
$
$
$
$
$
$
$
$

5,000
9,000
3,000
2,000
1,200
2,530
1,600
800

Apartments Total Investment

4
$20,000
4
$36,000
4
$12,000
4
$8,000
4
$4,800
4
$10,120
4
$6,400
4
$3,200

Total Remodel Cost

$100,520

Retail Space
Remodel Bar Area

Cost
New Countertops
New Kegerators
New Barstools
New TV's
Jukebox
Adjustable Lighting
Mechanical Bull
New Staff Training
Decorations
New Mugs/Glassware
Refinished Floors
Bottle Shelving
Refinished Cabinets
New Windows
Energy Saving Devices
Total Remodel Cost

$5,000
$2,700
$80
$850
$2,500
$1,200
$12,500
$1,000
$8,500
$15
$5,500
$140
$1,300
$650
$6,000

Quantity

Total Investment
2
$10,000
8
$21,600
30
$2,400
6
$5,100
1
$2,500
1
$1,200
1
$12,500
3
$3,000
1
$8,500
100
$1,500
1
$5,500
8
$1,120
10
$13,000
10
$6,500
1
$6,000
$100,420

Depreciation
10 year @ 60%
10 year @ 40%
10 year @ 100%
10 year @ 40%

Year
$
$
$

Depreciation
10 year @ 60%
10 year @ 20%
10 year @ 100%
10 year @ 15%
10 year @ 75%
10 year @ 40%
10 year @ 40%
10 year @ 100%

Year 1
Year 2
Year 3
Year 4
$
600 $
600 $
600 $
600
$
432 $
432 $
432 $
432
$
240 $
240 $
240 $
240

Year
1,200 $
1,440 $
1,200 $

128

Year
1,200 $
1,440 $
1,200 $

128

Year
1,200 $
1,440 $
1,200 $

128

4
1,200
1,440
1,200

128

187.50

187.50

187.50

187.50

$
$

112.50
220

$
$

112.50
220

$
$

112.50
220

$
$

112.50
220

440

440

440

440

600

600

600

600

Year
$
$
$

Year
1,200 $
1,440 $
1,200 $

128

Year
1,200 $
1,440 $
1,200 $

128

Year
1,200 $
1,440 $
1,200 $

128

Year
1,200 $
1,440 $
1,200 $

128

Year
1,200 $
1,440 $
1,200 $

128

10
1,200
1,440
1,200

128

Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
$
600 $
600 $
600 $
600 $
600 $
600
$
432 $
432 $
432 $
432 $
432 $
432
$
240 $
240 $
240 $
240 $
240 $
240

187.50

187.50

187.50

187.50

187.50

187.50

$
$

112.50
220

$
$

112.50
220

$
$

112.50
220

$
$

112.50
220

$
$

112.50
220

$
$

112.50
220

440

440

440

440

440

440

600

600

600

600

600

600

Salvage Value
$
8,000
$
21,600
$
-

1,920

Salvage Value
$
4,000
$
17,280
$
-

10,625

$
$

375
3,300

8,600

Projected Cashflows
Kitchen Remodel

Year 0
($100,520)

Investment Amount
Old Cash Flow
Anticipated Gains
Deduction in Utilities expense
New Cash Flow
8% Discounted Payback
Payback

Bar Remodel

Year 0
($100,420)

Investment Amount
Old Cash Flow
Anticipated Gains
Deduction in Utilities expense
New Cash Flow
8% Discounted Payback
Payback
Tax Rate
Required Return

0.3
0.08

Kitchen Remodel
NPV
Payback Period
Discounted Payback

$ 585,945.92
2.9 years
3.10 years

Bar Remodel
NPV
Payback Period
Discounted Payback

$ 673,105.46
2.59 years
2.69 years

Year 1

Year 2

Year 3

Year 4

$
15,603 $
19,901 $
24,413 $
$
14,400 $
14,400 $
14,400 $
$
500 $
500 $
500
$
30,503 $
34,801 $
39,313 $
$ (72,457.53) $ (40,441.07) $ (4,272.90)
($70,017)
($35,217)
(0.90)
Year 1
Year 2
Year 3
Year
$
15,603 $
19,901
$
30,000 $
30,000
$
1,000 $
1,000
$
16,603 $
50,901
$ (85,145.53) $ (38,317.07)
$
(83,817) $
(32,917)

$
$
$
$
$

24,413 $
30,000 $
1,000
55,413 $
(0.69)
(0.59)

Year 5
29,151
14,400
###
44,051
(0.10)

$
$
$
$

34,127
14,400
500
49,027

Year 5
29,151
30,000
###
60,151

$
$
$
$

34,127
30,000
1,000
65,127

Year 6
$
$
$
$

Year 7
109,705
14,400
500
124,605

Year 6
$
$
$
$

$
$
$
$

Year 8
115,190
14,400
500
130,090

Year 7
109,705
30,000
1,000
140,705

$
$
$
$

$
$
$
$

120,949
14,400
500
135,849

Year 8
115,190
30,000
1,000
146,190

$
$
$
$

120,949
30,000
1,000
151,949

Year 9
$
$
$
$

Year 10
120,997
14,400
500
135,897

Year 9
$
$
$
$

$
$
$
$

133,347
14,400
500
148,247

Year 10
120,997
30,000
1,000
151,997

$
$
$
$

133,347
30,000
1,000
164,347

Year 11
$
$
$
$

140,014
14,400
500
154,914

Year 11
$
$
$
$

140,014
30,000
1,000
171,014

Kitchen Remodel

We chose to invest our money to upgrade the kitchens of the four apartments that are l
We installed new energy saving appliances as well as new countertops and cabinets to g
A new island bar was installed in the kitchen to provide more counter space, storage, an
During the remodel the electrical and plumbing work was alsoupgraded to ensure appli
With all of these upgrades to the kitchens we expect to see a $1,200 increase per month
NPV
$ 582,376.43
Discounted Payback 3.10 years
Payback
2.9 years
Bar Remodel

We chose to invest our money to upgrade the bar located in the retail space in the botto
We purchased new items that will improve the overall look of the bar such as bottle she
We added more entertainment to the bar including a jukebox and mechanical bull to bri
Some improvements behind the bar were made including new kegerators, new mugs an
Other improvements were made such as adjustable lighting, refinished cabinets and floo
With all of these upgrades to the bar we expect to seea $2,500 revenue increase per m
NPV
$ 693,744.28
Discounted Payback 2.69 years
Payback
2.59 years

Recommendations
- We choose the bar remodel because it has a higher NPV than the kitchen remodel
- The payback is less on the bar remodel as well so that is another reason we choose the
- We will be able to advertise these remodels and hopefully drag in more custome

e four apartments that are located on the top half of the building.
ountertops and cabinets to give the interior a new look.
e counter space, storage, and outlets
soupgraded to ensure appliances and hardware would run smoothly.
a $1,200 increase per month for all four apartments yielding a $14,400 yearly increase in rent

the retail space in the bottom half of the building

f the bar such as bottle shelves,countertops, barstools, TVs, and other decorations
x and mechanical bull to bring in new customers
ew kegerators, new mugs and glasses, and 3 new staff members to serve the cusotmers
refinished cabinets and floors, and new windows
500 revenue increase per month yielding a $30,000 yearly increase to revenue

n the kitchen remodel

other reason we choose the bar remodel
rag in more custome

http://www.loopnet.com/Listing/19571361/378-380-Centre-St-Jamaica-Plain-MA/
https://hotpads.com/378-centre-st-jamaica-plain-ma-02130-utdqh5/3/pad
http://www.homeadvisor.com/cost/kitchens/remodel-a-kitchen/#counter
http://www.homeadvisor.com/cost/siding/
https://www.angieslist.com/articles/how-much-does-it-cost-replace-windows.htm#
http://www.kegerator.com/commercial-kegerators
http://www.wayfair.com/All-Barstools-l59-c1767662-O69156~Sale.html
http://www.mechanicalbullsales.com/product-category/mechanical-bulls/bull-packages/?gclid=CJe-r
http://www.homeadvisor.com/sem/task.Flooring-Install-Repair.61761.html?entry_point_id=2863820
http://www.searsoutlet.com/Dishwashers/d/products.jsp?cid=224
http://dealnews.com/features/How-Much-Money-Will-You-Save-With-Energy-Star-Appliances/558643

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ry_point_id=28638207&iv_=__iv_p_1_a_93082842_g_4050714642_w_kwd-56391313522_h_9001832_ii__d_c

ar-Appliances/558643.html

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