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Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Bernon Mills Estates Executive Summary
Multifamily ProjectRehabilitation of an Historic Mill Property
This property is identified as Map 15N, Lots 16 and 61. (Woonsocket assessor’s office)
The property contains 71,250 SF consists of:
• A gatehouse at entrance.
• One mill building converted to 16 residential rentals totaling 22,200 +/- sf
• 2 additional industrial mill buildings connected by a three-level connector building consisting of 43,000 +/- sf.
• A carriage house building consisting of 5,280 +/-sf.
• A small retail building of +/-770 sf.
THE CREDIT UNION IS ALSO PREPARED TO PROVIDE ATTRACTIVE, BRIDGE FINANCING, AT UP TO 80% LTV FOR A PERIOD OF UP TO 24 MONTHS TO QUALIFIED BUYERS TO FACILITATE COMPLETION OF THE PROJECT.
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Since purchasing the subject property, the owners invested $3,100,000+ on permitting, architectural and engineering, legal, site improvements, drainage, parking lots, and the rehabilitation of the 22,200 sq ft building 2.
Since assuming title of the property, MCU has invested
an additional $460,000 towards completion of Phase 1
which includes the sixteen (16) one and two bedroom units
located in Building 2.
Based on information and analyses received from certified
appraisers to the lending institution, MCU believes the “as completed and stabilized” conventional market value of the property, based on elimination of the condominium declaration and documents with a real estate tax assessment as a 58 unit apartment complex to be approximately $7,500,000
Based on estimates MCU has received to complete the
58 unit complex, the cost is expected to run between
$5.5 to $6.0 million to finish the remaining 42 units at
an average cost of $136K per unit; depending on the
choice of construction materials.
On January 8th 2015, the Rhode Island Department
of Revenue issued notice that a $1,935,000 Historic
Preservation Tax Credit had been reserved for Phase
two (2) which has not begun. The holder of this
reservation is not in the position to proceed and has
agreed to a transfer.
The Credit Union believes an additional $1,548,000.00
million of historic tax credit would qualify at the Federal
level based on a calculation of 20% of the Qualified Rehabilitation costs of $7,740,000.00. This provided for a total of $3,483,000.00 in available historic tax credits who will transfer with the property.
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
PROPERTY DESCRIPTION
The property contains 71,250 GBA & consists of:
1. A gate house at the entrance
2. One mill building which has been converted to 16
unit residential rentals (#2) providing 22,200± SF of
GBA. (phase 1)
3. Two additional industrial mill buildings connected
by a three level connector building (#3) providing
43,000± SF of GBA (phase 2)
4. A carriage house building (#4) providing 5,280± SF
of GBA (phase 2)
5. And sm. retail building (770± SF of GBA). (phase2)
2
3 5
4
1
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
In addition to the building #2 improvements, the property grounds are fully prepared, paved
surface parking areas for all five buildings completed, service utilities are positioned
underground and connected to the buildings.
The remaining two (2) mill buildings are still in a raw,
shell stage, with the exception of a small (1,000± SF)
office space in the portion of a structure that connects
the two buildings.
The site reportedly can support an additional building
near its Blackstone River frontage and this building
was originally envisioned to contain a fitness center
and four additional residential units. This building is
not calculated into any of the assumptions.
The 5,280± square foot two-story carriage house on the
southern part of the site is in a raw and unfinished state
and is expected to contain 4 two bedroom units when
finished. The 770± square foot two-story (one level
below grade) building at the northern part of the site fronts on Court Street and best use is a store
front.
The total GBA for all of the buildings is 71,250± square feet. Total GLA assumption based on
58 units is 50,600+/-
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Building #2 - Proforma 2020
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
INCOME Income Rental Income 248,800.00 Security Deposit Income 6,325.00 Total Income 255,125.00TOTAL INCOME 255,125.00
EXPENSE Professional Services Legal Fees 2,145.00 Total Professional Services 2,145.00
Operations/Maintenance Rubbish Removal 3,150.00 Snow Plowing/Sanding 13,800.00 Repairs/Maintenance 26,500.00 Cleaning Expense 2,500.00 Total Operations/Maintenance 45,950.00 Utilities Water -2,500.00 Sewer 2,600.00 Total Utilities 100.00
Landscaping 18,500.00 Administrative Miscellaneous Expense 250.00 Postage 50.00 Management Fees 6,500.00 Bank Fees 100.00 Total Administrative 6,900.00
Sprinkler & Fire Test 800.00 Rental Commission Expense 5,000.00
Taxes 33,620.28
TOTAL EXPENSE 113,015.28
NET INCOME 112,109.72
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Interior Finish –Interior walls of building#2 consist of exposed stone, and new partitions are
painted drywall. Ceiling heights are roughly 12± feet and 20± feet in units with lofts. Floors are
wood flooring, and ceramic tile in kitchen and bathrooms. Ceilings are exposed wood beams and
drywallover insulation between exposed wood beams.
In building 2, each of the finished units contains
stainless steel appliances Completed kitchens have custom
cabinets and granite or Corian countertops. Design
provides for a washer and dryer provided in each unit.
Bathrooms offer whirlpool tubs with separate shower stalls.
Although “loft” style, all units will have traditional room
partitions.
The proposed rental apartment units in Building 1, Building
3, and the carriage house would have slightly lower levels
of interior finish, with apartment grade kitchen cabinets and
countertops, wood and tile floor covering, and mid-level
appliances.
Windows – All of the windows in the residential building (2) have been replaced with new
operable wood frame single hung thermal panel windows.
General Comments – Building 2 is serviced by an elevator. The building has been sprayed with
a no burn fire retardant and black mold preventer. It is assumed that Building 1 and Building 3
will also have elevators.
The current development plan is to finish the remaining mill buildings into a total of 58
residential apartment rental units, including four (4) in the carriage house. This will require
the approval of the Woonsocket Zoning Board, since the property has existing approvals for 47
residential units. According to department staff, such approvals are routinely granted in the
normal course of business.
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Building Construction Highlights Construction – The primary mill buildings were constructed of stone load bearing walls and “slow burning” timber interior framing. The exterior walls are uncoursed granite with quarry faced lintels and sills. The gable roof has continuous clerestory windows producing the characteristic early 19th century factory roof profile.
Foundation/Basement - The buildings have full basements. Building 2 plans include storage cages in the basement for each dwelling unit.
Roof & Exterior: The residential building 2 exterior has been completely renovated with new roof and architectural shingles. The other buildings offer a mix of old and new roofing.
HVAC – Building 2 is serviced by a new hydro air system with 16 boilers. As complete, all dwelling units will have their own natural gas heating systems.
Historic Relevance & Preservation
The property is recorded on the National Register of Historic Places as the “Woonsocket
Company Mill Complex”.
The manufacture of cotton textile began on the site in 1827
when the Russell Manufacturing Company constructed the first
mill building. The Russell Company failed during the
depression of 1829, and the property eventually came under the
ownership of a newly formed Woonsocket Company in 1832.
The following year the Woonsocket Company constructed a
second four (4) story building. In 1859 a third four story mill
building was completed.
In 1883 the Woonsocket Company went out of business and the property lay dormant until 1887
when it was acquired by the Woonsocket Machine and Power Company, later known as the
Blackstone Valley Electric Company. In 1890 the power company constructed a fourth building
between buildings 2 and 3 for the purpose of producing hydro electric power. This fourth
building used for power generation was subsequently demolished and removed from the site.
In May of 1973 the property was officially added to the National Register of Historic Places.
“In the context of their setting, these mill buildings are particularly important. They are among
the most handsome and well preserved reminders of Woonsocket’s industrial past. Situated
prominently on the bank of the Blackstone River, the Woonsocket Company Mill Complex is a
major link in the chain of visual accents which give form to the city’s heritage.”
On January 8th 2015, the Rhode Island Department of Revenue issued notice that a $1,935,000
Historic Preservation Tax Credit would be available and had been reserved for the property.
Prior to MCU, the previous owner and borrower were Bernon Mills Property Development LLC
and Bernon Mills Redevelopment LLC. According to Book 1287, Page 6, in the Woonsocket
Land Evidence Registry, the property known as Map 15N, Lot 16 transferred from Bernon Mill
Associates LLC on July 2, 2003, for consideration of $340,000. According to Book 1421, Page
270, in the Woonsocket Land Evidence Registry; the property known as Map 15N, Lot 61
transferred from Woonsocket Baking Company LLC to Bernon Mills Redevelopment LLC on
March 8, 2005, via a name change in an Article of Amendment to the Articles of Organization.
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Previously, this parcel was purchased by the Woonsocket Baking Company LLC (an
entity related to Bernon Mills Redevelopment LLC) from 115 Realty Corporation on October 31,
2003, for consideration of $77,500.
Hazardous Substances
No statement is made here determining the presence of hazardous substances, defined as all
hazardous or toxic wastes, pollutants, or contaminants (including asbestos, PCB’s, or raw
materials) either used in construction or stored on the property.
The lending institution is aware that the site previously had a contamination issue tied to
previous use, but that contamination has been removed and National Grid paid for the cleanup. It
is unaware of the presence of any remaining hazardous or environmental issues or that hazardous
substances are present that would adversely affect the value of the subject property. The lending
institution is operating under the assumption the subject property (soil and subsoil) is clean from
hazardous substances.
Any developer will be responsible for all required testing of materials on undeveloped building.
Access/Street Improvements
Vehicular access to the site is provided via two curb cuts on Front Street. Front Street is a two
lane roadway traveling in a generally north to south direction. The cobbler shop has frontage on
Court Street.
Front Street offers overhead utilities as well as sidewalks along both sides of the street. There is a
gatehouse located near the front of the entrance to the property in between the two curb cuts. The
developer’s original plan for this development was as a gated community. The gatehouse stands
at the entrance to the site.
All of the retail on street-side is available for sale and could be purchased and added to the parcel to provide additional revenue stream.
Parking and Landscaping
The site provides parking spaces along the southern and eastern side of the property. The entire
parking area for both Phase 1 and Phase 2 has already been paved but not lined. The original site
plan provided a total of 94 parking spaces. According to sources contacted by MCU,
Woonsocket is in the process of altering its codes to require only one parking space per unit in
this area of the city which will allow for the expansion of this project to 58 units as
contemplated.
Landscaping around the building consists of grass areas and shrubs to the rear of the building as
well as along the Blackstone River.
Utilities and Services All municipal and commercial grade services are delivered and in place on the site, including municipal sewer and water. Natural gas is also provided.
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Zoning
The subject property was re-zoned from MU-2 to MU-1 by the city of Woonsocket.
The change was accomplished to enable the development of residential dwellings, which
were permitted only as an accessory use under MU-2. Permitted uses within the MU-1 district
include single-family; multi-family; family day care; business services and offices;
corporate office; incidental home occupation; and retail sales. Warehouse and storage uses are
allowed via special permit.
ASSESSMENT AND REAL ESTATE TAXES
The tax rate for commercial property in Woonsocket for FY 2014 is $39.99/$1,000 of
assessed value resulting in a total real estate tax liability of $43,900. The completion of
building 2 will likely alter the valuation.
MARKET AREA
The city of Woonsocket is
located just 15 miles
northwest of Providence,
the state capital of Rhode
Island. It is home to CVS
Corporation, a fortune 500
company.
Demographics Woonsocket is part of the
Providence metro district.
Population
The Site to Do Business (STDB) is an online service, which provides a variety of demographic
characteristics, both historic and projected, for specific localities. STDB relies on U.S. Census
figures for its historic data and analysis prepared by ESRI forecasts for 2010 and 2015 for its
future projections. ESRI designs and develops geographic information system (GIS) technology.
The results are presented in the following table.
POPULATION TRENDS - STDB ONLINE
Location 2000 2010 % Change 2019 % Change
Rhode Island 1,048,319 1,058,412 0.96% 1,059,361 N/AProvidence County 621,602 628,471 1.11% 638,931 +1.60%
Woonsocket 43,224 42,186 -2.40% 41,751 -1.00%
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Source: 2000 US Census and ESRI forecasts for 2010 and 2015
MEDIAN HOUSEHOLD INCOME - STDB ONLINE
The following table summarizes median household income trends based on STDB Online as
compiled by ESRI.
Location 2000 2010 % Change 2018 % Change
Rhode Island $42,257 $54,939 30.01% $63,296 15.21%
Providence County $36,985 $47,402 28.17% $55,233 16.50%
Woonsocket $26,900 $32,933 22.43% $39,932 21.25%
Source: 2000 US Census and ESRI forecasts for 2010 and 2015 and estimates for 2018
Employment
According to the Rhode Island Department of Labor and Training, employment in the city of
Woonsocket is predicted to outpace the state as a whole. Employment trend in the city is
presented in the following table.
Month Year Labor Force Employed Unemployed
Unemployment
Rate Woonsocket
December 2019 19,154 18,345 809 4.2
December 2018 19,077 18,193 884 4.6
December 2017 19,105 18,088 1,017 5.6December 2016 19,091 17,850 1,241 6.5December 2015 19,061 17,801 1,260 6.6
December 2014 19,095 17,555 1,540 8.1
December 2013 19,203 17,108 2,095 10.9
December 2012 19,471 17,068 2,403 12.3
December 2011 19,551 16,756 2,795 14.3
December 2010 19,683 16,962 2,721 13.8
Source: Rhode Island Department of Labor and Training
Major employers in the area, per the Providence Business News, Book of Lists, 2012 include:
Rhode Island state government; Lifespan (Rhode Island Hospital/Hasbro Children’s Hospital,
Miriam Hospital, Bradley Hospital, and Newport Hospital); Care New England (includes
Woman & Infants Hospital and Butler Hospital in Providence); CVS Caremark Corp.; Citizens
Financial Group; the city of Providence; Brown University; the Roman Catholic Diocese of
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Providence; Bank of America; CharterCARE Health Partners; Fidelity Investments; the
U.S. Naval Undersea Warfare Center; city of Warwick; Electric Boat Corp.; The Jan Companies;
the cities of Cranston and Pawtucket; Johnson & Wales University; YMCA of Greater
Providence: Raytheon Integrated Defense Systems; Hasbro Inc.; Amica Mutual
Insurance Company; Memorial Hospital of Rhode Island; APC by Schneider Electric; Cox
Communications; Verizon Communications; and Ocean State Job Lot, Navigant Credit
Union, Lifespan, Care New England, Citizens Financial, Pawtucket Credit Union, Bryant
University, Johnson & Wales University, Verizon and GTech all are either headquartered in
Providence or have a significant presence in the city.
Education
Rhode Island and the Providence area offer competitive educational resources. The quality of the
public school systems are generally above the national average and competitive with the rest of
New England. Public and private institutions of higher learning include Brown University,
Rhode Island School of Design, Providence College, Bryant University, the University of
Rhode Island, Roger Williams University, and Johnson & Wales University.
Transportation
Woonsocket is centrally located in the Boston/Worcester/Providence Triangle, with direct
interstate connection to Route 146 and I-295 by way of the newly constructed Route 99. Driving
time between Woonsocket and Providence is 15 to 20 minutes. Boston can be reached via
I-295 or I-495 to I-95 in about an hour, while travel time to Central Worcester via Route
146 is approximately 40 minutes. State routes 114, 122 and 126 run through the City,
providing connections to the Interstate System
RIPTA (Rhode Island Public Transit Authority) bus service is available in Woonsocket
and throughout the city of Providence with its main hub located in downtown Providence
Kennedy Plaza. A bus top is within close walking distance of the property
Commuter rail service to Boston is available in
Providence, South Attleboro, and Franklin, MA. Amtrak
train service is available in Providence to destinations
throughout the country, as well as from the new
intermodal station in Warwick, RI that serves T.F. Green
Airport. The area is also accessible via water at the Port of
Providence, and via air at the T.F. Green Airport in
Warwick. International air service is available at Logan
Airport in Boston, MA.
WOONSOCKET Woonsocket is a densely populated small city with below
average income levels and a diverse economic base which
positions the city as a source for affordable labor and
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
suitable for growing demand for rental residential units. Commuter rail and air service offer the
business community convenient connections.
The city offers good access to a mature transportation infrastructure serving the northern Rhode
Island and south-central Massachusetts regions, and as such, provides good access
to employment opportunities both in Rhode Island and Massachusetts.
NEIGHBORHOOD The neighborhood consists of both sides of Front Street and is bounded by Bernon Street to the
south, Hamlet Avenue (Route 122) to the north, and Main Street to the west. The neighborhood
consists of primarily commercial and multi-family residential properties. River
Island Condominiums and the Allen Street Loft project are both located across the Blackstone
River to the west of the property.
NORTHERN RHODE ISLAND MULTIFAMILY MARKET
According to Sperlings Research 51% of housing in the city of Woonsocket is rental property
According to Reis within the greater Northern Rhode Island area:
One bedroom units are 47% of the inventory, average 738sq ft, and rent at $1.34/sq ft.
Two bedrooms units are 51% of the inventory, average 1028 and rent for $1.25 sq ft
The median asking rent in Woonsocket is $1,122, although properties built after 2009
show a higher average of $1,386.
The 3 year median asking growth rate is reported at .3%
Overall vacancy rates have averaged 2.2% for several years
Reis reports that there were zero new units built in the 3 year period 2011 – 2013
Multi Family Inventory N. Rhode Island by Building Age
Prior to 1970 10%
1970-1979 51%
1980-1989 13%
1990-1999 9%
2000-2009 17%
2009+ 0
Total 100
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
The Gate House
Building 2 – Side view from parking lot
Building 2
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Building 2 Interior Hall
Building 2 - unfinished unit interior
Circuit breaker box & electrical meters in Building 2
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Completed kitchen in Building 2
Building 2 with poured concrete interior sills, finished interior walls and windows
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
View of carriage house from the main parking lot Interior of Carriage House
Building 3 Entrance exterior from parking lot
Building 3 – Floor Interior
Top Floor
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Building 3 from the main parking lot
From river side
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Assessors Map
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Existing Parking Plan (subject to
modification)
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
Floor Plans Building 2 – Floors 1-3 are completed. Floor 4 almost complete
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com
Macmillan Group, LLC. has made every effort to provide accurate information, but offering is subject to errors and omissions, as well as prior sale, change or withdrawal without notice.
P.O Box 15449 1500 Main Street, Suite 252, Springfield, MA 01115 413-736-8338 macmillang.com