42 West Street, Randolph - Confidential Offering Memorandum

WEST STREET RANDOLPH, MA

Confidential Offering Memorandum 32-unit apartment complex

303 Congress Street, Boston, MA | 617.457.3400 | hunnemanre.com

WEST STREET RANDOLPH, MA

CONTENTS

04 EXECUTIVE SUMMARY 10 MARKET OVERVIEW

06 INVESTMENT HIGHLIGHTS 12 LOCATION OVERVIEW

08 PROPERTY OVERVIEW 16 FINANCIAL ANALYSIS

Exclusively offered by: DAVID N. ROSS Executive Vice President 617.457.3392 dross@hunnemanre.com

GINA BARROSO Vice President 617.457.3261 gbarroso@hunnemanre.com

DUNCAN BINNIE Financial Analyst 617.457.3334 dbinnie@hunnemanre.com

303 Congress Street, Boston, MA | 617.457.3400 | hunnemanre.com

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 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.

EXECUTIVE SUMMARY Hunneman has been exclusively retained to sell 42 West Street in Randolph, MA. 42 West Street is a tremendous suburban multifamily investment opportunity, offering stabilized income with future upside potential. The Property been well-maintained and managed, with recent capital improvements including a new roof, new balcony railings, updates to the hallways, stairs, and apartment finish upgrades. 42 West Street is a 32-unit apartment complex located in Randolph, MA. The complex includes a 30-unit brick garden style apartment building, and a 2-unit apartment building. The attractive unit mix consists of fourteen (14) two-bedroom units, seventeen (17) one-bedroom units and one (1) studio. Units feature large living areas with carpeting, remodeled fully applianced kitchens with dishwashers & disposals, tiled bathrooms, and individually controlled, separate HVAC units. 42 West Street is strategically situated off Interstate 93 as well Route 28, and is positioned within two miles of the MBTA’s Middleborough/ Lakeville commuter rail line via the Holbrook/Randolph stop, which offers seamless access to South Station, one of Boston’s two major transportation hubs. A highly accessible location, the Property provides easy access to a wealth of retail/lifestyle amenities and employment options. 42 West Street in Randolph, MA is being offered for sale on an unpriced basis. We will be conducting tours of the properties in the upcoming weeks with a “call-for-offers” to follow.

INVESTMENT HIGHLIGHTS

Desirable suburban multifamily location

Well maintained , with recent capital improvements and unit renovations

Consistent historical occupancy with strong rental demand

Value add potential by increasing below-market rents

Tremendous investment with stabilized cash flow

Excellent access to Interstates 95 & 93, and Routes 24 & 3

Transit-oriented location with access to the MBTA Middleborough/Lakevile Line via the Holbrook/Randolph stop

Wealth of retail/lifestyle amenities and proximity to employment hubs

Preferred product type, within densely populated communities with desirable demographics and strong resident base

Upside growth with continuation of the unit renovations

15’ EASEMENT

EXTRA PARKING SPACES OWNED BY SEPARATE ENTITY

PROPERTY OVERVIEW

Summary Details

Address: 34-42 West Street, Randolph, MA 02368

Gross Building Size: 34 WEST STREET

40 WEST STREET

TOTAL 26,752

2,950 SF

23,802 SF

County: Norfolk Land Area: 0.80 Acres / 34,907 SF

Net Building Size: 34 WEST STREET

40 WEST STREET

TOTAL 24,678

1,884 SF

22,794 SF

Year Built: 34 WEST STREET

Property Summary: 34 WEST STREET 2-unit apartment building 40 WEST STREET 30-unit garden style apartment building Number of Units: 32 units

40 WEST STREET

1969

1972

Stories: 34 WEST STREET

40 WEST STREET

Two-stories

Three-stories

Parking Type: 32+ surface parking spaces Zoning: CSBD – Crawford Square Business District

PROPERTY OVERVIEW

Unit Mix 34 West Street 40 West Street

Apartment Features •

Studio, One & Two Bedroom Apartment Homes Dishwasher & Garbage Disposal

2: 2-bed/1-bath

1: Studio/1-bath 17: 1-bed/1-bath 12: 2-bed/1-bath

• • • • • • •

Separate HVAC units

Balcony or Patio

Separate Dining Room*

Utilities Gas:

Ceramic Tile Baths

On-site Laundry Facilities Controlled Building Access

National Grid - Tenant Paid, except hot water National Grid - Tenant Paid, except common areas Town of Randolph - Landlord Paid Comcast/Verizon - Tenant Paid

* In Select Apartment Homes

Electricity:

Water/Sewer: Internet/Cable:

Community Amenities • On-site Parking •

Close to neighborhood retail

Construction Details

34 WEST STREET

40 WEST STREET

Exterior:

Wood-framed, brick veneer

Masonry

Roof:

Asphalt shingle roof (±5 years old)

Flat, rubber membrane (±1 years old)

Windows:

Mix of wood and metal vinyl double-hung windows

Aluminum vinyl sliders

Foundation:

Poured concrete

Poured concrete

Building Systems & Utilities

34 WEST STREET

40 WEST STREET

Heat

Separate gas fired boilers, 1st floor base board heat and 2nd floor forced hot air 100-amp electrical service per unit

Separate individual, gas-fired HVAC units 200-amp / 100-amp, electrical circuit breaker service One (1) laundry room with 2 washers and 2 dryers

Electric

Washer & Driver

N/A

MARKET OVERVIEW RANDOLPH MULTI-FAMILY

Randolph is located30minutes southof Boston andhas recentlyundergone apopulation boom as housing supply in the Greater Boston area fails to keep up with demand. Randolph is middle-class by Massachusetts’s standards, with a median household income within a 5-mile radius of the subject property of $94,473, slightly above the MA median of $93,550. 68% of residents in this area own their homes, and Randolph’s median home value as of 2022 was $530,000, a 12% YOY increase from 2021. The population of the area around the subject property in Randolph has grown in the last 13 years relative to the rest of Massachusetts, increasing 9.4% or nearly 14,000 residents, and is projected to grow an additional 4% over the next five years. The multi-family outlook in the area is strong, with a 3.5% vacancy rate and a 5% YOY increase. This is likely in large part due to the area’s proximity to Boston, with residents able to access the downtown business centers by MBTA commuter rail, taking one of multiple MBTA busses to Boston’s Red Line, or a 30-minute drive into the city. As the towns within the Interstate 95 highway see increasingly high home prices, commuters will continue to be pushed into towns such as Randolph directly outside of it, creating a strong forward looking situation for the town and surrounding area. The subject property in Randolph is in an excellent location, both nearby major transit thoroughfares as well as plentiful green space and area amenities. The one-and-a-half mile distance to Route 24 is ideal for access without being exposed to the negative externalities of traffic, noise, and pollution competing sites directly on this route endure. Route 128 and I-93 are also connected to the town and along with Route 24 allow residents to access any part of Massachusetts. The town is also serviced by the MBTA commuter rail – the Holbrook/Randolph station is located 1.5 miles away from the West Street locus, which is easily accessed by the 240 bus line that runs from West Street to the Commuter Rail transit stop. The site is near several local destinations, with three parks, the local high school, and the Randolph Plaza shopping mall within a mile, with the plaza providing a Shaw’s grocery store. It is also only one mile from the Town of Canton conservation lands, which are hundreds of acres preserved for passive recreational activities such as hiking, kayaking, and canoeing. Randoph is also investing heavily into local community development; a $14 million community center and a pediatric health center both are currently being developed with public funding.

+9.4% POPULATION GROWTH 2010-2023 WITHIN A 5 MILE RADIUS

BOSTON

NEEDHAM

DEDHAM

WESTWOOD

MILTON

NORWOOD

CANTON

RANDOLPH

LOCATION OVERVIEW

1.4 miles TO ROUTE 24 2.9 miles TO I-93

16 miles TO DOWNTOWN BOSTON

1.5 miles TO HOLBROOK/ RANDOLPH MBTA

18 miles TO BOSTON LOGAN AIRPORT

Braintree Municipal Golf Course

FINANCIAL ANALYSIS

Financial Analysis

Size (Units)

32

32

ACTUAL

MARKET

INCOME

Rental Income

$600,300

$709,200 $10,000 -$21,276

Laundry Income (estimate)

$10,000

General Vacancy Rate

$0

3.0%*

EFFECTIVE GROSS REVENUE (EGR)

$30,515

$610,300

$21,810 $697,924

ACTUAL OPERATING EXPENSES (YE 2023) Online Service Providers

$1,941

$1,941

Management

$6,003

3.0%*

$20,938

Life Safety (Fire Alarms & Sprinklers)

$1,400 $8,198 $59,542 $4,950 $11,877 $21,106 $6,600 $5,400 $6,003

$1,400 $8,198 $59,542 $4,950 $11,877 $21,106 $6,600 $5,400 $20,938

Insurance

RE Tax (FY 2023 $4,772,200)

Electricity

Gas

Water & Sewer

Trash (Garbage & Recycling)

Cleaner

Repairs & Maintenance

3.0%*

Total Operating Expenses

$4,157

$133,020

$5,090

$162,289

NET OPERATING INCOME

$14,915

$477,280

$16,720 $535,035

* Based on industry standards

BLDG UNIT 34W 1 34W 2 42W 1 42W 2 42W 3 42W 4 42W 5 42W 6 42W 7 42W 8 42W 9 RENT ROLL 42W 11 42W 12 42W 13 42W 15 42W 16 42W 17 42W 18

Actual

Market

BEDS

RENT $/MTH ANNUALIZED

RENT $/MTH ANNUALIZED

2-bed/1-bath 2-bed/1-bath 1-bed/1-bath 1-bed/1-bath 1-bed/1-bath 2-bed/1-bath 2-bed/1-bath 1-bed/1-bath

$1,700 $1,650 $1,550 $1,525 $1,500 $1,650 $1,775 $1,525 $1,100 $1,550 $1,600 $1,725 $1,500 $1,500 $1,550 $1,700 $1,700 $1,525 $1,550 $1,075 $1,625 $1,650 $1,550 $1,475 $1,525 $1,750 $1,650 $1,550 $1,600 $1,500 $1,600 $1,600

$20,400 $19,800 $18,600 $18,300 $18,000 $19,800 $21,300 $18,300 $13,200 $18,600 $19,200 $20,700 $18,000 $18,000 $18,600 $20,400 $20,400 $18,300 $18,600 $12,900 $19,500 $19,800 $18,600 $17,700 $18,300 $21,000 $19,800 $18,600 $19,200 $18,000 $19,200 $19,200 $600,300

$1,950 $1,950 $1,800 $1,800 $1,800 $1,950 $1,950 $1,800 $1,200 $1,800 $1,950 $1,950 $1,800 $1,800 $1,800 $1,950 $1,950 $1,800 $1,800 $1,800 $1,950 $1,950 $1,800 $1,800 $1,800 $1,950 $1,950 $1,800 $1,800 $1,800 $1,950 $1,950

$23,400 $23,400 $21,600 $21,600 $21,600 $23,400 $23,400 $21,600 $14,400 $21,600 $23,400 $23,400 $21,600 $21,600 $21,600 $23,400 $23,400 $21,600 $21,600 $21,600 $23,400 $23,400 $21,600 $21,600 $21,600 $23,400 $23,400 $21,600 $21,600 $21,600 $23,400 $23,400 $709,200

Studio

1-bed/1-bath 2-bed/1-bath

42W 10 2-bed/1-bath

1-bed/1-bath 1-bed/1-bath 1-bed/1-bath 2-bed/1-bath 1-bed/1-bath 1-bed/1-bath 1-bed/1-bath

42W 14 2-bed/1-bath

42W 19 2-bed/1-bath 42W 20 2-bed/1-bath

42W 21 42W 22 42W 23

1-bed/1-bath 1-bed/1-bath 1-bed/1-bath

42W 24 2-bed/1-bath

42W 25

2-bed/1-bath

42W 26 1-bed/1-bath

42W 27 42W 28

1-bed/1-bath 1-bed/1-bath

42W 29 2-bed/1-bath 42W 30 2-bed/1-bath

TOTALS

$50,025

$59,100

Actual Rent

Market Rent

#

Type

1

Studio

$1,100

$1,200

17

1-bed/1-bath

$1,075-$1,600

$1,800

14

2-bed/1-bath

$1,600-$1,775

$1,950

32

WEST STREET RANDOLPH, MA

Exclusively offered by: DAVID N. ROSS Executive Vice President 617.457.3392 dross@hunnemanre.com

GINA BARROSO Vice President 617.457.3261 gbarroso@hunnemanre.com

DUNCAN BINNIE Financial Analyst 617.457.3334 dbinnie@hunnemanre.com

303 Congress Street, Boston, MA | 617.457.3400 | hunnemanre.com