670 St.

Anns Avenue Bronx, NY 10455

NNN Leased Property - Excellent Credit 9% Cap Rate
Exclusive Offering Summary
Besen & Associates Inc. 381 Park Avenue South New York, NY 10016 (212) 689-8488 Tel (212) 689-9518 Fax www.besenassociates.com

670 ST. ANNS AVENUE BRONX, NY 10455 NNN LEASED PROPERTY 9% CAP RATE NO MANAGEMENT REQUIRED (STRONG CREDIT TENANT)
Address: Description:

670 ST. ANNS AVENUE BRONX, NY 10455

Between East 156th Street and Westchester Avenue (off of Rae Street) The Property is a gut renovated 5-story walkup apartment building with10 units currently NNN leased by NARCO FREEDOM, a non-profit that provides housing to its social service clients. NNN lease expires in April 2019 plus two 5-year options. 1920 / 2008-9(renovated) Block & Lot: 2617/18 23.58 X 94.42 8,775 plus basement Total Units: 10 + supers 2-room basement unit. Four 3-bedroom & six 2-bedroom apartments. 2.93(Built) 2.43(Allowable) R-6 $ 94,050 (2009/10) Can be delivered free & clear or assumption of current mortgage of $1,375,000 (7.5% interest, 20-year amortization schedule). Base Rent1 RE Tax Reimbursement Insurance Reimbursement Total Income: $216,000 $37,000 $5,000 $258,000 $37,000 $5,000 Tenant Pays Tenant Pays Tenant Pays Tenant Pays Tenant Pays $42,000 $216,000 Averages (Monthly) Average Base Rent/Unit = $1,800 Average Base Rent/Room = $409 Valuation Measures Capitalization Rate = 9.0% Price Per Square Foot = $268
1 2

Year Built: Lot Size: Square Feet: Layout: F.A.R.: Zoning: Assessment: Mortgage:

Bldg Size: 23.58 x 80

Building Class: C7

Income:

Estimated Expenses:

RE Tax Insurance Water & Sewer Fuel Utilities Payroll Repairs & Maintenance Total Expenses Estimated Net Profit:

Tenant has 2% base rent escalations/year.

As per lease, tenant repays landlord 100% of real estate taxes and insurance expense. Taxes are tentatively $12,276 for 2009-2010 year, but are projected to increase to $37,000 based on recent improvements.

Asking Price:

(9% Cap Rate)

Besen & Associates, Inc., 381 Park Avenue South, New York, NY 10016 (212) 689-8488 Tel (212) 689-9518 Fax www.besenassociates.com

$ 2,400,000

Although all information furnished regarding property for sale, rental or financing is from sources deemed reliable, no express representations made nor is any implied as to the accuracy thereof and is subject to error, omissions, change of price, rental or other conditions, prior sale, rental or financing or withdrawal without notice. No warranties or representations are made as in the condition of the property of any hazards contained therein nor are any implied.

670 ST. ANNS AVENUE BRONX, NY 10455 NNN LEASED PROPERTY 9% CAP RATE NO MANAGEMENT REQUIRED (STRONG CREDIT TENANT)
Remarks: NNN leased to strong credit tenant NARCO Freedom. Building was gut renovated in 2008-2009. Building requires no property management. Building has 24/7 security. Close proximity from several MTA bus lines including Bx4 one block away. Three blocks from #2 and #5 MTA subway stations at Jackson Ave & 149th St. The Property is directly across from Crotona Academy High school.

Improvements:

Building was gut renovated in 2008-2009 and has all new plumbing, windows, new electric system, modified bitumen roof, mostly new floor beams, brand new boiler, and hot water heating system. New sheetrock walls and tiling replaced throughout the units and hallways. Units have new beautifully modern bathrooms.

View north on St. Anns Avenue & school across the street

Although all information furnished regarding property for sale, rental or financing is from sources deemed reliable, no express representations made nor is any implied as to the accuracy thereof and is subject to error, omissions, change of price, rental or other conditions, prior sale, rental or financing or withdrawal without notice. No warranties or representations are made as in the condition of the property of any hazards contained therein nor are any implied.

Besen & Associates, Inc., 381 Park Avenue South, New York, NY 10016 (212) 689-8488 Tel (212) 689-9518 Fax www.besenassociates.com

670 ST. ANNS AVENUE BRONX, NY 10455 NNN LEASED PROPERTY 9% CAP RATE NO MANAGEMENT REQUIRED (STRONG CREDIT TENANT)
MAPS OF PROPERTY

Although all information furnished regarding property for sale, rental or financing is from sources deemed reliable, no express representations made nor is any implied as to the accuracy thereof and is subject to error, omissions, change of price, rental or other conditions, prior sale, rental or financing or withdrawal without notice. No warranties or representations are made as in the condition of the property of any hazards contained therein nor are any implied.

Besen & Associates, Inc., 381 Park Avenue South, New York, NY 10016 (212) 689-8488 Tel (212) 689-9518 Fax www.besenassociates.com

670 ST. ANNS AVENUE BRONX, NY 10455 NNN LEASED PROPERTY 9% CAP RATE NO MANAGEMENT REQUIRED (STRONG CREDIT TENANT)
ABOUT TENANT NARCO FREEDOM Narco Freedom offers a seasoned network of drug treatment and health related services. In 1971, the not-for-profit agency began providing care to chemically dependent residents of the South Bronx area of New York City. Since its beginnings as a methadone treatment center, the organization has expanded its scope of service to include drug free substance abuse services, alcoholism services, primary medical care, mental health services, and social services (e.g., scattered site housing, Early Intervention for 0-3 year olds, etc.). In 1996, Narco Freedom expanded its service area to include two Brooklyn sites. Narco Freedom has cared for thousands of addicts and their families; the current census is well over 2,000 clients in treatment for alcohol and other addictions, and more than 10,000 family members and community residents are served in our non-addiction services. Narco Freedom has extensive experience dealing with government agencies around licensing, rate setting and compliance with regulations. The program is licensed by the New York State Office of Mental Health as Article 25 and Article 31 sites, New York State Office of Alcoholism and Substance Abuse Services to provide 1035, 1040, 1042, Outpatient Chemical Dependency for Youth, and Article 31 (alcoholism out-patient) services, and by the NYS Department of Health as an Article 28 facility. The agency meets requirements for licensing by the United States Drug Enforcement Agency and Food and Drug Administration. Narco Freedom has provided groundbreaking leadership in fulfilling its vision of quality, comprehensive "wrap-around" care. Each new service added to the system of care has been in response to identified community and patient need. Narco Freedom has over 35 years experience in the field of Substance Abuse services. Their experience in serving clients of all types has helped them to keep the needs of this special population in the forefront of their operations, making sure clients are treated with respect and dignity, keeping in mind their goal to serve the community by serving the individual.

Although all information furnished regarding property for sale, rental or financing is from sources deemed reliable, no express representations made nor is any implied as to the accuracy thereof and is subject to error, omissions, change of price, rental or other conditions, prior sale, rental or financing or withdrawal without notice. No warranties or representations are made as in the condition of the property of any hazards contained therein nor are any implied.

Besen & Associates, Inc., 381 Park Avenue South, New York, NY 10016 (212) 689-8488 Tel (212) 689-9518 Fax www.besenassociates.com

670 ST. ANNS AVENUE BRONX, NY 10455 NNN LEASED PROPERTY 9% CAP RATE (STRONG CREDIT TENANT)

FINANCIAL PROJECTIONS
10-Year Projections & Analysis of Purchaser's Return on Investment
Total Income 1 Incl Reimb $ 258,000 263,160 268,423 273,792 279,267 284,853 290,550 296,361 302,288 308,334
1 2 3 4

Purchase $ Price 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000

Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Expenses 2 Incl Reimb $ 42,000 42,840 43,697 44,571 45,462 46,371 47,299 48,245 49,210 50,194

Net Operating Income $ 216,000 220,320 224,726 229,221 233,805 238,481 243,251 248,116 253,078 258,140

Return on Purchase Price 9.0% 9.2% 9.4% 9.6% 9.7% 9.9% 10.1% 10.3% 10.5% 10.8%

Mortgage: 70% Loan 3 To Value $ 1,680,000 1,680,000 1,680,000 1,680,000 1,680,000 1,680,000 1,680,000 1,680,000 1,680,000 1,680,000

Mortgage Pymt - 6.5% Int & 30-Yr ($128,650) (128,650) (128,650) (128,650) (128,650) (128,650) (128,650) (128,650) (128,650) (128,650) $

30% Cash Down Pymt 720,000 720,000 720,000 720,000 720,000 720,000 720,000 720,000 720,000 720,000

Cash Flow Post Pymt Mortgage $ 87,350 91,670 96,076 100,571 105,155 109,831 114,601 119,466 124,428 129,490 IRR

Cash on Cash Return 12.1% 12.7% 13.3% 14.0% 14.6% 15.3% 15.9% 16.6% 17.3% 18.0%

20%

Total Income is NNN Base Rent. Future Expenses are only estimated insurance costs and misc expenses grown 2% for inflation. All other expenses are paid by tenant. Mortgage: 70%, 6.5% Interest rate, & 30 Yr Amortizing Loan. IRR assumes exit in year 2018 with a residual value of $2.5mm or a 10% cap rate on 2018 estimated NOI.

Although all information furnished regarding property for sale, rental or financing is from sources deemed reliable, no express representations made nor is any implied as to the accuracy thereof and is subject to error, omissions, change of price, rental or other conditions, prior sale, rental or financing or withdrawal without notice. No warranties or representations are made as in the condition of the property of any hazards contained therein nor are any implied.

Besen & Associates, Inc., 381 Park Avenue South, New York, NY 10016 (212) 689-8488 Tel (212) 689-9518 Fax www.besenassociates.com