Professional Documents
Culture Documents
205 Montague Street • Third Floor • Brooklyn, NY 11201 • 718.238-8999 • Fax 718.238.6091
www.masseyknakal.com
THE BRONX BROOKLYN MANHATTAN NASSAU NEW JERSEY QUEENS STATEN ISLAND WESTCHESTER
198 Varet Street 60 Broadway
Williamsburg Charter High School Building – For Sale
10 Year Discounted Cash Flow Analysis
Assumptions: Purchase Price $30,000,000 Loan Assumptions: Loan to Value 50%
Closing Costs $900,000 3% of Purchase Price Loan Interest 5.50%
Gross Acquisition $30,900,000 Loan Term: 10 yrs 25 Yr Amortization Schedule
Terminal Cap Rate: 6.00% 2020 Payments per year 12
Rent Escalations: 3% per year Equity $ 15,000,000
Maintenance & Repairs: 2% per year Loan $ 15,000,000
Brokerage Fee: 2.50% on disposition Annual & Monthly Loan Payment $ 1,105,357 $92,113.12
Mortgage Balance in year 10 $ 11,273,405
Income/Expense: Year Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16 Aug-17 Aug-18 Aug-19 Aug-20
Gross Rental Income $ 2,300,000 $ 2,300,000 $ 2,600,000 $ 2,600,000 $ 2,600,000 $ 2,678,000 $ 2,758,340 $ 2,841,090 $ 2,926,323 $ 3,014,113 $ 3,104,536
Maintenance & Repairs $ 46,000 $ 46,920 $ 47,858 $ 48,816 $ 49,792 $ 50,788 $ 51,803 $ 52,840 $ 53,896 $ 54,974 $ 56,074
NOI $ 2,254,000 $ 2,253,080 $ 2,552,142 $ 2,551,184 $ 2,550,208 $ 2,627,212 $ 2,706,537 $ 2,788,251 $ 2,872,427 $ 2,959,138 $ 3,048,462
Net Disposition $ 49,537,511.20
UNLEVERED CASH FLOW $30,900,000 $ 2,254,000 $ 2,253,080 $ 2,552,142 $ 2,551,184 $ 2,550,208 $ 2,627,212 $ 2,706,537 $ 2,788,251 $ 2,872,427 $ 2,959,138 $ 52,585,973
UNLEVERED RATE OF RETURN 7.29% 7.29% 8.26% 8.26% 8.25% 8.50% 8.76% 9.02% 9.30% 9.58% 9.87%
UNLEVERED IRR: 11.35% FIRST YEAR CAP RATE: 7.51% MEAN RATE OF RETURN: 8.58%
205 Montague Street • Third Floor • Brooklyn, NY 11201 • 718.238-8999 • Fax 718.238.6091
www.masseyknakal.com
THE BRONX BROOKLYN MANHATTAN NASSAU NEW JERSEY QUEENS STATEN ISLAND WESTCHESTER
198 Varet Street 60 Broadway
Williamsburg Charter High School Building – For Sale
Lease Abstract for The Williamsburg Charter High School
Lease Commencement March 30, 2009
Lease Term 30 Years
Actual PPM $191,667
Annual Rent (Years 1-2) $2,300,000
Annual Rent (Years 3-5) $2,600,000
Escalations (Years 6-30) 3% per year
Security Deposit $1,500,000
Lease Guarantee $1,300,000
Expenses
Utilities Tenant's Expense
Water/Sewer Tenant's Expense
Interior Maintenance & Repair Tenant's Expense
R.E. Taxes Tenant's Expense
Exterior Maintenance Landlord's Expense
Notes: Landlord shall be responsible for the maintenance of the facade and roof. Tenant is to maintain
all mechanical systems and undertake all interior repairs. America's Charter School Finance Corporation
provides a guarentee on the lease up to $1,300,000 per year. More details about the lease and
guarentee are provided in the marketing book.
205 Montague Street • Third Floor • Brooklyn, NY 11201 • 718.238-8999 • Fax 718.238.6091
www.masseyknakal.com
THE BRONX BROOKLYN MANHATTAN NASSAU NEW JERSEY QUEENS STATEN ISLAND WESTCHESTER
198 Varet Street 60 Broadway
Williamsburg Charter High School Building – For Sale
Confidentiality Agreement – Please sign and return for a copy of the following: Date:
Lease, lease guarantee summary, tenant hardship statement, tenant proforma, floor plans, independent audit of school’s financial condition, and other due diligence documents
Recipient Name: Address:
Title: Phone/Fax:
Company: Email:
In order to facilitate certain discussions involving a possible sale of 198 Varet Street, Brooklyn, NY 11206 (the “Property”) for the owner and/or certain of its affiliates, the above Recipient has requested
information concerning the Property from Massey Knakal Realty of Brooklyn, LLC (“Company”). As a condition to the Recipient's being furnished such information, the Recipient agrees to treat any proprietary
information (including, without limitation, any financial information, data, or other proprietary information) concerning the Property which is furnished to the Recipient (whether orally, in writing, visually,
photographically, electronically, or otherwise) together with any analyses, compilations, studies or other documents, records or data prepared which summarize or otherwise reflect or are generated from such information
(herein collectively referred to as the "Confidential Material") in accordance with the provisions of this Agreement and to take or abstain from taking certain other actions herein set forth. The term "Confidential
Material" does not include information which (i) is already in the Recipient's possession, or (ii) becomes generally available to the public or (iii) becomes available to Recipient on a non-confidential basis from a source
other than the Company, provided that, to the Recipient’s knowledge, such source is not known by the Recipient to be bound by a confidentiality agreement with or any other obligation of secrecy to the Company. The
Recipient shall be responsible for any breach of this Agreement by its Representatives and hereby assumes all liability for damages relating to or arising out of the unauthorized use or disclosure of the Confidential
Material by its Representatives.
In addition to the foregoing, neither party hereto will, without the prior written consent of the other, disclose to any person (i) the fact that discussions are taking place concerning a possible transaction
between the Company and the Recipient, or (ii) any of the terms, conditions or other facts with respect to any such possible Transaction, including the status thereof.
The Recipient understands and acknowledges that neither the Company nor any of its Representatives is making any representation or warranty, express or implied, as to the accuracy or completeness of the
Confidential Material, and neither the Company nor any of its Representatives will have any liability to Recipient or any other person resulting from the Recipient’s use of the Confidential Material. Communications
regarding the Transaction, requests for additional information and discussions or questions regarding the procedures, shall be submitted or directed only to Company.
If any term or provision of this Agreement, or the application thereof to any person or circumstances, shall to any extent be invalid or unenforceable, the remainder of this Agreement, or the application of such
terms to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term of this Agreement shall be valid and enforceable to the fullest extent permitted by
law.
This Agreement contains the entire and only agreement between the Company and the Recipient concerning the subject matter hereof, and any oral statements or representations or prior written matter with
respect thereto not contained herein shall have no force and effect.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, and this Agreement shall
become effective when there exist copies hereof which, when taken together, bear the authorized signatures of each of the parties hereto. Delivery of an executed counterpart signature page to this Agreement by fax or
email shall be as effective as delivery of a manually executed counterpart of this Agreement.
This Agreement shall be governed by and construed in accordance with the laws of New York. If you agree to the foregoing, please sign and return a copy of this letter, which will constitute our agreement
with respect to the subject matter of this letter.
Sincerely Yours,
Massey Knakal Realty of Brooklyn, LLC
Acknowledged and agreed to as of the date hereof:
By:______________________________
Please sign and return to either by fax or email: (Fax~718.238.6091)
Mark L. Lively ~ 718.307.6524 Brendan T. Maddigan ~ 718.307.6507 Douglas DiSesa ~ 718.307.6554
mlively@masseyknakal.com bmaddigan@masseyknakal.com ddisesa@masseyknakal.com
The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. All zoning, buildable footages and uses must be independently verified. Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate t
The value of this investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket, and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, AND ALL OTHER INFORMATION HEREIN.