MEMORANDOM Address City, State 12345 - TITLE - LoopNet
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80 Norwich New London
PROJECT TITLE
OFFERING
NAME
Turnpike, Uncasville CT 06382
MEMORANDOM
Address City,
State 12345
Tim Bray B.S. Real Estate & Urban Economics - UConn
860-912-7137
tbray@seaportre.com
www.seaportre.com
Confidentiality Agreement
In consideration of a disclosure of
information relating to the above subject
matter, to be made by Seller/Landlord to
Purchaser/Tenant, Purchaser/Tenant
hereby agrees that the information is
proprietary to Seller/Landlord, that such
disclosure will be confidential, and that
the disclosed information shall not be
used nor duplicated nor disclosed to
others, other than Purchaser's/Tenant's
attorney, accountant, inspectors and
other professionals retained by
Purchaser/Tenant to investigate the
Subject Matter without first obtaining
Seller's/Landlord's written permission.
Seller/Landlord may enforce this
agreement by injunction or by an action
for damages resulting from the breach of
this agreement in any court of
competent jurisdiction.
Tim Bray B.S. Real Estate & Urban Economics - UConn
860-912-7137
tbray@seaportrecom
www.seaportre.com
Offering Memorandum 80 Norwich New London Turnpike
ABOUT PROPERTY
LOCATION MAP PROPERTY DETAILS
This extremely stable income-
producing office building is PRICE
home to Family first Life and $4,200,000
generates Gross Income in
excess of half a million dollars.
If you are a user occupant, YEAR BUILT
then there could be an
2009
opportunity for 6,000 s.f. of
Office/medical space in the
near future. The Montville
Professional Center offers a AVAILABLE SPACE
newly constructed building 0 s.f.
with all the amenities found in
class A office space backed by
high traffic counts and plenty
CAP RATE
of parking. The current owner
has invested $750,000 in the 8.5%
build-out of 5,875 s.f. of space
on the second floor which is
being utilized as office space NOI
and is fully rented.
$356,901
For more information:
Tim Bray B.S. Real Estate & Urban Economics - UConn
860-912-7137| tbray@seaportre.com| www.seaportre.com
Property Description 80 Norwich New London Turnpike
The following description is based upon a physical inspection of the property, a
review of the leases and public records.
Gross Building Area
Above Grade: 26,956
Below Grade: 3,952
Total: 30,908
Foundation: Poured Concrete
Building Exterior: The exterior is wood frame with Stucco siding, a gable roof
with asphalt shingles, aluminum downspouts and double-
hung windows. There are exterior stairways, and concrete
walkways around the perimeter of the building.
Elevator: One, three-stop, 2,100 lb. capacity Otis elevator.
Electrical: 800 amp main, 3 phase; electricity is separately metered.
There is a diesel fired back up generator utilized by Backus
Hospital; the diesel tank is above ground. YEAR BUILT
YYYY
HVAC: Heat and air-conditioning is provided from exterior mounted
HVAC units. AVAILABLE SPACE
#
Sprinklers: Full wet Sprinkler System
CAP RATE
%
NOI
$
Tim Bray B.S. Real Estate & Urban Economics - UConn
860-912-7173
tbray@seaportre.com
www.seaportre.com
Offering Memorandum PROPERTY OVERVIEW & SITE DESCRIPTION
Land Area: 2.07 acres or 89,734 sq. ft. per survey
Frontage: 340.26 feet along the westerly side of Ct
Route 32 (Norwich New London Turnpike)
Topography: Gentle slope above grade, building site is
generally level with upward sloping topography
at the western boundary.
Wetlands: No wetlands are apparent.
Flood Hazard Area: The entire site is in a low flood risk area outside
the Special Flood Hazard Area per flood insurance
rate map 09011CO361J, dated 8/5/13
Utilities: Water, sewer, cable, telephone and electricity.
Site Improvements: 34,700 sq. ft. of asphalt paved parking in
good condition for about 107 vehicles, including 5
handicap accessible spaces; and storm drainage,
utility connections, exterior lighting, and concrete
walkways.
Underground Tanks: None
Easements & Restrictions: Drainage easement to the State of CT along Rt 32,
and access easement for ingress and egress across
the adjacent property.
Tim Bray B.S. Real Estate & Urban Economics - UConn
860-912-7137
tbray@seaportre.com
www.seaportre.com
80 Norwich New London Tpke
Cash Flow
Analysis
INCOME
TENANTS (Monthly) (Yearly)
Hartford Healthcare $10,786.83 $129,442
Hartford Healthcare (Storage) $376 $4,512
U.S. Navy $2,934.75 $35,217
Family First Life (1st Floor) $9,791.67 $117,500
Family First Life (2nd Floor) $3,006.66 $36,080
Eric Schmidt $10,250 $123,000
TOTAL $45,922.45 $551,069.40
EXPENSES (fixed) YEARLY
Gross Income $551,069
Taxes $70,930.14
Insurance $8,830 Fixed Expenses $79,760
$79,760
Variable Expenses $53,701
EXPENSES (variable)
Elevator Service $3,093 Management - 6% of PGI $33,064
Fire Safety $989.69
Reserves – 5% of PGI $27,553
Janitorial $14,624.63
Accounting $2,871 TOTAL EXPENSES $194,079
Repairs/Maintenance $5,878.57
Internet/Cable $5,207 NET OPERATING INCOME $356,991
` Trash Services $3,129.22 Cap Rate 8.5%
Electric $15,507.22
Sewer/Water $2,400
$53,701
For more information: For more information:
Tim Bray| 860-912-7137| www.seaportre.com
PROJECT Family First Life (1st Floor)
TITLE
Tenant
NAME
Profile
Address City,
State 12345
Lease Start Date – 11/26/2018 Lease End Date – 11/26/2028
The landlord is responsible for Internet, water, sewer, Trash & HVAC
2- Five Year Renewal Options
www.familyfirstlife.com
Tim Bray B.S. Real Estate & Urban Economics - UConn
860-912-7137
tbray@seaportre.comFor more information:
www.seaportre.comPROJECT Family First Life,
TITLE
Tenant
NAME
Profile Second Floor
Address City,
State 12345
Lease Start Date – 3/15/2021 Lease End Date – 11/26/2028
The landlord is responsible for Internet, water, sewer, Trash & HVAC
www.familyfirstlife.com
Tim Bray B.S. Real Estate & Urban Economics - UConn
860-912-7137
tbray@seaportre.comFor more information:
www.seaportre.comHartford Healthcare
Tenant Profile (First Floor & Storage Space)
6,020 S.F. on the First Floor
Lease Start Date – 7/1/2010 Lease End Date – 6/30/22
700 S.F. in the basement
Lease Start Date – 5/1/12 Lease End Date – 6/30/22
(Family First Life would like to occupy this space should Hartford Health vacate.)
Hartford Health leases 6,020 sq. ft. on the first level. This area has
conventional medical office finish with a waiting area, nurse stations, staff
lounge, treatment and X-Ray areas, several exam rooms with sinks, lab and
storage areas, and standard good quality office finishes. They also lease
700 sq. ft. on the basement level for storage.
- 2- Five Year Renewal Options with rent escalations tied to CPI
- Tenant is responsible for Heat & Electric.
www.hartfordhealthcare.org
Tim Bray B.S. Real Estate & Urban Economics - UConn
860-912-7137
tbray@seaportre.comFor more information:
www.seaportre.comIndependence Physical Therapy
Tenant Profile
Lease Start Date – 10/1/2020 Lease End Date – 10/1/2030
The landlord is responsible for water, sewer, Trash & HVAC
Tenant is responsible for heat & Electric
Independent Physical Therapy leases 4,787 sq. ft. on the second level.
The space incudes typical good quality office finish. The layout incudes a
reception area, open workout room with various exercise machines, a
therapy area, several perimeter offices and a kitchen area. There are
handicap accessible tiled men’s and women’s bathrooms. IPT opened for
business in September of 2005 in Ledyard CT and is a very stable tenant.
2- Five Year Renewal Options with 1% annual rent escalations
www.independencephysicaltherapy.com
Tim Bray B.S. Real Estate & Urban Economics - UConn
860-912-7137
tbray@seaportre.comFor more information:
www.seaportre.comUnited States Navy
Tenant Profile
Lease Start Date – 9/15/21 Lease End Date – 9/15/26
The landlord is responsible for water, sewer, Trash & HVAC
Tenant is responsible for heat & Electric
United States of America (US Navy Career Center) is the smallest tenant
with 1,575 sq. ft. on the second level. This space has not been inspected
but reportedly includes typical office finish and is reported to be in good
condition. They have seven parking spaces allotted to them.
As with any Government contract, this lease may be broken with 90
days notice.
United States Navy
Tim Bray B.S. Real Estate & Urban Economics - UConn
860-912-7137
tbray@seaportre.comFor more information:
www.seaportre.comPROJECT Family First Life Northeast (2nd Floor)
TITLE
Tenant
NAME
Profile Eric Schmidt
Address City,
State 12345
Lease Start Date – 9/1/2021 Lease End Date – 9/1/2026
The landlord is responsible for Internet, water, sewer, Trash, HVAC,
heat & electric
3- One Year Renewal Options
Family First Life Northeast
Tim Bray B.S. Real Estate & Urban Economics - UConn
860-912-7137
tbray@seaportre.comFor more information:
www.seaportre.comOffering Memorandum A-2 Survey of 80 Rt 32 For more information: Tim Bray B.S. Real Estate & Urban Economics - UConn 860-912-7137| tbray@seaportre.com| www.seaportre.com
Photos 80 Norwich New London Turnpike For more information: Tim Bray B.S. Real Estate & Urban Economics - UConn 860-912-7137| tbray@seaportre.com| www.seaportre.com
New London Submarket Summary
New London Office
The New London Submarket in Norwich contains around five years.
4.2 million SF of office space, which represents more
There is about 70,000 SF underway in New London, the
than half of the market's inventory. The vacancy rate has
most space under construction in more than a decade.
fallen a bit over the past year, but the rate was in line
This represents a continuation of new development in the
with the long-term average.
submarket, which had already seen 20,000 SF deliver
over the past three years.
The submarket posted 39,000 SF of net absorption over
the past year, but on average, annual absorption has
Office properties have traded with regularity in recent
been essentially flat over the past five years. Rents were
years, and last year, the number of sales significantly
essentially unchanged over the past year, representing
exceeded the three-year average.
the worst annual rent growth performance in more than
NET ABSORPTION, NET DELIVERIES & VACANCY
© 2022 CoStar Group - Licensed to Seaport Commercial - 453659
Seaport CommercialNorwich Market Summary
Norwich Office
Office rents in the Norwich Market were essentially quarters.
unchanged over the past year, but have posted an
Nonfarm payrolls in the metro were recently increasing at
average annual gain of 1.9% over the past three years.
solid clip of 4.7%, or a gain of about 5,300 jobs. That's a
In addition to 100,000 SF that has delivered over the
welcome performance, especially given that employment
past three years (a cumulative inventory expansion of
posted a decrease of 10.7% year-over-year at one point
1.6%), there is 70,000 SF currently underway. Vacancies
during the past twelve months.
were basically in line with the 10-year average as of
2022Q1, and were little changed over the past four
NET ABSORPTION, NET DELIVERIES & VACANCY
© 2022 CoStar Group - Licensed to Seaport Commercial - 453659
Seaport CommercialNorwich Economic Summary
Norwich Office
NORWICH EMPLOYMENT BY INDUSTRY IN THOUSANDS
CURRENT JOBS CURRENT GROWTH 10 YR HISTORICAL 5 YR FORECAST
Industry Jobs LQ Market US Market US Market US
Manufacturing 18 1.8 2.46% 3.49% 2.47% 0.69% -0.77% -0.10%
Trade, Transportation and Utilities 20 0.9 1.34% 2.50% -0.92% 0.94% 0.17% 0.35%
Retail Trade 14 1.1 3.65% 1.84% -0.59% 0.44% 0.29% 0.34%
Financial Activities 3 0.4 0.00% 1.53% -0.80% 1.42% -0.24% 0.60%
Government 27 1.5 6.78% 2.47% -2.90% 0.03% 0.31% 0.62%
Natural Resources, Mining and Construction 4 0.6 3.87% 3.16% 0.05% 2.48% 0.07% 0.65%
Education and Health Services 19 1.0 1.14% 4.15% -0.40% 1.68% 0.75% 1.11%
Professional and Business Services 9 0.6 5.24% 4.43% -0.26% 1.94% 0.03% 1.07%
Information 1 0.5 -5.13% 6.55% -0.77% 0.56% -0.62% 1.30%
Leisure and Hospitality 14 1.1 16.84% 16.27% -0.01% 1.48% 2.50% 2.01%
Other Services 3 0.7 15.97% 5.34% -1.39% 0.69% 1.07% 0.57%
Total Employment 118 1.0 4.96% 4.59% -0.74% 1.17% 0.44% 0.82%
Source: Oxford Economics
LQ = Location Quotient
JOB GROWTH (YOY)
Source: Oxford Economics
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Seaport CommercialDemographic Overview
80 Norwich New London Tpke
Population (1 mi) Avg. HH Size (1 mi) Avg. Age (1 mi) Med. HH Inc. (1 mi)
1,685 2.4 42 $67,882
DEMOGRAPHIC RADIUS RINGS
DEMOGRAPHIC SUMMARY
Population 1 Mile 3 Mile 5 Mile
2021 Population 1,685 15,423 46,791
2026 Population 1,644 15,152 46,220
Pop Growth 2021-2026 (2.4%) (1.8%) (1.2%)
2021 Average Age 42 42 38
Households
2021 Households 695 5,589 16,423
2026 Households 676 5,487 16,187
Household Growth 2021-2026 (2.7%) (1.8%) (1.4%)
Median Household Income $67,882 $85,992 $71,504
Average Household Size 2.4 2.5 2.6
Average HH Vehicles 2 2 2
Housing
Median Home Value $209,042 $241,881 $234,271
Median Year Built 1955 1966 1966
1/9/2022
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Seaport Commercial
Page 75Investment Trends
80 Norwich New London Tpke
NORWICH INVESTMENT TRENDS
Norwich is a midsized office metro that had 33 office The market price, which is based on the price movement
sales close over the past 12 months. That happened to of all office properties in the metro and informed by
be an increase in office deals compared to what market actual transactions, now sits at $132/SF. That figure is
participants have become accustomed to over the past an improvement over this time last year, and the price is
five years. Annual sales volume has averaged $10.0 a large discount to the overall average for the country.
million over the past five years, and the 12-month high The office market price in Norwich is more than 50%
in investment volume hit $25.1 million over that stretch. below the average for the entire United States. At 8.5%,
In the past 12 months specifically, $11.4 million worth of the market cap rate is within a few basis points of where
office assets sold. Sales involving 1 & 2 Star inventory it was 12 months ago, and the cap rate is structurally
propelled that annual sales volume, with roughly $9.3 higher here than those across the country.
million sold in the past year.
SALES VOLUME & MARKET SALE PRICE PER SF
© 2022 CoStar Group - Licensed to Seaport Commercial - 453659
Seaport CommercialInvestment Trends
80 Norwich New London Tpke
NEW LONDON INVESTMENT TRENDS
Buyers have shown consistent interest in New The market price, derived from the estimated price
London office buildings and have steadily scooped up movement of all office properties in the submarket, sat at
assets over the years. Over the past five years, $138/SF during the first quarter of 2022. That figure is up
annualized sales volume has averaged $5.1 million. But from this time last year, and the level here is still ahead
volume hit $9.2 million during these past 12 months, the of pricing across the Norwich region. At 8.3%, the market
highest level recorded over that five-year period. New cap rate is within a few basis points of their year-ago
London has accounted for the bulk of metro sales levels, and it's fairly similar to the metro average. The
volume in the past 12 months. This isn't too surprising, current rate is above the submarket's five-year average.
however, as it contains the most office square feet in
Norwich.
SALES VOLUME & MARKET SALE PRICE PER SF
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Seaport CommercialRent Analytics
80 Norwich New London Tpke
GROSS ASKING RENT PER SQUARE FOOT
GROSS ASKING RENT PER SQUARE FOOT
Subject Peers New London Norwich
Direct Rent Trend (YOY) Market Rent Trend (YOY) Market Rent Trend (YOY) Market Rent Trend (YOY)
2016 - - $15.33 0% $18.15 -0.9% $17.81 0.4%
2017 - - $15.55 1.4% $18.62 2.6% $18.22 2.3%
2018 - - $16.79 7.9% $19.68 5.7% $19.56 7.3%
2019 - - $17.36 3.4% $20.29 3.1% $20.13 2.9%
2020 - - $17.32 -0.2% $20.41 0.6% $20.22 0.5%
2021 - - $17.35 0.2% $20.47 0.3% $20.27 0.3%
YTD - - $17.29 -0.4% $20.40 -0.3% $20.18 -0.5%
2022 $17.43 0.5% $20.76 1.4% $20.50 1.1%
2023 $17.82 2.2% $21.35 2.8% $21.07 2.8%
2024 Forecast > $18.03 1.2% $21.74 1.8% $21.44 1.8%
2025 $18.06 0.2% $21.91 0.8% $21.60 0.7%
2026 $18.01 -0.3% $21.98 0.3% $21.66 0.3%
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