Crocker House DST

New London

Beneficial Interests: $2,325,000

Offering Price: $6,425,000

  • Loan Proceeds: $4,100,000
  • Current Cash Flow: 7.00%
  • Loan-to-Offering Price Ratio: 63.80%
  • Minimum Investment[1031]: $100,000

Hamilton Point Investments is offering DST interests in Crocker House Apartments Well-located 81-unit apartment property with 11,990 square feet of ground floor commercial space. Crocker House is largely tenanted by young professionals who are drawn to Crocker House’s modern renovation, downtown location, and unique smaller, more affordable apartments.

81-Unit Downtown Apartment Property

Crocker House was purchased in 2002 by the previous owner. The concept was to renovate the property to the highest standards to take advantage of the “renaissance” of New London’s downtown area, which was touted in the early half of the last decade by local businesses and government, although which only partially occurred.

INVESTMENT HIGHLIGHTS

Excellent Acquisition Cost

Total acquisition cost of $6,425,000. Acquisition price (exclusive of ground floor retail/commercial) of $79,321 per unit.

Attractive Investor Returns

Using conservative underwriting showing minimal growth from trailing income and expenses numbers, the investment is projected to comfortably cover a 7% annual return to investors plus cover the cost of debt service on a 30-year amortization schedule with no interest only period.

Very Good Physical Condition

Benefiting from recent extensive renovation. Property was totally “gut” renovated from 2005-2006,including new mechanicals, plumbing and electric. A further renovation in 2011 including re-pointing of the entire exterior, scraping,painting and caulking of all windows and complete interior corridor renovations. The property condition assessment found no immediate repair needs.

Strong Rental Market

The New London apartment market vacancy rate is 2.7% per the CBRE appraisal. Additionally, it is a largely rental market, with 62.2% of New London residents renting their home and only 37.8% owning.

One of the Best Locations in Market

Property is located downtown,within three blocks of the Amtrak and Shoreline train station,numerous restaurants, nightclubs, shops and galleries, the riverfront harbor, ferries to Long Island, Block Island and Fisher’s Island and other amenities.

Stable History and Reasonable Projections 

The property has experienced very steady operating results:

 

Investment Summary
• Stability in strong multifamily rental market with excellent young professional tenancy
• Main Street location across from city hall and three blocks from waterfront
• Five minute walk from ferry service, train station, and a dozen restaurants and nightclubs
• Purchase price of $79,321 per unit, not including value of ground floor commercial
• Market vacancy rate of 2.7% per CBRE appraisal
• Totally “gut” renovated property includes new mechanicals, plumbing and electric
• Sponsor headquartered 20 minutes away has operated Crocker House for four years
• Trailing-12 month net operating income of $440,899; year 1 projected at $449,820

PROPERTY OVERVIEW

81-Unit Downtown Apartment Property

Crocker House was purchased in 2002 by the previous owner. The concept was to renovate the property to the highest standards to take advantage of the “renaissance” of New London’s downtown area, which was touted in the early half of the last decade by local businesses and government, although which only partially occurred.

A total renovation of the property was completed in 2006 and won an Award of Merit from the Connecticut Trust for Historic Preservation for its renovation and restoration. The renovation included a complete refurbishment of the retail and banquet space and all apartment units and common areas. Shortly after the renovation was completed, CBRE appraised the property for $7 million ($86,420 per unit).

ABOUT Inland Real Estate Group of Companies, Inc.

The Inland Real Estate Group of Companies, Inc. (Inland) is one of the nation’s largest commercial real estate and finance groups, representing nearly 50 years of expertise and integrity in the industry. As a business incubator, Inland specializes in creating, developing and supporting member companies that provide real estaterelated investment funds – including limited partnerships, institutional funds and nonlisted real estate investment trusts (REITs) – and real estate services for both third parties and Inland-member companies.

In March 2001, Inland Private Capital Corporation was formed to provide replacement properties for investors wishing to complete a tax-deferred exchange under Section 1031 of the Internal Revenue Code of 1986, as amended, as well as investors seeking a quality, multiple-owner real estate investment. The programs sponsored by IPC offer securities to accredited investors on a private placement basis.