523-525East3rdSlideshow

523-525 GRIFFITH | PEPDJONOVIC

EAST 3RD STREET

BOSTON, MA

Investment Opportunity

Marcus and Millichap is pleased to announce the exclusive listing of a 5-unit multi-family building in South Boston, MA.
The building sits one street away from East Broadway in Southie, featuring many shops, restaurants and a Stop and Shop.

South Boston is served by two Massachusetts Bay Transportation Authority Red Line rapid transit stations: Broadway and
Andrew. MBTA bus service links these stations to nearby residential areas via bus routes 5, 7, 9, 10, 11. The MBTA Silver
Line, a Bus rapid transit service, connects the South Boston Waterfront with South Station via a bus tunnel beneath
Congress St. and Boston Logan International Airport.

Once a predominantly Irish Catholic community, in recent years South Boston has become increasingly desirable among
young professionals and families who are attracted to the neighborhood’s strong sense of community and quick access to
downtown and public transportation. South Boston has a population of about 33,311 and a median age of 32.

FULLY LEASED 5 UNIT LOCATED ONLY 3 TRANSIT ORIENTED VALUE-ADD
BUILDING IN SOUTH MINUTES FROM THE LOCATED NEAR TWO OPPORTUNITY BY
INCREASING CURRENT
BOSTON SEAPORT RED LINE TRAIN
STATIONS RENTS

523-525 EAST 3RD ST. BOSTON, MA 2

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523-525 EAST 3RD ST. BOSTON, MA 4

SITE PLAN

REAR REAR
PATIO 1 PATIO 2

GARAGE

DRIVEWAY

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DOWNTOWN SEAPORT

FORT POINT

MBTA COMMUTER RAIL SEAPORT SQUARE

The largest real estate
project in Boston’s history.

The development will
feature 7.6 million sqft of
space across 20 blocks.

MBTA RED LINE CONVENTION CENTER

The Boston Convention
Center features 2.1 million
sqft of space and brings

in more than a million
attendees per year.

523 EAST 3RD ST.

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AREA MAP

LOGAN AIRPORT

DESIGN CENTER South Boston

The 1.4 million sqft South Boston has seen significant
complex is home to 48 development and corporate relocations
different companies and in the past few years. General Electric,
over 350,000 square feet Vertex Pharmaceutics, Reebok, and many
other companies have chosen South
of showroom space. Boston to be their corporate
headquarters recently. South Boston has
GRIFFITH | PEPDJONOVIC an average household income of $98,000
and a median age of 32 years old.

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NEARBY DEVELOPMENTS

523-525 EAST 3RD ST. BOSTON, MA Seaport Square

The largest single real estate project in
city history, spanning 23 acres across 20
city blocks. WS Development is
building 7.6 million square feet of mixed
use development. The Square will feature
3.2 million sqt of residential, 2.8 million
sqft of office space, 1.1 million sqft of
retail space and 450,000 sqft hotel space.
There will also be 8.8 acres of public
park space.

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Echelon Seaport 9

Echelon is a 1.33 million sqft development
located steps away from the harbor walk.
Echelon will consist of 733 residential
units and 125,000 SF of retail space spread
across 3 buildings. Echelon Seaport will
also have a 19,000 sqft landscaped
plaza, which will be accessible to the
public. Prices will start at $700,000 for a
studio and $4,000,000 for a 3 bedroom.

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523-525 EAST 3RD ST. BOSTON, MA Greater Boston Metro

Steeped in history, the Boston metro spans
4,128 square miles across Essex, Middlesex,
Norfolk, Plymouth and Suffolk counties in
Massachusetts, and Rockingham and
Strafford counties in southeastern New
Hampshire. The region is home to
approximately 4.8 million individuals and
accounts for nearly 70 percent of all
Massachusetts’ residents. Boston is the
most populous city in the metro with roughly
675,200 citizens. It is located along the
Atlantic seaboard and fronts Boston Harbor.

Boston has transitioned from a
manufacturing hub to one of the top
innovation, healthcare and education centers
of the world. The metro is home to a thriving
startup ecosystem, with medical research at
world-renowned institutions such as Harvard
and MIT at its core.

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4.8M $82K #3

GREATER BOSTON HOUSEHOLD INCOME HIGHEST INCOME PER
POPULATION IN GREATER BOSTON CAPITA IN THE US

1.9M 3.1% 500K

GREATER BOSTON UNEMPLOYMENT COLLEGE STUDENTS IN
HOUSEHOLDS RATE IN BOSTON GREATER BOSTON

100+ 16M+ 36M

LEADING EDUCATION VISITORS TO BOSTON PASSENGERS OUT
INSTITUTIONS AND CAMBRIDGE OF LOGAN AIRPORT

130+ #1

HOSPITALS IN STATE IN THE US BY
GREATER BOSTON US NEWS AND WORLD

REPORT

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PRICING DETAILS $2,500,000 RETURNS Current Pro-Forma

Price $2,500,000 Returns 3.51% 4.57%
5 22.08 18.77
Down Payment CAP Rate 3.51% 4.57%
Number of Units $500,000 GRM
Price Per Unit $625.00 Cash-on-Cash
Price Per SqFt
Gross SqFt 4,000
Lot Size 0.07 Acres
Approx. Year Built
1922

DETAILED RENT ROLL

Unit Unit Type Current Rent/Month Potential Rent/Month Lease Expires
Parking Space $600
Garage $600 30 Days Notice
1F 2 Bedroom / 1 Bath $2,245 $2,700 30 Days Notice
2F 1 Bedroom / 1 Bath $1,530 $2,000 August 31, 2019
2R 1 Bedroom / 1 Bath $1,785 $2,000 30 Days Notice
3F 2 Bedroom / 1 Bath $2,315 $2,600 June 30, 2019
3R $1,560 $1,800 30 Days Notice
Total Studio Apartment $10,035 $11,700

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OPERATING STATEMENT Current Year 1 Per Unit Per SF

Income 113,220 133,200 26,640 33.30
($3,397) 3% ($3,996) 3% ($799) ($1)
Gross Scheduled Rent 25,841 32.30
Total Vacancy 109,823 129,204
Effective Rental Income 360 0.45
Other Income 1,800 1,800 2,880 3.60
Laundry 7,200 14,400 $3,240 $4.05
Garage/Parking $9,000 $16,200 $29,081 $36.35
Total Other Income $118,823 $145,404
Effective Gross Income Per Unit Per SF
Current Year 1
Operating Expenses 3,430 4.29
17,152 17,152 952 1.19
Real Estate Taxes 4,760 4,760 756 0.95
Insurance 3,780 3,780 240 0.30
Utilities - Electric 1,200 1,200 103 0.13
Utilities - Water & Sewer 516 516 500 0.63
Utilities - Laundry Gas 2,500 2,500 250 0.31
Repairs & Maintenance 1,250 1,250 $6,232 $7.79
Operating Reserves $31,158 $31,158
Total Expenses 26.2% 21.4% $22,849 $28.56
Expenses as % of EGI $87,665 $114,246
Net Operating Income 13

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Marcus & Millichap is the leading real estate investment $42B
services firm in the United States. With over 80 offices and
1,700 sales agents across the United States and Canada, RECENTLY CLOSED
Marcus & Millichap brings national experience to local TRANSACTIONS
market expertise.
............................................................................
George M. Marcus and William A. Millichap revolutionized the
real estate brokerage industry. Marcus & Millichap was designed 8,979
to go far beyond simply facilitating real estate transactions. It
was developed as an entire system dedicated to maximizing TRANSACTIONS
value for real estate investors. CLOSED IN 2017

............................................................................

1,819+

INVESTMENT
PROFESSIONALS

523-525 EAST 3RD ST. BOSTON, MA 14

3,500+ GRIFFITH | PEPDJONOVIC

TOTAL MULTI-FAMILY Evan Griffith and Tony Pepdjonovic lead the top-producing team in the
UNITS SOLD Boston Marcus & Millichap office. Evan and Tony have formed a collaborative
investment sales team focusing on the New England market. They are
.............................................................................. dedicated to being relationship-oriented”with the crux of the team’s focus on
multi-family, mixed-use buildings as well as guiding clients through the 1031
1031 exchange process.

EXCHANGE The team’s foremost goal is to exceed the expectations
SPECIALISTS of each client, deliver superior results and solidify
strong lifetime relationships. Griffith & Pepdjonovic
.............................................................................. are known for their honesty and integrity and take
pride in their many repeat clients.
#1

TEAM BOSTON OFFICE
IN 2016, 2017, 2018

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Evan Griffith

First Vice President Investments
Boston Office

Tel: (617) 896-7221
Fax: (617) 701-7019
[email protected]
License: MA 009521845

Tony Pepdjonovic

Senior Associate
Boston Office

Tel: (617) 896-7277
Fax: (617) 539-8331
[email protected]
License: MA 9525302

GRIFFITH | PEPDJONOVIC