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Huntington Ridge Apartments—Norwich, CT

100 Unit Apartment Community

Offering Price: $11,300,000

OFFERING MEMORANDUM

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Huntington Ridge Apartments

Exclusive Offering Memorandum

Exclusively Presented by:

Chozick Realty, Inc.

100 Wells Street STE 1D

Hartford, CT 06103

(860) 247-7400 phone

(860) 247-7401 fax

www.chozickrealty.com

All information contained herein is from sources deemed reliable; however, no representations or

warranties are made as to accuracy or completeness and is provided subject to errors, omission,

change, prior sale and withdrawal from market, all without notice. This information is confidential

and is provided strictly as background information for the sole use of the prospective purchaser and

its representatives. All interested parties are encouraged to make their own independent review

and investigation of the property.

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Confidentiality Agreement

The information contained in this offering memorandum is offered to you under the following terms.

Your acceptance of this offering memorandum shall be deemed to be acceptance of the terms

herein. Should you not agree to these terms, please return this offering memorandum to Chozick

Realty, Inc. This information is provided to you for your sole use and the use of your partners, investors

and advisors in assisting you with the review and potential purchase of the property. You agree to

keep this information confidential and shall instruct any others that you must share this information with

of this agreement and ensure that they too will be bound by these terms. This offering memorandum

is intended to provide an overview of the property offering. While information is from sources deemed

reliable, it is offered subject to errors, omissions, change, prior rental or sale, or withdrawal from the

market, all without notice. No representations or warranties of any kind are made by Chozick Realty,

Inc. or the Owner. You represent that you are a qualified and knowledgeable investor and that any

and all review, investigation or confirmation of this information and property related information both

physical and financial is your sole responsibility. While Buyer Broker participation is welcomed, neither

Chozick Realty, Inc. nor the owner will pay any referral, brokerage, finder or other fee to another

Broker or Finder. Any fee due to any broker or finder other than Chozick Realty, Inc. shall be paid by

Buyer if you so choice to engage a buyer’s broker or finder.

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Chozick Realty, Inc. (860) 247-7400 [email protected]

Introduction

Chozick Realty, Inc. is pleased to offer Huntington Ridge Apartments. This Class A rental community offers

100 units built in 2006 located just one exit from Mohegan Sun Resort & Casino in Norwich, CT

OPPORTUNITY

Huntington Ridge is a 100 unit apartment community

constructed in 2006, making it one of Norwich’s newest

residential addresses. This 100 unit community is situated at

exit 80 off of I-395, just one exit from the Mohegan Sun

Resort and Casino. Located in a residential setting, yet just

minutes away from a wealth of employment, entertainment

and historical venues offered in Southeastern Connecticut,

Huntington Ridge offers an outstanding location in which to

live and invest.

The spacious residences offered at Huntington Ridge consist

of 21 one bed/one bath, 61 two bed/two bath and 18 three

bedroom apartment homes. Unit sizes range from 700 to

1,192 SF. All apartments have resident paid high efficiency

HVAC systems, well appointed GE applicanced kitchens and

resident amenities include a clubhouse and playground.

Offering Summary

Price $11,300,000

Total Units 100

Net Rentable Area +/- 90,106

Number of Buildings 4

Construction 2006

Parcel Size 13.4 Acres

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INVESTMENT HIGHLIGHTS

100 Unit Apartment Community Constructed in 2006 - Immediate upside room in rental rates supported by market survey

Large Apartment Homes with 21 one bed 700-800 sf; 48 two bed, two bath 850-980 sf; 18 three bed two bath 1192 sf

Amenities include Club House with Fitness Room, Meeting Room, Kitchen, On Site Office, Laundry, Playground, Fully

applianced Kitchens, Generous Closet Space, 13 units with vaulted ceilings and onsite parking for 152 cars

High efficiency resident paid gas fired heating and central air conditioning

13.37 acre site

Ideal location at exit 80, just one exit from the Mohegan Sun Resort Casino

Original site plan has location for swimming pool

Condominium public offering statement completed and ready to file if condo sales are a desired exit strategy

NORWICH HIGHLIGHTS

Norwich is located in Vibrant New London County with a growing population of 273,723

Norwich Population is 40,378 as of 2014, projected to grow to 45,132 by 2020

The Norwich/Groton/New London market is home to such employers as Pfizer, General Dynamics Submarine ship yard,

US Navy Submarine Base, Foxwoods Resort Casino, Mohegan Sun Resort Casino and the US Coast Guard Academy

Midway between Boston (100 miles) and New York (136 miles). Just 15 miles to Groton and New London, 42 miles to

Hartford and 51 miles to Providence RI

Serviced by Amtrak rail service, Groton/New London Airport, Intestate 95 and 395 as well as Routes 2,12,32,82,165 and

169

Median Household Income over $70,000 within a three mile radius of Stonington Estates


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PROPERTY SUMMARY Huntington Ridge Apartments is a Class A 100 unit multifamily complex completed in 2006. Set in a residential setting, yet only one

highway exit away from the Mohegan Sun Resort Casino, Huntington Ridge offers a location second to none. The four attractive

colonial style buildings offer spacious garden style apartments with 21 one bedroom, 61 two bedroom and 18 three bedroom residences,

with two and three bedroom units having two bathrooms. Each residence is equipped with individual tenant paid Carrier high efficiency

gas heat and central air conditioning. The buildings on this 13.37 acre site are terraced into a rolling hillside, offering an attractive site

design, while maximizing the efficiency of the buildings. Huntington Ridge offers

a free standing office/clubhouse building and a fully equipped playground.

As a relatively new community, together with a size and style of apartments and

outstanding location, the property lends itself to condominium conversion. While

00% of the property is owned and operated as a rental community, Huntington

Ridge has a full public offering statement completed and ready to file, offering

flexibility to the investor in providing a highly profitable exit strategy as

condominium ownership is warranted in the Norwich market.


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Apartment units are fully equipped and well designed. Kitchens offer wall and base cabinets, GE appliances including refrigerator,

dishwasher, electric stove and laminate countertops. Apartments have wall to wall carpeting throughout the unit with laminate floor

covering in bathrooms and kitchens. Units are large with one bedrooms ranging from 700-800 SF, two bedrooms ranging from 850-980

SF and three bedroom units ranging from 950-1,192 SF. Thirteen upper floor apartments have highly attractive vaulted ceilings.

Sixteen apartment units are considered handicapped accessible with grab bars in bathrooms and emergency strobe lights. The site has

152 surface parking spaces. There are grills for resident use and a fully remodeled and renovated laundry facility owned by the property.

Roofs are pitched asphalt shingle. Heat is supplied by resident paid Carrier gas HVAC systems. Windows are double hung with storm

and screens.


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Address 31-61 Henry Street

Norwich, CT 06360

Total Units 100

SF Finished Area 122,040 SF (90,106 SF Net Rentable)

Unit Mix Unit Type No. Units Size (SF)

1BR, 1BA 17 700

1BR, 1BA 4 800

2BR, 2BA 18* 850 *2 units with vaulted ceilings

2BR, 2BA 30* 980 *11 units with vaulted ceilings

3BR, 2BA 13 950

3BR, 2BA 2 1,192

3BR, 1BA 3 1,192

Handicap Units 18 Handicap units; 4 1BRs & 14 2BRs

Equipped with grab bars & call switches in bathrooms and emergency strobe lights

Parking 152 spaces

Year Built 2006

Number of Buildings Four Residential, One Clubhouse/Office

Construction Wood frame with vinyl siding

Foundation Poured Concrete

Roof Pitched asphalt shingle

Windows Double pane, double hung, vinyl

Doors Unity entry doors are solid core. Interior doors are six panel wood

Walls/Ceilings Painted Sheetrock; 13 units offer vaulted ceilings

Heat/AC Individual resident paid Carrier Gas

HVAC units in each apartment

Hot Water Individual resident paid

40 Gallon capacity AO Smith hot water heaters in each unit

Electrical Individual resident paid

Circuit panels located in each unit

Water/Sewer Municipal

Available Utilities Electric, Gas, High Speed Internet, Cable Television, Telephone

Executive Summary

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Executive Summary

Floor Covering Wall to wall carpet

Vinyl & tile in kitchens and baths

Carpet in common areas

Kitchens Raised oak panel wall and base cabinets

Formica counter tops

Appliances Refrigerator, Electric Range, Hood, Dishwasher & Garbage Disposal

Bathrooms 1 & 2BR units with three fixture, combo tub/shower, water closet & sink/vanity

Handicap units have grab bars & call switches

Amenities Clubhouse/Office with fitness area, kitchen & sliders to a balcony

Equipped Playground

Laundry Washer/Dryer hookups have been installed in a limited number of units

Common laundry room located in Building 2 with 10 vender owned washers & dryers

Life Safety Each apartment contains sprinklers & each room contains a smoke detector

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Typical Floor Plans


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NORWICH, CONNECTICUT

Norwich is located on 28 square miles in southeastern Connecticut within New London

County. Both Norwich and New London County have growing populations, with Norwich

growing from 36,111 people in 2000 to an estimated population of 45,132 by 2020. The

Norwich population stands at 40,378 as of 2014, representing a healthy 11.8% growth rate

from 2014 to 2020.

The Norwich area and New London County are home to such major employers as Pfizer

Pharmaceuticals, with its world research center located in nearby Groton. Also in nearby

Groton is General Dynamics, one of only two submarine ship building yards in the United

States. With over $24 billion of new contracts since 2014, General Dynamics is in the

beginning stages of a generational expansion of the US Naval growth in the submarine

warfare preparedness through the revamping of the Virginia Class and development of the

new class of submarine to replace the Ohio Class. Other major employers in the area

include the US Navy submarine base, the US Coast Guard, Mohegan Sun Resort and

Casino and Foxwoods Resort and Casino. This dynamic area of the state is well served by

the highway system with Interstates 95 and 395 running through Norwich as well as Routes

2, 12, 32, 82, 9, 165 and 169 providing access to the surrounding communities as well as

the entire region.

Norwich—Location Description

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PRO FORMA INTRODUCTION

Huntington Ridge Apartments is owned and operated by an investor whose main business is

outside of real estate ownership. As such the property is managed and operated by a family

member. While well run and maintained the property offers immediate upside potential from

tighter operations and maximization of current rental rates bringing them to the market level

as outlined in the rental survey following in this report.

The following Pro Forma operating statement utilizes a current September 2016 rent roll

annualized as well as a comparison column indicating operations at market rents. Expenses

are year end 2015 unless noted.

It should be noted that real estate taxes were increased during the 2013 revaluation process

and have not been challenged by current ownership even though the increase was substantial.

While no representation is made, tax savings may be a possibility through the appeal process

in the future should the purchaser wish to appeal after taking ownership.

Operating Statement

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Current Market

INCOME Scheduled Rent Rents Comments

Residential Gross Potential $1,299,000 $1,501,200 Current: Sept RR Annualized/Market $1075 1bed; $1275 2bed; $1375 3 bed

Less Vacancy & Loss -$51,960 -$60,048 4% of Gross Potential

Net Potential Rental Income $1,247,040 $1,441,152

Other Income

Laundry $11,768 $11,768 2016 YTD Annualized

Mis. Tenant Charges & Fees $11,250 $11,250 Estimate for late fees, transfer fees, Damages, Applications etc

Total Other Income $23,018 $23,018

TOTAL INCOME $1,270,058 $1,464,170

EXPENSES

Management/Leasing/Admin/Office $37,411 $43,235 Property is self managed by ownership. 3% of NPRI Used

Professional Fees $6,526 $6,526 2105 year end

Telephone/Internet/Data $2,880 $2,880 2015 year end adjusted for personal phones

Advertising $8,843 $8,843 2015 year end

Repairs & Maintenance $15,338 $15,338 2015 year end

Supplies $7,423 $7,423 2015 year end

Cleaning & Cleaning supplies $1,211 $1,211 2015 year end

Trash $15,178 $15,178 2015 year end

Landscaping $8,295 $8,295 2015 year end

Snow Removal $6,526 $6,526 2015 year end

Payroll $77,326 $77,326 2015 year end. One office staff; one full time super

Payroll Burden $15,465 $15,465 20% of payroll

Utilities $85,253 $85,253 2015 year end. Residents pay for heat, AC, Hot Water & Electricity

Insurance $40,448 $40,448 2015 year end

Real Estate Tax $275,028 $275,028 Current RE Tax from Norwich tax collect

TOTAL OPERATING EXPENSES $603,151 $608,975

NET OPERATING INCOME $666,907 $855,195

OFFERING PRICE $11,300,000 $11,300,000

INDICATED CAP RATE 5.90% 7.57%

Operating Statement

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Rental Comps

1. Huntington Ridge Apartments

2. Stonington Estates Apartments 7. Rose Hill

5. Cambridge Estates 6. Summit Wood

3. Meadow Ridge 4. Thames River

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Rental Comps

Name Units Rental Rates Square Footage Heat/HW Property Amenities

1. Huntington Ridge 100 1 Bed 1 Bath $900 700-800 sf Resident Paid Clubhouse, playground, fitness room

100 Henry St 2 Bed 2 Bath $1,100 850-980 sf Pet Friendly

Norwich, CT 3 Bed 2 Bath $1,200 950-1192 sf

BUILT 2006

2. Stonington Estates 71 2 Bed 1 Bath $1,275 850 sf Resident paid Fitness Center, Tennis Court, Balconies

102 Stonington Road Pet Friendly

Norwich, CT

BUILT 2005

3. Meadow Ridge 120 1 BR 1 Bath $1,095-$1105 900 sf Resident Paid Pool

4 Plumtree Dr 2 BR 2 Bath $1,170-$1,300 1,100 sf Pet Friendly

Norwich, Ct 2 BR TH 1.5 Bth $1280-1430 1,200 sf

BUILT 1985

4. Thames River 225 1Bed 1 Bath $975 850 sf Resident Paid Basketball, Playground, Fitness, Pool

495 Laurel Hill Rd 2Bed 1 Bath $1015-1,135 1000 sf Pet Friendly

Norwich, Ct 3 Bed 1 Bath $1,310 1250 sf

BUILT 1975

5. Cambridge Estates 92 1Bed 1 Bath $999 550-750 sf Property Paid Pool

9 Oxford Drive 2Bed 1.5 Bth$1,250-1,299 1,000 SF Pet Friendly

Norwich CT

BUILT 1977

6. Summitwoods Apts 120 1Bed 1 Bath $800 725 sf Resident Paid Playground, Basketball

3 Summitwood Drive 2 Bed 1 Bath $900 950 sf Pet Friendly

Norwich, CT 3 Bed 2 Bath $1,150 1326 sf

BUILT 1991

7. Rose Hill Apts 185 1 Bed 1 Bth $874-$980 708 sf Property Paid Clubhouse, Playground

10 Gregory Road 2 Bed 1 Bth $1012-1170 869 sf Pet Friendly

Norwich, CT 3 Bed 1 Bth $1455-$1530 1161 sf

BUILT 1972

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Name # of Units Sale Date Price/Unit Sale Price

1. Stonington Estates 71 8/23/2016 $95,775 $6,800,000

102 Stonington Rd

Norwich, CT Blt 2005 71 2 Bed; 1 bath


2. Cambridg/Meadow Rdg 212 5/31/2016 $89,150 $18,900,000

4 Pumtree & 9 Oxford Dr

Norwich, CT Blt 1977/1986 90 1 bed; 122 2 bd


3. 6-7 Woods Drive 25 4/5/2016 $106,875 $2,137,500

6-7 Woods Drive

Norwich, CT Blt 2011 5-2 bed; 15 3 bed


4. Fieldstone Apts 60 6/21/2016 $80,833 $4,850,000

99 Grove Ave

Groton, CT Blt 1970 20 1 bed; 40 2 bed


6. Ledges Apartments 339 9/24/2014 $142,330 $48,250,000

11 Ledgewood Dr

Groton, CT Built 2003

Sales Comps

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