The Miller Building

160-190 North Street, Pittsfield, MA 01201

Executive Summary

160-190 North St. represents an opportunity to acquire a one-of-a-kind asset. The Miller Building is occupied by state and local agencies providing strong stable cash flow. The building has been recently updated within the last five years which included all spaces, along with the main entrance heated sidewalks.

Miller Building is anchored by the State of Massachusetts Juvenile Court office. The Court’s lease is in place until the end of 2031, accounting for 60% of total revenue for the building. Seller has invested $3,250,000 in supporting the lease, with a rental increase of $12,000 in 2027.


Teton has been in discussion with local contractors to implement an energy efficiency system throughout the building along with solar panels on the roof and car ports to help in lowering in utility costs. In addition, Teton Management is leveraging our relationship with Moresi & Associates for daily cleaning, a potential large savings.

Teton Management Corp. is acquiring the property at a 9.16% cap rate. Net operating cash flow
is expected to increase driven by renting vacant office spaces, renewing leases, energy efficient systems, and partnering with Mountain One Insurance to cut annual premium in half. Cash on Cash return in year one of ownership is ownership will be 11%. Three-year internal rate of return of 24.77%.

Teton Management Corp. has been approved by NBT Bank to obtain attractive financing in the
form of a 10-year SWAP which will result in a very strong interest rate given current market
trends.

Acquisition Valuation

REAL ESTATE

$8,100,000

CAP RATE

9.16%

Total Cost:

$8,822,508

Projected Total Debt:

$6,075,000

Projected Equity

$2,747,508

WHALING CONTRIBUTION

$549,502

Cash on Cash Return

11%

Internal Rate of Return

24.54%

ROI (Yr5)

130.12%

Property Summary

Business Plan

Financing & Investor Returns

Strong and stable net operating income provides for high property valuation for exit target.

Strong returns

Conservative exit cap rate allows for additional returns for high demand in stable asset class.

Stability

Local and State leases provide stable and dependable returns.

Strong Yields

Prior to property filling vacant space, return on investment in year 5 yields 130.12%.

Meeting Demands

Property will see increase in returns upon filling vacant space.

Leadership

Offering Materials