RE: Summer St. Paterson

Dear Ms. ------,

Pursuant to our contract with ------, I am enclosing a BPO referencing the above-mentioned location. I met with the super of the building and he let me inspect all common areas, boiler rooms, electrical rooms, the roof and elevator rooms.

I inspected the common areas of the building and a sample apartment. The apartment appeared to be well maintained and well prepared. The kitchen and bath were somewhat updated with new fixtures. The common areas need some work. As you can see on the enclosed photos, the exterior wood trim on the building needs painting as well as some areas of the interior halls and vestibule.

The roof is in fair condition and has been repaired several times. There have been many recent patches and the super said there are no real existing leaks at this time (see photos).

The rents for the property are pretty much in line with market rents. The rent roll for 332 is closer to what the area rents are than what appears on the rent roll for 334. The rents for 334 are a little low due to rent control and probably the fact that the tenants have been in the units for a long time. I was informed that 332 is fully occupied and that 334 only has one or two vacancies. Paterson has a fairly strong rental market.

I am suggesting that you list the property at $500,000. I feel it will sell for somewhere between $425,000 and $475,000. There don’t appear to be a lot of buildings of this size for sale in Paterson. The net income seems solid and with the right purchaser, I feel you should be able to get what the building is worth. Although the property needs some exterior work, it does not seem that it has been neglected.

Please review the enclosed materials. If you have any questions, or need any further information, feel free to call me anytime.


332-334 Summer Street
Paterson, NJ
Property Analysis
DESCRIPTION/INFORMATION:
NUMBER OF UNITS 20
SQUARE FOOTAGE3,982
YEAR BUILT1907
HVACLL SUPPLIES HEAT & HOT WATER
PARKINGSTREET ONLY
LAUNDRYNONE
OCCUPANCY91%
ASSESSED VALUE $6,800 Land, $64,400 Bldg.
TAXES$13,955
TAX RATE22% of actual value

Unit Breakdown: 332 Summer Street
Unit Number Rent
Basement$500
1$475
2$550
3$600
4$500
5$525
6$625
7 (Superintendant)($500)
8$550
9$550
10$525
11$525
12$525
Unit Breakdown: 334 Summer Street
1$500
2$410
3$600
4$525
5$575
6$435
7$430
8$575
TOTAL: $10,500
The subject apartments are 1, 2, and 3 bedroom apartments. Most apartments in 332 are around market rent. Some apartments at 334 are below market rent. Paterson is rent controlled and these tenants probably have been in the building for many years.

332-334 SUMMER ST.
PATERSON, NJ
SALES COMPAREABLES
Property NameLocationDate SoldPrice/UnitDescriptionComments
40-44 Park Ave.Paterson2/17/97$25,00010 Unit, all 2 bd.Assesed value $51,500
112 Belmont Ave.Paterson1/28/97$22,5006 apts, 2 storesAssesed value $36,000
337 Straight St.PatersonListed only$39,00015 unitsAsking price too high
19-21 Church St.PatersonListed only$11,6669 units 3 storesDowntown area

332-334 SUMMER ST.
PATERSON, NJ
RENTAL SURVEY
PROPERTY RENT/MONTH
24 East 22nd Avenue, Paterson 1 bedroom $550 - 2 bedroom $650
1083 East 22nd Street, Paterson 1 bedroom $525 - 2 bedroom $650
153-155 Ellison Street, Paterson 1 bedroom $550 - 2 bedroom $650


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