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.