227 W High St, East Hampton, CT 06424

Mixed-use value-add opportunity on approximately 8.98 acres consisting of one commercial unit (bar) and four residential units (apartment, two cottages, and single-family home). Well and septic. Environmental remediation under CT DEEP oversight. This project would likely qualify for Brownfield funds to cover remediation costs, though eligibility may be contingent upon the development including six or more units and will need to be confirmed. The $450,000 pricing reflects the environmental conditions, regulatory oversight, rehabilitation scope, lease-up execution, and financing limitations. This asset is intentionally priced to account for environmental risk exposure and capital required to reposition the property.

Financial Snapshot

Current Annual Income: $61,200

Real Estate Taxes (Total): $6,533 (Bar reimburses 50% of total tax burden)

Effective Tax Burden to Ownership: ~$3,266

Insurance Estimate: $10,000

Maintenance Estimate: $3,500

Adjusted Annual Expenses: ~$16,766

Current NOI (As-Is): ~$44,434

Going-In Cap Rate at $450,000: 9.87%

Stabilized Pro Forma (Post Execution)

Projected Gross Scheduled Rent: $150,000

Less Vacancy (5%): $7,500

Effective Gross Income: $142,500

Projected Operating Expenses: ~$25,266

Projected Stabilized NOI: ~$117,234

Stabilized Valuation

Value at 8% Cap: ~$1,465,419

Value at 9% Cap: ~$1,302,594

Projected Value Multiple on $450K Basis (8% Cap): 3.26x

Environmental & Risk Considerations

- Active CT DEEP oversight
- Historical oil spill remediation
- Environmental risk priced into offering
- Buyer assumes responsibility for remediation completion
- Non-conventional financing likely until clearance obtained
- Operator-driven repositioning required

Strategic Positioning

At $450,000 with no escrow structure, the basis reflects environmental exposure and execution risk. For experienced operators capable of managing remediation and lease-up, the spread between basis and stabilized valuation creates meaningful upside potential.