BP GASOLINE JERSEY CITY, NEW JERSEY. offering memorandum. Investment. Overview Financial. Overview. Financial. Overview. Lease.

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1 K E N N E D Y B L V D J E R S E Y C I T Y, N E W J E R S E Y BP GASOLINE JERSEY CITY, NEW JERSEY offering memorandum

2 INVESTMENT OVERVIEW Marcus & Millichap is pleased to present this BP Gas in Jersey City, New Jersey, only eight miles from New York City. There are more than nine years remaining on this triplenet (NNN) ground lease featuring two percent annual increases. The lease is guaranteed by British Petroleum Products North America, Incorporated: who registered more than $219 billion of revenue in A national brand tenant, BP was ranked 12 on the June 2017 Global Fortune 500 list. The subject asset is highly visible and easily accessible on the signalized hard corner of John F. Kennedy Boulevard and West 63rd Street. This heavily trafficked thoroughfare sees more than 17,000 vehicles per day (VPD). This asset also benefits from being nearby Interstate 78, a major highway connecting Pennsylvania, New Jersey, and New York seeing more than 110,000 vehicles per day (VPD). Located in a densely populated area, this asset has more than 41,000 residents within one mile and more than five million residents within 10 miles. Hudson Mall is located just north, with anchor tenants including Marshalls & HomeGoods, Pizza Hut, Taco Bell, Lowe s Home Improvement, Burger King, Dunkin Donuts, and more. Two miles north of BP Gas is a significant capital commitment of seven and a half million-dollar West Side Avenue mixed-use development. This project calls for the construction of a 26,411-square-foot, five-story above grade, 32-unit multi-residential development. Additional retailers in the immediate vicinity include: Walgreens, Dunkin Donuts, McDonald s, Pizza Hut, PNC Bank, The Home Depot, and many more. 2 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID:

3 INVESTMENT HIGHLIGHTS Recently Remodeled BP Gas in Jersey City, New Jersey Eight Miles from Downtown New York City. Triple-Net (NNN) Ground with More Than Nine Years Remaining Zero Landlord Responsibilities Hedge Against Inflation Annual Rent Bumps of Two Percent Two, Ten Year Options Corporate Guaranty $219 Billion in Revenue Standard and Poor s (S&P) rating of A- Ranked 12 on the June 2017 Global Fortune 500 List Signalized Hard Corner Location of John F. Kennedy Boulevard and West 63rd Street 17,000 Vehicles Per Day (VPD) Significant Capital Commitment to More Than $11 Million in Development Permits Strong Demographics More Than Five Million Residents Within 10 Miles Additional Retailers in the Immediiate Vicinity Include: Walgreens, Dunkin Donuts, McDonald s, Pizza Hut, PNC Bank, The Home Depot, and many more

4 FINANCIAL OVERVIEW 1505 KENNEDY BLVD JERSEY CITY, NJ PRICE $4,018,000 CAP RATE 5.00% NOI $200,940 PRICE PER SQUARE FOOT $1, RENT PER SQUARE FOOT $57.09 YEAR BUILT 1965/2017 APPROXIMATE LOT SIZE.43 Acres GROSS LEASEABLE AREA 3,520 TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR BP Products North America, Inc 4 LEASE TYPE ROOF AND STRUCTURE Triple-Net (NNN) Ground Responsibility This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID:

5 LEASE SUMMARY LEASE COMMENCEMENT DATE 8/1/2017 LEASE EXPIRATION DATE 7/31/2027 LEASE TERM TERM REMAINING INCREASES OPTIONS TO RENEW 10 Years 9+ Years 2 Percent Annual Bumps 2, 10-Years ANNUALIZED OPERATING DATA BASE RENT ANNUAL RENT MONTHLY RENT 8/1/2017 7/31/2018 $197, $16, /1/2018 7/31/2019 $200, $16, % 8/1/2019 7/31/2020 $204, $17, % 8/1/2020 7/31/2021 $209, $17, % 8/1/2021 7/31/2022 $213, $17, % 8/1/2022 7/31/2023 $217, $18, % 8/1/2023 7/31/2024 $221, $18, % 8/1/2024 7/31/2025 $226, $18, % 8/1/2025 7/31/2026 $230, $19, % 8/1/2026 7/31/2027 $235, $19, % OPTIONS FIRST RIGHT OF REFUSAL Yes 8/1/2027 7/31/2028 $240, $20, % 8/1/2028 7/31/2029 $244, $20, % 8/1/2029 7/31/2030 $249, $20, % FIRST RIGHT OF REFUSAL None 8/1/2030 7/31/2031 $254, $21, % 8/1/2031 7/31/2031 $259, $21, % 5 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID:

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7 TENANT OVERVIEW BP, a company headquartered in London, is the world s fifth top natural gas company by revenue. BP operates major natural gas production sites around the globe, from the Americas to the Middle East to Southeast Asia. It also has substantial worldwide oil exploration and production operations, in addition to petrochemical, lubricant and retail gasoline businesses. The company s nationwide retail presence includes around 7,100 BP sites. BP continues to make new investments in its retail business, both to enhance its products and to upgrade its stations. In 2016, BP launched a new version of its leading fuel brand, BP gasoline with Invigorate, which uses an innovative formula to help remove dirt from car engines. Meanwhile, nearly 300 BP-branded sites joined the company s U.S. retail network. BP has many different personalities, with one purpose. Much of BP s business operates under the main brand, BP, but other familiar national brands include Amoco, Castrol, and convenience shop AMPM. TENANT PROFILE TENANT TRADE NAME OWNERSHIP TENANT LEASE GUARANTOR NUMBER OF LOCATIONS SALES VOLUME BP BP Public Limited Company (PLC) BP Products North America Inc. BP Products North America Inc. 7,000 Plus $219 Billion NET WORTH STOCK SYMBOL $100 Billion NYSE: BP 7 CREDIT RATING A- RATING AGENCY Standard & Poor (S&P) RANK #5 Natural Gas Company This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID:

8 ABOUT JERSEY CITY Jersey City is the second-most populous city in New Jersey, after Newark. It is the seat of Hudson County as well as the county s largest city. Known as the nation s Golden Door, Jersey City is fittingly nestled in the shadows of the historic Ellis Island and Statue of Liberty, and is one of the nation s most diverse cities, comprised of over 265,000 residents. Once a city driven by immigrants working in the shipping and manufacturing industries, Jersey City has transformed into a modern urban community. Old factories have been repurposed and reborn into office buildings and housing units. Jersey City s vibrant culture and diversity and commitment to collaboration and innovation, create unparalleled quality of life for residents and businesses. Given Jersey City s proximity and accessibility by rapid transit to Manhattan, Jersey City is sometimes referred to as New York City s Sixth Borough. The economy of Jersey City employs 136,778 people. The economy of Jersey City is specialized in Finance & Insurance; Transportation & Warehousing; and Information. The median property value increased from $331,100 to $376,300, a 13.7% increases. 8 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID:

9 ford 10 Maplewood Vauxhall nilworth 78 Union 280 Roselle Park Hillside East Orange Irvington WEEQUAHIC Elizabeth 81 Newark 95 Belleville 21 Newark Liberty International Airport Kearny Harrison NORTH IRONBOUND Bayonne CONSTABLE HOOK 9 GREENVILLE 1 MILE Secaucus 95 JOURNAL SQUARE Jersey City SITE 78 3 MILE RADIUS West New York Union City Weehawken Hoboken NEWPORT 5 MILE RADIUS 495 MIDTOWN 9A LOWER MANHATTAN New York Brooklin Heights RED HOOK GOWANUS 278 MANHATTAN HELL S KITCHEN PARK SLOPE UPPER EAST SIDE ASTORIA STEINWAY LONG ISLAND CITY SUNNYSIDE EL 495 GREENPOINT Williamsburg BROOKLYN CROWN HEIGHTS Woodside MASPETH BUSHWICK BEDFORD-STUYVESANT No RIDGEWOOD GL BROWNSVILLE infield 27 SAINT GEORGE EAST FLATBUSH SUNSET PARK 278 FLATBUSH CANARSIE MARINERS West New HARBOR Old Place Brighton BOROUGH PARK BAY RIDGE FLATLANDS Linden 95 GRANITEVILLE MIDWOOD BERGEN BEAC Rahway 9 Bloomfield CASTLETON BULLS HEAD CORNERS FORT HAMILTON BENSONHURST MILL BASIN 1 Mile 3 Mile 5 Mile TODT 1 Mile HILL 3 Mile Mile 440 SHEEPSHEAD 1 Mile 3 Mile 5 Mile ARROCHAR BAY 2017 Average HH 2000 Population 172, ,244 4,727, Households 10,031 48, ,832 $117,225 $115,349 $121,835 Income 2010 Population 173, ,067 4,859, Households 10,404 50, , Population 180, ,491 5,128, Households 10,760 52, ,863 New Jersey New York 2017 Median HH Income 2017 Per Capital Income EAST N $94,677 $88,710 $93,922 $47,982 $46,949 $46,110 E J H V

10 MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS: The information contained in this ing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This ing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this ing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this ing Brochure you agree to release Marcus & Millichap Real Estate Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

11 BP GASOLINE JERSEY CITY, NEW JERSEY offering memorandum 1505 KENNEDY BLVD JERSEY CITY, NEW JERSEY BROKER OF RECORD: BRIAN HOSEY MARCUS & MILLICHAP NEW JERSEY LICENSE: