CHASE BANK & RETRO FITNESS 435 Broadway Bayonne, NJ Offering Memorandum

Transcription

1 435 Broadway Bayonne, NJ Offering Memorandum

2 N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. RETRO FITNESS & CHASE BANK Bayonne, NJ ACT ID Y

3 TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Offering Summary Location Overview Regional Map Local Map Aerial Photo MARKET COMPARABLES 02 Comparable Shopping Centers FINANCIAL ANALYSIS 03 Tenant Summary Lease Expiration Chart Operating Statement Pricing Detail Acquisition Financing MARKET OVERVIEW 04 Demographic Analysis

4 INVESTMENT OVERVIEW 4

5 EXECUTIVE SUMMARY OFFERING SUMMARY VITAL DATA YEAR 1 YEAR 2 Price $3,905,000 CAP Rate 6.00% 6.00% Down Payment 35% / $1,366,750 Net Operating Income $234,340 $234,340 Loan Amount $2,538,250 Net Cash Flow After Debt Service 5.38% / $73, % / $73,566 Loan Type Proposed New Total Return 9.80% / $133, % / $136,367 Interest Rate / Amortization Gross Leasable Area (GLA) 4.00% / 25 Years 21,066 SF Price/SF $ Current Occupancy 100.0% Year Built / Renovated 1920 / 2006 Lot Size 0.61 acre(s) MAJOR TENANTS TENANT GLA LEASE EXPIRATION LEASE TYPE Chase Bank 2,713 8/21/21 NNN Retro Fitness 18,353 9/30/23 Gross # 5

6 INVESTMENT OVERVIEW OFFERING SUMMARY Marcus and Millichap is pleased to offer for your consideration a prime piece of real estate in the center of Bayonne, Hudson County, New Jersey. This property located at 435 Broadway in Bayonne is 100% occupied with Retro Fitness and Chase Bank as the tenants. Chase Bank has been at this location since 2006 and has 4 years remaining on their 15 year lease term with 3-5 year options. They are doing quite well at this location having just under $102mm in deposits. Retro Fitness is currently on a 10 year lease term that expires in They currently have over 2,500 members and anticipate that number to increase to over 3,000 by the end of This area of Bayonne is one of the more desirable markets in Hudson County with all of the new developments that are currently under way. Within a mile radius of the subject property, over 500 apartment units are to be developed by the end of This offering gives both a professional investor, and a first time buyer the opportunity to acquire a stable asset with well-known tenants in the center of an up and coming area of Hudson County. INVESTMENT HIGHLIGHTS 100% Occupied Asset on Major Bayonne Corridor 2% Vacancy Rate in this Area of Hudson County Chase Bank Invested Over $1.2mm for the Interior and Exterior of the Property $102,000,000 in Deposits at this Chase Bank Location 138 Unit Multi-Family Development Being Constructed Across the Street Over 500 Units to be Developed by the End of 2018 in a 1/2-Mile Radius # 6

7 PROPERTY SUMMARY THE OFFERING Property Retro Fitness & Chase Bank Price $3,905,000 Property Address 435 Broadway,Bayonne,NJ SITE DESCRIPTION Number of Stories 2 Year Built/Renovated 1920/2006 Gross Leasable Area 21,066 Access Points West 20th, West 19th and Broadway OFFERING SUMMARY PROPOSED FINANCING First Trust Deed Loan Amount $2,538,250 Loan Type Proposed New Interest Rate 4.00% Amortization 25 Years Loan Term 5 Years Loan to Value 65% Debt Coverage Ratio

8 RETRO PROPERTY CHASE FITNESS BANK NAME & RETRO & CHASE FITNESS BANK PRICING AND LOCATION VALUATION TENANT SUMMARY OVERVIEW MATRIX 435 Broadway, Bayonne, NJ CLOSE PROXIMITY TO: # 8

9 REGIONAL MAP 9

10 AERIAL PHOTO 10

11 PROPERTY OUTLINE 11

12 PROPERTY PHOTO Marcus & Millichap closes more transactions than any other brokerage firm. 12

13 ADDITIONAL PROPERTY PHOTOS 13

14 ADDITIONAL PROPERTY PHOTOS 14

15 MARKET COMPARABLES 15

16 PROPERTY CHASE BANK NAME & RETRO FITNESS AVERAGE RENT PER SQUARE FOOT COMPARABLE RETAIL SPACE $37 $33 $30 $26 Avg. $26 $22 $19 $15 $11 $7 $4 $0 435 Broadway 367 Broadway 464 Broadway Bayonne Plaza Bayonne Plaza-2 Bayonne Plaza-3 16

17 PROPERTY CHASE BANK NAME & RETRO FITNESS COMPARABLE MARKETING RETAIL SPACE TEAM 435 BROADWAY 435 Broadway, Bayonne, NJ, BROADWAY 367 Broadway, Bayonne, NJ, BROADWAY 464 Broadway, Bayonne, NJ, rentpropertyname1 rentpropertyname1 rentpropertyname1 Total GLA Available SF Asking Rent/SF 21,066 SF 0 SF $14 Total GLA Available SF Asking Rent/SF 5,799 SF 900 SF $19 Total GLA Available SF Asking Rent/SF 6,000 SF 2,000 SF $20 YEAR BUILT: 1920 OCCUPANCY: 85% YEAR BUILT: 1900 OCCUPANCY: 67% YEAR BUILT: 1924 rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 NOTES + Utilities NOTES Lease Type: Modified Gross 17

18 PROPERTY CHASE BANK NAME & RETRO FITNESS COMPARABLE MARKETING RETAIL SPACE TEAM BAYONNE PLAZA 473 Broadway, Bayonne, NJ, BAYONNE PLAZA 473 Broadway, Bayonne, NJ, BAYONNE PLAZA 473 Broadway, Bayonne, NJ, rentpropertyname1 rentpropertyname1 rentpropertyname1 Total GLA Available SF Asking Rent/SF 1,392 SF 1,392 SF $22 Total GLA Available SF Asking Rent/SF 559 SF 559 SF $36 Total GLA Available SF Asking Rent/SF 912 SF 912 SF $31 OCCUPANCY: 98% YEAR BUILT: 1918 MAJOR TENANTS Cricket Wireless OCCUPANCY: 98% YEAR BUILT: 1918 MAJOR TENANTS Costume Jewelry Store OCCUPANCY: 98% YEAR BUILT: 1918 MAJOR TENANTS Mobile Phone Store rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 NOTES Lease Type: Modified Gross NOTES Lease Type: Gross NOTES Lease Type: Gross 18

19 CHASE PROPERTY BANK NAME & RETRO FITNESS AVERAGE RENT PER SQUARE FOOT COMPARABLE OFFICE SPACE $20 $18 $16 $14 Avg. $14 $12 $10 $8 $6 $4 $2 $0 435 Broadway Bayonne Plaza Bayonne Plaza-2 Bayonne Plaza-3 Bayonne Plaza-4 Bayonne Plaza-5 Bayonne Plaza-6 19

20 PROPERTY CHASE BANK NAME & RETRO FITNESS COMPARABLE MARKETING OFFICE SPACE TEAM BAYONNE PLAZA 473 Broadway, Bayonne, NJ, BAYONNE PLAZA Suite 200, Bayonne, NJ, BAYONNE PLAZA Suite 300, Bayonne, NJ, rentpropertyname1 rentpropertyname1 rentpropertyname1 Rentable SF 30,000 Available SF 1,041 Asking Rent/SF $13.83 Year Built 1918 Occupancy 98% Lease Type Gross Lot Size.14 Rentable SF 30,000 Available SF 1,118 Asking Rent/SF $18.56 Year Built 1918 Occupancy 98% Lot Size.14 Rentable SF 30,000 Available SF 1,311 Asking Rent/SF $11.56 Year Built 1918 Occupancy 98% Lease Type Gross Lot Size.14 rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 20

21 PROPERTY CHASE BANK NAME & RETRO FITNESS COMPARABLES MARKETING OFFICE SPACE TEAM BAYONNE PLAZA Suite 400, Bayonne, NJ, BAYONNE PLAZA Suite 406,408,410, Bayonne, NJ, BAYONNE PLAZA Suite 500, Bayonne, NJ, rentpropertyname1 rentpropertyname1 rentpropertyname1 Rentable SF 30,000 Available SF 1,888 Asking Rent/SF $9.68 Year Built 1918 Occupancy 98% Lease Type Gross Lot Size.14 Rentable SF 30,000 Available SF 1,051 Asking Rent/SF $17.13 Year Built 1918 Occupancy 98% Lease Type Gross Lot Size.14 Rentable SF 30,000 Available SF 5,675 Asking Rent/SF $11.55 Year Built 1918 Occupancy 98% Lease Type Gross Lot Size.14 rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 21

22 FINANCIAL ANALYSIS 22

23 TENANT SUMMARY FINANCIAL ANALYSIS Aug-2026 $163,704 Aug-2031 $188,268 N/A N/A Retro Fitness rent based on number of members. Rent will increase from $15,000 per month to $15,500 per month when 2,800 monthly members are reached. The chart below outlines these rental increases. Regardless of the amount of members for the Retro Fitness tenant, rent will increase to $19,000 in 2019 once equipment loan is paid off. Retro Fitness rent chart: 2800 members = $15,500.00; 2900 members = $16,000.00; 3000 members = $16,500.00; 3100 members = $17,000.00; 3200 members = $17,500.00; 3300 members = $18,000.00; 3400 members = $18,500.00; and 3500 members = $19,

24 TENANT SUMMARY FINANCIAL ANALYSIS 12 24

25 OPERATING STATEMENT FINANCIAL ANALYSIS 25

26 PRICING DETAIL FINANCIAL ANALYSIS 26

27 ACQUISITION FINANCING MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIES MMCC our fully integrated, dedicated financing arm is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms. We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options. Our dedicated, knowledgeable experts understand the challenges of financing and work tirelessly to resolve all potential issues to the benefit of our clients. Closed 1,651 debt and equity financings in 2016 National platform operating within the firm s brokerage offices $5.1 billion total national volume in 2016 Access to more capital sources than any other firm in the industry WHY MMCC? Optimum financing solutions to enhance value Our ability to enhance buyer pool by expanding finance options Our ability to enhance seller control Through buyer qualification support Our ability to manage buyers finance expectations Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file 27

28 MARKET OVERVIEW 28

29 PROPERTY CHASE BANK NAME & RETRO FITNESS Created on August 2017 POPULATION 1 Miles 3 Miles 5 Miles 2021 Projection Total Population 41, , , Estimate Total Population 40, , , Census Total Population 38, , , Census Total Population 37, , ,550 Current Daytime Population 2016 Estimate 29, , ,030 HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2021 Projection Total Households 16,586 67, , Estimate Total Households 16,417 65, ,178 Average (Mean) Household Size Census Total Households 15,365 63, , Census Total Households 15,423 61, ,345 Occupied Units 2021 Projection 16,586 67, , Estimate 17,254 70, ,131 HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2016 Estimate $150,000 or More 7.54% 8.35% 7.81% $100,000 - $149, % 13.98% 13.23% $75,000 - $99, % 11.89% 12.11% $50,000 - $74, % 17.17% 16.67% $35,000 - $49, % 11.86% 12.42% Under $35, % 34.91% 35.96% Average Household Income $71,292 $76,046 $74,360 Median Household Income $52,261 $54,126 $52,166 Per Capita Income $28,640 $28,193 $26,433 MARKETING DEMOGRAPHICS TEAM HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles Total Average Household Retail Expenditure $67,792 $67,767 $67,621 Consumer Expenditure Top 10 Categories Housing $22,139 $22,169 $22,037 Shelter $14,640 $14,826 $14,734 Transportation $10,750 $9,898 $9,905 Food $6,583 $6,677 $6,602 Personal Insurance and Pensions $5,780 $6,108 $6,110 Health Care $4,477 $4,280 $4,235 Utilities $4,265 $4,033 $4,008 Entertainment $2,463 $2,411 $2,390 Apparel $1,776 $1,907 $1,939 Education $1,674 $2,329 $2,332 POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age 2016 Estimate Total Population 40, , ,508 Under % 26.29% 25.94% 20 to 34 Years 20.95% 21.45% 22.86% 35 to 39 Years 6.38% 6.59% 7.03% 40 to 49 Years 13.93% 13.88% 13.79% 50 to 64 Years 21.44% 19.70% 18.62% Age % 12.10% 11.74% Median Age Population 25+ by Education Level 2016 Estimate Population Age , , ,691 Elementary (0-8) 4.35% 4.69% 7.53% Some High School (9-11) 7.30% 7.78% 9.44% High School Graduate (12) 37.40% 32.68% 33.19% Some College (13-15) 15.31% 17.10% 16.93% Associate Degree Only 4.53% 6.39% 5.45% Bachelors Degree Only 20.06% 19.47% 16.81% Graduate Degree 8.92% 9.80% 8.58% Source: 2016 Experian 29

30 8 DEMOGRAPHICS 30