Approved Project in Downtown Jersey City Close to Grove St. Path Asking $1,200,000 417 Monmouth, Jersey City, Hudson County, NJ 07302
LIMITING CONDITIONS This Offering Memorandum is prepared for the use of prospective buyers, of the property know as Zenith in RE III with an address of 417 Monmouth St, Jersey City, NJ. Neither Owner nor Advisor to the property makes any representation or warranty, implied, as to the accuracy of the material contained in the Offering Memorandum. Prospective Buyers of the Property are advised that changes may have occurred in the physical or financial condition of the property as of this Offering Memorandum. Other than historical revenue and operating expense features, the Owner has not provided, and will not, any income and expense or projection features regarding the Property. This Offering Memorandum is a invitation of interest only and not an offer to sell. Only the Owner reserves the right of its direction, to reject any or all offers to purchase, to terminate discussions with potential buyers with or without notice. Owner shall have no legal commitment or obligation to any party unless a written real estate purchase and sale agreement is executed by the Owner and the Buyer. Zenith RE III 2
TABLE OF CONTENTS.04 Project Summary.05 Project Overview.08 Floor Plans.09 Site Description.10 Project Financial Options.11 Comparable Condominium Sales Zenith RE III 3
PROJECT SUMMARY Zenith RE III is an approved reposition opportunity to convert the current asset into 3 larger residential condominium units. It is located at 417 Monmouth St, Jersey City, Hudson County, New Jersey. The current asset is currently an 1,829 square foot three family home in a three story structure. This property is located just blocks from the Grove Street Train Station, giving tenants superb public transportation options. Currently the asset is a cash flowing 3 family home with tenants who can be removed with 90 days notice. 3,149 SQ FT Gross Building Sq Ft 1 # OF BUILDINGS 2,685 SF RESIDENTIAL SELLABLE AREA Proposed Building Looks 3 UNITS TOTAL Condominiums 2018 Planning Board Approvals Obtained 895 AV SQ FT PER UNIT UNIT TYPE NUMBER % TOTAL SF AVERAGE SF 1 Bedroom 2 67% 1,412 706 2 Bedroom 1 33% 1,517 1,517 Total/Average 3 100% 7,858 895 Zentih RE III 4
PROJECT OVERVIEW Access to Significant Employment Amazon HQ2 is coming to Long Island, Queens, NY and will create 25,000 jobs yielding an average salary for $150,000 per year. Long-Term Prospect Recent development has been limited due to area being almost entirely developed, market conditions on favorable for multifamily projects in the long-term. Transportation Access Grove Street Train Station is located just blocks away. Zenith RE III 5
N Y C S K Y L I N E Newark Ave Downtown Grove St. Train Station ACCESS TO EMPLOYMENT OPPORTUNITIES Zenith RE III is located in the City of Jersey City, Hudson County. Hudson county is an established economic hub and is home to major blue chip organizations. Residents will also be less than twenty-minute commute from one of the country s largest and most diverse employment center, New York City. Recognized globally as one of the international capitals for finance, law, fashion, technology, etc. Jersey City has easily accessible employment opportunities for high-paying jobs. Zenith RE III STRONG TRANSPORTATION ACCESS One of the Property s most attractive attributes is its multiple transportation options. Zenith RE III is just blocks away from Grove Street Train Station, giving the project excellent public transportation options. Additional transportation routes include Interstate Highway Route 78, Route 9, and Route 440. Zentih RE III 6
EMPLOYMENT 20MIN Residents of the property have access to the Country s largest economy center, New York City, as well as the job-rich Hudson County. The average commute for residents in Jersey City to their workplace is less than 20 minutes. New York City serves as the global headquarters for a plethora of household brands in all industries including Goldman Sachs, Citigroup, Bank of America, Bloomberg, MetLife, NBC, ABC, and Time-Warner. New York is also the most important center for mass media, journalism and publishing in the United States, and is the preeminent arts center in the Country. With such diverse cross-section of industries calling New York home, residents of the Property can access the most extensive selection of employment opportunities anywhere in the world. Zenith RE III 7
FLOOR PLANS 1st Floor (Unit 1) 2nd Floor (Unit 2) 3 rd Floor (Unit 3) 4 th Floor (Unit 3) Roof Deck
SITE DESCRIPTION Current Asset Status Approved Project Rendering ADDRESS 417 Monmouth, Jersey City, NJ 07302 PARCEL ID Block 3802, Lot 15.01 LAND AREA 827 square feet CURRENT SITE CONDITION All units were cosmetically renovated after acquisition in 2016. The 1 st unit is currently being rented on a short term lease. The 2 nd and 3 rd units are producing income as Airbnb rentals. ADJACENT Zenith RE III is adjacent to several 3-4 story mixed-use buildings (residential & retail). Zenith RE III 9
PROJECT FINANCIAL OPTIONS OPTION A 4% Yield Continue collecting positive cash flow from the property in its current condition while undergoing the construction drawings or hold the asset for future rental/price appreciation with expansion resolution in hand. OPTION B Invest $500,000 into the renovation and addition of the current structure and realize a 20% cash on cash return. This return rate also does not take account of the positive cash flow being produced in its as-is condition that can help pay for many of the development / holding costs during the construction period. 417 Monmouth St - Jersey City - ARV Condominium P&L Unit Floor # of Beds # of Baths Sq Ft Sale Price 1 1 1 1 497 $ 425,000 2 2 1 1 669 $ 525,000 3 3/4 2 2 1,517 $ 1,050,000 TOTAL 2,683 $ 2,000,000 Commission: Presented by Axiom Learning 4 3.50% $ 70,000 Net Sale Proceeds: $ 1,930,000 Acquistion Price: $ 1,200,000 Hard Construction Cost: $ 500,000 Interest Cost: $ 62,500 Holding Cost: $ 14,000 Total Project Cost: $ 1,776,500 Net Profit: $ 153,500 Return on Investment: 20% Zenith RE III 10
COMPARABLE CONDOMINIUM SALES ADDRESS MUNICIPALITY BED / BATH SALE PRICE 314 4 th St Apt 1 Jersey City 1 Bed / 1 Bath $440,000 350 8 th St 3L Jersey City 1 Bed / 1 Bath $449,000 385A Monmouth St G6 Jersey City 1 Bed / 1 Bath $520,000 295 4 th St #1 Jersey City 2 Bed / 2 Bath $950,000 323 4 th St #2 Jersey City 2 Bed / 2 Bath $1,075,000 Zenith RE III 11