FILE PHOTO 7 - E L E V E N N E W A R K, N J OFFERING MEMORANDUM
Financial Overview OFFERING SUMMARY PRICE $1,752,576 CAP RATE 4.85% NOI $85,000 PRICE PER SQUARE FOOT $680.88 RENT PER SQUARE FOOT $33.02 YEAR BUILT 2017 APPROXIMATE LOT SIZE 0.22 Acre GROSS LEASEABLE AREA 2,574 TYPE OF OWNERSHIP Fee Simple ASSUMABLE LOAN BANKS/SERVICER NAME Citigroup Global Markets Realty Corp LOAN BALANCE $5,535,385* AMORTIZATION 30 Years TERM 10 Years Fixed INTEREST RATE 4.82% LOAN TO VALUE 68% DOWN PAYMENT (35%) $2,574,543 LEASE GUARANTOR LEASE TYPE ROOF AND STRUCTURE 7-Eleven, Incorporated (Inc) Double-Net (NN) Landlord Responsible LEASE SUMMARY LEASE COMMENCEMENT DATE 12/19/2017 LEASE EXPIRATION DATE 12/18/2027 LEASE TERM 10 Years TERM REMAINING 10 Years INCREASES 10% Every 5 Years OPTIONS TO RENEW 5, 5-Year OPTIONS TO TERMINATE None FIRST RIGHT OF REFUSAL Yes FILE PHOTO ANNUALIZED OPERATING DATA Base Rent Annual Rent Monthly Rent Increases 12/19/2017 12/18/2022 $85,000 $7,083 12/19/2022 12/18/2027 $93,500 $7,792 10% Options 12/19/2027 12/18/2032 $102,849 $8,571 10% 12/19/2032 12/18/2037 $113,135 $9,428 10% 12/19/2037 12/18/2042 $124,449 $10,371 10% 12/19/2042 12/18/2047 $136,893 $11,408 10% 12/19/2047 12/18/2052 $150,583 $12,549 10% Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332220 2
Investment Overview Marcus & Millichap is pleased to present this new construction 7-Eleven in Newark, the largest city in New Jersey, and located only nine miles west of lower Manhattan. The tenant signed a brand new, 10-year double-net (NN) lease with minimal landlord responsibilities. There are 10 percent rent bumps every five years over the base term and in all five, five-year extension options. The lease is backed by a corporate guaranty from 7-Eleven, Incorporated (Inc); who is consistently ranked number one on CSP Magazine s Top 202 Convenience Stores. The subject property is situated at the signalized, hard corner intersection of Elizabeth Avenue and East Runyon Street. This heavily trafficked intersection sees more than 12,000 vehicles per day (VPD). Located within the dense infill neighborhood of South Broad Street, there are more than 310,000 residents within three miles. 7-Eleven also benefits from its walkability and strategic access to transit. RedFin assigned this asset a WalkScore of 74, deeming this location Very Walkable. The Elizabeth Avenue at East Runyon Bus Stop has five bus lines that stop directly in front of 7-Eleven. Newark Liberty International Airport is two miles southeast of 7-Eleven. This airport is the largest in New Jersey and serves more than 40 million passengers annually. Additional retailers in the immediate vicinity include: Dunkin Donuts, Speedway, White Castle, Burger King, McDonald s, Rite Aid, Advance Auto Parts, and many more. New Construction 7-Eleven in Newark The Largest City in New Jersey Nine Miles West of Lower Manhattan Brand New 10-Year Lease With 10 Percent Rent Increases Every Five Years and in Five, Five- Year Extension Options Minimal Landlord Responsibilities Corporate Guaranty 7-Eleven, Incorporated (Inc) Standard & Poor (S&P): AA- Consistently Number One on CSP Magazine s Top 202 Convenience Stores More Than 8,000 Locations in North America Signalized, Hard Corner Location at the Intersection of Elizabeth Avenue and East Runyon Street More Than 12,000 Vehicles Per Day (VPD) Dense Infill Location in Newark s South Broad Street Neighborhood More Than 310,000 Residents in Three Miles Very Walkable With Strategic Access to Transit RedFin WalkScore: 74 More Than Five Bus Lines Stop at the New Jersey Transit s Elizabeth Avenue at East Runyon Bus Stop Less Than Five Miles from the Newark Liberty International Airport The Largest Airport in New Jersey More Than 40 Million Passengers Annually The City of Newark Has More Than $2 Billion in Active Real Estate Development Projects FILE PHOTO Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332220 3
Tenant Overview - 7-Eleven 7-Eleven is among the world s largest and most widely recognized and iconic retailers, both inside and outside the c-store channel. The company s iconic Slurpee, Big Gulp soft drinks and fresh-made coffees have helped 7-Eleven grow throughout North America and in several countries overseas. Convenience items range from cigarettes and magazines, to sweet and salty snacks, beer and wine. 7-Eleven distinguishes itself from the competition with its many proprietary and private-label items. On the foodservice front, the chain has recently rolled out its fresh initiative, adding more fresh food items across the chain. Technology meanwhile plays a major role in the brand s evolution, including its 7Rewards loyalty app, a new BillPay app, third-party delivery and even a promotional play around drone delivery. For management purposes, corporate/franchised stores are organized into geographical zones. 7-Eleven, Incorporated is wholly owned subsidiary of Tokyobased Seven & I Holdings Co., Limited; which is publicly-traded on the Tokyo Stock Exchange. Its Retailer Initiative allows an operator to align product assortment with the store s customer preferences, it offers many proprietary and private-label items, and it has assembled a restaurant-quality team that is introducing more fresh foods to the chain. TENANT PROFILE TENANT TRADE NAME 7-Eleven OWNERSHIP Wholly Owned Subsidiary of Seven & I Holdings Co., Limited TENANT 7-Eleven, Incorporated LEASE GUARANTOR 7-Eleven, Incorporated NUMBER OF LOCATIONS 8,000 Plus HEADQUARTERED Irving, Texas CREDIT RATING AA- RATING AGENCY Standard & Poor (S&P) RANK #1 CSP Daily News, #7 Franchise 500 FILE PHOTO Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332220 4
Aerial Overview Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332220 5
Newark, NJ Scope Overview Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332220 6
Area Overview & Demographics 24 124 Madison Chatham Township Berkeley Heights Florham Park 22 24 Chatham New Providence 10 Summit Mountainside 24 Westfield Livingston Springfield Township Garwood 22 20 280 10 5 MILE RADIUS Maplewood 124 Roselle Park West Orange 280 3 MILE RADIUS Irvington 22 Hillside 439 Glen Ridge East Orange 1 MILE 27 1 Elizabeth Newark 9 SITE 95 1 7 21 Kearny Harrison Lyndhurst 7 17 95 Bayonne 9 440 7 95 Jersey City Secaucus 1 Hudson Heights 9 495 Hoboken New Jersey New York West New York 9A 4 2 27 9A MANHATTAN New York 2 25 BROOKLYN atchung Plainfield North 20 Plainfield Scotch Plains Clark Winfield 27 9 Linden 1 95 Old Place 2 West New Brighton 2 1-Mile 3-Mile 5-Mile Population 2000 Population 35,447 314,376 763,158 2010 Population 36,198 307,438 759,371 2017 Population 37,950 311,819 775,779 2022 Population 38,792 317,510 792,439 1-Mile 3-Mile 5-Mile Households 2000 Households 11,488 107,994 264,597 2010 Households 11,681 107,501 264,761 2017 Households 12,281 109,492 271,061 2022 Households 12,574 111,602 277,029 1-Mile 3-Mile 5-Mile Household (HH) Incomes 2017 Average HH Income $41,491 $50,9 $62,649 2017 Median HH Income $26,641 $35,742 $43,240 2017 Per Capita Income $13,427 $17,900 $21,890 Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332220 7
Market Overview - Newark, New Jersey Newark is the most populous city in New Jersey. As one of the nation s major air, shipping, and rail hubs, the city had a population of 277,140 in 2010, making it the nation s 67th-most populous municipality. Newark is the second largest city in the New York metropolitan area, located approximately eight miles west of lower Manhattan. More than 100,000 people commute to Newark each workday, making it the state s largest employment center with many white-collar jobs in insurance, finance, import-export, health-care, and government. As a major courthouse venue including federal, state, and county facilities, it is home to more than 1,000 law firms. The city is also a college town, with nearly 50,000 students attending the city s undergraduate universities, medical schools, and law schools. Its airport, maritime port, rail facilities, and highway network make Newark the busiest transshipment hub on the East Coast in terms of volume. Newark is the third-largest insurance center in the United States, after New York City and Hartford. Prudential Financial, Mutual Benefit Life, Fireman s Insurance, and American Insurance Company all originated in the city. Many other companies are headquartered in the city, including IDT Corporation, New Jersey Transit, Public Service Enterprise Group (PSEG), Manischewitz, Horizon Blue Cross and Blue Shield of New Jersey, Audible.com, and Aero Farms. In 2013, Panasonic moved its North American headquarters to a new 250,000-square-foot office building facing the Passaic River. Many important higher education institutions are also based in Newark, including the Newark campus of Rutgers University (which includes law and medical schools and the Rutgers Institute of Jazz Studies); the New Jersey Institute of Technology; and Seton Hall University s law school. The United States District Court for the District of New Jersey sits in the city as well. Local cultural venues include the New Jersey Performing Arts Center, Newark Symphony Hall, The Prudential Center, and the Newark Museum. Newark is one of nine cities in New Jersey designated as eligible for Urban Transit Hub Tax Credits by the state s Economic Development Authority. Developers who invest a minimum of $50 million within a half-mile radius of a train station are eligible for pro-rated tax credit. In response, Newark is having a building boom, with office towers, highrise apartments, rehabs and reuses planned and underway. Officials say $2 billion in total investment includes nearly 2,000 housing units now under construction. The 12 most notable projects include: One Theatre Square, Hahne s Department Store, Teacher s Village, Bears & Eagles Stadium, 540 Broad Street, Audible.com Headquarters, 36-54 Rector Street, Aero Farms Headquarters, Riverside Arms, St. Francis Hotel Redevelopment, Hampton Valley, and Triangle Park. ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2017 Marcus & Millichap. Activity ID: Y0332220 8
Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing 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 Marketing 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 Marketing 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 Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment 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.
FILE PHOTO 7 - E L E V E N N E W A R K, N J 234-240 ELIZABETH AVENUE, NEWARK, NEW JERSEY 07108 BROKER OF RECORD: JD PARKER MARCUS & MILLICHAP LICENSE: 1539141