Announcing the Availability for Purchase of 45 Central Avenue, Located In the Heart of Downtown Newark 45 Central Avenue is within 3 blocks of Broad Street Station, Washington Park Station, Washington Park, Military Park, Rutgers University, NJIT, Newark Museum, Newark Library, The Prudential office tower, Audible Headquarters and the resurrected downtown landmark, Hahne & Company, which houses, among other things, Wholefoods and an art incubator. Constructed around the turn of the century, 45 Central is configured to accommodate either a single or multiple businesses. A list of permitted uses can be found in this offering statement. "The vision behind the move [to Newark] was to try to combine a missionary, disruptive, technologydriven company with Newark's transformation. I consider the Newark move one of the best decisions we've made as a company." Donald Katz Audible Founder and CEO Brian McCabe, REALTOR United Real Estate North Jersey 1819 River Road, Fair Lawn, NJ 07410 phone: 9738651863 email: bmccabe362@gmail.com 3 story office building with elevator comprising approximately 9,632 rentable square feet Modernized interiors Brick and terracotta exterior Fully air conditioned Asking $1.8 million
Interior Pictures
Interior Pictures
Zoning Information SubDistrict C: Washington Park Cultural District Washington Park Permitted Uses Properties and buildings may be used for the following uses according to the regulations below. Buildings and properties with a mix of uses are encouraged: 45 Central Ave is situated in SubDistrict C:Washington Park Cultural District, a part of The Broad Street Station District Redevelopment Plan. SubDistrict Boundaries All properties north of Central Avenue, east of University Avenue, west of Broad Street and south of Orange Street, excluding the first 100 feet of properties fronting on the south side of Orange Street. The first 100 feet of all properties fronting on the east side of Broad Street between Bridge Street and Fulton Street. the first 100 feet of all properties fronting on the south side of Central Avenue between University Avenue and Broad Street. The following regulations of regulatory and urban design standards apply to the referenced area, regardless as to whether a particular property is split between two or more SubDistricts or two or more streets. 1. Retail sales of goods 2. Beauty salons, barber shops, and nail salons 3. Restaurants, except in certain areas. 4. Museums including accessory uses not prohibited in this Plan 5. Theaters including accessory uses not prohibited in this Plan 6. Art Galleries including accessory uses not prohibited in this Plan 7. Bars with sound proofing insulation installed are permitted only on Orange Street and are prohibited on all other street frontages in the District 8. Night clubs and dance halls with sound proofing insulation installed to ensure compliance with local and state noise regulations. Such uses can have customer dancing areas. 9. Building lobbies 10. Hotels and hotel lobbies 11. Retail Banking Institutions (without Drivethru facilities) 12. Parking garages (active ground floor use requirements on certain streets) 13. Offices 14. Conference facilities 15. Residential 16. Artist studios 17. Tattoo and bodypiercing establishments, except on Broad Street 18. Livework spaces that only include permitted uses in this plan 19. Colleges, universities, and educational facilities 20. Fitness and health clubs 21. Banquet halls with sound proofing insulation installed. Such uses can have customer dancing areas. Permitted only in certain areas. 22. Recording studios with sound proofing insulation installed. 23. Liquor stores 24. Facilities that provide congregate living arrangements directly affiliated with an institution of higher education except those affiliated with a fraternal/fraternity or sorority organization 25. Museums and all ancillary uses.
Investment Zoning Information Future Considerations 45 Central is the kind of building that, in a couple of years, investors will wish they had bought back then. Consider: The property is nearly surrounded by institutions of higher learning. It s a stone s throw from the Newark Museum and Library. It lies within the redevelopment area known as SubDistrict C: Washington Park Cultural District. Its availability for sale coincides with Newark s remarkable and wellpublicized urban renaissance. And, the building itself exudes a sense of connectedness with Newark s prominent past, which is reexpressing itself in bold, new ways. So, as you review the financial aspects of 45 Central as an investment property, keep in mind that it floats on a rapidly rising tide. Back then is now! Data Notes 45 Central is owned and occupied by a nonprofit; rent was never collected so there is no history to look at. Estimated revenue going forward is based upon the average gross rental amount (full service) of $23.67 per square foot for available, 1, 2 and 3 star office spaces in Newark as they appear in CoStar on 5/14/2018. It is also estimated that the rentable square feet total is 9,632. At $23.67 per square foot (see below), the estimated year one revenue for such properties in Newark is $227,989 Costar (5/14/2018) Star Type Address Rating Status RBA/GLA SF Avail Rent/SF/YR 925 Alling St Office 3 Star Existing 70,000 2,775 $26.00 800802 Broad St Office 2 Star Existing 30,000 20,000 $17.50 875881 Broad St Office 2 Star Existing 12,000 1,400 $20.14 894900 Broad St Office 2 Star Existing 20,000 20,000 $18.00 569571 Martin Luther King Jr Blvd Office 3 Star Existing 6,200 425 $36.70 $23.67
Acquisition Costs, Sources of Income and Property Specs 45 Central Ave, Acquisition Costs Sources of Income (estimated) Purchase costs Apartments () Asking Price $1,800,000 Monthly Income Annual Income Anticipated purchase cost $1,800,000 Gross Potential Income Down payment (25.0%) $450,000 0% Vacancy and Credit Loss (0.0%) Mortgage amount $1,350,000 Effective Rental Income Other Income Cash Gross Operating Income Down payment (25.0%) $450,000 Estimated closing costs Offices (3) Other Cash Monthly Income Annual Income Gross Potential Income $18,999 $ 227,989.00 Total Cash $450,000 0% Vacancy and Credit Loss (0.0%) Effective Rental Income $18,999 $227,989 Property specs Other Income Gross Operating Income $18,999 $227,989 Parcel number 1400021000000021 Zone C2 Retail Stores () Asking Price $1,800,000 Monthly Income Annual Income Rentable Building Area 9632 Gross Potential Income Price/SF $187.00 0% Vacancy and Credit Loss (0.0%) Taxes 3.56 Effective Rental Income Year Built 1900 approx. Other Income Stories 3 Gross Operating Income Class C Type Office Total Gross Operating Income: All income streams Lot size 0.07 acre Monthly Income Annual Income Number stories 3 Apartments Construction Masonry and block Offices $18,999 $227,989 Units 3 Retail spaces Occupancy Vacant at purchase Total Gross Operating Income $18,999 $227,989 Parking None The information herein has been gathered from sources deemed to be reliable. While every effort has been made to ensure its accuracy, we make no representations or warrantees, express or implied, as to such accuracy. Users of this information bear all risks associated with its use. Contact your mortgage lender, insurance carrier, tax advisor and legal counsel for precise costs, terms, tax implications and legal ramifications in connection with the purchase of this real property. Brian McCabe, REALTOR United Real Estate North Jersey 1819 River Road, Fair Lawn, NJ 07410 phone: 9738651863 email: bmccabe362@gmail.com
Income Summary and Expenses 45 Central Ave, Income Summary: All Income Streams (estimated) Annual Apartments: Gross Operating Income Offices: Gross Operating Income $227,989 Retail Stores: Gross Operating Income Total Gross Operating Income (GOI) $227,989 Operating Expenses (actual) Annual Per/Unit Management % (0.00%) Maintenance % (5.00%) $11,399 $3,800 RE taxes (est) $ 49,259.00 Property insurance $ 6,841.00 Gas and electric $ 18,960.00 Water and Sewer $ 4,500.00 HVAC maintenance $ 2,400.00 Elevator maintenance $ 3,100.00 Annual test/inspection $ 500.00 City inspection $ 476.00 Security system $ 4,800.00 Fire extinguisher $ 370.00 Exterminator $ 936.00 Total Operating Expenses (TOE) $103,541 $34,514 Net Operating Income (NOI) $124,448 F11F40 Ratio of TOE to GOI 45% Brian McCabe, REALTOR United Real Estate North Jersey 1819 River Road, Fair Lawn, NJ 07410 phone: 9738651863 email: bmccabe362@gmail.com
Year One Cash Flow and Investment Snapshot 45 Central Ave, Cash Flow Cash Flow Detail Annual Gross Operating Income $227,989 Operating Expenses $103,541 Net Operating Income $124,448 Annual Debt Service* $80,884 Cash Flow Before Taxes $43,563 *Fully amortized mortgage, interest rate 4.38%, term 30 years Investment Performance Capitalization Rate 6.91% $1,800,000 Property cost Debt Coverage Ratio $124,448 Net operating income $80,884 Debt service 1.54 Debt Coverage Ratio CashonCash Return $43,563 Cash Flow Before Taxes $450,000 Cash 10% Return on cash Gross Rent Multiplier at Purchase Price $1,800,000 Property price $227,989 Total Gross Operating Income (GOI) 7.90 Multiplier Brian McCabe, REALTOR United Real Estate North Jersey 1819 River Road, Fair Lawn, NJ 07410 phone: 9738651863 email: bmccabe362@gmail.com
Address City Property Info Sale Info 1 671 Broad St Newark 16,901 SF Class C Office Sold: $3,080,000 ($182.24/SF) 2 999 Broad St Newark 12,387 SF Class C Office Sold: $2,550,000 ($205.86/SF) 3 627635 Market St Newark 11,301 SF Class B Office Sold: $2,350,000 ($207.95/SF) 4 5 Washington St Newark 12,000 SF Class B Office/Medical Sold: $2,100,000 ($175/SF) 5 239 Washington St Newark 8,839 SF Class B Office Sold: $1,500,624 ($169.77/SF) Copyrighted report licensed to United Real Estate 813697. 4/28/2018 Page 1
1 671 Broad St SOLD Essex County Recorded Buyer: Ric Prudential Insurance Co Of Recorded Seller: City of Newark Ame 751 Broad St 55 Liberty St (973) 7333914 True Buyer: The Prudential Insurance Company of America True Seller: City of Newark Sale Date: Sale Price: Price/SF: PrFrma Cap Rate: Actual Cap Rate: Parcel No: Financing: Comp ID: 08/23/2012 Bldg Type: $3,080,000 Full Value Year Built/Age: $182.24 Zoning: Sale Conditions: Class C Office 16,901 SF 0.11 AC (4,792 SF) Assemblage 1400051000000001, 1400051000000049, 1400051000000050, 1400051000000059 [Partial List] 2603453 Research Status: Full Value 2 999 Broad St SOLD Essex County Recorded Buyer: 999 Realty Associates, LLC Recorded Seller: JPA Urban Renewal Corporation 1350 E 13th St Brooklyn, NY 11230 (718) 9986832 10470 Queens Blvd Forest Hills, NY 11375 (718) 9970075 Buyer Contact: Joseph Berliner Seller Contact: Richard Gordon Map Page: Hagstrom 9K12 Sale Date: Sale Price: Price/SF: PrFrma Cap Rate: 10/22/2004 Bldg Type: $2,550,000 Confirmed Year Built/Age: $205.86 Zoning: Class C Office 12,387 SF 1.99 AC (86,684 SF) N/Av, Newark City Parcel No: Financing: Comp ID: 1400111.0000070.00 Down payment of $200,000 (7.8%) 996354 Research Status: Confirmed 3 627635 Market St SOLD Newark, NJ 07105 Essex County Recorded Buyer: 627635 Market St, LLC Recorded Seller: Market Enterprises, LLC 627 Market St 627 Market St Newark, NJ 07105 Newark, NJ 07105 Sale Date: Sale Price: Price/SF: PrFrma Cap Rate: 11/09/2005 (120 days on mkt) Bldg Type: $2,350,000 Confirmed Year Built/Age: $207.95 Zoning: Class B Office Built 2005 11,301 SF 0.26 AC (11,326 SF) N/Av, Newark City Map Page: Hagstrom 9L11 Parcel No: Financing: Comp ID: 1402011.0000030.00 Not Available 1066846 Research Status: Confirmed Copyrighted report licensed to United Real Estate 813697. 4/28/2018 Page 2
4 5 Washington St SOLD Essex County Recorded Buyer: Uncommon Schools Inc Recorded Seller: 559 Broad St 10 Washington Pl (973) 9192046 Buyer Contact: North Star Academy Charter School Seller Contact: 50 Park Pl (973) 6233300 Miles Berger Sale Date: Sale Price: Price/SF: PrFrma Cap Rate: Actual Cap Rate: Parcel No: Financing: Comp ID: 04/29/2003 Bldg Type: $2,100,000 Full Value Year Built/Age: $175.00 1400022.0000020.00 Down payment of $2,100,000 (100.0%) 836031 Research Status: Full Value Zoning: Sale Conditions: Class B OfficeMedical Built 1981 Renov 2001 Age: 22 12,000 SF 0.09 AC (3,920 SF) N/Av, Newark Expansion Map Page: Hagstrom 9K17 5 239 Washington St SOLD Essex County Recorded Buyer: Rbhtrb 239 Washington Llc Recorded Seller: RBH Group Partners XVII LP 16 W 36th St New York, NY 10018 239 Washington St True Buyer: One Liberty Properties, Inc. True Seller: One Liberty Properties, Inc. Sale Date: Sale Price: Price/SF: 06/02/2009 Bldg Type: $1,500,624 Full Value Year Built/Age: $169.77 Class B Office 8,839 SF 0.05 AC (2,178 SF) Parcel No: Financing: Comp ID: 1400072000000047 1761465 Research Status: Full Value Copyrighted report licensed to United Real Estate 813697. 4/28/2018 Page 3
Address City Property Info Sale Info 1 2 3 832834 Broad St Newark 894900 Broad St Newark 1028 Broad St Newark 8,108 SF Class F Office Building Sale Price: $1,195,000 20,000 SF Class B Office Building Sale Price: $4,500,000 10,000 SF Class C Office Building Sale Price: $1,250,000 Copyrighted report licensed to United Real Estate 813697. 4/28/2018 Page 1
1 832834 Broad St Sale Price: $1,195,000 Price/SF: $147.39 Cap Rate: % Leased: 8,108 SF 100.0% 0.05 AC Building Type: Class F Office Year Built: Sale Status: Active Typ Floor Size: 4,054 SF Days on Market: 367 Stories: 2 Sale Conditions: Sale Type: Owner/User 2 894900 Broad St Sale Price: $4,500,000 Price/SF: $225.00 Cap Rate: % Leased: 20,000 SF 0.0% 0.23 AC Building Type: Class B Office Year Built: Sale Status: Active Typ Floor Size: 10,000 SF Days on Market: 276 Stories: 2 Sale Conditions: Sale Type: Investment OR Owner/User 3 1028 Broad St Sale Price: $1,250,000 Price/SF: $125.00 Cap Rate: % Leased: 10,000 SF 100.0% 0.11 AC Building Type: Class C Office Year Built: Sale Status: Active Typ Floor Size: 4,000 SF Days on Market: 858 Stories: 2 Sale Conditions: Sale Type: Investment Copyrighted report licensed to United Real Estate 813697. 4/28/2018 Page 1 Page 1