market positioning and pricing analysis · aerial photo financial analysis 02 rent roll summary...

3508 PARK AVENUEWeehawken, NJ 07086

Market Positioning and Pricing Analysis

1

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 DisclaimerThe 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. © 2018 Marcus & Millichap. All rights reserved.

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary,

especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on

behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus &

Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other

professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma

financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections,

analyses, and decision-making.

Non-Endorsement NoticeMarcus & 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.

3508 PARK AVENUE

Weehawken, NJ

ACT ID ZAB0280331

Brian Hosey Broker of Record Lic. # 1434917

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Rent Roll Summary

Rent Roll Detail

Rent Roll Summary Commercial

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET OVERVIEW 03Market Analysis

Demographic Analysis

3508 PARK AVENUE

3

3508 PARK AVENUE

4

INVESTMENT

OVERVIEW

3508 PARK AVENUE

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Verizon 59,137

Eyea Lllp 27,000

Madame Tussauds New York 24,010

HHC Foundation of NY Cy Inc 22,964

Blackstone RE Partners VI LP 20,000

Westinghouse CBS Holding Co 18,000

Nyu Langone Medical Center 16,078

Infor Software Parent LLC 15,970

City of New York 14,235

P&Mcs Holding LLC 13,446

Mpg Holdco I Inc 11,958

FM Restaurants Holdco LLC 10,483

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2019 Estimate Pop 86,329 761,566 2,006,494

2010 Census Pop 80,630 702,850 1,865,489

2019 Estimate HH 32,165 373,848 959,000

2010 Census HH 29,838 342,654 884,144

Median HH Income $54,644 $96,762 $87,607

Per Capita Income $30,981 $76,641 $69,408

Average HH Income $82,831 $155,466 $144,310

VITAL DATA

CURRENT

Price $1,800,000 CAP Rate 5.32%

Down Payment 100% / $1,800,000Net Operating Income

$95,763

Loan Type All CashNet Cash Flow After Debt Service

5.32% / $95,763

Total Rentable SF 3,660 Total Return 5.32% / $95,763

Price/SF $491.80

5

UNIT MIX

UNIT COUNT

UNIT TYPE AVG. SFCURRENT AVG.

RENTSAVG.

RENTS/SFMONTHLY INCOME

POTENTIAL RENTS

AVG. RENTS/SF

MONTHLYINCOME

2 1 Bedroom 1,220 $1,663 $1.36 $3,325 $1,663 $1.36 $3,325

SUITE COUNT

TYPE TOTAL GLA CURRENT RENT RANGECURRENT MONTHLY

INCOMEPRO FORMA

MONTHLY INCOME

1 Retail 1,220 $6,286 - $6,286 $6,286 $6,286

3508 PARK AVENUE

OFFERING SUMMARY

▪ Three Tenant Mixed Use Property

▪ 3,660 Square Foot Building

▪ In Close Proximity To NYC

INVESTMENT HIGHLIGHTS

Weehawken is a township in the northern part of Hudson County, New Jersey. Public Transportation in Weehawken is provided by bus, ferry,

and light rail. It is located within the New York media market. Route 495 travels east-west between the Lincoln Tunnel and the New Jersey

Turnpike (Interstate 95) with interchanges for Route 3 and U.S. Route 1 and 9. Weehawken is a mostly residential community, but has a

business district at Lincoln Harbor between the Lincoln Tunnel and Weehawken Cove.

INVESTMENT OVERVIEW

6

3508 PARK AVENUE

#

OFFERING SUMMARY

PROPERTY OVERVIEW

Weehawken is a township in the northern part of Hudson County, New Jersey. Public

Transportation in Weehawken is provided by bus, ferry, and light rail. It is located within the

New York media market. Route 495 travels east-west between the Lincoln Tunnel and the

New Jersey Turnpike (Interstate 95) with interchanges for Route 3 and U.S. Route 1 and 9.

Weehawken is a mostly residential community, but has a business district at Lincoln Harbor

between the Lincoln Tunnel and Weehawken Cove.

77

3508 PARK AVENUE

#

PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Type All Cash

Debt Coverage Ratio

EXISTING FINANCING

Loan Type None

THE OFFERING

Price $1,800,000

Property Address 3508 Park Avenue, Weehawken, NJ

SITE DESCRIPTION

Number of Units 3

Total Rentable Square Feet 3,660

Lot Size 0.05 acre(s)

8

REGIONAL MAP

3508 PARK AVENUE

9

LOCAL MAP

3508 PARK AVENUE

10

3.5 Miles(12 Min Drive)

FromSUBJECT PROPERTY To Times Square via

Lincoln Tunnel

NJ Transit Station

NJ Transit Bus Stop

NJ Transit Bus Stop

AERIAL PHOTO

3508 PARK AVENUE

11

PROPERTY PHOTO

3508 PARK AVENUE

12

DENTIST

3508 PARK AVENUE

13

APARTMENT

3508 PARK AVENUE

14

BATHROOM & KITCHEN

3508 PARK AVENUE

15

STAIRWAY, ROOM, & ROOF

3508 PARK AVENUE

16

PROPERTY PHOTO

3508 PARK AVENUE

17

BASEMENT, BOILERS

3508 PARK AVENUE

18

PROPERTY PHOTO

3508 PARK AVENUE

19

3508 PARK AVENUE

20

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

3508 PARK AVENUE

RENT ROLL SUMMARY

21

FINANCIAL ANALYSIS

3508 PARK AVENUE

22

RENT ROLL DETAIL

FINANCIAL ANALYSIS

3508 PARK AVENUE

23

RENT ROLL SUMMARY

Office

Office:

FINANCIAL ANALYSIS

3508 PARK AVENUE

OPERATING STATEMENT

24

FINANCIAL ANALYSIS

3508 PARK AVENUE

25

CURRENT PRICING

100%

N/A

N/A

5.32%

$491.80

3,660

$1,800,000

FINANCIAL ANALYSIS

3508 PARK AVENUE

PRICING DETAIL

26

Office Suites

Office

N/A

N/A

N/A

MARCUS & MILLICHAP ADVANTAGE

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 for the benefit of our clients.

Optimum financing solutions to

enhance value

Enhanced control through

investor qualification support


MMCC’s ability to qualify

investor finance contingencies


MMCC’s ability to monitor

investor/due diligence and

underwriting to ensure timely,

predictable closings

Enhanced control through quickly

identifying potential debt/equity

sources, processing, and closing

buyer’s finance alternatives

WHY MMCC?

National platform

operating

within the firm’s

brokerage offices

$ 7.18 billion

total national

volume in 2019

Access to more

capital sources

than any other

firm in the

industry

Closed 1,994

debt and equity

financings

in 2019

27

3508 PARK AVENUE

3508 PARK AVENUE

28

MARKET

OVERVIEW

MARKET OVERVIEW

NORTHERN NEW JERSEYOVERVIEW

1

Northern New Jersey consists of Bergen, Hudson, Passaic, Essex, Morris

and Union counties. The region contains roughly 4 million residents in more

than 200 municipalities. Bergen County is home to nearly 1 million people,

while Essex County, which includes the city of Newark, has approximately

811,500 citizens. The region is bordered to the east by the Hudson River

and New York City, to the south by Middlesex and Somerset counties, to the

west by Warren and Sussex counties, and to the north by New York State. A

large portion of the area is almost fully developed and densely populated.

The region is a part of the New York metro and is linked to the city by the

George Washington Bridge, the Lincoln Tunnel, the Holland Tunnel, several

ferries and commuter rail tunnels.

MARKET OVERVIEW

METRO HIGHLIGHTS

DIVERSE INDUSTRIES

Pharmaceuticals, healthcare and finance are a few

of the segments that contribute to the metro’s

economic base.

LARGE LABOR POOL

The region’s diverse and highly skilled labor and

access to workers in other nearby metros draws an

array of businesses.

UNIQUE ECONOMY

Northern New Jersey has its own economic drivers

and is also well connected to New York City’s robust

economy.

3508 PARK AVENUE

MARKET OVERVIEW

ECONOMY▪ Northern New Jersey is home to numerous Fortune 500 companies including Prudential

Financial, Merck, PBF Energy and Honeywell International.

▪ The airline industry accounts for a significant share of jobs in the region. United Airlines has

a major presence at Newark Liberty International Airport.

▪ Trade is a key employment sector. Vehicle imports account for a substantial amount of the

Port Newark-Elizabeth Marine Terminal’s business.

▪ Spillover from Wall Street bolsters finance jobs in Essex, Hudson and Bergen counties.

MAJOR AREA EMPLOYERS

Prudential Financial

United Airlines Holdings

Wells Fargo

Hackensack University Medical Center

Bank of America

Wakefern Food Corp

TD Bank

St. Joseph’s Hospital and Medical Center

Merck & Co. Inc.

RWJBarnabas Health * Forecast

2

3508 PARK AVENUE

SHARE OF 2019 TOTAL EMPLOYMENT

MANUFACTURING

6%GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

4%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

22%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

2%INFORMATION

18%

4%

14% 8% 7%

16%

MARKET OVERVIEW

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

▪ Northern New Jersey will add nearly 67,500 people and approximately 33,000

households over the next five years, generating demand for housing.

▪ The homeownership rate of 51 percent is below the national rate of 57 percent,

maintaining a strong rental market.

▪ Approximately 39 percent of residents hold a bachelor’s degree, including 15 percent

who have also obtained a graduate or professional degree.

Northern New Jersey offers a variety of amenities and cultural activities. Sports and

entertainment are available in East Rutherford at the Meadowlands. The MetLife Stadium is

home to the Giants and Jets of the NFL. The Prudential Center, also known as the Rock, is

an indoor arena in downtown Newark where the Devils (NHL) and Seton Hall University

play. Downtown Newark also houses the New Jersey Performing Arts Center and Bears

and Eagles Riverfront Stadium, home of the Newark Bears, a minor-league baseball team.

Numerous community colleges and universities are located in the metro, including Seton

Hall University, the Newark campus of Rutgers University, Stevens Institute of Technology,

William Paterson University and Bergen Community College.

QUALITY OF LIFE

3

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s

Analytics; U.S. Census Bureau

3508 PARK AVENUE

2019 Population by Age

0-4 YEARS

6%5-19 YEARS

18%20-24 YEARS

6%25-44 YEARS

28%45-64 YEARS

27%65+ YEARS

14%

38.6

2019MEDIAN AGE:

U.S. Median:

38.1

$78,100

2019 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$60,800

4M

2019POPULATION:

Growth2019-2024*:

1.7%

1.5M

2019HOUSEHOLDS:

2.2%

Growth2019-2024*:

PROPERTY NAME

MARKETING TEAM

3508 PARK AVENUE

DEMOGRAPHICS

Source: © 2019 Experian

Created on June 2020

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2024 Projection

Total Population 88,339 794,259 2,087,026

▪ 2019 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2019 Estimate 70,896 1,895,514 3,882,190

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2024 Projection

Total Households 33,178 392,047 1,003,471

▪ 2019 Estimate

Total Households 32,165 373,848 959,000

Average (Mean) Household Size 2.66 1.99 2.02

▪ 2010 Census


▪ 2000 Census


Growth 2015-2020 3.15% 4.87% 4.64%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

▪ Occupied Units

2024 Projection 33,178 392,047 1,003,471

2019 Estimate 33,781 412,491 1,050,838

Owner Occupied 7,492 113,872 259,401

Renter Occupied 24,673 259,977 699,599

Vacant 1,616 38,642 91,839

▪ Persons In Units

2019 Estimate Total Occupied Units 32,165 373,848 959,000

1 Person Units 28.26% 46.16% 44.39%

2 Person Units 27.62% 30.14% 30.78%

3 Person Units 17.61% 11.33% 12.06%

4 Person Units 13.68% 7.38% 7.67%

5 Person Units 7.07% 2.95% 3.00%

6+ Person Units 5.76% 2.03% 2.11%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2019 Estimate

$200,000 or More 6.18% 22.82% 20.55%

$150,000 - $199,000 6.64% 10.01% 9.15%

$100,000 - $149,000 12.47% 15.90% 15.40%

$75,000 - $99,999 11.44% 10.40% 10.22%

$50,000 - $74,999 16.42% 11.76% 11.86%

$35,000 - $49,999 11.69% 7.00% 7.42%

$25,000 - $34,999 9.64% 5.65% 5.96%

$15,000 - $24,999 11.75% 6.54% 7.08%

Under $15,000 13.79% 9.92% 12.36%

Average Household Income $82,831 $155,466 $144,310

Median Household Income $54,644 $96,762 $87,607

Per Capita Income $30,981 $76,641 $69,408

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2019 Estimate Total Population 86,329 761,566 2,006,494

Under 20 22.93% 16.65% 17.06%

20 to 34 Years 25.09% 29.59% 29.84%

35 to 39 Years 8.38% 9.19% 8.74%

40 to 49 Years 13.77% 13.52% 12.99%

50 to 64 Years 17.06% 16.93% 16.70%

Age 65+ 12.76% 14.14% 14.69%

Median Age 36.11 36.89 36.63

▪ Population 25+ by Education Level

2019 Estimate Population Age 25+ 61,192 588,450 1,532,260

Elementary (0-8) 13.59% 4.77% 4.76%

Some High School (9-11) 8.45% 4.33% 5.28%

High School Graduate (12) 30.12% 14.52% 14.46%

Some College (13-15) 13.56% 9.97% 9.88%

Associate Degree Only 4.55% 3.55% 3.76%

Bachelors Degree Only 18.21% 33.46% 32.39%

Graduate Degree 8.89% 28.17% 27.80%

▪ Population by Gender

2019 Estimate Total Population 86,329 761,566 2,006,494

Male Population 49.96% 49.28% 48.23%

Female Population 50.04% 50.72% 51.77%

32

Income

In 2019, the median household income for your selected geography is

$87,607, compare this to the US average which is currently $60,811.

The median household income for your area has changed by 77.60%

since 2000. It is estimated that the median household income in your

area will be $101,277 five years from now, which represents a change

of 15.60% from the current year.

The current year per capita income in your area is $69,408, compare

this to the US average, which is $33,623. The current year average

household income in your area is $144,310, compare this to the US

average which is $87,636.

Population

In 2019, the population in your selected geography is 2,006,494. The

population has changed by 13.48% since 2000. It is estimated that the

population in your area will be 2,087,026.00 five years from now,

which represents a change of 4.01% from the current year. The

current population is 48.23% male and 51.77% female. The median

age of the population in your area is 36.63, compare this to the US

average which is 38.08. The population density in your area is

25,504.97 people per square mile.

Households

There are currently 959,000 households in your selected geography.

The number of households has changed by 14.47% since 2000. It is

estimated that the number of households in your area will be

1,003,471 five years from now, which represents a change of 4.64%

from the current year. The average household size in your area is 2.02

persons.

Employment

In 2019, there are 2,791,447 employees in your selected area, this is

also known as the daytime population. The 2000 Census revealed that

77.45% of employees are employed in white-collar occupations in this

geography, and 22.79% are employed in blue-collar occupations. In

2019, unemployment in this area is 3.75%. In 2000, the average time

traveled to work was 34.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

59.69% White, 10.36% Black, 0.06% Native American and 16.17%

Asian/Pacific Islander. Compare these to US averages which are:

70.07% White, 12.87% Black, 0.19% Native American and 5.66%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 26.29% of the current year

population in your selected area. Compare this to the US average of

18.17%.

PROPERTY NAME

MARKETING TEAM

3508 PARK AVENUE

Housing

The median housing value in your area was $679,080 in 2019,

compare this to the US average of $212,058. In 2000, there were

202,371 owner occupied housing units in your area and there were

635,392 renter occupied housing units in your area. The median rent

at the time was $782.

Source: © 2019 Experian

DEMOGRAPHICS

33

8

3508 PARK AVENUE

DEMOGRAPHICS

34

market positioning and pricing analysis · aerial photo financial analysis 02 rent roll summary...

Documents