offering memorandum - loopnet · portfolio. the subject property is a 95% occupied shopping center...
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2-10 E MAIN STREET (VALUE/ADD OPPORTUNITY)Somerville, NJ
OFFERING MEMORANDUM
Alan Cafiero First Vice President InvestmentsDirectorCell: (201) 240-7367Office: (201) [email protected]
Brent Hyldahl Investment SpecialistNational Retail GroupCell: (908) 268-7171Office: (201) [email protected]
The Offering
Property Address2-10 E Main Street
Somerville, NJ 08876
Type of Ownership Fee Simple
Site Description
Parcel Size 0.46 AC
Zoning B-1
Rentable Square Feet 10,318 SF
Building Description
Number of Units 13
Construction Concrete
Parking Street
Marcus & Millichap is pleased to present 2-10 East Main Street, Somerville, Somerset County, New Jersey. The subject property is
a 10,318 square foot retail strip center located in the heart of downtown Somerville, on the corner of East Main and Bridge Street.
Walking distance from the Somerville train station and Somerset County courthouse, the subject property offers an investor the
opportunity to purchase a property in a booming downtown market with below market rents and tenants on month to month leases.
Any developer or investor looking to maximize their return on investment should consider adding 2-10 East Main Street to their
portfolio.
The Subject Property is a 95% Occupied ShoppingCenter – Offering an investor significant upside byleasing out the vacant space and bringing the rentsup to market.
Significantly Below Market Rents – Incredible upsideopportunity on the best corner in downtownSomerville.
Great Location in Downtown Somerville – SignalizedIntersection of Main and Bridge Street – Justminutes from Routes 22, 202, 206, 28 and I-287.
Nearby National Tenants Include: Wells Fargo, ShopRite, Starbucks, Walgreens, Stop & Shop, & DunkinDonuts.
The Subject Property Has Excellent Demographics.Over $127,457 average household income and over117,988 people within 5 miles.
2-10 E Main St.OFFERING HIGHLIGHTS
REGIONAL MAP 2-10 E Main St.
PROPERTY OUTLINE & AERIAL 2-10 E Main St.
12,055 Cars/DayOn E Main St.
PROPERTY AERIAL 2-10 E Main St.
Private Development:Mixed Use with 650-770
Residential Units + 30,000 SFProfessional Office Space
Somerville Town Center:Phase II – 100+
Residential Units and 50,000 SF Retail
walgreens
$ tree
pnc
stopshop
retro
vzn
BOA
Walgreens
46 E Main Street:Under development - 95,000
SF Mixed Use (Residential, Retail, and Office) and 700
Spot Parking Garage
The Cobalt:117 Unit Apartments
Somerville Town Center:Phase I -
PROPERTY IMAGES 2-10 E Main St.
Tenant Name GLA (SF) % of GLA Lease Start Lease Exp. Annual Rent Rent/SF
2 E. Main Street 745 7% 2015 M/M $19,860 $26.66
4 E. Main Street5-7 S. Bridge Street 2,689 26% 2015 M/M $48,000 $17.85
6 E. Main Street 640 6% 2015 M/M $13,200 $20.62
8-10 E. Main Street 1,279 12% 2015 M/M $23,400 $18.30
9 S. Bridge Street 885 9% 2015 M/M $10,800 $12.20
11 S. Bridge Street 540 5% 2015 1/2020 $11,400 $21.11
13 S. Bridge Street 515 5% 2015 M/M $12,000 $23.30
15 S. Bridge Street 500 5% 2015 M/M $12,600 $25.20
17 S. Bridge Street (VACANT) 495 5% - - $13,200
19 S. Bridge Street 1,015 10% 2015 M/M $22,800 $22.46
19A S. Bridge Street 515 5% 2015 M/M $11,700 Studio Apt
21A S. Bridge Street 500 5% 2015 M/M $6,600 Studio Apt
Total Occupied 9,823 95% $192,360
Total Vacant 495 5% $13,200
TOTAL 10,318 100% $205,560
RENT ROLL 2-10 E Main St.
OFFERING SUMMARY
Price $2,500,000
Gross Leasable Area 10,318
Price Per Square Foot $242
Cap Rate – Current 4.3%
NOI – Current $106,746
INCOME
Base Rent $192,360
Less Total Expenses $85,614
NET OPERATING INCOME
$106,746
EXPENSES
Taxes $72,776
Insurance $8,335
Sewer $740
Water $648
Exterminator $289
Plumber $926
Locksmith $500
Roofer $1,400
Total Expenses $85,614
FINANCIAL SUMMARY 2-10 E Main St.
2017 Estimated Population
1 Mile……………………………………….………. 12,553
3 Mile………………………………………………. 54,779
5 Mile………………………………………………. 120,539
2017 Estimated Households
1 Mile……………………………………….………. 4,960
3 Mile………………………………………………. 21,063
5 Mile………………………………………………. 45,335
2017 Estimated Average Household Income
1 Mile……………………………………….………. $92,093
3 Mile………………………………………………. $112,965
5 Mile………………………………………………. $130,724
DEMOGRAPHICS HIGHLIGHTS 2-10 E Main St.
MARKET OVERVIEW 2-10 E Main St.
OVERVIEW
CENTRAL NEW JERSEY
The Central New Jersey region is conveniently located near both the New
York City metro and the Philadelphia metro and contains a well-
developed interstate network and mass-transit opportunities. Consisting
of Mercer, Middlesex, Monmouth, Ocean and Somerset counties, Central
New Jersey includes more than 150 municipalities, and the city of Edison
in Middlesex County is the largest. The state’s capital city, Trenton, is
located in Mercer County.
Many counties in the region consistently rank among the nation’s top 50 for per capita income.
Elevated incomes produce strong retail sales and support a healthy service industry.
New Jersey is home to 20 Fortune 500 companies in diverse industries from healthcare to energy.
Three Fortune 500 companies operate out of Central Jersey: Johnson & Johnson in New Brunswick,
Chubb in Warren and NRG Energy in Princeton. Kinder Morgan also operates locally.
Amazon has a fulfillment center in Carteret in Middlesex County; the company has two facilities in
the market, growing the region’s distribution sector.
DEMOGRAPHICS
ECONOMY
METRO HIGHLIGHTS
* Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
DIVERSIFYING EMPLOYMENT
The economy is diversifying from its manufacturing base to include energy,
healthcare, pharmaceuticals, tourism, logistics and distribution.
EDUCATED LABOR FORCE
Roughly 40 percent of residents age 25 and older have a bachelor’s degree; of
these, 16 percent also hold a graduate or professional degree.
HIGH BARRIERS TO ENTRY
Expensive land costs, dense development and strict governmental regulations
moderate additional development.
2.8M
2017POPULATION:
1M
2017HOUSEHOLDS:
40.5
2017MEDIAN AGE:
$81,600
2017 MEDIAN HOUSEHOLD INCOME:
U.S. Median:
37.8U.S. Median:
$56,3003.9%
Growth2017-2022*:
3%
Growth2017-2022*:
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the partyreceiving 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 apreliminary 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 thesubject property, the future projected financial performance of the property, the size and square footage of the property and improvements, thepresence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition ofthe improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue itsoccupancy 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 conductedany investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is aservice mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. Thepresence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely includedfor 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.
Alan Cafiero First Vice President InvestmentsDirectorCell: (201) 240-7367Office: (201) [email protected]
CONFIDENTIALITY & DISCLAIMER 2-10 E Main St.
Brent Hyldahl Investment SpecialistNational Retail GroupCell: (908) 268-7171Office: (201) [email protected]