OVERVIEW OF THE ROSELLE PARK MARKETPLACE

The possibility of Roselle Park looking into selling 3 properties currently owned by the Borough would create opportunities for developers and smaller entrepreneurs/builders to help create a new construction community. I have enclosed sales from 2013 and 2014 as well as an overview of the Borough. Average Prices in both 2013 and 2014 range from $220,000K to $225,000K. The premium for new construction can be as much as 20-25% in many areas. New construction with that in mind would take values into the $275,000-$300,000 range. The major deterrent would be the taxes on these properties. Furthermore, generally speaking, new construction townhouse or one floor condos have little or no impact on the schools and services of a community.

With the above premise, builders will pay about 20-25% of an end unit cost for land. Therefore, if a property such as 545 Laurel Avenue permitted up to 16 units, the value could be substantial. Assuming a $300,000 condo price, the value per unit could be between $900,000 and $1.2M. In addition, the park area could remain and separate two buildings or townhouse areas. This is the most likely scenario for this property.

The other two Borough owned lots that are smaller in size would be more suited for duplexes or side by side two family homes. The formula as used above would stay intact. The location of 105 Sherman since it is only a 50 x 100 lot would be possibly a side by side by side with zero lot lines or possibly 4 units as one floor condos.

The last property located at 601 Chestnut Street could be a different structure with maybe 6-8 units since it is almost a hall-acre parcel. Architects can be very creative and new condominiums would have an attractiveness to a first time buyer. Low interest rates and new is the perfect storm in real estate especially when there is a train station in town.

It is not just the revenue brought into Roselle Park by selling these lots but the annual taxes borough in by possibly 20 new condominiums. Varying prices, taxes could still be in the neighborhood annually of $150,000 or more. Local businesses benefit from the additional residential owners in town.

The opportunity to create new housing could spur more activity in the Borough. My observation would be quite simply that you have to create an environment which fosters development. The train station is the focal point of many transit hubs and where much of the redevelopment in Northern and Central New Jersey has taken place. It becomes a more vibrant community with some new retail as well.

The values projected for the following properties would range as follows:

545 Laurel Avenue: $1M-$1.2M 105 Sherman Avenue: $100+/-601 Chestnut Street: $ $150+/-

Property taxes generated would be in the $8000-$10,000 range so that if 20 or so new units were created it would generate an additional $160,000-$200,000 yearly plus the momentum of a up and coming and gentrified community.