A PROPOSAL FOR COMMERCIAL SERVICES Medical Condo...All data and assumptions regarding financial...

KW COMMERCIAL

123 Tice Blvd.

Woodcliff Lake, NJ 07677GINA M. PALUMBOManaging Director, Broker-Assoc [email protected]

Medical Condo

A PROPOSAL FOR COMMERCIAL SERVICES

PRESENTED BY:

HACKENSACK, NJ


www.kwcommercial.com 2

KW COMMERCIAL

123 Tice Blvd.

Woodcliff Lake, NJ 07677

GINA M. PALUMBOManaging Director, Broker-Assoc [email protected]

Confidentiality & Disclaimer


All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third partysources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance orlack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projectedfinancial performance of the property for any party’s intended use or any and all other matters.

Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as toaccuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whetherwritten or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine theseand other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for aparty unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspectionsand investigations including through appropriate third party independent professionals selected by such party. All financial data should beverified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independentprofessionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financialdata or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by theparty with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions shouldbe discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complieswith applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by Pascack Valley in compliance with all applicable fairhousing and equal opportunity laws.

We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty orrepresentation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, orwithdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance ofthe property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

PRESENTED BY:

HACKENSACK, NJ


PROPERTY INFORMATION

1 | PROPERTY INFORMATION

EXECUTIVE SUMMARY

1PROPERTY INFORMATION

MEDICAL CONDO

MEDICAL CONDO

PROPOSAL FOR COMMERCIAL SERVICES


Executive Summary

MEDICAL CONDO 1 | PROPERTY INFORMATION


PROPERTY OVERVIEWIn the heart of Hackensack, less than a 1/2 mile walk to the renown,Hackensack Medical Center. A perfect office for small practice orsatellite office. Near transit, good walk-ability,

PROPERTY FEATURESBuilding renovations almost complete

Elevated building with plenty of onsite parking

Updated lobby with elevator

Unit offers great appeal for small practice - approximately750sf

Private bathroom ensuite

Reception, waiting room, exam room and consult room

Waiting for professional tenant to move right in!

AVAILABLE SF: 750 SF

LEASE RATE: $2,250 Per Month (NNN)

LOT SIZE: 0.0 Acres

BUILDING SIZE: 40,000 SF

BUILDING CLASS: B

YEAR BUILT: 1980

RENOVATED: 2017

LOCATION INFORMATION

2 | LOCATION INFORMATION

REGIONAL MAP

LOCATION MAPS

AERIAL MAP

2LOCATION INFORMATION

MEDICAL CONDO

MEDICAL CONDO



211 Essex Street

Regional Map

MEDICAL CONDO 2 | LOCATION INFORMATION



Location Maps


Aerial Map



RENT COMPARABLES

3 | RENT COMPARABLES

211_ESSEX_ST_COMPS.PDF

3RENT COMPARABLES

MEDICAL CONDO

MEDICAL CONDO



Lease Comps SummaryLease Comps Report

Deals

7Gross Asking Rent Per SF

$21.02Gross Starting Rent Per SF

$20.88Avg. Months On Market

43LEASE COMPARABLES

SUMMARY STATISTICS

Rent Deals Low Average Median High

Gross Asking Rent Per SF

Gross Starting Rent Per SF

Gross Effective Rent Per SF

Asking Rent Discount

TI Allowance

Months Free Rent

7

4

2

4

-

1

$18.49

$16.00

$16.56

0.0%

-

2

$21.02

$20.88

$19.10

2.5%

-

2

$21.96

$21.96

$19.27

0.0%

-

2

14.7%

-

2

$21.98

$21.98

$21.98

Lease Attributes Deals Low Average Median High

Months on Market

Deal Size

Lease Deal in Years

Floor Number

7

7

6

7

4

1,000

0.1

1

43

1,719

0.2

2

38

1,500

0.3

2 3

132

2,514

0.4

10/5/2017Copyrighted report licensed to Keller Williams Valley Realty - 555398.

Page 1

Lease Comps SummaryLease Comps Report

Property Name - Address Rating SF Leased Floor Sign Date Rent Rent Type

Lease

Type

Rents

-1 214 State St1,500 2nd 8/21/2017 $16.50/te AskingNew

-2 6 Forest Ave1,163 2nd 5/16/2017 $20.00/te EffectiveNew

-3 1029 Teaneck Rd1,000 3rd 3/21/2017 $20.07/fs AskingNew

-4 10 Forest Ave2,328 1st 3/19/2017 $21.00/te AskingNew

-5 4 Forest Ave2,215 1st 3/1/2017 $20.00/te StartingNew

-2 6 Forest Ave2,514 1st 3/1/2017 $20.00/te StartingNew

-6 River Edge Commons1,313 3rd 10/12/2016 $16.56/mg Effective

1060 Main StNew


Page 2

Lease Comps DetailsLease Comps Report

1 214 State StHackensack, NJ 07601 - Hackensack Submarket

RENTS

Asking Rent: $16.50/TE

PROPERTY EXPENSES

Taxes: $2.52/SF (2016)

LEASE

SF Leased: 1,500 SF

Sign Date: Aug 2017

Space Use: Office/Medical

Lease Type: Direct

Floor: 2nd Floor

Suite: 203B

LEASE TERM

Start Date: Sep 2017

Lease Term: 1 Year

TIME VACANT

Date Vacated: Apr 2017

Date Occupied: Sep 2017

Months Vacant: 5 Months

TIME ON MARKET

Date On Market: Apr 2017

Date Off Market: Sep 2017

Months on Market: 4 Months

LEASING REP

Equity Real Estate Brokerage LLC

40 Eisenhower Dr, Suite 206

Paramus, NJ 07652-1404

Bree Manchanda (201) 261-4300

Robert Morris (201) 261-4300 X129

PROPERTY

Rentable Area: 54,352 SF

Stories: 2

Floor Size: 27,176 SF

Vacancy at Lease: 11.3%

Land Acres: 1.73

Property Type: Office

Status: Built 1920

Tenancy: Multi

Class: C

Construction: Masonry

Parking: 128 Surface Spaces…

MARKET AT LEASE

Vacancy Rate 2017 Q3 YOY

1.4%

0.1%

0.9%Current Building 11.3%

Submarket 2-4 Star

Metro Overall 9.1%

12.2%

Gross Asking Rent Per SF 2017 Q3 YOY

7.4%

0.1%

39.5%Current Building $16.74

Submarket 2-4 Star

Metro Overall $40.19

$24.09

Submarket Leasing Activity 2017 Q3 YOY

3.2

8.6%12 Mo. Leased SF 238,459

Months On Market 11.2


Page 3


2 6 Forest AveParamus, NJ 07652 - Route 4/17 Submarket

RENTS

Asking Rent: $19.00-$21.00/TE

Starting Rent: $20.00/TE

Effective Rent: $20.00/TE

CONCESSIONS AND BUILDOUT

Asking Discount: 0.00%

Buildout Status: Partial Build-Out

PROPERTY EXPENSES

Taxes: $8.51/SF (2008)

LEASE

SF Leased: 1,163 SF

Sign Date: May 2017


Lease Type: Direct

Floor: 2nd Floor

LEASE TERM

Start Date: Jun 2017

Expiration Date: Jun 2022

Lease Term: 5 Years

TIME VACANT

Date Vacated: Aug 2014

Date Occupied: Jun 2017


TIME ON MARKET

Date On Market: Mar 2014

Date Off Market: May 2017


LEASING REP

Masi-Boyle Associates

1 Woodland Ave

Paramus, NJ 07652

Rose Najarian (201) 265-5400

PROPERTY


Stories: 2



Land Acres: 6.52


Status: Built 1984

Tenancy: Multi

Class: B

Construction: Steel

Parking: Surface Spaces @ $…

MARKET AT LEASE


1.7%

0.0%


Submarket 2-4 Star

Metro Overall 9.1%

12.6%


2.8%

8.4%


Submarket 2-4 Star


$27.50


3.4

19.8%12 Mo. Leased SF 262,499



Page 4


3 1029 Teaneck RdTeaneck, NJ 07666 - Teaneck/Ridgefield Submarket

RENTS

Asking Rent: $20.07/FS

PROPERTY EXPENSES

Taxes: $3.17/SF (2016)

Operating Exp.: $4.00/SF (2010-Est)

LEASE

SF Leased: 1,000 SF

Sign Date: Mar 2017


Lease Type: Direct

Floor: 3rd Floor

Suite: 3D

LEASE TERM

Start Date: Mar 2017

Lease Term: 1 Year

TIME VACANT

Date Vacated: Aug 2016

Date Occupied: Mar 2017


TIME ON MARKET

Date On Market: Nov 2016

Date Off Market: Mar 2017


LEASING REP

RE/MAX Fortune Properties

474 Sylvan Ave

Englewood Cliffs, NJ 07632-2922

Lisa Pagiatakis Gaito (201) 816-8889 X204

PROPERTY


Stories: 3



Land Acres: 0.32


Status: Built 1970

Tenancy: Multi

Class: C


Parking: 10 free Surface Spa…

MARKET AT LEASE


0.8%

0.0%


Submarket 1-3 Star

Metro Overall 9.0%

8.4%


3.3%

12.0%

Current Building $20.07

Submarket 1-3 Star


$21.53

-


2.9

51.2%12 Mo. Leased SF 164,574



Page 5



RENTS




PROPERTY EXPENSES

Taxes: $5.88/SF (2008)

LEASE

SF Leased: 2,328 SF

Sign Date: Mar 2017


Lease Type: Direct

Floor: 1st Floor

LEASE TERM

Start Date: Apr 2017

TIME VACANT

Date Vacated: Dec 2011

Date Occupied: Apr 2017


TIME ON MARKET

Date On Market: Mar 2011

Date Off Market: Apr 2017


LEASING REP


1 Woodland Ave

Paramus, NJ 07652


PROPERTY


Stories: 3



Land Acres: 6.52


Status: Built 1973

Tenancy: Multi

Class: B

Construction: Steel

Parking: 200 free Surface Sp…

MARKET AT LEASE


1.3%

0.0%


Submarket 2-4 Star

Metro Overall 9.0%

12.6%


2.5%

12.0%


Submarket 2-4 Star


$27.58

-


4.9

34.7%12 Mo. Leased SF 265,734



Page 6



RENTS






PROPERTY EXPENSES

Taxes: $12.78/SF (2011)

LEASE

SF Leased: 2,215 SF

Sign Date: Mar 2017


Lease Type: Direct

Floor: 1st Floor

LEASE TERM


Lease Term: 3 Years

TIME VACANT

Date Vacated: Feb 2014



TIME ON MARKET

Date On Market: May 2013



LEASING REP


1 Woodland Ave

Paramus, NJ 07652


PROPERTY


Stories: 2



Land Acres: 6.52


Status: Built 1977

Tenancy: Multi

Class: B

Construction: Steel

Parking: 137 Surface Spaces…

MARKET AT LEASE


1.3%

0.0%


Submarket 2-4 Star

Metro Overall 9.0%

12.6%


2.5%

12.0%


Submarket 2-4 Star


$27.58


4.9

34.7%12 Mo. Leased SF 265,734



Page 7



RENTS






PROPERTY EXPENSES

Taxes: $8.51/SF (2008)

LEASE

SF Leased: 2,514 SF

Sign Date: Mar 2017


Lease Type: Direct

Floor: 1st Floor

LEASE TERM


Lease Term: 3 Years

TIME VACANT

Date Vacated: Oct 2015



TIME ON MARKET

Date On Market: Feb 2006



LEASING REP


1 Woodland Ave

Paramus, NJ 07652


PROPERTY


Stories: 2



Land Acres: 6.52


Status: Built 1984

Tenancy: Multi

Class: B

Construction: Steel

Parking: Surface Spaces @ $…

MARKET AT LEASE


1.3%

0.0%


Submarket 2-4 Star

Metro Overall 9.0%

12.6%


2.5%

12.0%


Submarket 2-4 Star


$27.58

-


4.9

34.7%12 Mo. Leased SF 265,734



Page 8


6 1060 Main St - River Edge CommonsRiver Edge, NJ 07661 - Route 4/17 Submarket

TENANT

Tenant Name: PhG Services, LLC

Industry: Personal Services

RENTS

Asking Rent: $18.75/MG

Starting Rent: $16.00/MG

Effective Rent: $16.56/MG

Escalations: Steps



Mo. Free Rents: 2 Months

PROPERTY EXPENSES

Taxes: $1.17/SF (2011)

LEASE

SF Leased: 1,313 SF

Sign Date: Oct 2016


Lease Type: Direct

Floor: 3rd Floor

Suite: 303

LEASE TERM

Start Date: Oct 2016

Expiration Date: Oct 2021

Lease Term: 5 Years

TIME VACANT

Date Vacated: Apr 2016

Date Occupied: Oct 2016


TIME ON MARKET

Date On Market: Apr 2016

Date Off Market: Oct 2016


LEASING REP

McBride Corporate Real Estate

240 Frisch Ct, Suite 105

Paramus, NJ 07652-5248

Michael Brown (201) 848-6106

PROPERTY


Stories: 3



Land Acres: 0.93


Status: Built 1989

Tenancy: Multi

Class: B


Parking: Ratio of 4.00/1,000 SF

MARKET AT LEASE


0.5%

0.2%


Submarket 1-3 Star

Metro Overall 8.8%

10.6%


1.3%

11.2%


Submarket 1-3 Star


$24.70

-


7.0

48.3%12 Mo. Leased SF 272,702



Page 9

RentsLease Comps Report

Gross Asking Rent Per SF

$21.02Gross Starting Rent Per SF

$20.88Gross Effective Rent Per SF

$19.10Avg. Months Free Rent

2.0DEALS BY GROSS ASKING, GROSS STARTING, AND GROSS EFFECTIVE RENT

DEALS BY MONTHS FREE RENTDEALS BY ASKING RENT DISCOUNT


Page 10

DEMOGRAPHICS

4 | DEMOGRAPHICS

DEMOGRAPHICS MAP

4DEMOGRAPHICS

MEDICAL CONDO

MEDICAL CONDO




* Demographic data derived from 2010 US Census

Demographics Map

MEDICAL CONDO 4 | DEMOGRAPHICS

ETHNICITY 1 MILE 2 MILES 3 MILES

% HISPANIC 34.3% 28.5% 25.7%

RACE 1 MILE 2 MILES 3 MILES

% WHITE 46.1% 61.9% 68.7%

% BLACK 27.4% 15.9% 11.0%

% ASIAN 8.9% 9.3% 9.8%

% HAWAIIAN 0.0% 0.0% 0.0%

% INDIAN 0.7% 0.3% 0.2%

% OTHER 13.7% 10.3% 8.2%

POPULATION 1 MILE 2 MILES 3 MILES

TOTAL POPULATION 33,679 100,154 198,311

MEDIAN AGE 37.4 38.5 38.9

MEDIAN AGE (MALE) 36.3 37.3 37.4

MEDIAN AGE (FEMALE) 38.7 39.8 40.5

HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES

TOTAL HOUSEHOLDS 14,400 40,871 77,079

# OF PERSONS PER HH 2.3 2.5 2.6

AVERAGE HH INCOME $71,644 $76,887 $83,141

AVERAGE HOUSE VALUE $359,010 $403,542 $429,925

WHY KW COMMERCIAL

5 | WHY KW COMMERCIAL

WHY KW

SAMPLE - BROCHURE

SAMPLE - EMAIL MARKETING

SAMPLE - SIGNAGE

SAMPLE - DEDICATED WEBSITE

MARKETING TIMELINE

5WHY KW COMMERCIAL

MEDICAL CONDO

MEDICAL CONDO



Why KW

MEDICAL CONDO 5 | WHY KW COMMERCIAL


Finding the right office space entails many considerations and complications beyond simply finding the right location. Commercial landlordand tenants can rely on KW Commercial real estate professionals to have intimate knowledge of the local office market and existing tenantbase in order to successfully negotiate office projects. Our results-driven core office services include:

KW Commercial, the commercial real estate arm of Keller Williams Realty, the largest real estate company in North America, is no strangerto success. Our commercial team consists of the most knowledgeable, results- driven brokers backed by the most innovative and scalabletechnology the commercial real estate industry has to offer. Our KW Commercial agents and brokers are held to the highest standard ofbusiness to exceed our clients’ needs in virtually any market nationwide.

An agent-centric company, our mission is “to build commercial careers worth having, businesses worth owning and lives worth living.” KWCommercial provides our associates with the training, technology, marketing tools and resources to serve their clients at the highest level.

Our agents work harder because their work directly influences their bottom line.KW Commercial agents are located in over 650 offices nationwide, including secondary and tertiary markets. This means wherever you needa commercial agent, there is one there for you. With this many locations, we are never far from where our clients need to be.

WHYHire KW Commercial for Office:

ABOUT

▪ Secure online service portal▪ 95,000 residential agents▪ $4 billion in transaction volume

▪ 700 offices nationwide, including tier 2 and 3 cities in49 states

▪ State-of-the-art transaction process▪ Higher net monies to field agents▪ No conflicts of interest

▪ Tenant representation▪ Landlord representation▪ Buyer representation▪ Seller representation

KW Commercial:


Sample - Brochure


BROCHURES & FLYERS

We will create a color brochurehighlighting the features and benefits

of the property. The brochureincludes applicable property photos,

building highlights, locationdescription, aerial photographs,demographics and/or proposed

development plans, and contactinformation. KW Commercial is

flexible and we will adapt to thatwhich is most comfortable with you.

Sample - Email Marketing



VIEW WEBSITE

VIEW ON MAP

DOWNLOAD FLYER

HTML EMAIL CAMPAIGNS

We will create a marketing email packetfor the project and email the packets toall interested prospects in our extensive

email database. We will effectively track,target, and pursue prospects reporting

prospect contacts with our clients


Sample - Signage


Gina M. Palumbo

201.391.2500 X522

KW CommercialEach Office Individually Owned And Operated

OFFICE PROPERTY

FOR SALE

Gina M. Palumbo

KW CommercialEach Office Individually Owned And Operated

201.391.2500 X522www.kwcommercial.com

OFFICE PROPERTYFOR SALE

Our standard sign is designed togenerate the maximum volume of

inquiries regarding the subject. Weplace sign(s) which include KW

Commercial's telephone number,website and the text “AVAILABLE” in a

strategic location which maximizesvisibility. Our standard sign is a 6' x 4'

horizontal sign positioned to achievemaximum public exposure. However,

all signs are subject to local municipalrestrictions.

SIGNAGE


Sample - Dedicated Website


VIEW THE LIVE WEBSITE:

A dedicated property website with acustomized URL is created for your listing. Thewebsite is listed on both our local site as well

as the KW commercial national website,www.kwcommercial.com. and is available to

principals, property owners, investors, brokersand prospective tenants searching the internet

for commercial real estate.

* If necessary, information which is consideredconfidential and not public record will require theexecution of a confidentiality agreement prior to

receipt of classified materials.

https:buildout.complugins221dfefd5bf629c4dcb1d5d51e0560c0ff5ae8fbinventory265136-leasehttps://buildout.com/plugins/221dfefd5bf629c4dcb1d5d51e0560c0ff5ae8fb/inventory/265136-lease

DEDICATED PROPERTY WEBSITE


1 to 15 Days:

15 to 30 Days:

30 to 60 Days:

60 to 120 Days:

120 to 180 Days:

▪ Order “AVAILABLE” sign(s), subject to municipality signage permits and processes▪ Prepare a competitive property profile to leverage our knowledge on competing properties▪ Enter property information on internet-based marketing services including:

- Costar, LoopNet, Catylist (CIE’s) and KW Commercial website▪ Generate property flyer and e-brochure for prospect market and real estate community▪ Develop first tier target prospect market▪ Send property flyer and e-brochure to prospect market and real estate community

▪ Complete first tier prospect market direct mail▪ Resend e-brochure to prospect market and real estate community▪ Cold call follow-up on first tier prospect mailing

▪ Develop third tier target prospect market▪ Complete third tier prospect market direct mail▪ Follow-up on first and second tier prospects▪ Resend e-brochure to prospect market and real estate community▪ Review marketing feedback

▪ Develop second tier target prospect market▪ Complete second tier prospect market direct mail▪ Cold call follow-up on second tier prospect mailing▪ Resend e-brochure to prospect market and real estate community

▪ Discuss progress with ownership▪ Reasses marketing plan (if necessary)

Marketing Timeline


The following are general timelines for marketing actions that are beingimplemented, which will be governed by market conditions:

A PROPOSAL FOR COMMERCIAL SERVICES Medical Condo...All data and assumptions regarding financial...

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Transcript of A PROPOSAL FOR COMMERCIAL SERVICES Medical Condo...All data and assumptions regarding financial...