GEORGE STREET ALE HOUSE & APARTMENTS€¦ · The retail tenant, George Street Ale House, personally...

GEORGE STREET ALE HOUSE & APARTMENTS 378 George St • New Brunswick, NJ 08901

Offering Memorandum

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.

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.

GEORGE STREET ALE HOUSE & APARTMENTS

New Brunswick, NJ

ACT ID Z0280757

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


3


4

INVESTMENT

OVERVIEW


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER# OF

EMPLOYEES

US Post Office 9,508

Robert Wood Johnson Health Sys 5,011

Synechron Technologies 4,227

School of Public Health 3,500

County of Middlesex 2,892

Saint Peters Univ Hosp Inc 2,474

Rutgers The State Univ NJ 2,237

Dept of Psychiatry 2,000

Larsen & Toubro Infotech Ltd 2,000

Software House International 1,800

Franklin Township Pub Schools 1,500

Benchmark Hospitality Inc 1,471

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop

46,526 154,045 277,555

2010 Census Pop 43,354 146,830 265,352

2017 Estimate HH 12,571 46,484 92,173

2010 Census HH 11,682 44,136 87,646

Median HH Income

$47,905 $65,837 $78,155

Per Capita Income $21,384 $28,895 $35,278

Average HH Income

$72,802 $90,999 $103,575

5

VITAL DATA

CURRENT YEAR 1

Price $1,750,000 CAP Rate 6.55% 6.70%

Loan Amount $1,225,000Net Operating Income

$114,701 $117,330

Loan Type Proposed NewNet Cash Flow After Debt Service

6.28% / $32,993 6.79% / $35,622

Interest Rate / Amortization 4.50% / 25 Years Total Return 11.47% / $60,232 12.21% / $64,113

Total Rentable SF 6,120

Price/SF $285.95

Year Built / Renovated 1905 / 2006

UNIT MIX

UNIT COUNT

UNIT TYPE AVG. SFCURRENT AVG.

RENTSAVG.

RENTS/SFMONTHLY INCOME

POTENTIAL RENTS

AVG. RENTS/SF

MONTHLYINCOME

3 Apartments $2,106 $0.00 $6,317 $2,106 $0.00 $6,317

SUITE COUNT

TYPE TOTAL GLA CURRENT RENT RANGECURRENT MONTHLY

INCOMEPRO FORMA

MONTHLY INCOME

1 Retail 2,040 $7,878 - $7,878 $7,878 $8,115


OFFERING SUMMARY

Located in the Heart of Downtown New Brunswick with Retail

Frontage

3 Blocks from Rutgers Campus, Train Station Less Than 0.15

Miles; Walk Score of 96

Proximity to New Mixed-Use Developments

Average Household Income of $103,575 in 5-mile Radius

Dense Population with Large Student Population; 277,555

Residents in 5-mile Radius

One Block from Johnson & Johnson and County Courthouse

INVESTMENT HIGHLIGHTS

Marcus & Millichap has been retained on an exclusive basis to arrange the sale of a mixed-use retail/apartment building located at 378 George Street,

New Brunswick (Middlesex County), New Jersey. The subject property is ideally situated in the heart of town with a large number of corporations,

institutions, multi-family communities, and retailers. The mixed-use property features 3 apartments units on top of a commercial unit. The property

includes 20 feet of frontage on George Street, the main roadway through New Brunswick. The property is less than 0.1 mile from the New Brunswick Train

Station and 0.5 Miles from Robert Wood Johnson Medical Center. Johnson & Johnson's global headquarter is located one block away from the property.

The retail tenant, George Street Ale House, personally signed a 10-year lease in June, 2009. The retail tenant pays 50% of real estate taxes and

water/sewer expenses. There are two 1-bedroom apartments and one loft apartment.

This strategic location has access to multiple major highways: Route 1, Route 18 & Interstate 95. George Street is a heavy mixed-use corridor with many

retail, office, and educational facilities nearby. New Brunswick is a city located in Middlesex County, New Jersey. The subject property is approximately 28

miles southwest of New York City and 52 miles northeast of Philadelphia, PA. New Brunswick is the county seat of Middlesex County and home of

Rutgers University campus. Located on the southern bank of the Raritan River, New Brunswick is known for being the Healthcare City. Corporations such

as Johnson & Johnson and Bristol-Myers Squibb are headquartered there due to the high concentration of medical facilities in the area which includes;

Robert Wood Johnson University Hospital, Saint Peters University Hospital, and Robert Wood Johnson Medical School.

Within a five-mile radius of New Brunswick, the median household income is $103,575 among the 277,555 individuals who reside within a five-mile radius

of the subject property.

The asking price of $1,750,000 represents a 6.55 percent cap rate.

INVESTMENT OVERVIEW

6


#

OFFERING SUMMARY

PROPERTY OVERVIEW

New Brunswick is a city located in Middlesex County, New Jersey. The subject property is

approximately 28 miles southwest of New York City and 52 miles northeast of Philadelphia, PA.

New Brunswick is the county seat of Middlesex County and home of Rutgers University campus.

Located on the southern bank of the Raritan River, New Brunswick is known for being the

Healthcare City. Corporations such as Johnson & Johnson and Bristol-Myers Squibb are

headquartered there due to the high concentration of medical facilities in the area which includes;

Robert Wood Johnson University Hospital, Saint Peters University Hospital, and Robert Wood

Johnson Medical School. The municipalities that share their border with New Brunswick are

Piscataway, Highland Park, Edison, North Brunswick, and Brunswick and Franklin Township. The

major roads and highways that pass through or near New Brunswick are Route 1, Route 18,

Route 27, and Interstate 95. NJ Transit and Amtrak provide public transportation services on the

Northeast Corridor Line which connects Penn Station in NYC to Philadelphia Station. Local bus

service is provided by NJ Transit on bus route 810, 811, 814, 815, 818 and 980.

77


#

PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Amount $1,225,000

Loan Type Proposed New

Interest Rate 4.50%

Amortization 25 Years

Loan Term 5 Years

Loan to Value 70%

Debt Coverage Ratio 1.4

EXISTING FINANCING

Loan Type None

THE OFFERING

Property George Street Ale House & Apartments

Price $1,750,000

Property Address 378 George St, New Brunswick, NJ

Assessors Parcel Number

13 00015-0000-00019

Zoning C-4

SITE DESCRIPTION

Number of Units 4

Number of Buildings 1

Number of Stories 3

Year Built/Renovated 1905

Apartments - Rentable Square Feet

4080

Retail - Gross Leaseable Area (GLA)

2040

Total Rentable Square Feet

6,120

Lot Size 0.05 acre(s)

Type of Ownership Fee Simple

8

REGIONAL MAP


9

LOCAL MAP


10

AERIAL PHOTO


11

The VUE393 Units

Rutgers UniversityCollege Ave Campus

The Quincy149 Units

SoCam 290186 Units

New Brunswick

Apartments206 Units

Riverside Towers169 Units

Riverwatch Commons

200 Units

Plaza Square

Apartments415 Units

Skyline Tower70 Units

The George104 Units

The Yard at College Ave

135 Units

The Hub at New Brunswick

Station Development

New Brunswick Performing Arts

Center Development

Middlesex County

Superior Court

Hyatt Regency

The Heldrich

Hotel

HQ

Subject Property

College Ave Campus

AERIAL


12

George Street George Street

Burger King

Subject Property

HQ

New Brunswick

Train Station

The VUE393 Units

New Brunswick Performing Arts

Center Development

The Hub at New Brunswick

Station Development

SoCam 290186 Units

The Heldrich Hotel &

Conference Hall

Middlesex County

Superior Court

New Brunswick Municipal

Court

NEW DEVELOPMENT


13

New Brunswick Performing Arts CenterMixed-Use & EntertainmentEstimated Completion Date: 2019

Livingston Avenue and George Street

New Brunswick, NJ

In a renewed commitment to the New Brunswick

Downtown Cultural Arts District, DEVCO is gearing

up for a $215 million, 25-story multi-use property

by partnering with the George Street Playhouse and

Crossroads Theatre Company, to create a robust

downtown Arts Center. The venue consists of two

state-of-the-art theaters, dedicated rehearsal

studios, academic and office space. Atop this new

theater complex will be 250 residential apartments

and 15,000 square feet of office space. In addition

there will be a new 400 car parking garage. This

exciting new project will break ground in the Fall of

2017.

RENDERING


14

NEW DEVELOPMENT


15

The Hub @ New Brunswick Station

Mixed-Use & Entertainment

Estimated Completion Date: 2019

Albany Street

New Brunswick, NJ

The Hub at New Brunsick Station is a 4 acre, 1.7

million +/- SF mixed-use redevelopment site with

flexible built-to-suit capabilities. It will be located just

steps from NJ Transit Northeast Corridor Line and

Amtrak via a sky-bridge and will be situated in the

center of the Northeast Corridor between Boston, MA

and Washington DC (via New York City).

As part of an Urban Enterprise Zone (UEZ), occupants

will receive an exemption from sales tax on

construction and may be eligible for other city and

state incentives. The Hub’s location offers direct

access to Rutgers University, one of the nation's

premier public research universities, a highly educated,

skilled workforce, and mass transit options. This

mixed-use project will be a hot bed for innovation.

RENDERING


16

RUTGERS- NEW BRUNSWICK CAMPUS


17

Rutgers University—New Brunswick is a public institution that was founded in 1766. It has a total undergraduate enrollment of 49,577 and the campus size is spread over 2,685 acres in New Brunswick, Piscataway, and North Brunswick. Rutgers University—New Brunswick's ranking in the 2019 edition of Best Colleges is National Universities, 56.

Rutgers University—New Brunswick, the flagship campus of New Jersey's state university, is split into five mini-campuses, each with a unique setting and identity, student center and dining options. Freshmen are not required to live on campus.

Students can join more than 400 student clubs and organizations, including more than 80 fraternities and sororities. The Rutgers Scarlet Knights compete in the NCAA Division I Big Ten Conference. Among its graduate offerings, Rutgers has a highly ranked Graduate School of Education. The university also awards one of the highest numbers of doctorate degrees a year among U.S. schools. As a public research university, Rutgers is home to unique institutions such as the Center for Advanced Infrastructure and Transportation and the New Jersey Agricultural Experiment Station, where students take hands-on courses in the sciences and work on community projects.

AERIAL PHOTO


18

PROPERTY PHOTO


19

PROPERTY PHOTO


20

PROPERTY PHOTO


21

PROPERTY PHOTO


22

PROPERTY PHOTO


23

PROPERTY PHOTO


24


25

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

26

FINANCIAL ANALYSIS


27

RENT ROLL SUMMARY

Notes: George Street Ale House Has Basement Storage Not Included in Total Square Footage.Bar Tenant Has 90 Days to Notify Landlord If They Are Renewing.

FINANCIAL ANALYSIS


OPERATING STATEMENT

28

FINANCIAL ANALYSIS


PRICING DETAIL

29

Notes: George Street Ale House Has Basement Storage Not Included in Total Square Footage.Bar Tenant Has 90 Days to Notify Landlord If They Are Renewing.

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 to the benefit of our clients.

National platform

operating

within the firm’s

brokerage

offices

$5.63 billion

total national

volume in 2017

Access to

more capital

sources than

any other firm

in the industry

Optimum financing solutions

to enhance value

Our ability to enhance

buyer pool by expanding

finance options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender

progress, insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,707

debt and equity

financings

in 2017

ACQUISITION FINANCING


30


31

MARKET

OVERVIEW

MARKET OVERVIEW

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

1

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*:

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2017 Experian

Created on September 2018

POPULATION 1 Miles 3 Miles 5 Miles

2022 Projection

Total Population 47,289 153,625 281,033

2017 Estimate


2010 Census


2000 Census


Daytime Population

2017 Estimate 91,476 207,303 351,756

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2022 Projection

Total Households 12,955 46,956 94,320

2017 Estimate


Average (Mean) Household Size 3.17 2.93 2.81

2010 Census


2000 Census


Growth 2015-2020 3.05% 1.02% 2.33%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

Occupied Units

2022 Projection 12,955 46,956 94,320

2017 Estimate 12,995 47,886 94,436

Owner Occupied 2,827 21,357 52,135

Renter Occupied 9,744 25,127 40,038

Vacant 424 1,402 2,263

Persons In Units

2017 Estimate Total Occupied Units 12,571 46,484 92,173

1 Person Units 27.70% 24.32% 23.96%

2 Person Units 22.76% 26.79% 27.83%

3 Person Units 13.50% 17.09% 18.35%

4 Person Units 11.88% 14.71% 16.14%

5 Person Units 8.73% 7.85% 7.13%

6+ Person Units 15.42% 9.24% 6.59%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2017 Estimate

$200,000 or More 5.14% 6.49% 8.33%

$150,000 - $199,000 5.14% 7.69% 8.97%

$100,000 - $149,000 12.04% 17.68% 20.39%

$75,000 - $99,999 8.79% 13.05% 14.13%

$50,000 - $74,999 17.05% 16.08% 15.50%

$35,000 - $49,999 13.74% 11.50% 10.67%

$25,000 - $34,999 9.07% 7.86% 6.71%

$15,000 - $24,999 11.42% 8.54% 6.97%

Under $15,000 17.63% 11.12% 8.32%

Average Household Income $72,802 $90,999 $103,575

Median Household Income $47,905 $65,837 $78,155

Per Capita Income $21,384 $28,895 $35,278

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2017 Estimate Total Population 46,526 154,045 277,555

Under 20 26.65% 27.26% 25.68%

20 to 34 Years 44.20% 31.57% 26.50%

35 to 39 Years 6.39% 6.76% 7.29%

40 to 49 Years 8.70% 10.94% 12.45%

50 to 64 Years 8.50% 14.13% 17.01%

Age 65+ 5.54% 9.35% 11.06%

Median Age 24.62 29.56 33.60

Population 25+ by Education Level

2017 Estimate Population Age 25+ 22,804 90,155 178,019

Elementary (0-8) 19.62% 9.14% 5.92%

Some High School (9-11) 11.12% 7.09% 5.80%

High School Graduate (12) 24.11% 25.30% 23.96%

Some College (13-15) 9.22% 13.14% 13.83%

Associate Degree Only 3.24% 5.02% 5.74%

Bachelors Degree Only 16.24% 22.24% 25.23%

Graduate Degree 13.95% 16.57% 18.11%

Population by Gender

2017 Estimate Total Population 46,526 154,045 277,555

Male Population 52.58% 50.22% 49.67%

Female Population 47.42% 49.78% 50.33%

33

Income

In 2017, the median household income for your selected geography is

$78,155, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 29.61%

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

area will be $90,768 five years from now, which represents a change

of 16.14% from the current year.

The current year per capita income in your area is $35,278, compare

this to the US average, which is $30,982. The current year average

household income in your area is $103,575, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 277,555. The

population has changed by 11.73% since 2000. It is estimated that

the population in your area will be 281,033.00 five years from now,

which represents a change of 1.25% from the current year. The

current population is 49.67% male and 50.33% female. The median

age of the population in your area is 33.60, compare this to the US

average which is 37.83. The population density in your area is

3,528.29 people per square mile.

Households

There are currently 92,173 households in your selected geography.

The number of households has changed by 7.15% since 2000. It is

estimated that the number of households in your area will be 94,320

five years from now, which represents a change of 2.33% from the

current year. The average household size in your area is 2.81 persons.

Employment

In 2017, there are 193,568 employees in your selected area, this is

also known as the daytime population. The 2000 Census revealed

that 69.43% of employees are employed in white-collar occupations

in this geography, and 30.47% are employed in blue-collar

occupations. In 2017, unemployment in this area is 5.73%. 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:

44.34% White, 16.36% Black, 0.03% Native American and 24.41%

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

70.42% White, 12.85% Black, 0.19% Native American and 5.53%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 23.37% of the current year

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

17.88%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $318,137 in 2017,

compare this to the US average of $193,953. In 2000, there were

51,236 owner occupied housing units in your area and there were

34,784 renter occupied housing units in your area. The median rent at

the time was $810.

Source: © 2017 Experian

DEMOGRAPHICS

34

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DEMOGRAPHICS

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GEORGE STREET ALE HOUSE & APARTMENTS€¦ · The retail tenant, George Street Ale House, personally...

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