Offering Memorandum - LoopNet€¦ · Marcus & Millichap is pleased to exclusively list for sale an...

DIAMOND PLAZA (8 APTS / 3 RETAIL) 175 Route 23 • Hamburg, NJ 07419

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.

DIAMOND PLAZA (8 APTS / 3 RETAIL)

Hamburg, NJ

ACT ID Z0280306

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Location Overview

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Tenant Summary

Lease Expiration Chart

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET OVERVIEW 03Demographic Analysis


3


4

INVESTMENT

OVERVIEW


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER# OF

EMPLOYEES

LOreal Usa Inc 500

Skilled Nursing Facility 433

Mountain Creek 707 399

Wallkill Valley General Hosp 300

Ronetco Supermarkets Inc 230

Mountain Creek 200

Walmart 188

Shop Rite 175

St Claires Hospital/Sussex 164

Shop Rite Liquors of Franklin 156

Hardyston Board of Education 135

Levitt Properties 129

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop

3,792 14,003 28,086

2017 Census Pop 3,860 14,427 28,859

2017 Estimate HH 1,611 5,635 10,871

2017 Census HH 1,644 5,831 11,218

Median HH Income

$69,539 $73,984 $75,266

Per Capita Income $37,720 $38,072 $37,255

Average HH Income

$88,763 $94,551 $96,144

5

VITAL DATA

YEAR 1 YEAR 2

Price $1,300,000 CAP Rate 7.70% 7.70%

Down Payment 25% / $325,000Net Operating Income

$100,096 $100,096

Loan Amount $975,000Net Cash Flow After Debt Service

11.04% / $35,891 11.04% / $35,891

Loan Type Proposed New Total Return 17.81% / $57,877 18.11% / $58,858

Interest Rate / Amortization

4.38% / 25 Years

Gross Leasable Area (GLA)

8,000 SF

Price/SF $162.50

Current Occupancy 100.0%

Lot Size 0.69 acre(s)


OFFERING SUMMARY

8,000 SF Multi-Tenant Retail + 8 Apartment Units

20 Surface Parking Spaces on 0.69 Acre Lot

Located on Route 23/ Hamburg Turnpike (Main Artery in the

Region)

Zoned for Highway Commercial Uses

Barber & Nail Salon Have 5% Annual Increases

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to exclusively list for sale an 8,000 SF Multi-Tenant Retail + 8 Apartment Units located in Hamburg,

(Sussex County) New Jersey. The subject property is situated on Route 23/Hamburg Turnpike which provides access to all

nearby residents looking north or south. The subject property is built on 0.69 acre lot and in a zoning area for highway

commercial uses. All retail tenants have been in the same location for numerous years. Two tenants (Barber & Nail Salon) have

5% annual increases.

Hamburg is a borough in Sussex County, New Jersey. The subject property is approximately 43 miles northwest of New York

City, NY. Hamburg shares its border with Franklin, Hardyston Township, Highland Lakes, McAfee and Sussex. The major roads

and highways that pass through or near Hamburg are Route 23, Route 94, and US Route 206. Highlands Connect bus provides

bus service to Newton, Sparta, and Sussex.

Within a 5-mile radius of Hamburg, the median household income is $46,902 among the 771,070 individuals who resides within a

5-mile radius of the subject property.

The asking price of $1,300,000 represents a 7.70 percent cap rate.

INVESTMENT OVERVIEW

6


#

OFFERING SUMMARY

PROPERTY OVERVIEW

Hamburg is a borough in Sussex County, New Jersey. The subject property is

approximately 43 miles northwest of New York City, NY. Hamburg shares its border

with Franklin, Hardyston Township, Highland Lakes, McAfee and Sussex. The major

roads and highways that pass through or near Hamburg are Route 23, Route 94, and

US Route 206. Highlands Connect bus provides bus service to Newton, Sparta, and

Sussex.

77


PROPERTY SUMMARY

OFFERING SUMMARY

THE OFFERING

Property Diamond Plaza (8 Apts / 3 Retail)

Price $1,300,000

Property Address 175 Route 23, Hamburg, NJ

8

PROPOSED FINANCING

First Trust Deed

Loan Amount $975,000

Loan Type Proposed New

Interest Rate 4.375%

Amortization 25 Years

Loan Term 5 Years

Loan to Value 75%

Debt Coverage Ratio 1.56

#

LOCATION OVERVIEW

CLOSE PROXIMITY TO:

175 Route 23, Hamburg, NJ 07419

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEDIAMOND PLAZA (8 APTS / 3 RETAIL)

PRICING AND VALUATION MATRIX

PROPERTY NAMEDIAMOND PLAZA (8 APTS / 3 RETAIL)

LOCATION OVERVIEW

9

REGIONAL MAP


10

LOCAL MAP


11

PROPERTY PHOTO


12

PROPERTY PHOTO


13

PROPERTY PHOTO


14

PROPERTY PHOTO


15

PROPERTY PHOTO


16

PROPERTY PHOTO


17

PROPERTY PHOTO


18

PROPERTY PHOTO


19


20

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


21

TENANT SUMMARY

Notes: Cuts and Beyond & Nail Designs Have 5% Annual Increases.

12

TENANT SUMMARYFINANCIAL ANALYSIS


22

FINANCIAL ANALYSIS


OPERATING STATEMENT

23

FINANCIAL ANALYSIS


PRICING DETAIL

24

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

$5.1 billion

total national

volume in 2016

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 1,651

debt and equity

financings

in 2016

ACQUISITION FINANCING


25


26

MARKET

OVERVIEW

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2017 Experian

Created on March 2018

POPULATION 1 Miles 3 Miles 5 Miles

2022 Projection

Total Population 4,160 15,136 29,640

2017 Estimate


2010 Census


2000 Census


Current Daytime Population

2017 Estimate 2,895 11,653 21,642

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2022 Projection

Total Households 1,799 6,161 11,583

2017 Estimate


Average (Mean) Household Size 2.42 2.55 2.60

2010 Census


2000 Census


Occupied Units

2022 Projection 1,799 6,161 11,583

2017 Estimate 1,843 6,466 12,819

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2017 Estimate

$150,000 or More 11.78% 14.01% 14.34%

$100,000 - $149,000 17.56% 20.52% 20.86%

$75,000 - $99,999 16.52% 14.75% 14.97%

$50,000 - $74,999 19.30% 18.44% 18.33%

$35,000 - $49,999 12.28% 10.79% 10.77%

Under $35,000 22.58% 21.49% 20.70%

Average Household Income $88,763 $94,551 $96,144

Median Household Income $69,539 $73,984 $75,266

Per Capita Income $37,720 $38,072 $37,255

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles

Total Average Household Retail Expenditure

$75,082 $77,657 $78,758

Consumer Expenditure Top 10 Categories

Housing $22,150 $22,683 $22,971

Shelter $14,371 $14,641 $14,788

Transportation $13,100 $13,690 $13,939

Personal Insurance and Pensions $7,370 $7,792 $8,072

Food $6,768 $6,962 $7,086

Health Care $4,491 $4,633 $4,639

Utilities $4,216 $4,314 $4,359

Entertainment $2,742 $2,863 $2,924

Education $2,187 $2,446 $2,605

Cash Contributions $1,673 $1,744 $1,759

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2017 Estimate Total Population 3,792 14,003 28,086

Under 20 22.49% 21.62% 22.77%

20 to 34 Years 16.81% 17.59% 17.66%

35 to 39 Years 6.70% 6.16% 5.85%

40 to 49 Years 13.74% 13.54% 14.13%

50 to 64 Years 23.32% 24.25% 24.69%

Age 65+ 16.94% 16.85% 14.88%

Median Age 43.08 43.83 43.05

Population 25+ by Education Level

2017 Estimate Population Age 25+ 2,743 10,153 19,922

Elementary (0-8) 0.87% 1.29% 1.23%

Some High School (9-11) 6.42% 6.39% 6.37%

High School Graduate (12) 34.36% 36.15% 35.16%

Some College (13-15) 21.80% 21.31% 20.95%

Associate Degree Only 7.07% 7.19% 7.92%

Bachelors Degree Only 19.61% 18.13% 19.27%

Graduate Degree 9.47% 9.12% 8.71%

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Income

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

$75,266, compare this to the US average which is currently $56,286.

The median household income for your area has changed by 32.29%

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

area will be $88,447 five years from now, which represents a change

of 17.51% from the current year.

The current year per capita income in your area is $37,255, compare

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

household income in your area is $96,144, compare this to the US

average which is $81,217.

Population

In 2017, the population in your selected geography is 28,086. The

population has changed by 4.86% since 2000. It is estimated that the

population in your area will be 29,640.00 five years from now, which

represents a change of 5.53% from the current year. The current

population is 49.57% male and 50.43% female. The median age of

the population in your area is 43.05, compare this to the US average

which is 37.83. The population density in your area is 356.98 people

per square mile.

Households

There are currently 10,871 households in your selected geography.

The number of households has changed by 10.29% since 2000. It is

estimated that the number of households in your area will be 11,583

five years from now, which represents a change of 6.55% from the

current year. The average household size in your area is 2.60 persons.

Employment

In 2017, there are 10,215 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

59.61% of employees are employed in white-collar occupations in

this geography, and 40.46% are employed in blue-collar occupations.

In 2017, unemployment in this area is 5.86%. In 2000, the average

time traveled to work was 43.00 minutes.

Race and Ethnicity

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

90.89% White, 2.60% Black, 0.04% Native American and 2.35%

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 8.55% 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 $265,769 in 2017,

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

7,403 owner occupied housing units in your area and there were

2,455 renter occupied housing units in your area. The median rent at

the time was $673.

Source: © 2017 Experian

DEMOGRAPHICS

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DEMOGRAPHICS

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