SHORT HILLS TOWNE CENTER - LoopNet · 2019. 5. 21. · caters to the local population. The site...

OFFERING MEMORANDUM

SHORT HILLS TOWNE CENTER480 - 488 E. Evesham Road Cherry Hill, NJ

2

OFFERED EXCLUSIVELY BY

Marcus & Millichap2005 Market Street #1510

Philadelphia, PA 19103

P: 215.531.7000

www.marcusmillichap.com

Section 1: Investment SummaryInvestment Overview..................................................6Property Description...................................................7Site Plan....................................................................8Investment Summary...................................................9Investment Highlights................................................10Section 2: Financial AnalysisRent Roll..................................................................12Expenses Breakdown................................................13Income & Expenses...................................................14Rent Comps..............................................................15

Section 3: Tenant DescriptionsStarbucks.................................................................17Wells Fargo Bank.....................................................18Tenant Overviews.....................................................19 Section 4: Market OverviewRegional Map..........................................................21Cherry Hill MSA......................................................22Demographics..........................................................23South Jersey MSA....................................................24Philadelphia MSA....................................................25Section 4: Tir Na Nog SummaryTir Na Nog Overview...............................................271st & 2nd Floor Plans..................................................28Sale & Rent Comps...................................................29NON-ENDORSEMENT

AND DISCLAIMER NOTICENON-ENDORSEMENTSMarcus & 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.

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. © 2017 Marcus & Millichap. All rights

reserved.

Marcus & Millichap Real Estate Investment Services of Seattle, Inc. License: RB062197C

Broker of Record: Brian HoseyLIC #: NJ 1434917

Derrick DoughertyFirst Vice PresidentPhiladelphia, [email protected] License: PA RS305854

Scott WoodardNational Retail Group Philadelphia, PA PA RS329242

Mark KrantzNational Retail GroupPhiladelphia, PA [email protected] RS336064 | NJ 1537786

Steven GarthwaiteNational Retail Group Philadelphia, PA PA RS332182

Short Hills Towne Center

TABLE OF CONTENTS

EVESHAM ROAD (29,418 VPD)

$500,000 - $800,000Housing Community

$300,000Housing Community

$200,000 - $400,000Housing Community

$350,000Housing Community

Woodcrest Country Club

Zoned R-10Multi-Residential 10

EVESHAM ROAD (29,418 VPD)

SHORT

HILL

DRI

VE

Voorhees Middle School (1,1067 Total Students)

Holly Ravine Plaza

Eagle Plaza

M

Eastern Regional High School(2,038 Total Students)

HOLLY OAK DR

EVES

HAM ROAD (2

9,418 V

PD)

2,496 sf

30,000 sf

EXECUTIVE SUMMARY

6

CHERY HILL, NJ

480 & 484-488 E. Evesham Rd

CAP RATE

7.00%PRICE NET OPERATING INCOME

$646,298


PROPERTY OVERVIEW$9,300,000

PROPERTY SUMMARYSQUARE FOOTAGE:39,930

LOT SIZE:5.8 Acres

YEAR BUILT/RENOVATED:1996/2003

OCCUPANCY:87.35% (Not inclusive of Tir Na Nog)

PARKING:293 Spaces

FINANCING SUMMARY

DEBT QUOTE:• 70% LTV• 25 Year Amortization• 10 Years Fixed 4.5% - 4.75%• Full Recourse

FINANCING CONTACT:Stephen FilippoDirector - Capital Markets(212) [email protected]

*Not inclusive of Tir Na Nog

7

FOUNDATIONSteel-reinforced, cast-in-place concrete footings. Floors are cast-in-place concrete slabs-on-grade.

BUILDING FRAME/STRUCTURE Structural steel framing, but the pitched roofs are framed with wood. The restaurant is a wood-framed former farmhouse with steel and wood additions.

EXTERIOR Brick with accent bands of exterior insulating and finished system (EIFS) sections at the front exposures, painted concrete block masonry at the rear and lateral walls.

INTERIOR Carpet and ceramic tile floors are most typical with painted sheetrock walls and acoustical tile ceilings on standard metal grids.

ROOF TYPE• Building #484,486,488: Asphalt Shingle(2006) • Building #480: Membrane(Age 2018)

PROPERTY DESCRIPTION:PROPERTY DESCRIPTIONLOCATION 480-488 E Evesham Road, Cherry Hill, NJ 08003

YEAR BUILT 1996 - 2003

PROPERTY SIZE 39,930 SF 5.8 Acres First Floor: 33,755 SF Second Floor: 6,175 SF PARKING 293 Spaces 5.8 Spaces/ 1,000 SF ACCESS 2 Access Points 1 on Evesham Road (Egress) 1 on Short Hills Drive (Ingress/Egress}

UTILITIES • Electricity: Public Service Electric and Gas Company. • Natural Gas: South Jersey Gas Company. • Sanitary Sewerage: Cherry Hill Township. • Potable Water: New Jersey American Water Company.

PLUMBING Combined Residential Water supply, waste and vent lines consist of copper, and cast iron or PVC, respectively.

ZONING Township of Cherry Hill B1, Neighborhood Business Part of a Residential-lnclusionary Planned Development (RIPD)

FLOOD ZONE Zone X Outside of 500 year flood plain, lowest (best) possible rating

8

17

161514b

14a

1312

109

Suite202

7654321

Suite201

Suite200

Short Hills D

rive

Evesham Road

Bridle Court

ShortHills Deli

*Tir Na Nog10,243sf


SITE PLAN

484 486

482

480

488

TENANT SUITE NRSF GLA %

BUILDING # 484

Tutoring Club Suite 1 1,820 4.56%

Base Coat Nail Salon Suite 2 1,775 4.45%

Tabboulee - Gyro & Falafel Suite 3 1,775 4.45%

Busy Bee's - Day Care Center Suite 4 1,775 4.45%

Available Space Suite 5 1,775 4.45%


RPC Real Estate Suite 7 1,810 4.53%

BUILDING # 486

Short Hills Deli Suite 8 5,120 12.82%

Short Hills Cleaners Suite 9 2,000 5.01%

Stretch Zone Suite 10 1,400 3.51%

BUILDING # 486 (SECOND FLOOR)

Leader One Financial Suite 200 1,806 4.52%

Kaplan Risk Suite 201 1,334 3.34%

Powered by Pohler Suite 203 3,035 7.60%

PAD - #482

*Tir Na Nog Suite 482

BUILDING #480

Classic Cakes Suite 12 1,500 3.76%


Camp Bow Wow Suite 14a 1,328 3.33%

Make Up Bar Suite 14b 1,332 3.34%

Pho Huong Viet Restaurant Suite 15 2,215 5.55%

Starbucks Suite 16 1,855 4.65%

PAD - #488

Wells Fargo - Ground Lease Suite 17 3,000 7.51%

Total Square Footage 39,930

* Tir Na Nog is Priced Separately on Page 27

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General OverviewMarcus & Millichap on behalf of ownership, is pleased to exclusively offer the Short Hills Towne Center, a 39,930 SF neighborhood retail center anchored by Starbucks and Wells Fargo (not including Tir Na Nog). The Property is in a master planned community in the highly desirable Cherry Hill, NJ submarket. The center features superior real estate fundamentals with exceptional frontage, visibility, and numerous economic demand drivers located within the immediate vicinity. The subject property is on 5 separate tax parcels. There is a cross easement in place where the majority owner controls the easements for parking. The Short Hills Towne Center represents an opportunity for investors to acquire 5.8 acres of strategically positioned real estate in a high - income submarket only 15 miles outside Philadelphia.

Tenant Roster & Real Estate FundamentalsThe Short Hills Towne Center is currently 87.35% occupied with a diverse tenant roster that caters to the local population. The site features tenants such as Wells Fargo, Starbucks, and Short Hills Deli. Wells Fargo is subject to a ground lease with over $102 million in deposits (almost a 9% growth since 2016) and an A2 credit rating from Moody’s. Starbucks is another major draw to the center as it features an outdoor courtyard. This high traffic location recently renewed their lease for an additional 5 years(Sept -23) showing commitment to the site. The Short Hills Deli is a local institution with over 20+ years of operating experience and ample lease term remaining. The remaining tenants are service oriented featuring food, services, and fitness.


INVESTMENT SUMMARY

Local Submarket - Cherry Hill Economic DriversThe Short Hills Towne Center is positioned in a master planned community which is in a wealthy, dense residential community providing a constant flow of consumers. The residential community behind the center features single family residential house ranging from $500K - $800k, and a subgroup of Townhomes with valuations at +/-$300K. The site has limited competition due to the submarket having high barriers to entry. The remaining parcel in the master plan is zoned R-19 – multi residential, which is configured for townhouses and garden apartments. The property is also near numerous local demand drivers such the Vorhees Middle School (1,100 Students), 100,000 SF of medical office space, and a Virtua Medical Campus. The Short Hills Towne Center is an important piece of the community and daily local life.

Tir Na Nog SummaryTir Na Nog is a brand recognized Irish Bar/Restaurant that lies in the middle of the center on its own separate tax parcel. It currently sits on 1.07 acres and features 300+ seats spanning over two floors with 10,243 square feet. At the current moment, Tir Na Nog is not paying base rent however, they are responsible for paying carrying costs such as Taxes, Insurance, and CAM. The shopping center pricing is independent and isolated from Tir Na Nog. Tir Na Nog is unpriced (Page 27). Ownership encourages investors to put in a offer on both pieces however one can buy separately as they see fit.

10

OPPORTUNITY TO OWN A 39,930 SQ FT SHOPPING CENTER IN PRESTIGIOUS CHERY HILL NEW JERSEY• The site sits on 5.8 Acres in the highly coveted Cherry Hill, NJ submarket where the average household income is over $194,774 within a

1-mile radius

DIVERSE TENANT ROSTER ANCHORED BY STARBUCKS, WELLS FARGO, AND SHORT HILLS DELI• Starbucks has been at the site since 1998 and has recently renewed for 5 years showing commitment to the site

• Wells Fargo is on a ground lease with Moody’s A2 credit and over $102.2 million in deposits (Almost 9% increase since 2016)

• Short Hills Deli is a local institution and caters to the submarket with over 8+ years remaining on the lease

SUPERIOR REAL ESTATE FUNDAMENTALS – HIGHLY VISIBLE AND TRAFFICKED LOCATION• The Short Hills Town Center has over 575 linear feet of frontage on Evesham Road with over 30,000 vehicles passing the site per day.

VALUE ADD OPPORTUNITY TO REPOSITION TIR NA NOG (BAR/RESTAURANT) SPACE – UNDERWRITTEN & PRICED SEPARATELY FROM SHOPPING CENTER • Tenant is paying for carrying costs and currently features a liquor license and 10,243 square feet with 300+ seats

IRREPLACEABLE POSITIONING WITH IMMEDIATE ACCESS TO RESIDENTIAL HOUSING AND NUMEROUS DEMAND DRIVERS• The site sits in a dense residential portion of an affluent residential population that primarily consists of single family residential houses

ranging in from $500K - $800k with a smaller townhomes with valuations at +/- $300K

• The property is near numerous local drivers including Vorhees Middle School(1,100 Students), 100,000 sq. ft. of medical and office space, and Virtua Medical Campus

REGIONAL ACCESS AND THRIVING ECONOMY • Only 15.5 miles away from Philadelphia which is one of the country’s largest MSA’s and powerful economies

• Philadelphia is built on a strong “Ed and Meds” foundation including 120 hospitals, 200 pharmaceutical and some of the top education institutions in the country.

• Cherry Hill’s residential appeal and ease of commute to Philadelphia has made this submarket an attractive place to live.


INVESTMENT HIGHLIGHTS

FINANCIAL ANALYSIS

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TENANT NRSF GLA % LSD LXD

RENT & OPTION PERIODS EXPENSE REIMBURSEMENTS

COMMENTSANNUAL $ CURRENT INCREASE

DATEINCREASE AMOUNT $/SF OPTIONS LEASE TYPE

BUILDING #484

Suite 1 Tutoring Club 1,820 4.56% Aug-04 Jul-24 $50,616 $27.81 Aug-19 Aug-22

$47,320$50,960

$26.00$28.00

None Gross Lease - Utilities Operator has Personal Guarantee on Lease for 5 Years

Suite 2 Base Coat Nail Salon 1,775 4.45% Nov-18 Oct-23 $23,075 $13.00

Nov-19Nov-20Nov-21Nov-22

$24,850$25,737$26,625$27,513

$14.00$14.50$15.00$15.50

None NNN+ 15% Admin Fee

Suite 3 Tabboulee - Gyro & Falafel 1,775 4.45% Jan-18 Dec-20 $27,513 $15.50 Jan-20 $28,400 $16.00 1(3yr) Option NNN+ Mgmt Fee + 15% Admin Fee Operator has Personal Guarantee on Lease for 3 Years

Suite 4 Busy Bee's - Day Care Center 1,775 4.45% Sep-15 Aug-20 $36,000 $20.28 None Gross Lease

Suite 5 Available Space 1,775 4.45%


Suite 7 RPC Real Estate 1,810 4.53% Jul-16 Jan-20 $12,000 $6.62 Gross Lease Landlord pays utilities

BUILDING # 486

Suite 8 Short Hills Deli 5,120 12.82% May-97 Oct-27 $135,680 $26.50May-20Nov-22May-25

$143,360$151,040$158,720

$28.00$29.50$31.00

1(5yr) Option) NNN+ 15% Admin Fee

Suite 9 Short Hills Cleaners 2,000 5.01% Sep-96 Jul-22 $58,000 $29.00Jul-19Jul-20Jul-21

$59,000$60,000$61,000

$29.50$30.00$30.50

1(3yr) Option) NNN+ Mgmt Fee + 15% Admin Fee

Suite 10 Stretch Zone 1,400 3.51% Jun-19 May-22 $39,200 $28.00 Jun-20 $40,600 $29.00 2(5yr) Option) NNN


Suite 200 Leader One Financial 1,806 4.52% Jan-18 Dec-20 $23,952 $13.26 Jan-20 $24,432 $13.53 None Gross Lease - Utilities & Janitorial Cost

Suite 201 Kaplan Risk 1,334 3.34% Dec-09 Mar-20 $21,600 $16.19 None Gross Lease - Utilities over $10K @42%

Suite 203 Powered by Pohler 3,035 7.60% Jun-17 Jun-22 $34,380 $11.33Jun-19Jun-20Jun-21

$35,412$36,468$37,572

$11.67$12.02$12.38

1(5yr) Option) Gross Lease - Utilities billed direct

BUILDING #480

Suite 12 Classic Cakes 1,500 3.76% Jun-08 May-23 $50,648 $33.77

Jun-19Jun-20Jun-21Jun-22

$51,915$53,213$54,535$55,905

$34.61$35.48$36.36$37.27

1(5yr Option) with 2.5% annual increases NNN + Mgmt Fee +10% Admin Fee


Suite 14a. Camp Bow Wow 1,328 3.33% May-14 Apr-22 $36,520 $27.50May-19May-20May-21

$36,852$37,516$38,180

$27.75$28.25$28.75

1(7yr) Option NNN + Mgmt Fee + 15% Admin Fee

Suite 14b. Make Up Bar 1,332 3.34% May-05 Apr-20 $37,296 $28.00 May-19 $37,962 $28.50 1(3yr) Option NNN + Mgmt Fee + 10% Admin Fee Exclusive: Beauty Salon

Suite 15 Pho Huong Viet Restaurant 2,215 5.55% Mar-16 Apr-21 $54,267 $24.50May-19May-20

$55,929$57,590

$25.25$26.00


Suite 16 Starbucks 1,855 4.65% Oct-98 Sep-23 $57,505 $31.00 4(5yr) Option NNN + Mgmt + 15% Admin Fee with 5% yearly CAM CAP except snow

Right to terminate after 9/30/2020 with 6 months notice. Also Exclusive: Sale of freshly ground coffee beans, gourmet brand, identified brewed

coffee, espresso base coffee drinks

PAD - #488

Suite 17 Wells Fargo - Ground Lease 3,000 7.51% Apr-97 Mar-22 $106,778 $35.59Apr-20Apr-21

$109,981$113,281

$36.66$37.76

1(10yr) + 1(5yr) Option NNN + 5% Admin Fee *Extended 10 Years in 2012

Total Square Footage 39,930 2019 Rent $793,880

* Please note Tir Na Nog is priced independently. Please see page 26.

TOTAL AVAILABLE

5,050sf (12.65%)TOTAL OCCUPIED NNN TENANTS

34,880sf (87.35%) 25,075sf (62.80%)

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TENANT NRSF GLA % LSD LXD

RENT & OPTION PERIODS EXPENSE REIMBURSEMENTS

COMMENTSANNUAL $ CURRENT INCREASE

DATEINCREASE AMOUNT $/SF OPTIONS LEASE TYPE

BUILDING #484

Suite 1 Tutoring Club 1,820 4.56% Aug-04 Jul-24 $50,616 $27.81 Aug-19 Aug-22

$47,320$50,960

$26.00$28.00

None Gross Lease - Utilities Operator has Personal Guarantee on Lease for 5 Years

Suite 2 Base Coat Nail Salon 1,775 4.45% Nov-18 Oct-23 $23,075 $13.00

Nov-19Nov-20Nov-21Nov-22

$24,850$25,737$26,625$27,513

$14.00$14.50$15.00$15.50

None NNN+ 15% Admin Fee

Suite 3 Tabboulee - Gyro & Falafel 1,775 4.45% Jan-18 Dec-20 $27,513 $15.50 Jan-20 $28,400 $16.00 1(3yr) Option NNN+ Mgmt Fee + 15% Admin Fee Operator has Personal Guarantee on Lease for 3 Years

Suite 4 Busy Bee's - Day Care Center 1,775 4.45% Sep-15 Aug-20 $36,000 $20.28 None Gross Lease



Suite 7 RPC Real Estate 1,810 4.53% Jul-16 Jan-20 $12,000 $6.62 Gross Lease Landlord pays utilities

BUILDING # 486

Suite 8 Short Hills Deli 5,120 12.82% May-97 Oct-27 $135,680 $26.50May-20Nov-22May-25

$143,360$151,040$158,720

$28.00$29.50$31.00

1(5yr) Option) NNN+ 15% Admin Fee

Suite 9 Short Hills Cleaners 2,000 5.01% Sep-96 Jul-22 $58,000 $29.00Jul-19Jul-20Jul-21

$59,000$60,000$61,000

$29.50$30.00$30.50

1(3yr) Option) NNN+ Mgmt Fee + 15% Admin Fee

Suite 10 Stretch Zone 1,400 3.51% Jun-19 May-22 $39,200 $28.00 Jun-20 $40,600 $29.00 2(5yr) Option) NNN


Suite 200 Leader One Financial 1,806 4.52% Jan-18 Dec-20 $23,952 $13.26 Jan-20 $24,432 $13.53 None Gross Lease - Utilities & Janitorial Cost

Suite 201 Kaplan Risk 1,334 3.34% Dec-09 Mar-20 $21,600 $16.19 None Gross Lease - Utilities over $10K @42%

Suite 203 Powered by Pohler 3,035 7.60% Jun-17 Jun-22 $34,380 $11.33Jun-19Jun-20Jun-21

$35,412$36,468$37,572

$11.67$12.02$12.38

1(5yr) Option) Gross Lease - Utilities billed direct

BUILDING #480

Suite 12 Classic Cakes 1,500 3.76% Jun-08 May-23 $50,648 $33.77

Jun-19Jun-20Jun-21Jun-22

$51,915$53,213$54,535$55,905

$34.61$35.48$36.36$37.27

1(5yr Option) with 2.5% annual increases NNN + Mgmt Fee +10% Admin Fee


Suite 14a. Camp Bow Wow 1,328 3.33% May-14 Apr-22 $36,520 $27.50May-19May-20May-21

$36,852$37,516$38,180

$27.75$28.25$28.75


Suite 14b. Make Up Bar 1,332 3.34% May-05 Apr-20 $37,296 $28.00 May-19 $37,962 $28.50 1(3yr) Option NNN + Mgmt Fee + 10% Admin Fee Exclusive: Beauty Salon

Suite 15 Pho Huong Viet Restaurant 2,215 5.55% Mar-16 Apr-21 $54,267 $24.50May-19May-20

$55,929$57,590

$25.25$26.00


Suite 16 Starbucks 1,855 4.65% Oct-98 Sep-23 $57,505 $31.00 4(5yr) Option NNN + Mgmt + 15% Admin Fee with 5% yearly CAM CAP except snow

Right to terminate after 9/30/2020 with 6 months notice. Also Exclusive: Sale of freshly ground coffee beans, gourmet brand, identified brewed

coffee, espresso base coffee drinks

PAD - #488

Suite 17 Wells Fargo - Ground Lease 3,000 7.51% Apr-97 Mar-22 $106,778 $35.59Apr-20Apr-21

$109,981$113,281

$36.66$37.76

1(10yr) + 1(5yr) Option NNN + 5% Admin Fee *Extended 10 Years in 2012

Total Square Footage 39,930 2019 Rent $793,880


OPERATING EXPENSES2019 BUDGET EXPENSES

2019 PSFReal Estate Taxes

RE Property Taxes #480(Starbucks) $50,365

RE Property Taxes #484(Tutor) $64,786

RE Property Taxes #486(Deli) $68,786

RE Property Taxes #488(Wells Fargo) $29,392

Total Taxes $213,329 $5.34

Property Insurance

Total Property Insurance $9,764 $0.24

Common Area Maintenance

Building Repairs #480(Starbucks) $5,969

Building Repairs #484(Tutor) $1,106

Building Repairs #486(Deli) $599

Snow Removal $31,707

Landscaping $17,422

Trash Removal #480(Starbucks) $7,555

Trash Removal #484(Tutor) & #486(Deli) $9,367

County Sewer $8,096

Cherry Hill Sewer $8,355

Electric - Parking Lot $4,888

Fire Sprinkler Alarm #486(Deli) $4,055

Water Irrigation - Sprinklers $499

Pest Control $606

Signage $670

Parking Lot Maintenance - Sweep $7,654

Parking Lot Repairs $6,117

Parking Lot Maintenance $2,971

Total CAM $117,637 $2.95

Second Floor Space Expenses

Cleaning - 2nd Floor Common Area $7,062

Utilities - 2nd Floor Common Area $9,291

Total Second Floor Space $16,352 $0.36

Management Fee

Management Fee $41,952

Total Management Fee $41,952 $1.05

Total Reimbursable Expenses $399,035 $9.99

Non Reimbursable Expenses

Tenant Repairs & Maintenance $3,452

Vacant Utilities & Gas, Water, Electric $10,394

RPC - Utilities $5,441

CAM CAP - Starbucks $1,037

Reserves(20 Cents Per Square Foot) $7,986

Non-Reimbursable Expenses $28,309 $0.71

Total Expenses $427,344 $10.70

Operating Expenses:

Operating Expenses: Projected Operating Expenses for 2019

Capital Reserve: $0.20/sf

Non Reimbursable Expenses: $28,309

Management Fee: 3.8% of EGI

Admin Fee: Used 2019 Estimates from Ownership

14

INCOME PSF

Base Rent $815,084 $20.41

Reimbursement Rent $244,986

Admin Fee $13,572

GROSS INCOME Total $1,073,642

EXPENSES(3)

Real Estate Taxes $213,329 $5.34

Insurance $9,764 $0.24

CAM Reimbursable

Building Repairs #480(Starbucks) $5,969

Building Repairs #484(Tutor) $1,106

Building Repairs #486(Deli) $599

Snow Removal $31,707

Landscaping $17,422

Trash Removal #480(Starbucks) $7,555

Trash Removal #484(Tutor) & #486(Deli) $9,367

County Sewer $8,096

Cherry Hill Sewer $8,355

Electric - Parking Lot $4,888

Fire Sprinkler Alarm #486(Deli) $4,055

Water Irrigation - Sprinklers $499

Pest Control $606

Signage $670

Parking Lot Maintenance - Sweep $7,654

Parking Lot Repairs $6,117

Parking Lot Maintenance $2,971

Total Common Area Maintenance $117,637 $2.95

Second Floor Space

Cleaning - 2nd Floor Common Area $7,062

Utilities - 2nd Floor Common Area $9,291

Total Second Floor Space Expenses $16,352 $0.36

Management & Admin Fee Expense

Management Fee $41,952 $1.05

Total Management $41,952 $0.36

Total Reimbursable Operating Expenses $399,035 $9.99

Non Reimbursable Expenses

Tenant Repairs & Maintenance $3,452

Vacant Utilities & Gas, Water, Electric $10,394

RPC - Utilities $5,441

CAM CAP - Starbucks $1,037

Reserves(20 Cents Per Square Foot) $7,986

Total Non Reimbursable Expenses $28,309

Total Expenses $427,344 $10.70

Underwriting Notes:(1) Base Rent: Analysis start from 9.1.19(2) Reimbursement Rent: Analysis is reflective of each tenant's lease and CAM Reconciliation(3) Admin Fee: Analysis is reflective of 2019 estimates from Ownership(4) Expenses: Analysis is reflective of 2019 Expense Budget(5) Management Fee: Analysis is reflective of 3.8% of EGI(6) Starbucks CAM CAP: Analysis is reflective of 2018 Actual(7) Reserves: Analysis is an underwriting standard at 20 cents per square foot


INCOME & EXPENSES

Net Operating Income $646,298

15


RENT COMPS

Haddonfield Rd Strip Center

Town Placeat Marlton

Holly RavineCenter

Short HillsTowne Center

Marlton Square

Evesham Plaza

EaglePlaza

Center Address SIZE OCCUPANCY RENTAL RANGE MAJOR TENANTS MILES AWAY

Short Hills Town Center486 Evesham RdCherry Hill, NJ

36,930 sf 87.35%

Building #484: $15 - $20 NNNBuilding #486: $26 - $30 NNN2nd Floor #486: $11 - $16 NNNBuilding #480: $24 - $33 NNN

Starbucks, Wells Fargo, Deli

Subject

Holly Ravine Center100-101 Springdale Rd

Cherry Hill, NJ38,720 sf 88.30% $25 - $31 CVS & Wawa 1 Mile

Eagle Plaza700 Haddonfield - Berlin Rd

Vorhees, NJ217,754 sf 95% $18 - $21

Chipotle, Primo Hoagies, Sherwin Williams

2 Miles

Marlton Square300 Route 73 S

Marlton, NJ84,188 sf 96% $43-$50 Trader Joes, GAP, Mod Pizza 2.6 Miles

Town Place at Marlton501 Route 73 S

Marlton, NJ49,553 sf 97% $28 - $34 REI, PNC Bank 2.8 Miles

Evesham Plaza740 - 760 W Route 70

Marlton, NJ28,425 sf 95% $20 - $25

Sherwin Williams, Smashburger, Pet Value

3.2 Miles

Haddonfield Rd Strip Center706 Haddonfiled Rd

Cherry Hill, NJ21,525 sf 100% $28 - $43

Mod Pizza, Habit Burger, Ten Asian Food Hall

8 Miles

MT. LAUREL TWP

CHERRY HILL

COLLINGSWOOD

HADDONFIELD

VOORHEES TWP

MEDFORD

TENANT PROFILES

OWNERSHIP:StarbuckS corporation

NO. OF LOCATIONS26,000 +/-

WEBSITE:www.starbuckscom

Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in

the world, with more than 26,000 locations in North America, Latin America, Europe,

the Middle East and the Pacific Rim. Starbucks purchases and roasts high-quality

whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso

beverages, a variety of pastries and confections, and coffee-related accessories and

equipment -- primarily through its company operated retail stores.

In addition to sales through our company-operated retail stores, Starbucks sells whole

bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks

produces and sells bottled Frappuccino® coffee drink and a line of premium ice

creams through its joint venture partnerships and offers a line of innovative premium

teas produced by its wholly owned subsidiary, Tazo Tea Company. The Company’s

objective is to establish Starbucks as the most recognized and respected brand in the

world.

To achieve this goal, the Company plans to continue to rapidly expand its retail

operations, grow its specialty sales and other operations, and selectively pursue

opportunities to leverage the Starbucks brand through the introduction of new

products and the development of new distribution channels.


TENANT OVERVIEW

CREDIT:s&P: bbb+

moody's: baa1

OWNERSHIP:WellS Fargo & company

NO. OF LOCATIONS8,050 +/-

WEBSITE:www.wellsfargo.com

REPRESENTATIVE PHOTO

Wells Fargo & Company is an American multinational financial services company

headquartered in San Francisco, California, with central offices throughout the

United States. It is the world's fourth-largest bank by market capitalization and the

third largest bank in the US by total assets. Wells Fargo is ranked #26 on the 2018

Fortune 500 rankings of the largest US corporations by total revenue. In July 2015,

Wells Fargo became the world's largest bank by market capitalization, edging past

ICBC, before slipping behind JPMorgan Chase in September 2016.

The firm's primary operating subsidiary is national bank Wells Fargo Bank, N.A.,

which designates its main office as Sioux Falls, South Dakota. Wells Fargo in its

present form is a result of a merger between San Francisco–based Wells Fargo &

Company and Minneapolis-based Norwest Corporation in 1998 and the subsequent

2008 acquisition of Charlotte-based Wachovia. Following the mergers, the company

transferred its headquarters to Wells Fargo's headquarters in San Francisco and

merged its operating subsidiary with Wells Fargo's operating subsidiary in Sioux Falls.

As of June 2018, it had 8,050 branches and 13,000 ATMs. In 2018 the company

had operations in 35 countries with over 70 million customers globally.


TENANT OVERVIEW

CREDIT:s&P: a-

moody's: aa2

19

TENANT LOGO TENANT DESCRIPTION TENANT WEBSITE LOCATIONS

At Tabboulee you can expect to be welcomed with a warm-cozy & inviting ambience. Tabboulee wants to delivery only the most original & spontaneous styles of gyros, salads, falafels & more.

www.tabboulee.com1 Location

Cherry Hill, NJ

Busy Bee's offers a daily curriculum from Funshine Express specific for each age group. Lessons are offered around 2 monthly themes. All of the activities are flexible in design to be adapted to ea ch child's own abilities.

www.busybeescfcc.com1 Location

Cherry Hill, NJ

Open 7 days a week from morning to night, Short Hills Restaurant and Deli has built its reputation on using only the highest quality ingredients and providing the best possible service.

www.shorthillsdeli.com1 Location

Cherry Hill, NJ

Stretch Zone practitioners work with our patented equipment and follow specific methods and protocols to properly position, stabilize, isolate and manipulate muscles in a scientific way.

www.stretchzone.com70+ Locations

Nationwide

LeaderOne’s highly qualified mortgage professionals are currently originating over a billion dollars in mortgages annually and servicing over $600 million in conventional and government loans.

www.leader1.financial70+ Locations

Nationwide

Kaplan Risk Services, Inc. is a privately owned wholesale insurance broker service with almost 60 combined years of experience in the insurance industry.

www.kaplanrisk.com1 Location

Cherry Hill, NJ

Personal training service which help clients overcome obstacles in order to achieve their goals. The program unites fitness and physical therapy to create safe and low risk exercise programs.

www.poweredbypohler.com1 Location

Cherry Hill, NJ

Classic Cake has grown into a leading dessert company providing frozen and fresh “better for you” products on a regional, national and international level. Classic Cake has a strongly held commitment to quality

www.classiccake.com2 Locations

PA & NJ

With Camp Bow Wow®, you can rest assured your dog is in the best, most qualified hands in the business. Since 2000, we have been providing fun and dependable dog care services parents and pups love.

www.campbowwow.com177 Locations

Nationwide


TENANT OVERVIEW

MARKET OVERVIEW

21


REGIONAL MAP

B

altimore

A

llentown

85 Miles to Allentown

90 Miles to New York

N

ew York

.

W

ashington

140 Miles to DC

110 Miles to Baltimore 60 Miles to Atlantic City

Atla

ntic City

PENNSYLVANIA

MARYLAND

NEW YORK

DELAW

ARE

NEW JERSEY

Center City Philadelphia(1.56M Total Population)


Phi

ladelphia

15 Miles to Philadelphia

CHERRY HILL'S PREMIUM DEMOGRAPHIC PROFILE STRATEGICALLYLOCATED WITHIN A THE TOP NATIONAL PHILADELPHIA MSA

The Property is located on the border of Cherry Hill, which is adja-cent to Voorhees Township, just across Evesham Road. This area is a target location for employees working in one of the country's largest MSAs and powerful economies. Cherry Hill Township, located on the western side of Camden County, New Jersey, is home to more than 70,000 residents, over 4,000 busi-nesses and 55 parks and recreational facilities, all within 24-square-miles.A sprawling suburb just five miles west of Philadelphia, Cherry Hill has a history as an upscale, white collar population with a highly rated school system and is known as an outstanding family commu-nity. Cherry Hill is also a part of the Greater Philadelphia region, a top MSA in the nation, which has a superior economic profile and has had ongoing development boosting its standing throughout the northeast. Servicing such a powerhouse metropolitan, Cherry Hill has been able to attain premier residential status and strong con-sumer profiles, with average household incomes over $117,375.

CHERRY HILL OVERVIEW

Regional Shopping Destination

Population With High Income Profiles

Ease of Commute To Major Employers

One Of The Largest MSA's

23

Camden County is located in the southwestern portion of New Jersey and consists of 222 square miles and 37 municipalities. It is bordered by Burlington County to the north; Gloucester County to the south; Atlantic County to the east; and the Delaware River to the west. Camden County is the most populated of the southern New Jersey counties with a 2010 Census population of 513,657 residents. Camden County's median household income is $65,987. The county sits in the heart of the Philadelphia MSA, which is the country's seventh largest, giving it access to more than 5 million consumers and potential employees.

The adjacent cities of Philadelphia and Camden have impressive development pipelines which will further the economic progress throughout the Greater Philadelphia region, The skyline of Philadelphia is dense with cranes for new developments, most notably the new Comcast Innovation and Technology Center, which projected to open in 2017, will be the tallest building in the city at 59 stories and is a $1.2 billion investment, Additional Philadelphia developments include the FMC Tower at Cira Centre South 1450,000+ SFI and Drexel's "Schuylkill Yards" which will total 5 million gross square feet and span 14 acres in University City. Cherry Hill's neighbor of Camden also has some major developments occurring at the Camden Waterfront, where there is a $1 billion, 1.7 million square foot project planned which will occupy of 16 acres. Collectively, these projects will continue to benefit Cherry Hill's residential, bedroom community location, increasing incomes and job growth.

Camden County, NJ

LOCATION OVERVIEW

OVERVIEWSOUTHERN NEW JERSEY

TOP EMPLOYERS:Organization/Company Employees

1) Cooper Health System 5,000+

2) American Water Works 1,000-2,499

3) Bancroft Brain Injury Services 1,000-2,499

4) Campbell Soup Company 1,000-2,499

5) Diocese of Camden New Jersey Inc. 1 ,000-2,499

6) Kennedy University Hospital 1,000-2,499

7) Virtua-West Jersey Health System 1,000-2,499

8) Our Lady of Lourdes Medical Center, Inc. 1,000-2,499

9) Global Aluminum (USA) 500-999

10) Lockheed Martin 500-999

9TH BEST PUBLIC TRANSIT SYSTEM

IN THE U.S.

60% OF U.S.POPULATION

WITHIN 2 HR FLIGHT

7TH LARGEST MSA WITH OVER 6

MILLION PEOPLE

6.1% GROWTH OF 20-34 YR

OLDS SINCE 2006

24


1 MILE RADIUS

3 MILE RADIUS

5 MILE RADIUS

Cherry Hill, NJv

MSA OVERVIEW

POPULATION 1 MILE 3 MILE 5 MILES

2023 Projection 6,766 70,938 212,707

2018 Estimate 6,433 70,191 211,069

2010 Census 6,372 70,161 210,825

HOUSEHOLDS 1 MILE 3 MILE 5 MILES

2023 Projection 2,527 27,381 82,317

2018 Estimate 2,374 26,751 81,065

2010 Census 2,360 26,770 81,138

INCOME 1 MILE 3 MILE 5 MILES

Average Household Income $194,774 $138,042 $116,123

Median Household Income $135,678 $97,703 $82,364

1.9M2018

POPULATION:

687K2018

HOUSEHOLDS:

40.42018

MEDIAN AGE:

$68,0002018 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

38.0U.S. Median:

$58,8003.3%

Growth2018-2023*:

2.5%

Growth2018-2023*:

DEMOGRAPHICS:

* Numbers are based off a 10 Mile Radius

25

The Philadelphia metro encompasses 11 counties in four states: Philadelphia, Delaware, Bucks, Chester and Montgomery in Pennsylvania; Gloucester, Burlington, Camden and Salem counties in New Jersey; New Castle County in Delaware; and Cecil County in Maryland. The Delaware River bisects the metropolis from northeast to southwest and serves as the border between Pennsylvania and New Jersey. The Schuylkill River passes through the heart of Philadelphia, separating West Philadelphia from Center City. The Philadelphia metro contains approximately 6.1 million residents. Although the metro has more than 360 municipalities, few have more than 25,000 citizens. Philadelphia is the largest city with approximately 1.6 million residents.

HIGHLY EDUCATED WORKFORCEPhiladelphia has one of the highest concentrations of institutions of higher learning in the nation, including the University of Penn-sylvania, Temple University and Drexel University.

EXPANDING HEALTH-SCIENCE SECTORThe metro is a significant pharmaceutical, medical and biosciences center. Major companies include Merck, GlaxoSmithKline and Johnson & Johnson.

TRANSPORTATION NETWORKInterstate 95 connects Philadelphia to both New York City and Washington, D.C., and Interstate 76 links the region to Pittsburgh and Cleveland.

Philadelphia, PA

MSA OVERVIEW

OVERVIEWPHILADELPHIA

26

OFFERING MEMORANDUM

TIR NA NOG482 E. Evesham Road Cherry Hill, NJ

27

CHERY HILL, NJ

482 E. Evesham RdSQUARE FOOTAGE

10,243 sfPRICE LOT SIZE

UNPRICED 1.07 Acres

PROPERTY SUMMARY

YEAR BUILT/RENOVATED:1996/2003

LEASE START DATEApril 2015

LEASE EXPIRATION DATEApril 2025

CURRENT RENT PER FT$12.01

PROPERTY TAXES$59,867

INSURANCE$3,120

CAM ESTIMATES$3.65 PSF

PARKING SPACES40 Spaces


TIR NA NOG OVERVIEW

TIR NA NOG HIGHLIGHTS• Brand Recognized Irish Bar and Restaurant that sits on 1.07 acres

• Features 300+ seats spanning over two floors with 10,243 sq ft

• Fee Simple Value Add Opportunity to Reposition Restaurant

• Tenant pays for carrying costs such as Taxes, Insurance, and CAM

• Operator currently holds liquor license

A unique Irish experience incorporating the warmth of an Irish pub with New American cuisine and all the while creating a sense of charm and hospitality. Tir Na Nog has 3 locations located in Maryland, New York, and New Jersey.

28

FIRST FLOOR PLAN SECOND FLOOR PLAN


FLOOR PLANS

29


RENT & SALE COMPS

Read Eagle Tavern


Former China House Buffet

MT. LAUREL TWP

CHERRY HILL

COLLINGSWOOD

HADDONFIELD

MEDFORD

Recently Sold - Vacant/User Comps

Tenant Address PRICE PRICE PER SQFT SQUARE FEET DATE SOLD

Tir Na Nog(Subject Property) 482 E Evesham Rd Cherry Hill, NJ TBD TBD 10,243 TBD

Read Eagle Tavern 1503 Chapel Ave Cherry Hill, NJ $1,775,000 $169 10,500 Aug-18

Former Golden Corral 526 N Rt 73 West Berlin, NJ $1,300,000 $158.54 8,200 May-18

Former China House Buffet 700 Crescent Blvd Brooklawn, NJ $960,000 $171 5,600 Jun-18

Former Big Johns Restaurant 1800 Route 70 E Cherry Hill, NJ $1,850,000 $406 4,546 Jan-18

Rent Comps

Tenant Address SQUARE FEET RENT PER SF

Tir Na Nog(Subject Property) 482 E Evesham Rd Cherry Hill, NJ 10,243 $12 NNN

Olive Garden 202 Laurel Oak Rd Vorhees, NJ 8,869 $15 - $18 NNN

Passariello's Pizza 111 Laurel Oak Rd Vorhees, NJ 5,853 $13 - $16 NNN

PF Changs 500 Route 73S Burlington, NJ 6,000 $19 - $24 NNN

Carrabba's Italian Grill 500 Route 38 East Maple Shade, NJ 6,297 $22 per sf

Former Golden Corral

PHILADELPHIA

OliveGarden Passariello's

Pizza

PFChangs

PFChangs

Carrabba's Italian Grill

OFFERING MEMORANDUM

SHORT HILLS TOWNE CENTER480 - 488 E. Evesham Road Cherry Hill, NJ

SHORT HILLS TOWNE CENTER - LoopNet · 2019. 5. 21. · caters to the local population. The site...

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