RARE LONG TERM NORTHERN NEW JERSEY INVESTMENT GRADE CHASE BANK OFFERING
ACTUAL LOCATION CHASE BANK 387 PASSAIC AVENUE | FAIRFIELD, NEW JERSEY CLICK TO VIEW INVESTMENT ADVISORS PROPERTY VIDEO MARC MANDEL Managing Director 484.532.4212 [email protected]
STEVE SCHRENK Director 484.532.4213 [email protected]
CHRIS MUNLEY Managing Director 484.532.4207 [email protected]
DEBT ADVISOR MIKE PAGNIUCCI Director 484.532.4172 [email protected]
Holliday Fenoglio Fowler, L.P. and Holliday GP Corp. (collectively, “HFF”), licensed New Jersey real estate brokers.
This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum.
Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.
Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.
The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF. Investment Summary CHASE BANK | 387 PASSAIC AVE | FAIRFIELD, NEW JERSEY · · ·
INVESTMENT SUMMARY
Holliday Fenoglio Fowler, L.P. (“HFF”) Net Lease Advisory is pleased to exclusively offer a premier net lease opportunity to acquire a new construction single tenant Chase Bank (the “Property”) with over 19 years of remaining lease term located in Fairfield, NJ which is one of the most prominent municipalities within the Essex County sub-market. Chase has been at this location since 1987 and the building has just recently been re-developed to Chase’s new prototype. This location has strong deposits of $106,193,000 which is the 3rd highest in the zipcode. The Property is located on the south-west corner at the signalized intersection of Passaic Avenue and Little Falls Road and is positioned adjacent to a Target anchored shopping center increasing consumer traffic near the site. Passaic Avenue is the main north/south commuter/ commercial arterial roadway connecting to multiple access points for U.S Route 46 with exposure to over 25,000 VPD. The property is also situated approximately 1.5 miles from the Willowbrook Mall which offers over 170 shopping and dining choices and is a large economic driver for the immediate area. The Northern New Jersey retail market continues to be one of the strongest and most diverse retail markets in the Country. The highly dense and diverse population of Northern New Jersey combined with consumers having above national average income levels, makes the market a key target for established and new concept retailers. Chase Bank is one of the Big Four banks of the United States and is a subsidiary of JPMorgan Chase and has an investment grade credit rating of A3 from Moody’s. Currently, JPMorgan Chase holds $2.49 trillion under asset making it the largest bank in the world. Through 5,100 branches and 16,000 ATM’s nationwide, the Company’s branch network serves 26 states across the country. Overall, JPMorgan Chase employs over 240,000 employees worldwide and serves millions of customers. In 2016, the Company (Consumer Banking $4,946,236 – Chase) earned over $44.91 billion in net revenue and over $9.71 billion in net income. ASKING PRICE
4.65% CAP RATE
$230,000 NOI
19 Years REMAINING LEASE TERM
4 Investment Summary CHASE BANK | · · ·
INVESTMENT HIGHLIGHTS
Chase has been open at this Corporate Chase Bank Strong location with over location since 1987 and has with 10% rental increases 200,360 people and an average strong deposits with over throughout primary term household income of over $106,193,000, and is the and option periods $142,000 in a 5-mile radius third highest in the zip code
Located at the signalized Chase Bank is an investment intersection of Passaic grade tenant with a A3 rating Avenue and Little Falls Road from Moody’s and one of the with exposure to over 25,000 Big Four banks in the US and is VPD on Rt. 46 a subsidiary of JPMorgan Chase
| CHASE BANK Investment Summary 5 · · ·
NEW YORK CITY
WAYNE TOWNE CENTER WILLOWBROOK PLAZA
GREEN BROOK COUNTRY CLUB 23 MILE WEST ESSEX HIGH SCHOOL
S
ESSEX COUNTY AIRPORT 80 46
PASSAIC AVE (Under Construction) THE ATRIUM AT FAIRFIED 25,000+ VPD
107,000+ VPD 46
KYOCERA DOCUMENT SOLUTIONS 80
6 Investment Summary CHASE BANK | Tenant Overview CHASE BANK | 387 PASSAIC AVE | FAIRFIELD, NEW JERSEY · · ·
Chase Bank is one of the Big Four banks of the United States and is a subsidiary of JPMorgan Chase. Currently, JPMorgan Chase holds $2.49 trillion under asset making it the largest bank CORPORATE OVERVIEW in the world. Through 5,100 branches and 16,000 ATM’s nationwide, the Company’s branch network serves 26 states across the country. Overall, JPMorgan Chase employs over 240,000 Headquarters New York, NY employees worldwide and serves millions of customers. In 2016, the Company (Consumer Banking – Chase) earned over $44.91 billion in net revenue and over $9.71 billion in net income. Ticker JPM (NYSE) JPMorgan Chase & Co (NYSE: JPM), a financial holding company, provides a range of financial services worldwide. The company operates through six segments: Investment Bank, Retail Financial Services, Card Services, Commercial Banking, Treasury and Securities Services, and Asset Management. The Investment Bank segment provides various investment banking products and services, including advising on corporate strategy and structure, capital raising in equity and debt A3 markets, risk management, market-making in cash securities and derivative instruments, and MOODY’S CREDIT RATING research. It serves corporations, financial institutions, governments, and institutional investors. The Retail Financial Services segment offers regional banking services, mortgage banking, and auto finance services that include checking and savings accounts, mortgages, home equity and 5,100 business loans, and investments through bank branches, ATMs, online banking, and telephone LOCATIONS IN THE UNITED STATES banking. The Card Services segment issues credit cards. This segment has a joint venture with First Data Corporation, which involves in the processing of MasterCard and Visa payments. The Commercial Banking segment provides lending, treasury services, investment banking, and $399.6 BILLION asset management services to corporations, municipalities, financial institutions, and not-for- MARKET CAP AS OF 9/2018 profit entities. The Treasury and Securities Services segment offers transaction, investment, and information services. It also offers cash management, trade, wholesale card, and liquidity products and services to small and mid-sized companies, multinational corporations, financial institutions, and government entities. The Asset Management segment provides investment and wealth management services to institutions, retail investors, and high-net-worth individuals. It also offers global investment management services; trust, estate, and banking services; and retirement services. JPMorgan Chase & Co. was founded in 1823 and is headquartered in New York, New York. www.chase.com
8 Tenant Overview CHASE BANK | 80
46 25,000+ VPD
46
LITTLE FALLS ROAD
PASSAIC AVENUE
FINANCIAL ANALYSIS CHASE BANK | 387 PASSAIC AVE | FAIRFIELD, NEW JERSEY · · ·
LEASE ABSTRACT LEASE DETAIL $4,946,236 4.65% 387 Passaic Ave. Address Fairfield, NJ 07004 Asking Price Cap Rate
Tenant Chase Bank TENANT RESPONSIBILITY DETAIL
Guaranty JPMorgan Chase Bank, National Association Commencing on the rent commencement date and subject to tenant's receipt of an invoice from the Landlord or Wawa Lot Area 0.84 Acres Inc, Tenant shall pay Tenant's prorata share of all common area Common Area expenses for which it is obligated pursuant to the REA. Tenant's Expenses Size 4,560 SF prorata share shall be 20% with respect to the commona area expenses for the driveway and 100% with respect to the common 2018 Year Renovated areas expenses for parcel A $230,000 Annual Rent Tenant shall during the term of the lease take good care of the Lease Type Fee Simple: NN entire premises and perform all necessary maintenance , painting, Maintenance and and alterations to the interior of the premises, and tenant shall be Repairs Lease Commencement 7/12/2017 responsible to obtain at its sole cost and expense, a service contract for the HVAC system Rent Commencement 8/1/2018 Tenant shall maintain and carry commercial general liability Lease Expiration 7/31/2038 Insurance insurance as well as all risk insurance for all leasehold improvements installed at the premises Remaining Lease Term 19.75 Years Tenant shall pay Tenant's share of real estate taxes as additional Taxes rent Remaining Options Four (4) Five year options Tenant shall pay for all utilities for the leased premises directly to Utilities RENT SCHEDULE the service provider
Description Dates Annual Rent Rent Increase LANDLORD RESPONSIBILITY DETAIL
Base Term - Years 1 -10 8/1/2018 - 7/31/2028 $230,000 Landlord shall repair, replace, and maintain in good order and in a first class manner the structural portions of the interior and Base Term - Years 11- 15 8/1/2028 - 7/31/2033 $253,000 10.00% exterior of the premises and the building, including the roof, exterior walls, foundation and slab, all utility lines, connections, Base Term - Years 16 - 20 8/1/2033 - 7/31/2038 $278,300 10.00% Maintenance and conduits, pipes, catch basins, manholes, poles, lighting fixtures Repairs and other related facilities situated outside of the premises; First Option - Years 21 - 25 8/1/2038 - 7/31/2043 $306,130 10.00% the common areas, including landscaping and snow removal, replacement of the HVAC, plumbing, mechanical and electrical Second Option - Years 26 - 30 8/1/2043 - 7/31/2048 $336,743 10.00% building systems and exterior painting Third Option - Years 31 - 35 8/1/2048 - 7/31/2053 $370,417 10.00% Landlord shall maintain all risk property insurance and commercial Insurance Fourth Option - Years 36 - 40 8/1/2053 - 7/31/2058 $407,459 10.00% general liabilty insurance
10 Financial Analysis CHASE BANK | · · ·
SITE PLAN Wawa is scheduled to open in March 2019 and can be purchased separately or in conjunction with the Chase Bank
LITTLE FALLS ROAD
PROPOSED LOT LINE
PASSAIC AVENUE
| CHASE BANK Financial Analysis 11 23
WAYNE PARAMUS
202
287 TOTOWA j
80 LITTLE HACKENSACK FAIRFIELD FALLS ESSEX COUNTY AIRPORT 80 80 46 PASSAIC j 23 UV9A ¦¨§87 UV10 TETERBORO AIRPORT
280 3
19 UNION CITY
MORRISTOWN NEW JERSEY MUNICIPAL AIRPORT NEW YORK LIVINGSTON FLORHAM PARK MORRISTOWN ORANGE
NEW YORK CITY 95
280
NEWARK JERSEY SUMMIT CITY
78
NEWARK LIBERTY INTERNATIONAL AIRPORT 78 Market Overview CHASE BANK | 387 PASSAIC AVE | FAIRFIELD, NEW JERSEY · · ·
23 FAIRFIELD OVERVIEW WAYNE PARAMUS The Property is located on the south-west corner at the signalized intersection of Passaic Avenue and Little Falls Road. Situated on a 2.70 acre lot, 202 and is positioned adjacent to a Target anchored shopping center. Passaic Avenue is a main north/south commuter/commercial arterial roadway TOTOWA 287 j connecting to multiple access points for U.S Route 46. The slip ramp for U.S. Route 46 is located on the opposing side of the intersection which leads east to New York City as well as U.S. Route 46 West via Little Falls Road leading towards Delaware River at the borderline of Pennsylvania. 80 LITTLE HACKENSACK The Northern New Jersey retail market continues to be one of the strongest and most diverse retail markets in the Country. The highly dense FAIRFIELD FALLS ESSEX COUNTY AIRPORT and diverse population of Northern New Jersey combined with consumers having above national average income levels, makes the market a key 80 80 46 PASSAIC j target for established and new concept retailers. The Willowbrook Mall, located less than a mile away, offers New Jersey Transit daily bus routes 23 UV9A ¦¨§87 UV10 directly into New York City. For those commuting, this creates additional traffic by the Property in the morning and evenings. Interstate 80 is also TETERBORO AIRPORT less than one half mile from the property via Passaic Avenue which leads to Interstate 95/The New Jersey Turnpike leading into New York via the
280 George Washington Bridge. With a variety of office and industrial facilities in the immediate vicinity of the property, Chase Bank will benefit from 3 the excessively high daytime population and foot traffic created by surrounding employers. Fairfield is one of the more prominent municipalities 19 UNION within the Essex County sub-market, with a population of 7,606 and an above average household income level of $164,330. CITY
MORRISTOWN NEW JERSEY MUNICIPAL AIRPORT NEW YORK LIVINGSTON WILLOWBROOK MALL ESSEX COUNTY AIRPORT FLORHAM PARK MORRISTOWN ORANGE
NEW YORK CITY 95
280
NEWARK JERSEY SUMMIT CITY
78
NEWARK LIBERTY INTERNATIONAL AIRPORT 78
| CHASE BANK Market Overview 13 · · ·
TRADE AREA DEMOGRAPHICS
POPULATION
1 MILE 3 MILES 5 MILES HAWTHORNE
2010 Census 3,713 47,984 197,967
LINCOLN WAYNE 2018 Estimate 3,755 48,373 200,360 PARK 287 j
2023 Projection 3,793 48,768 202,032 202
j POPULATION GROWTH
1 MILE 3 MILES 5 MILES 23 TOTOWA Historical Growth: 2010 to 2018 1.13% 0.81% 1.21% j 80 Projected Growth: 2018 to 2023 1.01% 0.82% 0.83% 80 19
LITTLE j FAIRFIELD HOUSEHOLDS FALLS 46 46 1 MILE
1 MILE 3 MILES 5 MILES ESSEX COUNTY 23 AIRPORT 2010 Census 1,381 17,653 71,108 2018 Estimate 1,382 17,877 72,241 3 MILES 80
GARDEN STATE PARKWAY 1,391 18,062 72,983 PASSAIC AVENUE 2023 Projection CEDAR GROVEj Historical Growth: 2010 to 2018 0.07% 1.27% 1.59% j EAST HANOVER j 5 MILES 280 3 Projected Growth: 2018 to 2023 0.65% 1.03% 1.03% VERONA
2018 Est. Average Household Income $141,948 $148,235 $142,984 j j BROOKDALE 2018 Est. Median Household Income $104,932 $107,283 $102,029
NEW YORK CITY | 23 MILES
14 Market Overview CHASE BANK | INVESTMENT ADVISORS
MARC MANDEL Managing Director 484.532.4212
[email protected] CHASE BANK
STEVE SCHRENK Director 484.532.4213 [email protected]
CHRIS MUNLEY Managing Director 484.532.4207 [email protected]
DEBT ADVISOR MIKE PAGNIUCCI Director 484.532.4172 [email protected]
HFF 200 Campus Drive Suite 410 Florham Park, NJ 07932
HFF 1700 Market Street Suite 3232 Philadelphia, PA 19103 hfflp.com