Oceanville Station 183 -195 South New York Road Galloway, NJ 08025
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Oceanville Station 183 -195 South New York Road Galloway, NJ 08025 10 Oceanville Station M i le s t o A t l a n t i c C i t y Atlantic City, NJ Oceanville Station | 1 TABLE OF CONTENTS Offering Summary............. 4 Investment Overview......... 9 Tenant Overview............... 12 Location Overview............ 16 Investment Advisors Derrick Dougherty Mark Krantz First Vice President Investments Senior Associate National Retail Group National Retail Group License: PA RS305854 Lic: PA RS336064 | NJ 1863254 Ph: (215)531-7026 Ph: (215)531-7056 Scott Woodard Steve Garthwaite Senior Associate Senior Associate National Retail Group National Retail Group License: PA RS329242 License: PA RS332182 Pavan Koneru Nick Geaneotes Associate Associate National Retail Group National Retail Group License: PA RS350910 License: PA RS350646 2 | Oceanville Station ATLANTIC CITY SHORE TOWNS *Based on 2020 CoStar Estimates 4,607 42,000 ATLANTIC CITY CASINOS,15 BLOCKS TANGER OUTLETS, 2018 NEW JOBS ADDED SUMMER RESIDENTS DINING & RETAIL Distance To Subject 10 Miles Households 4,607 Summer Population 42,000 2018 $ 1.70B 27.0M± MARGATE INVESTMENTS IN ANNUAL VISITORS RECENT YEARS Distance To Subject 12 Miles Oceanville Station Households 3,522 183 -195 South New York Road Galloway, NJ 08025 Summer Population 10,000 LONGPORT Distance To Subject 15 Miles Households 1,355 Summer Population 2,000 VENTNOR CITY Distance To Subject 15 Miles Households 4,700 Summer Population 13,000 OCEAN CITY Distance To Subject 20 Miles Households 2,597 Summer Population 25,000 Oceanville Station | 3 OFFERING SUMMARY $ OFFERING PRICE: $1,400,000 Oceanville Station % CAP RATE: 7.20% 183 -195 South New York Road Galloway, NJ 08025 $ NET OPERATING INCOME: $100,696 OFFERING SUMMARY Gross Leasable Area (GLA) 9,800 SF Price/SF $142.86 Year Built/Renovated 2002 Lot Size 3.12 Acres Occupancy 100% Parking 49± | 5 Spaces/1000 SF VITAL RETURNS (FULL RECOURSE) Current Net Operating Income $100,696 Annual Debt Service ($55,551) Cash Flow After Debt Service $45,145 Cash On Cash Return 9.21% Principal Reduction $22,713 Total Return 13.85% PROPOSED NEW FINANCING MAJOR TENANTS Equity (35%) $490,000 Tenant GLA Lease Start Lease Expire Locations Loan To Value (65%) $910,000 South Jersey Florist 2,030 May-09 Dec-24 1 Interest Rate 3.65% Tony Beefs 1,890 May-18 May-23 1 Amortization 25 Years Eat Clean Org 1,890 May-18 Apr-23 1 Term 10 Years Pinky's Nails 1,400 Dec-17 Nov-22 6 Debt Service Coverage Ratio 1.81 *Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation representative. MAJOR AREA EMPLOYERS *Escrow/reserve for 6 to 12 months of mortgage payments (to be released when COVID-19 is completely over) Major Employers Employees Industry DEMOGRAPHICS Borgata Casinos 77,000 Hospitality 3-Mile 5-Miles 10-Miles Atantic Health Care System 16,000 Healthcare 2020 Population 17,948 38,846 180,138 Tropicana Casino 3,200 Hospitality 2019 Households 7,137 14,085 68,126 Stockton University 400+/- Education Average Household Income $83,916 $86,285 $79,529 4 | Oceanville Station RENT ROLL Lease Lease Base Rent Rent/SF Date of Increase Lease Tenant Name GLA (SF) GLA (%) Start End (Annual) (Annual) Increase Amount $/SF Options Type Jun-21 $36,420 $19.27 One (5) Year Option - NNN + 5% Tony Beefs 1,890 19.29% May-18 May-23 $35,220 $18.63 Jun-22 $37,620 $19.90 3% Annual Increases Mgmt. Fee Jan-21 $34,200 $16.85 Jan-22 $35,400 $17.44 One (5) Year Option - South Jersey Florist 2,030 20.71% May-09 Dec-24 $33,000 $16.26 Gross Jan-23 $36,600 $18.03 3% Annual Increases Jan-24 $37,800 $18.62 Dec-20 $26,232 $18.74 One (5) Year Option - Pinky's Nails 1,400 14.29% Dec-17 Nov-22 $25,464 $18.19 Gross Dec-21 $27,024 $19.30 3% Annual Increases Dave's Shave & NNN + 5% 1,190 12.14% Aug-19 Jul-22 $12,000 $10.08 Aug-21 $14,400 $12.10 - Barber Parlor Mgmt. Fee Just Organics 1,400 14.29% Month to Month $9,600 $6.86 - - - - Gross May-21 $31,800 $16.83 Three (5) Year Options - Eat Clean Org 1,890 19.29% May-18 Apr-23 $30,000 $15.87 Gross May-22 $33,600 $17.78 4% Annual Increases Totals: 9,800 $145,284 9,800sf Fully Occupied 3,080sf (31.43%) TOTAL LEASABLE AREA TOTAL OCCUPIED NNN TENANTS Oceanville Station | 5 INCOME & EXPENSES INCOME PSF Underwriting Notes: Base Rent (1) $145,284 $14.82 (1) Base Rent: Is Reflective of 2020 Rent Schedule (2) Reimbursement Rent (2) Reimbursement Rent: Analysis is Reflective of each Tenant’s Lease Structure (31.43% NNN) Real Estate Tax $7,166 (3) Reimbursement Management Fee: Analysis is Reflective of Tony Beefs & Dave’s Shave & Insurance $3,049 Barber Parlor tenants paying a 5% management fee CAM $7,967 (4) Expenses: Analysis is Reflective of 2020 Proforma Expenses Management Fee (3) $909 (5) Management Fee: Analysis uses an Underwriting Standard of 3% of Base Rent Total Reimbursement $19,091 Gross Income $164,375 (6) Reserves: Analysis uses an Underwriting Standard of $0.15 per Square Foot EXPENSES (4) PSF Reimbursable Expenses Real Estate Taxes $22,800 $2.33 Property Insurance $9,700 $0.99 Common Area Maintenance Repairs & Maintenance Trash Removal $4,675 Repairs & Maintenance $2,500 Grounds Maintenance Landscape Maintenance $4,642 Snow Removal $4,000 Utilities Electric $5,240 Water/Sewer $4,293 Total CAM $25,350 $2.59 Total Reimbursable Expenses $57,850 $5.90 Non Reimbursable Expenses Management Fee (3% of Base Rent) (5) $4,359 Reserves(15 Cents Per Square Foot) (6) $1,470 Non - Reimbursable Expenses $5,829 $0.59 Total Expenses $63,679 $6.50 Net Operating Income $100,696 6 | Oceanville Station RENT COMPS Miles from Name of Center Address Size Occupancy Rental Range Tenants Subject $10-$19/SF NNN Oceanville Station 183-195 S New York Rd. Galloway, NJ 9,800 SF 100% Tony Beefs, Florist, Nail Salon - $7-$16/SF Gross Leeds Point Shoppes 176-182 S New York Rd. Galloway, NJ 27,000 SF 100% $13-$16/SF NNN* USPS, Day Care, Tanning Salon 0.2 Miles The Shoppes at Smithville 45 S New York Ave. Smithville, NJ 107,719 SF 73% $9-$12/SF NNN Dollar General, M&T Bank, JD's Pub 1.6 Miles Galloway Village Square 401-407 S Pitney Rd. Galloway, NJ 66,840 SF 94% $20-$23/SF NNN ShopRite, Hair Salon, Dry Cleaners 2.3 Miles Risley Square 319 E Jimmie Leeds Rd. Absecon, NJ 13,863 SF 63% $10-$12/SF NNN Gymnastics Center, Nail Spa 2.4 Miles Downtown Plaza 325-327 E Jimmie Leeds Rd. Galloway, NJ 27,441 SF 86% $13-$15/SF NNN UPS, Deli, Dry Cleaners, Restaurants 2.6 Miles Sunrise Plaza 68 W Jimmie Leeds Rd. Galloway, NJ 15,467 SF 100% $13-$16/SF NNN* Starbucks, Salad Works, Great Clips 4.4 Miles The Shoppes of Absecon 720-728 White Horse Pike. Absecon, NJ 7,175 SF 100% $33-$46/SF NNN & MG PNC Bank, T-Mobile, Five Guys 4.8 Miles *Rental Range is Representative of CoStar Estimate 1.6 Smithville 0.2 Miles Miles Galloway The Shoppes at Smithville Leeds Point Shoppes 2.6 4.4 Miles 45 S. New York Ave 176-82 S. New York Rd Miles Downtown Plaza Smithville, NJ Galloway, NJ Sunrise Plaza 325-27 E. Jimmie Leeds Rd Occupancy 73% Occupancy 100% 68 W Jimmie Leeds Rd Galloway, NJ Size 107,719 SF Size 27,0001 SF Galloway, NJ Occupancy 86% Rental Range $9 - $12 Rental Range $13 - $16 Occupancy 100% Size 27,441 SF Size 15,467 SF WINE & Rental Range $13 - $15 SPIRITS Rental Range $13 - $16 2.4 Oceanville Station (Subject) Pomona Miles 183-195 S New York Rd Risley Square Galloway, NJ 319 E. Jimmie Leeds Rd Occupancy 100% Absecon, NJ 2.3 Miles Size 9,800 SF Occupancy 63% Galloway Village Square Rental Range $10 - $19 Size 13,863 SF 401-7 S. Pitney Rd Rental Range $10 - $12 Galloway, NJ Occupancy 94% 4.8 Size 66,840 SF Miles Rental Range $20 - $23 The Shoppes of Absecon 720-28 White Horse Pike Absecon, NJ Occupancy 100% Galloway Cleaners Size 7,175 SF Rental Range $33 - $46 Absecon Atlantic City Highlands (12 Miles) Oceanville Station | 7 INVESTMENT HIGHLIGHTS Opportunity To Own A 9,800 Square Foot Retail Center | 100% Occupied Strip Center | Inviting Center with Healthy Located In Galloway New Jersey | 10 Miles From Atlantic Mix of Tenants |Rental Increases in Base Term | No Big Box City & 20 Miles From Ocean City | First Generation Sale Vacancy – Smaller Units | Staggered Lease Expiration • The Site sits on a sizable 3.12 Acres in Galloway, NJ with six service-oriented • Inviting center featuring a fast-casual burger concept, a nail salon, barber tenants shop, a prepared organic food concept, and a farmer’s market delivery • Only 10 miles from Atlantic City and about 20 miles from Ocean City concept. • First Generation Sale - The Center was built in 2002 • Approximately 73% of GLA has Rental Increase in Base Term which help hedge against inflation • All Units range between 1,000 square feet – 2,000 square feet, providing for ease of Lease-Up • Approximately 60% of the GLA has over three years remaining on Lease Term Superior Real Estate Fundamental’s | Signalized Intersection Irreplaceable Positioning with Immediate Access to on a Primary Thoroughfare | Proximity to Atlantic City & Stockton University & Atlantic City International Airport | Philadelphia | Access To Major Highway Systems Healthy Demographics • Oceanville Station is strategically located at a signalized intersection along • Stockton University – A 2,000 Acre University six miles from the Subject S New York Road which is encompassed by Route 9, the longest highway Center with enrollment numbers of just under 9,000 students; The University in the state with traffic counts upwards of 14,000 vehicles per day near the has increased its footprint in 2018 to a new $178.3 Million beachfront Subject Site campus in Atlantic City featuring 145 apartment units,