ROCHESTER, NY
PATERSON, NJ
TWO PROPERTY PORTFOLIO ROCHESTER, NY & PATERSON, NJ OFFERING MEMORANDUM EXCLUSIVELY LISTED BY:
BRYANT HOOVER Associate Vice President D: (310) 774-2163 E: [email protected] License No. 01368589 (CA)
BROKER OF RECORD Jeffrey Terwilliger License No. 30TE0892302 (NY)
Ray Smith License No. 7868129 (NJ)
TABLE OF CONTENTS
03 Executive Overviews 08 Financial Overviews 20 Area Overviews EXECUTIVE OVERVIEWS
NEW YORK MEDICAL PORTFOLIO
3 THE OFFERING
» Long-term stabilized portfolio includes two investment grade, single-tenant, net-leased assets located in high-density locations. » Portfolio includes a $9,450,00 Assumable loan at 4.55% Interest Only, Exp Sep. 6, 2027. Which offers $528,657 Net Cash Flow at a 5.59%. LIST PRICE » Fresenius ranked #313 on Global Fortune 500, NYSE: FMS. Located in Rochester NY, 10,212 Square Feet on 2.14 Acres with 11.1 Years of term, including 9.5% increase in 2027 $18,903,150 along with 3 X 5 Year renewals at FMV. Rochester is the third-largest city in New York, Fresenius built-to-suit minutes away from Monroe Community Hospital, a 556-bed healthcare facility, including Strong Memorial Hospital of the University of Rochester which is ranked #1 in the region by US News & Annual Report. » Walgreens ranked #17 on Global Fortune 500, NASDAQ: WBA. Located in Patterson NJ, 14,820 Square Feet on 1.18 Acres with 14.85 Years of the term. Patterson has the second- highest density in the US, after New York City. Its population is 442,829 within a 5-mile radius with an average household income of $109,110. CAP RATE 5.07% PORTFOLIO INVESTMENT SUMMARY
Purchase Price $18,903,150 NOI Down Payment $9,453,150 $958,626 Loan Ammount (Assumable) $9,450,000
Interest Only Maturity Date: Sep 6, 2027 4.55%
Net Operating Income $958,626
Cap Rate 5.07%
Cash Flow 5.59% NET CASH FLOW
Net CashFlow (%) $528,657 $528,657
4 LOCATION MAP
5 PORTFOLIO CASH FLOW
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11 JUN-2022 JUN-2023 JUN-2024 JUN-2025 JUN-2026 JUN-2027 JUN-2028 JUN-2029 JUN-2030 JUN-2031 JUN-2032
GROSS REVENUE
Walgreens $576,000 $576,000 $576,000 $576,000 $576,000 $576,000 $576,000 $576,000 $576,000 $576,000 $576,000
Fresenius $382,625 $382,625 $382,625 $382,625 $382,625 $385,813 $420,887 $420,887 $420,887 $420,887 $420,887
Expense Recovery Net Net Net Net Net Net Net Net Net Net Net
NET OPERATING INCOME $958,625 $958,625 $958,625 $958,625 $958,625 $961,813 $996,887 $996,887 $996,887 $996,887 $996,887
Cap Rate 5.17% 5.17% 5.17% 5.17% 5.17% 5.19% 5.38% 5.38% 5.38% 5.38% 5.38%
Debt Service $(429,975) $(429,965) $(429,965) $(429,965) $(429,965) $(429,965) $(429,965) $(429,965) $(429,965) $(429,965) $(429,965)
Cash Flow After Debt Service $528,650 $528,660 $528,660 $528,660 $528,660 $531,848 $566,922 $566,922 $566,922 $566,922 $566,922
Cumulative Cash Flow After Debt Service $528,650 $1,057,310 $1,585,969 $2,114,629 $2,643,288 $3,175,136 $3,742,057 $4,308,979 $4,875,900 $6,009,744 $6,009,744
Cash on Cash 5.82% 5.82% 5.82% 5.82% 5.82% 5.86% 6.24% 6.24% 6.24% 6.24% 6.24%
Interest Expense $(429,975) $(429,965) $(429,965) $(429,965) $(429,965) $(429,965) $(429,965) $(429,965) $(429,965) $(429,965) $(429,965)
Total Return (Cash Flow + Principal) $528,650 $528,660 $528,660 $528,660 $528,660 $531,848 $566,922 $566,922 $566,922 $566,922 $566,922
Total Return (%) 5.82% 5.82% 5.82% 5.82% 5.82% 5.86% 6.24% 6.24% 6.24% 6.24% 6.24%
Monthly Cash Flow $44,054 $44,055 $44,055 $44,055 $44,055 $44,321 $47,243 $47,243 $47,243 $47,243 $47,243
Annual Cash Flow $528,650 $528,660 $528,660 $528,660 $528,660 $531,848 $566,922 $566,922 $566,922 $566,922 $566,922
*Loan Maturity is 9/6/2027
6 PORTFOLIO RENT ROLL
CONTRACT RENTAL RATE RENT $ PSF RENT INCREASES YEAR TERM LEASE LEASE ADDRESS TENANT SF OPTIONS BUILT REMAINING START END YEAR MONTH $ PSF/YR DATE $ PSF/YR
3x5 Years: 1208 Scottsville Rd Fresenius Jun-22 $37.47 (1) FMV. 2017 11.01 5/26/17 5/31/32 10,212 $382,624 $31,885 $37.47 Rochester, NY 14624 Medical Care Jun-27 $41.21 (2) FMV. (3) FMV.
350 Preakness Ave 9x5 Years Walgreens 2011 14.85 4/4/11 4/3/36 14,820 $576,000 $48,000 $38.87 - - Paterson NJ 07502 $40.91 PSF
Totals 25,032 $958,624 $79,885 $38.30
7 FINANCIAL OVERVIEWS
NEW YORK MEDICAL PORTFOLIO
8 FRESENIUS PROPERTY SPECIFICATIONS
FINANCIAL INFORMATION PROPERTY SPECIFICATIONS 1208 Scottsville Rd Price $7,544,972.09 Address Rochester, NY 14624
Net Operating Income $382,624 Year Built 2017
Cap Rate 5.07% Rentable Area ±10,212 SF
Lease Type NNN Land Area ±93,218 SF (2.14 AC)
**Offering cannot be purchased Individually Ownership Fee Simple
LEASE ABSTRACT
Tenant Fresenius Medical Care
Guaranty Fresenius Medical Holdings, Inc
Commencement 5/26/17
Lease Expiration 5/31/32
Annual Rent $382,624
Lease Type NNN
Rental Increases 10% Every 5 Years
3x5 Years: (1) FMV. Options (2) FMV. (3) FMV.
Landlord Responsibilities Roof and Structure
HVAC Landlord Reimbursed
Insurance Tenant
9 FRESENIUS INVESTMENT HIGHLIGHTS 1208 SCOTTSVILLE ROAD | ROCHESTER, NY
» Build-to-Suit 3-miles Monroe Community Hospital (566 bed) » 15-year Net Lease with 11.1 years remaining » Investment Grade: BBB » Corporate Guarantee » 36 Dialysis Stations LIST PRICE » Global Fortune 500® Ranking: #313 $7,544,972 » Publicly traded on NYSE: FMS » Strong Memorial Hospital of the University of Rochester ranked #1 in the region by US news & Annual Report.
NOI $382,624
LOT AREA ±93,218 SF (2.14 AC)
10 Sw
11 TOWERS DR
NE SCOTTSVILLE RD SCOTTSVILLE
39 PARKING SPACES 2.14 ACRES
12 TOWERS DR
NE INTERSTATE 390 ± 92,000 VPD
INTERSTATE 390 SCOTTSVILLE ROAD ± 92,000 VPD ± 19,00 VPD SCOTTSVILLE RD SCOTTSVILLE
39 PARKING SPACES 2.14 ACRES GREAT ROCHESTER INTERNATIONAL AIRPORT WALGREENS PROPERTY SPECIFICATION
FINANCIAL INFORMATION PROPERTY SPECIFICATIONS 350 Preakness Ave Price $11,358,158.20 Address Paterson NJ 07502
Net Operating Income $576,000 Year Built 2011
Cap Rate 5.07% Rentable Area ±14,820 SF
Lease Type NNN Land Area ±52,272 SF (1.20 AC)
**Offering cannot be purchased Individually Ownership Fee Simple
LEASE ABSTRACT
Tenant Walgreens
Guaranty Walgreens CO
Commencement 4/4/11
Lease Expiration 4/3/36
Annual Rent $576,000
Lease Type NNN
9x5 Years Options $40.91 PSF
Landlord Responsibilities NONE
Insurance Tenant
Utilitites Tenant
Cam Tenant
Tenant shall pay Landlord 2% of gross sales from food and prescription items if this amount exceeds total fixed rent for full lease year.
14 WALGREENS INVESTMENT HIGHLIGHTS: 350 PREAKNESS AVE | PATERSON, NJ
» Build-to-Suit » 25-year Net Lease with 14.85 years remaining » Investment Grade: BBB » The largest drug retailer in the US » Over 9,277 retail stores in the US LIST PRICE » US Fortune 500® Ranking: #17 $11,358,158 » Publicly traded on NASDAQ: WBA » ±442,829 people within a 5-mile radius with an average household income of $109,110
NOI $576,000
LOT AREA ±52,272 SF (1.20 AC)
15 N
16 RYERSON AVE NE
49 PARKING SPACES 1.18 ACRES CHAMBERLAIN AVE
PREAKNESS AVE
17 WILLOWBROOK MALL & WAYNE TOWN PLAZA PLAZA 46 TOTOWA SQUARE SHOPPING MALL SHOPPING MALL SHOPPING CENTER ALDO OLD NAVY VITAMIN SHOPPE BLIMPIE EXPRESS YARDHOUSE JERSEY JOHNNY’S TAP 46 FIVE BELOW COACH T MOBILE GNC SEPHORA ATHLETA ON THE BORDER PARK WEST FIRESTONE GAP PARTY CITY IMPERIAL 46 CHEESECAKE FACTORY FOREVER 21 BOBS DISCOUNT CHILIS FRANCESCA’S VANS BASK BAR & GRILL MESA 46 ANN TAYLOR APPLE POPEYES A S PORK PACSUN LOFT PUBLIC STORAGE ETC. VICTORIAS SECRET MAC FINISH LINE ETC.
CHAMBERLAIN AVE
18 CENTER CITY MALL SHOPPING MALL PRICE RITE IHOP DOLLAR WONDER SNIPES THE CHILDRENS PLACE FABIAN 8 SURF CITY SQUEEZE FABCO SHOES CIRCLE CAFE BANANA KING FURNITURE VILLE BELLA DONNA GAME STOP AROMA MIA MADRAG ETC.
DOWNTOWN PATERSON
PREAKNESS AVE
CHAMBERLAIN AVE
19 AREA OVERVIEWS
NEW YORK MEDICAL PORTFOLIO
20 PATERSON, NJ DEMOGRAPHICS Positioned just 25 miles away from New York City, Paterson is the POPULATION 1-MILE 3-MILE 5-MILE largest city and the county seat of Passaic County, New Jersey. With a population of over 145,000 residents, Paterson is the third-largest city in 2026 Projection 38,005 213,946 442,829 New Jersey, just after Newark and Jersey City. In the late 19th century, Paterson was known for its major role in silk production, deeming it the 2021 Estimate 38,063 214,673 443,639 nickname “Silk City”. Today, the city’s local economy is supported by countless small businesses. Paterson is also known for being a melting pot of different cultures as it is home to a large amount of Hispanic, 2010 Census 37,826 215,412 443,275 South Asian, and Middle Eastern residents. Paterson is divided into 18 HOUSEHOLDS neighborhoods with Downtown Paterson and The Great Falls Historic 1-MILE 3-MILE 5-MILE District attracting the most visitors for its points of interest. 2026 Projection 11,826 68,484 149,594
Attractions around the city include the Paterson Great Falls National Historical Park, featuring a 77-ft. waterfall that made a huge impact in 2021 Estimate 11,811 68,754 149,864 water-power development in 1792, and Lambert Castle Museum, the previous home of a textile manufacturer in the 19th century complete 2010 Census 11,541 69,030 149,501 with furnishings and artwork from the period. Paterson is also home to Passaic County Community College, which offers over 60 degree INCOME 1-MILE 3-MILE 5-MILE and career programs and currently educates over 5,500 students. As a suburb of New York City, Paterson offers a great suburban community 2021 Avg HH Income $73,110 $87,216 $109,110 for businesses and families alike. ROCHESTER, NY Located in Monroe County, Rochester is a city on the southern shore of Lake Ontario in Western New York. Rochester is the third most populous city in New York state with over 205,000 residents and its metropolitan area has a population DEMOGRAPHICS of over 1 million people. Rochester’s economy is mainly supported by the POPULATION 1-MILE 3-MILE 5-MILE education and technology industry. Several manufacturing developments are currently under construction in the city. Rochester has a lot to offer residents 2026 Projection 2,747 71,113 212,736 and visitors such as wineries, parks, shopping centers, annual festivals, and lots of sports teams. The city is home to a handful of higher education institutions 2021 Estimate 2,774 71,400 213,545 such as the University of Rochester and the Rochester Institute of Technology. A total of over 30,600 students attend the two private research universities in the area. With a growing economy and several points of interest, Rochester is 2010 Census 2,887 72,200 215,652 where businesses and professionals thrive. HOUSEHOLDS 1-MILE 3-MILE 5-MILE Rochester was one of America’s first boomtowns, rising to prominence as 2026 Projection 1,098 27,703 87,973 the site of many flour mills along the Genesee River, and then as a major hub of manufacturing. Rochester is the site of many important inventions and innovations in consumer products. The city has been the birthplace of many 2021 Estimate 1,110 27,831 88,251 corporations such as Kodak, Western Union, Bausch & Lomb, Gleason, and Xerox that conduct extensive research and manufacturing in the fields of industrial 2010 Census 1,167 28,236 88,829 and consumer products. Today, several companies are headquartered in Rochester such as Paychex Inc., Carestream Health, and many more. Major INCOME 1-MILE 3-MILE 5-MILE employers in the area include the University of Rochester and the Rochester Institute of Technology. Both universities have renowned research programs 2021 Avg HH Income $70,377 $59,473 $65,293 and also produce highly skilled and well-educated workers. Rochester has a promising economy that will continue to attract young professionals looking for employment opportunities as the area is full of growing and prominent companies. 22 TOURISM Rochester has thousands of activities to offer year-round. There is something for everyone from a wide range of restaurants with a unique culinary scene to over 140 festivals and events the city holds throughout the year. If you are looking to get out and explore the natural side of the city, Rochester offers over 12,000 acres of parkland. Take amazing hikes throughout the greenest paths and explore all that nature has to offer. There are also more than 60 public golf courses throughout the area. If you are looking to have a great, relaxing day with friends, there are over 100 wineries, breweries, and distilleries in Rochester.
FINGER LAKES • The Finger Lakes region features over 100 wineries making it one of the world’s premier wine regions. Each lake in the area acts as a natural air conditioner that keeps grapes from being prone to extreme temperature swings, resulting in spectacular wine quality. Several wine trails in the region include Seneca Lake Wine Trail, Canandaigua Lake Wine Trail, Keuka Lake Wine Trail, Cayuga Lake Wine Trail, and Lake Ontario Wine Trail.
HIGHLAND PARK • Designed by Frederick Law Olmsted, a famous landscape architect, Highland Park is one of the oldest arboretums in the nation. Visitors can enjoy the hundreds of lilac bushes and other vegetation throughout the park.
EASTVIEW MALL • Eastview Mall is an upscale shopping center located near the Finger Lakes region, the second-largest wine-producing region in the United States. With over 160 retail and dining options, it is considered to be the ultimate shopping destination in Rochester with featured stores and restaurants including Pottery Barn, Anthropologie, Champps Americana, and Bonefish Grill.
23 HIGHER EDUCATION UNIVERSITY OF ROCHESTER: Established in 1850, the University of Rochester is a leading private research university in Rochester. Currently, over 12,000 students attend the university. The university is made up of 7 schools: School of Arts & Sciences, Hajim School of Engineering & Applied Sciences, Eastman School of Music, School of Medicine and Dentistry, School of Nursing, Simon Business School, and Warner School of Education. Over 200 bachelor’s, master’s, and doctoral degree programs and certificates are offered by the university. Popular majors at the university include Engineering, Social Sciences, and Health Sciences. Numerous alumni and faculty members of the University of Rochester have earned Noble Prizes, Pulitzer Prizes, and Grammy Awards.
ROCHESTER INSTITUTE OF TECHNOLOGY: Established in 1829, the Rochester Institute of Technology is a private research university in Rochester known for its innovative and collaborative environment. Currently, over 18,600 students attend the university. The university is made up of 11 colleges: College of Art & Design, Saunders College of Business, Golisano College of Computing and Information Sciences, Kate Gleason College of Engineering, College of Engineering Technology, College of Health Sciences and Technology, College of Liberal Arts, National Technical Institute for the Deaf, College of Science, Golisano Institute for Sustainability, and School of Individualized Study. The university offers 85 bachelor’s degree programs, 77 master’s degree programs, 50 accelerated dual-degree programs, and 8 Ph. D. programs. The Rochester Institute of Technology is known for its research in cybersecurity, personalized healthcare technology, and sustainability.
24 CONFIDENTIALITY AGREEMENT & DISCLAIMER This Offering Memorandum contains select information pertaining to the business and affairs of New York Medical Portfolio located in Rochester, NY & Paterson, NJ (“Property”). The Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material and information in the Offering Memorandum is unverified. Matthews Real Estate Investment Services has not made any investigation, and makes no warranty or representation, with respect to square footage, income and expenses, the future financial performance of the property, future rent, and real estate value market conditions, the condition or financial prospects of any tenant, or the tenants’ plans or intentions to continue to occupy space at the property. All prospective purchasers should conduct their own thorough due diligence investigation of each of these areas with the assistance of their accounting, construction, and legal professionals, and seek expert opinions regarding volatile market conditions given the unpredictable changes resulting from the continuing COVID-19 pandemic. The information is based in part upon information supplied by the Owner and in part upon financial information obtained from sources the Owner deems reliable. Owner, nor their officers, employees, or real estate agents make any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum, or any of its content, and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.
Matthews Real Estate Investment Services is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee in the Offering Memorandum. 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 Matthews Real Estate Investment Services.
Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
25 TWO PROPERTY PORTFOLIO ROCHESTER, NY & PATERSON, NJ
OFFERING MEMORANDUM
EXCLUSIVELY LISTED BY:
BRYANT HOOVER Associate Vice President D: (310) 774-2163 E: [email protected] License No. 01368589 (CA)
BROKER OF RECORD Jeffrey Terwilliger License No. 30TE0892302 (NY)
Ray Smith License No. 7868129 (NJ)