4401-4403 Bergenline Avenue, Union City Prime Location | New Construction | 100% Occupied

OPPORTUNITY ZONE

4401-4403 BERGENLINE AVENUE, UNION CITY PRIME LOCATION | NEW CONSTRUCTION | 100% OCCUPIED

OFFERING MEMORANDUM NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMER The 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 NOTICE Marcus & 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.

OFFICES THROUGHOUT THE U.S. AND CANADA www.marcusmillichap.com 4401-4403 BERGENLINE AVENUE

Union City, New Jersey

FAHRI OZTURK First Vice President Investments [email protected] 201.742.6170

RICHARD GATTO Vice President Investments [email protected] 201.742.6137

DAVID FERBER, CPA Associate Investments [email protected] 201.742.6129 SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, espe- cially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engi- neers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making. 01 EXECUTIVE SUMMARY // 7

TABLE OF 02 CONTENTS PROPERTY PHOTOS // 18

UNION CITY

03 FINANCIAL ANALYSIS // 25 OPPORTUNITY ZONE

UNION CITY 6 6 1 NUMBER OF APARTMENTS NUMBER OF COMMERCIAL SPACES

100% OCCUPIED 4401-4403 BERGENLINE AVENUE AVENUE 4401-4403 BERGENLINE

4401-4403 BERGENLINE AVENUE OPPORTUNITY ZONE 4401-4403 BERGENLINE AVENUE, UNION CITY

EXECUTIVE SUMMARY 7

SECTION UNION CITY 01 EXECUTIVE SUMMARY

$3,490,000 PROPERTY INFORMATION VITAL DATA OFFERING PRICE Property Address 4401-4403 Bergenline Ave, Union City, NJ 07087 Price $3,490,000 Block / Lot 255 / 21 Price Per Sq Ft. $389 Lot Size 3,060 Sq. Ft. Net Operating Income $191,929 Net Rentable Sq. Ft. 8,967 Sq. Ft. Cap Rate 5.50% Zoning CN: Neighborhood Commercial Cash-on-Cash 6.15% Opportunity Zone Pro Forma Cap Rate (1) 5.91% Real Estate Taxes $65,050 Pro Forma Cash-on-Cash 8.07%

5.50% (1) Retail annual rent increase in June 2021 and removing vacancy/collection loss CURRENT CAP RATE UNIT TYPE UNITS AVG. SF AVG. RENTS $/SF LOAN ASSUMPTIONS

UNION CITY 2 Bed/1 Bath 4 1,040 $2,769 $32 Loan Amount $2,792,000 2 Bed/2 Bath 2 1,250 $2,550 $24 Down Payment $698,000

8 Commercial 1 2,306 $8,500 $44 Term 7 Years Total / Averages 7 8,967 $3,525 $32 LTV 80% 6.15% Interest Rate 3.25% CURRENT CASH ON CASH

5.91% PRO FORMA CAP RATE 4401-4403 BERGENLINE AVENUE AVENUE 4401-4403 BERGENLINE

8.07% PRO FORMA CASH ON CASH 4401-4403 BERGENLINE AVENUE

UNION CITY SUMMARY OF TERMS INTEREST OFFERED

Marcus & Millichap has been selected to exclusively market for sale 4401-4403 Bergenline

Avenue, a mixed use building, located in Union City, New Jersey. .

TERMS OF SALE 4401-4403 Bergenline Avenue is being offered for $3,490,000 free and clear of debt. 9

PROPERTY TOURS UNION CITY All property tours must be arranged with the Marcus & Millichap listing agents. At no time shall the tenants, on-site management or staff be contacted without prior approval. 4401-4403 BERGENLINE AVENUE, UNION CITY INVESTMENT OVERVIEW

Marcus & Millichap has been selected to exclusively market for sale 4401-4403 Bergenline Avenue in Union City. Built in 2018, the property has 6 apartments and one commercial space. The property has a strong, stabilized cash flow with strong market rents and minimal turnover due to the prime location.

The property is exceptionally located at one of the busiest intersections of Bergenline Avenue and 44th Street, 2.5 miles from the Lincoln Tunnel and under

UNION CITY four miles from New York City. Additionally, the property has easy access to Interstate 95 and Interstate 78, Route 1&9, Route 3, Route 17 and Route 7. 4401- 10 4403 Bergenline Avenue is five blocks from the Bergenline Light Rail Station which offers an approximately 35 minute ride into Manhattan. The property is also a two minute walk to Bergenline Ave at 45th St bus stop with 20 minute ride to NYC via the Lincoln Tunnel.

Union City is one of the most densely populated cities in the United States. It’s home to many national and regional retailers. The subject property are located under one mile from Walgreen’s, Aldi’s, Shoprite, Bank of America, Dollar Tree and many more retailers.

4401 BERGENLINE AVE 4401-4403 BERGENLINE AVENUE AVENUE 4401-4403 BERGENLINE

INVESTMENT HIGHLIGHTS 4401-4403 BERGENLINE AVENUE

PRIME LOCATION • Located at the intersection of Bergenline Ave and 44th Street DIRECT ACCESS TO NEW YORK CITY • Minutes from the Holland Tunnel, Lincoln Tunnel and GW Bridge • Two minute walk to Bergenline Ave at 45th St bus stop with 20 minute ride to • 15 minutes to New York City NYC via the Lincoln Tunnel • Residents have quick access to key employment centers of Manhattan • Five blocks from the Bergenline Light Rail Station which offers an approximate • Easy access to I-495, I-95, I-78, Route 1&9 and more 35 minute ride into Manhattan • Situated closely to Newark, JFK and La Guardia Airport • Walkable distance to restaurants, theaters and many national retailers

STRONG DEMOGRAPHICS & OCCUPANCY . • Union City is the most densely populated city in the United States STRONG CASH FLOW WITH UPSIDE • The retail tenant has recently expanded and extended their lease until 2030 and • The building has a strong net operating income of $191,929 representing a has two other successful locations 5.50% cap rate at asking price • Strong market rents and minimal turnover due to the prime location • The pro forma cap rate will be 5.91% based on retail annual rent increase in • Within immediate walking distance to numerous national retailers including, June 2021 and removing vacancy/collection loss McDonald’s, Rite Aid, TD Bank, multiple grocery stores and Columbia Park 11

Center Mall UNION CITY

BUILDING HIGHLIGHTS • New 2018 construction • Tenants are responsible for all utilities • Elevator building with intercom system • Washer & dryers in every unit ROBERTUNION TOWERS CITY LOCATION OVERVIEW UNION CITY

The area of what is today Union City was originally inhabited by the Lenape, but was later settled by Germans in 1851, who moved across the Hudson River from New York City in search of affordable land and open space. The area between what is now Palisade and Bergenline Avenue, from 22nd to 32nd Street was a Civil War installation called Camp Yates. Trolleys began to operate in West Hoboken and Union Hill in 1890, after UNION CITY the area was electrified. The area on which Roosevelt Stadium stood was

12 part of a farm called Kerrigan Farm. The street that now runs from 15th Street to 25th and ends at the stadium site is called Kerrigan Avenue. From the mid-1800s to the early 1900s, German Americans and Dutch dominated the area. They, along with Swiss and Austrian immigrants, founded the European-style lace making industries, for which they were famous. Union City and West New York became the “embroidery capitol of the United States”, and the embroidery industry’s trademark is on the Union City Seal. Union City was incorporated on June 1, 1925 by merging the two towns of West Hoboken and Union Hill. 4401-4403 BERGENLINE AVENUE AVENUE 4401-4403 BERGENLINE

UNION CITY 4401-4403 BERGENLINE AVENUE DEMOGRAPHICS 5-MILE RADIUS DEMOGRAPHICS

POPULATION 1-MILE 3-MILES 5-MILES 2023 Projection 88,076 708,333 1,977,672 2018 Population 87,988 683,743 1,920,611 $140,175 2010 Population 81,999 633,535 1,802,417

AVERAGE HOUSEHOLD INCOME . HOUSEHOLDS 1-MILE 3-MILES 5-MILES 2023 Households 32,415 344,299 954,894

2018 Households 31,792 328,666 919,077

2010 Households 29,642 303,473 857,609 1,920,611 13

2018 Daytime Population 68,165 1,610,093 3,760,072 TOTAL POPULATION UNION CITY

INCOME 1-MILE 3-MILES 5-MILES 2018 Average Household Income $74,756 $145,489 $83,940

2018 Median Household Income $51,591 $89,463 $83,940

2018 Per Capita Income $27,129 $70,210 $67,530 919,077 TOTAL HOUSEHOLDS Bergenline Light Rail Station

5 Blocks 35 Min. walk to approximate ride to Bergenline Light Rail Manhattan Station

2.5 Miles Lincoln Tunnel

UNION CITY 6.5 Miles

14 Holland Tunnel

4401 BERGENLINE AVE 10 Miles George Washington Bridge 4401-4403 BERGENLINE AVENUE AVENUE 4401-4403 BERGENLINE

LINCOLN TUNNEL 4 MILES FROM NEW YORK CITY 4401-4403 BERGENLINE AVENUE

UNION CITY

4401 BERGENLINE AVE Retail on Bergenline Avenue UNION CITY

In close proximity to:

Bergenline Ave 4401-4403 BERGENLINE AVENUE AVENUE 4401-4403 BERGENLINE

4401 BERGENLINE AVE 4401-4403 BERGENLINE AVENUE

4401-4403 BERGENLINE AVENUE, UNION CITY

PROPERTY PHOTOS 17

SECTION UNION CITY 02 18 4401-4403 BERGENLINE AVENUE UNION CITY

INTERIOR PHOTOS UNION CITY

19 4401-4403 BERGENLINE AVENUE AVENUE 4401-4403 BERGENLINE

INTERIOR PHOTOS 4401-4403 BERGENLINE AVENUE

UNION CITY INTERIOR PHOTOS UNION CITY

21 4401-4403 BERGENLINE AVENUE AVENUE 4401-4403 BERGENLINE

4401-4403 BERGENLINE AVENUE

4401-4403 BERGENLINE AVENUE, UNION CITY

FINANCIAL ANALYSIS SECTION 22

UNION CITY 03 RENT ROLL

COMMERCIAL

MONTHLY PRO FORMA PRO FORMA UNIT TENANT NAME EXPIRATION SQ. FT. $ / SF RENT MONTHLY RENT $ / SF Ground Retail Dulce Hogar Furniture Store 5/30/2030 2,306 $8,500 $44 $9,000 $47 Total 1 2,306 $8,500 $44 $9,000 $47

RESIDENTIAL

UNION CITY PRO FORMA PRO FORMA UNIT # UNIT TYPE SQ. FT. MONTHLY RENT $ / SF MONTHLY RENT $ / SF 23 2A 2 Bed/1 Bath 1,059 $2,575 $29 $2,575 $29 2B 2 Bed/2 Bath 1,250 $2,500 $24 $2,500 $24 3A 2 Bed/1 Bath 1,059 $2,500 $28 $2,500 $28 3B 2 Bed/2 Bath 1,250 $2,600 $25 $2,600 $25 4A 2 Bed/1 Bath 1,059 $3,000 $34 $3,000 $34 4B 2 Bed/1 Bath 984 $3,000 $37 $3,000 $37 Total 6 6,661 $16,175 $30 $16,175 $30

CURRENT PRO FORMA

Total Annual Commercial Income $102,000 $108,000

Total Annual Residential Income $194,100 $194,100 4401-4403 BERGENLINE AVENUE AVENUE 4401-4403 BERGENLINE

Total Annual Income $296,100 $302,100 INCOME STATEMENT

Building SF (Approx.) 8,967

ACTUAL PRO FORMA (1) INCOME %EGI %EGI Gross Potential Income $296,100 $302,100 EXPENSE RATIO Less Vacancy & Credit Loss -$8,883 3% $0 0% Other Income $250 $250

Effective Gross Income $287,467 $302,350

EXPENSES EGI% EGI% UNION CITY Property Taxes $65,050 23% $65,050 22% 33%

24 Insurance $4,706 2% $4,706 2%

Water (Sprinkler) $1,550 1% $1,550 1%

PSEG $4,747 2% $4,747 2% Elevator Maintenance $2,821 1% $2,821 1% TAXES PER FOOT Repairs & Maintenance $3,500 1% $3,500 1% $7.25 Pest Control $240 0% $240 0%

Super and Janitorial $2,300 1% $2,300 1% Management Fee $8,624 3% $9,071 3% Legal & Accounting $600 0% $600 0% Reserves $1,400 0% $1,400 0%

Total Expenses $95,538 33% $95,985 32% Net Operating Income $191,929 $206,366

(1) Retail annual rent increase in June 2021 and removing vacancy/collection loss 4401-4403 BERGENLINE AVENUE AVENUE 4401-4403 BERGENLINE

4401-4403 BERGENLINE AVENUE 4401-4403 BERGENLINE AVENUE

Union City, New Jersey

FAHRI OZTURK First Vice President Investments [email protected] 201.742.6170

RICHARD GATTO Vice President Investments [email protected] 201.742.6137 25

UNION CITY DAVID FERBER, CPA Associate Investments [email protected] 201.742.6129 4401-4403 BERGENLINE AVENUE, UNION CITY

OFFERING MEMORANDUM