HIGH PROFILE LOCATION WITH A BRAND NEW, 3 TENANT STRIP CENTER IN THE PHILADELPHIA MSA
SHOPS AT MT. LAUREL 3531 NJ-38 | MT. LAUREL, NEW JERSEY INVESTMENT ADVISORS
MARC MANDEL Managing Director 484.532.4212 [email protected]
STEVE SCHRENK Director 484.532.4213 [email protected]
ROB RIZZI Managing Director 212.632.1807 [email protected] JORDAN AVANZATO Director 973.549.2012 [email protected]
DEBT ADVISOR MIKE PAGNIUCCI Director CLICK TO VIEW 484.532.4172 PROPERTY VIDEO [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. SHOPS AT MT. LAUREL
CENTERTON SQUARE - 52 Total Tenants & 701,948 Total SF Anchored by Wegmans,Costco, TJ Maxx and Target
Investment Summary SHOPS AT MT. LAUREL | 3531 NJ-38 | MT. LAUREL, NEW JERSEY · · ·
INVESTMENT SUMMARY
Holliday Fenoglio Fowler, L.P. (“HFF”) Net Lease Advisory is pleased to exclusively offer a premier retail opportunity to acquire a newly constructed multi-tenant building, 100% leased to Mattress Warehouse, AT&T, and Cherry Blow Dry Bar (the “Property”) located in Mt. Laurel, NJ. All tenants have signed brand new leases with 10 years of remaining lease term and 10% rental increases throughout the primary and option periods. Mattress Warehouse’s lease features a rare, full 10 year corporate guaranty. The Property is located adjacent to Centerton Square - a premiere shopping destination featuring 52 retail tenants anchored by Wegmans, Costco, Target and TJ Maxx, further driving consumer traffic to the site. Situated on Route 38, the property benefits from exposure to over 44,000 VPD and is surrounded by various large employers including Virtua and Lockheed Martin, and is also positioned in close proximity to Mount Laurel Corporate Center. Mt. Laurel is located in Burlington County approximately 12 miles from the Philadelphia CBD and is approximately 22.0 square miles with an estimated population of 41,738 residents and a median household income of $88,820, $5,240,000 7.00% $367,001 which is approximately 22.3% higher than that of the State of New Jersey. ASKING PRICE CAP RATE TOTAL RENT Most of the land area of Mount Laurel is zoned as residential and consists primarily of single-family homes.
PROPERTY SUMMARY PROPERTY INFORMATION LEASE INFORMATION
Lease Tenant Total Parcel Size (Acres) Size (SF) Annual Rent Rent/SF Term Remaining
Mattress Warehouse - 4,736 $200,001 $42.23 10 Years
AT&T - 2,000 $110,000 $55.00 10 Years
Cherry Blow Dry Bar - 1,200 $57,000 $47.50 10 Years
TOTAL 0.86 7,936 $367,001
4 Investment Summary SHOPS AT MT. LAUREL | · · ·
INVESTMENT HIGHLIGHTS
New construction, three Tremendous retail location All three leases have 10% tenant strip center featuring surrounded by strong retailers rental increases every 5 Mattress Warehouse, AT&T and such as Costco, Target, Wegmans, years and minimal landlord Cherry Blow Dry Bar all with Wawa, and TJ Maxx driving responsibilities new 10-year leases consumer traffic to the area
The location benefits from All leases have full Property is located off the NJ strong demographics with reimbursements including Turnpike on Route 38 at a fully 161,405 people within a 5-mile reimbursement for a signalized intersection and has radius and an above average Management fee exposure to over 44,000 VPD household income of $128,284
38 44,000+ VPD
| SHOPS AT MT. LAUREL Investment Summary 5 · · ·
VILLAGE AT 295 CENTERTON SQUARE CAMBRIDGE CROSSING
537 LOCKHEED MARTIN HARTFORD RD
Cooper University Health Care Virtua
SHOPS AT MT. LAUREL 106,000+ VPD 295
38
38 44,000+ VPD
BRIGGS RD
BISHOPS GATE BUSINESS PARK Laurel Corporate Center PHH NFL MORTGAGE FILMS
6 Investment Summary SHOPS AT MT. LAUREL | FINANCIAL ANALYSIS SHOPS AT MT. LAUREL | 3531 NJ-38 | MT. LAUREL, NEW JERSEY · · ·
LEASE ABSTRACT
LEASE DETAIL TENANT RESPONSIBILITY DETAIL
3531 NJ-38 Tenant at its sole cost and expense shall make all repairs, Address Mt Laurel, NJ 08054 Maintenance and replacements, alterations, and improvements to the demised Repairs premises; including roof and structural elements, and sidewalks Tenant AT Wireless, Inc surrounding the premises DBA AT&T Tenant shall carry all insurance required under the lease throughout Insurance Square Footage 2,000 the term Tenant shall pay their pro rata share of real estate taxes for the Year Built 2018 Taxes demised premises Annual Rent $110,000 Tenant shall pay for all utilities consumed on the demised Utilities premises Rent PSF $55.00 In addition to base rent, tenant shall pay to landlord an amount Lease Type Fee Simple: NNN equal to tenant's pro rata share of total annual costs incurred by CAM landlord for operating, maintaining, replacing and repairing the Rent Commencement 2/6/2019 common areas Lease Expiration 2/5/2029 Within 10 days following the end of each calendar month of the Sales Reporting term, tenant shall submit to landlord and audited statement of Remaining Lease Term 10 Years gross sales for such calendar month
Remaining Options One (1) Five (5) Year Option
RENT SCHEDULE LANDLORD RESPONSIBILITY DETAIL
Description Dates Annual Rent Rent Increase Landlord shall operate, maintain, repair and replace the common CAM areas of the premises Base Term: Years 1 - 5 2/6/2019 - 2/5/2024 $110,000
Base Term: Years 6 - 10 2/6/2024 - 2/5/2029 $121,000 10.00%
Option 1: Years 11 - 15 2/6/2029 - 2/5/2034 $133,100 10.00%
8 Financial Analysis SHOPS AT MT. LAUREL | · · ·
LEASE ABSTRACT
LEASE DETAIL TENANT RESPONSIBILITY DETAIL 3531 NJ-38 Address Mt Laurel, NJ 08054 Tenant shall make all repairs, replacements, alterations and Maintenance and improvements to the non structural portion of the demised Tenant MW of Mount Laurel LLC Repairs premises as are necessary to keep and maintain the demised premises, including all utility systems, sprinkler system, and HVAC DBA Mattress Warehouse Guarantor Mattress Warehouse Inc (Full 10 years) Tenant shall carry all insurance required under the lease throughout Insurance the term Square Footage 4,736 Tenant shall pay their pro rata share of real estate taxes for the Year Built 2018 Taxes demised premises Annual Rent $200,001 Tenant shall pay for all utilities consumed on the demised Utilities Rent PSF $42.23 premises Lease Type Fee Simple: NN In addition to base rent, tenant shall pay to landlord an amount equal to tenant's pro rata share of total annual costs incurred by Rent Commencement 2/15/2019 CAM landlord for operating, maintaining, replacing and repairing the Lease Expiration 2/14/2029 common areas Remaining Lease Term 10 Years If requested by landlord, Tenant shall submit on or before the 30th Remaining Options Three (3) Options of Five (5) Years each Sales Reporting day following receipt of Landlords request, a written statement showing the amount of gross sales
RENT SCHEDULE LANDLORD RESPONSIBILITY DETAIL
Description Dates Annual Rent Rent Increase Maintenance and Landlord shall make all repairs to the structural portions of the Repairs premises and maintain and repair the common areas Base Term: Years 1 - 5 2/15/2019 - 2/14/2024 $200,001 Landlord shall operate, maintain, repair and replace the common Base Term: Years 6 - 10 2/15/2024 - 2/14/2029 $219,987 9.99% CAM areas of the premises Option 1: Years 11 - 15 2/15/2029 - 2/14/2034 $241,986 10.00% Option 2: Years 16 - 20 2/15/2034 - 2/14/2039 $266,185 10.00% Option 3: Years 21 - 25 2/15/2039 - 2/14/2044 $292,803 10.00%
| SHOPS AT MT. LAUREL Financial Analysis 9 · · ·
LEASE ABSTRACT
LEASE DETAIL TENANT RESPONSIBILITY DETAIL 3531 NJ-38 Tenant shall make all repairs, replacements, alterations and Address Mt Laurel, NJ 08054 Maintenance and improvements to the non structural portion of the demised Tenant Brandon Thomas Salon, LLC Repairs premises as are necessary to keep and maintain the demised premises, including all utility systems, sprinkler system, and HVAC DBA Cherry Blow Dry Bar Guarantor Teresa Riley Tenant shall carry all insurance required under the lease throughout Insurance the term Square Footage 1,200 Tenant shall pay their pro rata share of real estate taxes for the Year Built 2018 Taxes demised premises Annual Rent $57,000 Tenant shall pay for all utilities consumed on the demised Utilities Rent PSF $47.50 premises Lease Type Fee Simple: NN In addition to base rent, tenant shall pay to landlord an amount equal to tenant's pro rata share of total annual costs incurred by Estimated Opening Date 2/18/2019 CAM landlord for operating, maintaining, replacing and repairing the Rent Commencement 6/1/2019 * common areas Lease Expiration 5/31/2029 Within 10 days following the end of each calendar month of the Sales Reporting term, tenant shall submit to landlord and unaudited statement of Remaining Lease Term 10 Years 3 Months gross sales for such calendar month Remaining Options Two (2) Options of Five (5) Years each * Rent commencement is an estimate
RENT SCHEDULE LANDLORD RESPONSIBILITY DETAIL
Description Dates Annual Rent Rent Increase Maintenance and Landlord shall make all repairs to the structural portions of the Repairs premises and maintain and repair the common areas Base Term: Years 1 - 5 6/1/2019 - 5/31/2024 $57,000 Landlord shall operate, maintain, repair and replace the common Base Term: Years 6 - 10 6/1/2024 - 5/31/2029 $62,700 10.00% CAM areas of the premises Option 1: Years 11 - 15 6/1/2029 - 5/31/2034 $68,970 10.00%
Option 2: Years 16 - 20 6/1/2034 - 5/31/2029 $75,867 10.00%
10 Financial Analysis SHOPS AT MT. LAUREL | · · ·
SITE PLAN Marter AvenueMarter
Route 38 Exit Ramp
PYLON SIGN
38 44,000+ VPD
| SHOPS AT MT. LAUREL Financial Analysis 11 Tenant OverviewS SHOPS AT MT. LAUREL | 3531 NJ-38 | MT. LAUREL, NEW JERSEY · · · TENANT OVERVIEWS
AT&T Inc. is a world leader in communications, media and entertainment, and technology. In 2017, their consolidated Tenant Trade Name AT&T revenues were more than $160.5 billion. They have recorded 34 consecutive years of quarterly dividend growth and are Stock Ticker T (NYSE) a Fortune 10 company. Headquarters Dallas, TX In 1984, the former AT&T divested its local telephone operations but retained its long distance, R&D and manufacturing Number of Locations 2,200+ arms. From this, Southwestern Bell, a regional telephone company, was born. Since then AT&T has acquired BellSouth, DIRECTV, and recently closed on its acquisition of Time Warner Inc. in June of 2018. AT Wireless Inc currently operates 6 AT&T locations throughout the State of New Jersey. The Mt. Laurel location will their 7th location. www.corp.att.com/worldwide
Tenant Trade Name Mattress Warehouse Mattress Warehouse has been open for over 25 years. Mattress Warehouse opened its first store in November 1989 in Frederick, MD. Since then, they have grown and now have over 240 Mattress Warehouse store locations and are continuing Ownership Private to expand. Headquarters Frederick, MD Mattress Warehouse carries the largest selection of quality name brand bedding – Serta, Sealy, Stearns & Foster, TEMPUR- Number of Locations 240 Pedic, Kingsdown, Aireloom and more. Their professional sales staff can find a product for any type of sleeper through their wide variety of comfortable, supportive, and affordable mattresses. www.sleephappens.com
Cherry Blow Dry Bar is an expanding franchise that provides premium express services including blowouts, hair extensions, Tenant Trade Name Cherry Blow Dry Bar makeup services and treatment. Cherry Blow Dry Bar launched in 2013, providing glam styling services at affordable Ownership Private prices. Since then, their following has grown, transforming the original concept of blowout styling into a wildly popular Headquarters Irvine, CA membership model. The company is also a member of ‘The Blowout Category’, which is quickly growing into what has become a $40 billion a year global hair salon industry. This location is owned and operated by Teresa Riley. Number of Locations 16 www.cherryblowdrybar.com
| SHOPS AT MT. LAUREL Tenant Overview 13 130
Burlington
295
95 130 r e iv R e r a w a Cinnaminson l SHOPSe AT MT. LAUREL D
7373 295 95 90 Moorestown
38 76 41
130 PHILADELPHIA 12 MILE 38 S 676 MT. LAUREL
3838
Cherry Hill 76 Camden 295 70 41 95 676
Marlton 130130 7373 Haddonfield 70
95
Market Overview SHOPS AT MT. LAUREL | 3531 NJ-38 | MT. LAUREL, NEW JERSEY · · · 130
Burlington
295 MOUNT LAUREL TOWNSHIP
95 130 r e OVERVIEW iv R e r a Mount Laurel is located in Burlington County and is approximately 22.0 square miles with an estimated population w a Cinnaminson l e D of 41,738 residents and a median household income of $88,820, which is approximately 22.3% higher than that of the $88,820 State of New Jersey. Most of the land area of Mount Laurel is zoned as residential and consists primarily of single- 7373 295 Median Household 95 90 Moorestown family homes. Mount Laurel shows a local unemployment rate if 4.5% and has shown job growth of 2.5%. The area Income has a median home value of $272,000 which exceeds the national median by 35%. 83% of homes are owner-occupied 38 in Mount Laurel. 76 41
130 LOCAL AREA AMENITIES 38 PHILADELPHIA Mount Laurel is convenient to a large array of shopping and dining options. The Moorestown/Mount Laurel boarder is MT. LAUREL 676 a local retail epicenter offering a wide array of shopping and dining options. The location benefits from its centralized 42% location at the convergence of I-295, The NJ Turnpike and routes 73, 38, and 41 and the location has the ability to 3838 of residents bachelor’s attract shoppers on a regional level. The location is home to the Moorestown Mall, a 1 million square foot enclosed degree or higher Cherry Hill shopping mall anchored by Lord & Taylor and Boscov’s, owned and operated by PREIT. The Moorestown Mall offers 76 Camden 295 over 90 stores as well as a movie theatre and multiple dining options. East Gate Shopping Center, located on the 70 41 41 Mount Laurel side of the Mount Laurel/Moorestown border is a grocery anchored outdoor shopping complex offering 95 676 just under 890,000 SF of additional shopping and dining options. Marlton 130130 7373 Haddonfield 70 MOORESTOWN MALL MOORESTOWN MALL 4.5% FOOD COURT Unemployment Rate
95
2.5% Job Growth Rate
| SHOPS AT MT. LAUREL Market Overview 15 · · ·
TRADE AREA DEMOGRAPHICS
POPULATION 130 1 MILE 3 MILES 5 MILES Burlington 2010 Census 2,713 47,635 161,553 2018 Estimate 2,687 48,090 161,405 295
2023 Projection 2,692 48,579 162,454 95 130 r e iv R e r a w a Cinnaminson l POPULATION GROWTH e D
7373 295 1 MILE 3 MILES 5 MILES 95 90 5 MILES Moorestown
Historical Growth: 2010 to 2018 -0.96% 0.95% -0.09% 38 76 3 MILES 41 SHOPS AT MT. LAUREL Projected Growth: 2018 to 2023 0.19% 1.02% 0.65% 130 PHILADELPHIA 1 MILE 38 MT. LAUREL HOUSEHOLDS 676 MT. LAUREL 1 MILE 3 MILES 5 MILES 3838 Cherry Hill 2010 Census 890 19,171 62,156 76 Camden 295 70 41 2018 Estimate 892 19,675 62,777 95 676
Marlton 2023 Projection 897 19,993 63,446 130130 7373 Haddonfield Historical Growth: 2010 to 2018 0.23% 2.63% 1.00% 70
Projected Growth: 2018 to 2023 0.56% 1.62% 1.07% 95 2018 Est. Average Household Income $194,086 $152,906 $128,284 2018 Est. Median Household Income $138,925 $105,765 $93,622
PHILADELPHIA | 12 MILES NEW YORK CITY | 80 MILES
16 Market Overview SHOPS AT MT. LAUREL | · · ·
GREATER PHILADELPHIA OVERVIEW
DIVERSE & DYNAMIC ECONOMY CORPORATE HEADQUARTERS As one of the most diverse economies in the Nation, Greater Philadelphia is home to the headquarters of more than 30 corporations ranked in the Fortune 1000. The region is home to an array of pharmaceutical and/or life sciences companies including: AstraZeneca, AmerisourceBergen, Johnson & Johnson, Pfizer, GlaxoSmithKline and Dow Chemical. Additionally, many financial services companies have significant operations in the Greater Philadelphia region including: MBNA, Vanguard, JP Morgan Chase, PHH Mortgage and Prudential.
ACE USA Jones Apparel Group 7th #1 Air Products & Chemicals Lincoln Financial Group largest metro largest concentration of Airgas MBNA in the U.S. healthcare in the nation American Water Works Okidata Amerisource Health AmeriHealth Caritas Atofina Chemical ON Office Solutions Burlington Coat Factory Pep Boys Cephalon PHH Mortgage Charming Shoppes Quaker Chemical Conectiv Sunguard Data Systems 36.5% 1 in 5 Crown, Cork & Seal Sunoco of all employment physicians nationwide Harleysville Mutual Universal Health Systems is in ‘eds + meds’ were trained in Hercules Vishay Intertechnology Philadelphia Johnson & Johnson VWR Scientific
| SHOPS AT MT. LAUREL Market Overview 17 · · ·
Philadelphia is six hours by plane to the West Coast, Europe, and Latin America and only a two hour drive to New York and Washington D.C., making it a key transportation hub along the Northeast Corridor. Most major east coast cities are accessible through Amtrak’s regional service; with Acela express service from Philadelphia to both Washington D.C. (1 hour, 35 minutes) and New York City (1 hour, 12 minutes).
The Philadelphia International Airport (“PHL”) serves as the principal aviation hub for the northeast. Due to its central location between New York and Washington D.C., 60% of the entire nation’s population can be reached within a two hour flight from Philadelphia. The Airport is accessible via car using I-95 and I-76 (The Schuylkill Expressway), as well as a high speed rail through Amtrak’s 30th Street Station. PROVIDING CONNECTIVITY
PHILADELPHIA INTERNATIONAL AIRPORT 30TH STREET STATION DOMESTIC TRAVELERS: 26,879,613 ANNUALLY AVERAGE WEEKDAY RIDERSHIP: 12,000+ INTERNATIONAL TRAVELERS: 4,564,790 ANNUALLY
30TH STREET STATION REVITALIZATION CONNECTING THE SKIES • Philadelphia’s 30th Street Station is the 3rd busiest stop along Amtrak’s • Philadelphia International Airport (PHL) generates more than $14.4 billion Northeast Corridor (NEC), the busiest and most complex operations of any in spending to the regional economy and accounts for more than 141,000 rail corridor in the western hemisphere. jobs within the region.
• Completed in June of 2016, the 30th Street Station District Plan is a long- • 60% of the U.S. population within a two hour flight. range, joint master planning effort led by Amtrak, Brandywine Realty Trust, • The PHL airport has undergone more than $2 billion in capital improvements Drexel University, Pennsylvania Department of Transportation (“PennDOT”) since 2000 including but not limited to the ongoing expansion of Terminal F, and SEPTA to develop a comprehensive vision for the future of the 30th which has an estimated project cost of $162 million. Street Station District by the year 2050. The Master Plan lays out a vision • PHL’s seven terminals provide non-stop flights to more than 90 domestic to support 40 new acres of open space and 18 million square feet of new and 40 international destinations. development, including an entirely new mixed-use neighborhood anchoring the District atop 88 acres of rail yards on the western bank of the Schuylkill River.
18 Market Overview SHOPS AT MT. LAUREL | · · ·
CULTURE & LIFESTYLE
Tourism in 2015 generated $10.7 billion in economic impact in Philadelphia and supported 93,000 jobs. Philadelphia has always been considered a center of excellence for visual and performing arts, and as such, cultural organizations and audiences contribute significant direct expenditures to the City’s economy. Cultural and entertainment opportunities in the region include but not limited to:
The Academy of Fine Arts • Academy of Natural Sciences • Betsy Ross House • The Liberty Bell • The National Constitution Center Philadelphia Museum of Art • Longwood Gardens • Valley Forge National Historic Park • Eastern State Penitentiary • Museum of the American Revolution Brandywine River Museum Philadelphia Orchestra • Franklin Institute • Please Touch Museum • Mann Music Center • Rodin Museum • The Philadelphia Zoo • Pennsylvania Ballet • Winterthur The Barnes Foundation • The National Museum of American Jewish History
| SHOPS AT MT. LAUREL Market Overview 19 SHOPS AT MT. LAUREL
INVESTMENT ADVISORS
MARC MANDEL Managing Director 484.532.4212 [email protected]
STEVE SCHRENK Director 484.532.4213 [email protected]
ROB RIZZI Managing Director 212.632.1807 [email protected] JORDAN AVANZATO Director 973.549.2012 [email protected]
DEBT ADVISOR MIKE PAGNIUCCI Director 484.532.4172 [email protected]
HFF 1700 Market Street Suite 3232 Philadelphia, PA 19103
HFF 200 Campus Drive Suite 410 Florham Park, NJ 07932 hfflp.com