Mount Laurel, New Jersey
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EXECUTIVE PLAZA Mount Laurel, New Jersey CONFIDENTIAL OFFERING MEMORANDUM THIS IS A CONFIDENTIAL OFFERING MEMORANDUM No representation or warranty, express or implied, is made intended solely for your own limited use in considering as to the accuracy or completeness of this confidential whether to pursue negotiations to purchase 1120 Route memorandum or any of its contents, or any other written or 73 in Mount Laurel, New Jersey (the “Property”). Newmark oral communication transmitted to a prospective purchaser Grubb Knight Frank Capital Group, a division of Newmark & in the course of its evaluation of the proposed sale of the Company Real Estate, Inc. d/b/a Newmark Grubb Knight Property. There is no representation as to the environmental Frank (“Newmark Grubb Knight Frank”) has been retained as condition of the Property. the exclusive advisor to sell the Property. No other agent You agree that the memorandum and its contents are or broker is authorized to offer the Property unless and until confidential, that you will hold and treat it in confidence and that agent or broker has executed a written agreement with that you will not disclose this memorandum or its contents Newmark Grubb Knight Frank and that agreement has been to any other firm or entity without prior written authorization. executed by their interested purchaser. Photocopying or other duplication is prohibited. You will This confidential offering memorandum contains brief, use this confidential memorandum only for the purpose selected information pertaining to the business and affairs of evaluating the possible acquisition of the Property. All of the Property and has been prepared by Newmark Grubb prospective purchasers agree that they will conduct their Knight Frank. Although this confidential memorandum has own independent investigation of those matters which they been reviewed by representatives of the Seller, it does not deem appropriate in order to evaluate this offering. purport to be all-inclusive or to contain all of the information Seller and Newmark Grubb Knight Frank, expressly reserve which a prospective purchaser may desire. Neither the the right at their sole discretion to reject any or all proposals, Seller nor Newmark Grubb Knight Frank, nor any of their offers, or expressions of interest in the Property and to partners, officers, employees or agents have independently terminate discussions with any party at any time with or verified the information contained herein and they are not without notice. responsible for any errors or inaccuracies in the information. FOR FURTHER INFORMATION, PLEASE CONTACT: CAPITAL MARKETS: Michael Margolis David Dolan Brett Segal Senior Managing Director Senior Managing Director Director 610-879-4503 215-246-2738 215-246-2776 [email protected] [email protected] [email protected] LOCAL MARKET EXPERT: DEBT FINANCING: Joseph Sklencar, Sr. Joseph Donato Matthew Williams Senior Managing Director Vice Chairman Senior Managing Director 856-334-2120 202-312-5787 202-312-5767 [email protected] [email protected] [email protected] TABLE OF CONTENTS EXECUTIVE SUMMARY 04 PROPERTY DESCRIPTION 08 AREA OVERVIEW 14 MARKET OVERVIEW 22 TENANT OVERVIEW 32 FINANCIAL ANALYSIS 44 EXECUTIVE SUMMARY Terms of Offering The offering is being listed by Newmark Grubb Knight Frank on behalf of ownership. The asset is being offered on an “as-is” basis. No offering price had been established for the Property. A bid date will be established during the market- ing period and interested prospects will be notified of the date. The Property is being offered free and clear of existing financing and on an All Cash basis. INVESTMENT OVERVIEW NGKF Capital Markets has been retained as the exclusive agent for the sale of Executive Plaza, located at 1120 Route 73 in Mount Laurel, New Jersey. This Class ‘A’ Property is a 96,790 rentable square foot institutionally maintained, four-story office building that was constructed in 1985 and fully renovated in 2011. Located at the crossroads of Route 73, the New Jersey Turnpike and Interstate 295, Executive Plaza is the premier multi-tenanted office building in Mount Laurel. Executive Plaza is fully occupied by some of Southern New Jersey’s most exciting and credit worthy tenants including Association Headquarters (39,659 SF), Computer Science Corpo- ration (30,536 SF) and Allianz Life Insurance (10,516 SF). Strategic Location The Property is situated at a highly trafficked location on Route 73, a major, six-lane roadway that boasts a daily traffic count of over 64,000 vehicles at Executive Plaza. The New Jersey Turnpike entrance is within 700 feet of the Property while Interstate 295 is one-quarter mile away, providing excellent regional access. Executive Plaza’s location is also a traveler’s delight as five hotels are located within two miles of the Property and the Philadelphia International Airport is only 18 miles away. Executive Plaza is part of the Mount Laurel submarket that has shown tremendous growth and resiliency as evidenced by its current vacancy rate of 13.1%. Class A occupancy has rebounded even faster as the 2014 year-end vacancy rate is only 8.8%. Credit Tenancy Association Headquarters (“AH”), Computer Science Corporation (“CSC”), and Allianz Life Insurance are the three anchor tenants of the Property and between them occupy 84.5% of the building. AH is a long-term, dy- namic tenant with a lease that runs through January 2027. AH recently began occupying its modern, open and efficient space. CSC has been a tenant at Executive Plaza for over 25 years and recently saw an uptick in its credit rating and is now investment grade rated (BBB+) by S&P. Allianz also recently moved into its suite and is an investment grade tenant (AA) as rated by S&P. Recent Renovations, Dynamic Lobby, Institutionally Maintained } Executive Plaza offers rarely seen terrace level patios on the 2nd, 3rd and 4th floor, easily accessible from every corner office. } Interior atrium lobby with grand skylight, quarry tile floors, redwood seating areas, and overhead pin lighting. } State of the art variable air volume air conditioning system installed throughout the Property. executive summary 5 EXECUTIVE PLAZA Mount Laurel, New Jersey THE FACTS Address: 1120 Route 73, Mount Laurel, New Jersey Year Built/Renovated: 1985/2011 Stories: 4 Rentable Square Feet: 96,790 % Occupied: 100% Land Area: 7.90 Acres Parking Ratio: 384 Spaces; 4.02/1,000 SF Key Tenants: Association Headquarters – 39,659 SF Computer Science Corporation – 30,536 SF Allianz Life Insurance – 10,516 SF Pro Forma NOI: $989,964 6 executive summary Reading Long Branch INVESTMENT HIGHLIGHTS } Executive Plaza is an attractive, Class A, four-story institutional quality property that PENNA Trenton 95 was recently renovated in 2011. TURN- Norristown PIKE } The Property enjoys excellent visibility as over 64,000 vehicles pass the Property daily 276 on Route 73. PENNSYLVANIA 1 95 } Executive Plaza provides unsurpassed vehicular regional access being located within 700 feet of the New Jersey Turnpike and only a quarter mile from Interstate 295. 130 295 Philadelphia NEW } The Mount Laurel submarket, in conjunction with the Marlton and Moorestown sub- JERSEY markets (known as the 3M submarket), comprises the finest performing office476 market in terms of vacancy and rental rate in southern New Jersey. Specifically, the Mount Laurel submarket boasts an overall vacancy rate of 13.1% and a Class A vacancy rate 95 of only 8.8%. Chester 206 the 3M submarket } Executive Plaza’s three anchor tenants, Association Headquarters, Computer Science295 Wilmington 9 Corporation, and Allianz Life Insurance occupy 84.5% of the building. Both CSC and Allianz are publically traded, investment grade companies. } Association Headquarters (39,659 SF) is a long term, dynamic tenant which recent- 30 ly began occupying its Newarmodern,k open and efficient space at Executive Plaza. AH’s 322 decades long ties to the area, local client base and steady growth ensure a40 lengthy, successful run as a tenant at Executive Plaza. } Computer Science Corporation (30,536 SF) was recently upgraded to investment grade (BBB+) by S&P. The company’s 2014 revenues were $13 Billion with free cash flow of $689 million, making them an extremely13 stable tenant. } Executive Plaza is 84.5% occupied by two investment grade tenants and a long-term accredited tenant who will provide predictable and increasing cash flows. Vineland } Today’s hyper competitive debt market will provide an investor with unprecedented leveraged returns for an asset of such high quality. Millville executive summary 7 Atlantic City DEL Dover PROPERTY DESCRIPTION PROPERTY DESCRIPTION Property: 1120 Executive Plaza Telecom Provider: Verizon Address: 1120 Route 73 Security & Life Safety: Fully automated sprinkler system throughout Mount Laurel, NJ 08054 the building; Electronic security system with Municipality: Mount Laurel, NJ controlled after-hours building access Parcel, Block, & Lot: 1306.01-1 HVAC: State-of-the-art variable air volume air condition- Acreage: 7.90 Acres ing system Building Size: 96,790 SF Elevators: 3 total; 2 passenger elevators and 1 freight elevator Number of Stories: 4 Stories Loading Docks: 1 Loading Dock Year Built: 1985 (Renovated in 2011) Balconies/Terraces: 18 Patios at terrace levels; balconies on all corner offices on floors 2-4. Parking: 384 Spaces; 4.02/1,000 SF Parking Ratio Landscaping: Landscaping throughout property, including out- Building Structure: Protective Steel Frame/Fire Resistive door seating area Roof Type: