NYC METRO HOTEL/ HOSTEL FOR SALE

415–417 38TH STREET, UNION CITY, NJ 07087

$6,750,000

DELIVERED VACANT

• LICENSED HOTEL 7,500 SF LOT • 2 MILES FROM MANHATTAN 14,000 SF BUILDING VIA LINCOLN TUNNEL 54 KEYS + 2 COMMERCIAL

OFFERING MEMORANDUM

1 MARKET OVERVIEW

Northern New Jersey comprises the northern — followed by 17% professional jobs and portions of the U.S. state of New Jersey business services. 16% of all regional jobs are between the upper Delaware River and the in education and health services; finance and Atlantic Ocean. Northern New Jersey consists investment banking account for 7%. of Bergen, Hudson, Passaic, Essex, Morris and Northern New Jersey offers a variety of Union counties. The region is bordered to the amenities and cultural entertainment, as well as east by the Hudson River and New York City, to outdoor recreation including hiking, skiing and the south by Middlesex and Somerset counties, fishing. Extensive park lands are all within an to the west by Warren and Sussex counties, easy drive from anywhere in the region. and to the north by New York State. Many community colleges and universities are With its strong connection to New York City’s located in Northern New Jersey, including economy, the region is characterized by a high Seton Hall University, the Newark campus level of economic output. Economic engines of Rutgers University, Stevens Institute of include Paramus in Bergen County, which has Technology and Bergen Community College. become the top retail ZIP code (07652) in the United States - generating over US$6 billion Northern New Jersey has more than 4.3 million in annual retail sales - Jersey City’s financial residents. Population growth is 0.4% annually. district known as Wall Street West, Newark The Northern New Jersey demographic is Liberty International Airport, and the Newark- similar to that of the nation. Elizabeth Seaport. Northern New Jersey is one Median household income in Northern New of the largest labor markets in the nation. With Jersey is $59,000 per year while the cost of more than 1.9 million workers, the region also living is among the highest in the country. Over has easy access to New York City’s the next five years home prices are expected to employment base. Trade, transportation, and continue to rise faster than household income, utilities are the largest employment sectors with making home ownership more difficult for approximately half a million workers potential home buyers. — accounting for 22% of total employment 2 Hudson County. The Hotel is located in Hudson (GDP) of $44.7 billion in 2018, which was ranked County, geographically the smallest and most 5th in the state and represented an increase of 2.0% densely populated county in New Jersey, and the from the previous year. sixth most densely populated county in the United States. Hudson County had 13,731.4 residents per Various businesses and industries are headquartered square mile (2010 Census), growing to 14,973.9 or had their start in Hudson County. Secaucus is residents per square mile by 2017. 2020 Census home to The Vitamin Shoppe, My Network TV’s estimates indicate that Hudson County is the flagship station WWOR-TV, Red Bull New York, fastest-growing county in New Jersey; the population MLB Network, NBA Entertainment, Goya Foods, was 676,061 in 2018, making it the state’s 4th-most The Children’s Place and Hartz Mountain. Jersey City populous county. The population increased by 9% is home to Verisk Analytics and WFMU 91.1FM, the from the 2010 Census. Hudson County is ranked as longest running freeform radio station in the United the 8th most racially diverse county in the country. States. Hudson County’s most popular tourist attraction Hudson County’s high population is well served by is Liberty State Park, the most convenient way of extensive mass transit and infrastructure, including visiting the Statue of Liberty and Ellis Island. Other the Port Authority (PATH) commuter railway, with popular attractions include Liberty Science Center, stops in Manhattan, the Hudson Bergen Light Rail Spirit of New Jersey Dinner Cruises, The Lady, system, the NY Waterway ferry, and many bus a paddle wheel boat for dinner cruises, Horizon lines. Urban development along the «Gold Coast» dinner cruise yacht, historic Hoboken dining and of Jersey City’s waterfront has brought business nightlife, the Park Performing Arts Center, and the and new residents into the area. Stevens Institute Secaucus Designer Outlets, one of the original and of Technology in Hoboken, the New Jersey City oldest outlets in the country. University in Jersey City, St. Peter’s in Englewood Cliffs offer higher education options. In the early 20th century, Union City was the «embroidery capital of the United States», Based on Bureau of Economic Analysis data, the trademark of that industry appearing on the Hudson County had a gross domestic product city’s seal.

3 UNION CITY

Photo credits: Laura Moss | The New York Times |

Located in Northern Hudson County, Union City concentration of stores begins at its intersection is one of New York City’s bedroom communities, with 32nd Street, just six blocks from the Hotel, within an easy 20 minute commute to midtown and continues to 92nd Street in North Bergen. Manhattan by car or bus. Set atop the cliffs just Union City is one of only a few cities in New West of the Hudson River, Union City is at an Jersey with a state-established Urban Enterprise elevation of 190 feet above sea level. At one of Zone (UEZ), and the Hotel is located within it. The the highest elevations within the New York City UEZ will provide the Hotel’s new owner with many metropolitan area, Union City avoided the flooding financial benefits not available to the competition. brought by hurricane Sandy, flooding that The Hotel’s new owner will pay zero sales tax on decimated lower Manhattan and other New business purchases: furniture, furnishings, supplies, York City neighborhoods. etc. . The Hotel’s customers pay a lower sales tax Union City is one of the most densely populated rate. Employee costs for low wage workers are municipalities in the Western Hemisphere with over subsidized, unemployment insurance costs are 50,000 people per square mile, more densely lower, and there are tax credits available. populated than either Brooklyn or Queens. In addition to providing an incentive for business New Jersey highway Route 495 runs through Union owners and their customers, the UEZ program City just seven blocks from the Hotel. Route 495 invests in maintenance and public safety within the connects Union City with midtown Manhattan, two urban enterprise zone. UEZ funds are also used to miles away by car via the Lincoln Tunnel. And Union market the area and for holiday decorations. City offers excellent views of the Manhattan skyline. Union City is served by Newark Liberty International The Hotel. Before the movie industry moved to Airport nearby, and by La Guardia, and JFK California, Union City was at the center of movie International airports. making and theater, Hollywood on the East Coast. Bergenline Avenue, Northern New Jersey’s main Built in 1902, then known as the Hudson Hotel, commercial thoroughfare, is just one hundred feet the Hotel was across the street from a vaudeville from the Hotel. The longest commercial street in the theater where Charlie Chaplin, the Marx Brothers, state boasting endless retail and dining options, WC Fields and many other greats performed. The Bergenline Avenue runs through the entire length Hotel was expanded several times and remodeled of Union City, as well as through West New York, in 2014. For the last five years, the Hotel has been Guttenberg, and North Bergen. Also known as the tenant operated as a hotel and hostel serving young «Miracle Mile», Bergenline Avenue’s densest travelers to New York City. 4 LOCATION

TRAVEL TIMES BY CAR

Meadowlands MEADOWLANDS Sports Complex American Dream Megacomplex

15 minutes

La Guardia Airport UNION CITY, NJ 40 minutes MANHATTAN

20 minutes

QUEENS

25 minutes 55 minutes

Newark Airport BROOKLYN JFK Airport

Property Location, 415–417 38th Street, Union City 5 NEIGHBORHOOD AMENITIES

Weehawken Cemetery

$ $

US POSTAL SERVICE

$

T-MOBILE

VERIZON

$ $ 7-ELEVEN KEY TACO BELL $ WELLS FARGO MCDONALDS Property Location, 415–417 38th Street, Union City WALGREENS $

10 Minutes Walk Radius DUNKIN’ DONUTS DUNKIN’ DONUTS Grocery Store / Supermarket BURGER KING Restaurant/ Cafe Bar / Cocktails T-MOBILE Coffee Shop 7-ELEVEN Retail Shop Playground $ Pharmacy $ BANK OF AMERICA $ Bank

$ 6 6 PROPERTY DESCRIPTION

THE OFFERING

The offering presents a unique opportunity to The Hotel is ADA compliant, fully wet-sprinklered acquire an existing hotel property in a fast with standpipe and monitored fire-alarms. growing market, Northern New Jersey. The local There is no on-site parking; however, there are hotel market has shown an average 5% annual four municipal parking lots with parking for over RevPAR growth rate over the past decade and 400 cars within a block, and an operator could this trend is expected to continue. offer their motoring guests valet parking. The Hotel is a 56 unit three-story walk-up Conveniently located in the pedestrian-friendly building; 44 keys have in-suite bathrooms while Union City center, the Hotel is uniquely posi- 10 keys share three common baths. The building tioned to serve travelers visiting friends and fam- has two small commercial units, a 100 sf kiosk, ily locally and travelers without a car. The #159 and also a 160 sf office space on the ground bus to Manhattan stops within a two minute walk floor. Additionally, there are five permitted from the Hotel, on Bergenline Avenue at 37th washing machines and five permitted dryers in Street. The New Jersey Light Rail station is only the 1,000 sf basement. a 12 minute walk, with connections to the PATH train and all points in New Jersey. It’s a nine min- The asking price is $6,750,000, or $125,000 ute bike ride to the Port Imperial Ferry Terminal, per key. An adjacent 2,300 sf commercial loft where hotel guests can catch the NY Waterway building can be purchased together with the Ho- ferry to Manhattan. tel. This commercial loft building can become a bar, a lounge, a café, a gym, etc. serving hotel Grocery stores, gift shops, and over 400 guests and the community. restaurants and bars are all within an easy The 1902 Hotel building was completely 15-minute walk of the Hotel. The entrance to the renovated in 2014. Renovations included new: Lincoln tunnel is only a few blocks away. The supply plumbing, electrical, ventilation, water Meadowlands Sports Complex and the newly heating, doors, windows, and finishes. opened American Dream Megamall are only 15 minutes by car. This is a prime location.

7 8 PARKING WITHIN A THREE MINUTE WALK

1 180 space parking garage, 506–518 38th Street.

2 40 space parking lot, 514 37th Street.

3 96 space parking lot, 516 36th Street.

4 88 space parking lot, 516 35th Street.

Property Location, 415–417 38th Street, Union City, NJ.

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9 SITE PLAN/ SURVEY

10 FLOOR PLANS N

CENTRAL Basement Plan HOTEL

CENTRAL HOTEL

NO.1 09/07/06 ISSUE AND REVISION

NO. DATE ISSUE AND REVISION

PROJECT IMPROVEMENTS FOR EXISTING HOTEL & COMMERCIAL SPACES 413-415-417 38th STREET UNION CITY, NJ 07087 ALAN FELD ARCHITECT

HOLLAND PLAZA BUILDING 215 FOURTEENTH STREET JERSEY CITY, NJ 07310 (201)963-5877 TEL (201)656-1129 FAX

NEW YORK REG. ARCH. LICENSE NO. 013255 NEW JERSEY REG. ARCH. LICENSE NO. C-6880 DRAWING TITLE

EXISTING CELLAR PLAN

NO.1 09/07/06 ISSUE AND REVISION

PROJECT NO.NO. DATE SCALEISSUE AND REVISION PROJECT06-103 AS NOTED IMPROVEMENTS FOR DRAWN BY DATE EXISTING HOTEL08-08-11 & COMMERCIALE.I. SPACES EXISTING CELLAR SEAL 413-415-417 38thDRAWING STREET NO. 1 1/4" = 1'-0" UNION CITY, NJ 07087 ALAN FELD ARCHITECTA-2 HOLLAND PLAZA BUILDING 215 FOURTEENTH STREET JERSEY CITY, NJ 07310 (201)963-5877 TEL (201)656-1129 FAX

NEW YORK REG. ARCH. LICENSE NO. 013255 NEW JERSEY REG. ARCH. LICENSE NO. C-6880 DRAWING TITLE

EXISTING CELLAR PLAN

PROJECT NO. SCALE 06-103 AS NOTED DRAWN BY DATE E.I. 08-08-11 EXISTING CELLAR SEAL DRAWING NO. 1 1/4" = 1'-0" A-2 11 FLOOR PLANS N

1st Floor Plan

EXISTING 1ST FLOOR 2 1/4" = 1'-0"

EXISTING 1ST FLOOR 2 1/4" = 1'-0"

12 FLOOR PLANS N

2nd Floor Plan

EXISTING 2ND FLOOR 3 1/4" = 1'-0"

EXISTING 2ND FLOOR 3 1/4" = 1'-0"

13 FLOOR PLANS N

3d Floor Plan

EXISTING 3RD FLOOR 4 1/4" = 1'-0"

EXISTING 3RD FLOOR 4 1/4" = 1'-0"

14 PRICING AND PROFORMA FINANCIAL ANALYSIS

Property Use Hotel Guest Rooms 54 Property 415–417 38th Street Rooms Available 19,710 Address Union City, NJ 07087 Occupied Rooms 15 , 111 Price $6,750,000 Occupancy % 76.67% Price/sf $482 ADR* $86.65 Lot Dimensions 75 x 100 feet RevPav $67.54 Lot size 7,500 sf Annual Room Revenue $1,312,950 Commercial Retail** 2 Units Improvements 14,000 sf Occupancy 90% Number of Units 56 Annual Rate $12,960 Number of Keys 54

Price per Key $125,000 Annual Laundry Revenue*** $86,349 CAP RATE 10.58% 5 Washers/ 5 Dryers Ownership Fee Simple Absolute TOTAL ANNUAL INCOME $1,412,259

* Average Daily Rate is Calculated from the lowest Distributed Expenses priced competitor for rooms with in-suite baths. This Room Expenses**** $559,710 room rate is discounted $10 per night for rooms Laundry Expenses** $10,794 with shared baths. Telecommunications $4,620 ** One 120 sf office leased at $600 per month Total Dist. Expenses $575,124 and one 180 foot kiosk leased at $600 per month. *** The average family does eight to 10 loads of Undistributed Expenses/ Utilities laundry a week; we assume income at four loads PSE&G Gas/Electricity $20,959 per 2,111 occupied room weeks at $5 per wash Hudson Sewer $21,617 load & $5 per dryer load. Laundry Expenses are Suez Water $17,208 calculated at $0.80 per wash load and $0.45 per Total Und. Expenses $59,784 dryer load. **** Room Expenses are based on the 2014 STR Fixed Expenses HOST study average of $10,365, and include Taxes $41,991 staff and reservation expenses. Insurance $20,000 Fire Alarm Monitoring $500 This information is from sources believed to be Licensing $400 reliable. However, no express or implied representations or warranties are being made as Total Fixed Expenses $62,891 to the accuracy of the information. Age, square NET OPERATING INCOME $714,460 footage, income and expense, and all ratios are approximate, and most values are pro forma. Buyer must verify all information and bears all risk for any inaccuracies.

15 ANNUAL PROJECTED INCOME AND EXPENSE

TOTALS REVENUE Annual January February March April May June July August September October November December Room Revenue $1,312,950 $ 64,284 $ 64,284 $101,025 $101,025 $144,558 $144,558 $101,025 $101,025 $144,558 $144,558 $101,025 $101,025 Commercial Retail Revenue $ 12,960 $ 1,080 $ 1,080 $ 1,080 $ 1,080 $ 1,080 $ 1,080 $ 1,080 $ 1,080 $ 1,080 $ 1,080 $ 1,080 $ 1,080 Laundry Revenue $ 86,348 $ 5,162 $ 5,162 $ 7,039 $ 7,039 $ 8,447 $ 8,447 $ 7,039 $ 7,039 $ 8,447 $ 8,447 $ 7,039 $ 7,039 Total Revenue $1,412,258 $ 70,526 $ 70,526 $109,144 $109,144 $154,085 $154,085 $109,144 $109,144 $154,085 $154,085 $109,144 $109,144

EXPENSES Annual January February March April May June July August September October November December Distributed Expenses Room Expenses* $559,710 $ 46,643 $ 46,643 $ 46,643 $ 46,643 $ 46,643 $ 46,643 $ 46,643 $ 46,643 $ 46,643 $ 46,643 $ 46,643 $ 46,643 Laundry Expenses** $ 10,794 $ 645 $ 645 $ 880 $ 880 $ 1,056 $ 1,056 $ 880 $ 880 $ 1,056 $ 1,056 $ 880 $ 880 Telecommunication Expenses $ 4,620 $ 385 $ 385 $ 385 $ 385 $ 385 $ 385 $ 385 $ 385 $ 385 $ 385 $ 385 $ 385 Total Distributed Expenses $575,124 $ 47,673 $ 47,673 $ 47,907 $ 47,907 $ 48,083 $ 48,083 $ 47,907 $ 47,907 $ 48,083 $ 48,083 $ 47,907 $ 47,907 Undistributed expenses/ Utilities PSE&G Gas/Electric $ 20,959 $ 2,484 $ 2,503 $ 1,934 $ 1,440 $ 1,434 $ 1,696 $ 1,729 $ 1,523 $ 1,150 $ 1,247 $ 1,732 $ 2,087 Hudson Sewer $ 21,617 $ 5,901 $ 6,027 $ 4,589 $ 5,100 Suez Water $ 17,208 $ 1,793 $ 1,373 $ 1,663 $ 1,146 $ 1,383 $ 1,360 $ 1,461 $ 1,645 $ 1,328 $ 1,343 $ 1,279 $ 1,434 Total Undistributed Expenses $ 59,784 $ 10,178 $ 3,876 $ 3,597 $ 8,613 $ 2,817 $ 3,056 $ 7,779 $ 3,168 $ 2,478 $ 7,690 $ 3,011 $ 3,521 Fixed Expenses Taxes $ 41,991 $ 10,288 $ 10,539 $ 10,564 $ 10,600 Insurance $ 20,000 $ 20,000 Fire Alarm Monitoring $ 500 $ 500 Licensing $ 400 $ 400 Total Fixed Expenses $ 62,891 $ 20,900 $ 10,288 $ 10,539 $ 10,564 $ 10,600

EBIT DA / NET OPERATING INCOME $ 714,460

This information has is from sources believed to be reliable. However, no express or implied representations or warranties are being made as to the accuracy of the information. Square footage, income and expense, and age are approximate, and most values are pro forma. Buyer must verify all information and bears all risk for any inaccuracies. 16 COMPARABLES SUBJECT

Hotel Price Keys Price per Key 415–417 38th Street, $ 6,750,000 54 $ 125,000 Union City

COMPARABLES SUMMARY

Hotel Price Keys Price per Key Oyo Hotel, Jamaica, Queens $ 18,500,000 71 $ 260,563 Unfinished Hotel,Flushing, Queens* $ 8,280,000 36 $ 230,000 Hotel, Long Island City, Queens $ 15,000,000 50 $ 300,000 Bogart Hotel, Bushwick, Brooklyn $ 16,988,000 60 $ 283,133

* This hotel is only partially completed.

17 COMPARABLE 1

Building Info Oyo Hotel Address 153-95 Rockaway Boulevard, Jamaica, Queens, NY 11434 Status For Sale January 2020 Number of Keys 71 Area 14,795 sf Price $ 18,500,000

18 COMPARABLE 2

Building Info Unfinished Under Construction Hotel Building Address 31-16 Linden Place Flushing, Queens, NY Status Sold January 2020 Number of Keys 36 Area 13,633 sf Price $ 8,280,000

19 COMPARABLE 3

Building Info Long Island City Hotel Address 3858 12th Street, Long Island City, Queens, NY 11101 Status Sold November 2019 Number of Keys 50 Area 18,682 sf Price $ 15,000,000

20 COMPARABLE 4

Building Info Bogart Hotel Address 19 Bogart Street, Bushwick, Brooklyn, NY Status Sold December 2019 Number of Keys 60 Area 32,996 sf Price $ 16,988,000

21 CONTACT INFORMATION

FELIX MENDELSON/ Owner, Real Estate Broker

[email protected]

+1 [415] 595 8331

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