100% OCCUPANCY
113-115 WALES AVENUE, JERSEY CITY PRIME LOCATION | NEWER CONSTRUCTION | 6 APARTMENTS
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 113-115 WALES AVENUE
JERSEY CITY, NEW JERSEY
FAHRI OZTURK First Vice President Investments [email protected] 201.742.6170
DAVID FERBER, CPA Associate Investments [email protected] 201.742.6129
RICHARD GATTO First Vice President Investments [email protected] 201.742.6137 SPECIAL COVID-19 NOTICE
All potential buyers are strongly advised to take advantage of their opportunities and obli- gations to conduct thorough due diligence and seek expert opinions as they may deem nec- essary, especially 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 engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and ac- counting 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 // 17
JERSEY CITY 03 FINANCIAL ANALYSIS // 21 100%OCCUPANCY
JERSEY CITY NUMBER OF6 APARTMENTS NUMBER OF4 GARAGE SPACES 6
5.65%IN PLACE CAP RATE 113-115 WALES AVENUE AVENUE 113-115 WALES
113-115 WALES AVENUE
113-115 WALES AVENUE, JERSEY CITY
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EXECUTIVE SUMMARY JERSEY CITY SECTION 01 EXECUTIVE SUMMARY
VITAL DATA LOAN ASSUMPTIONS Property Address 113-115 Wales Avenue, Jersey City, NJ Asking Price $2,050,000 $2,050,000 Block / Lot 9202 / 7 & 8 Loan Amount $1,537,500 Lot Size 5,780 Sq. Ft. Down Payment $512,500 OFFERING PRICE Building Size (Approx.) 8,000 Sq. Ft. LTV 75% Number of Apartments 6 Interest Rate 3.25% Parking 4 Amortization 30 Years Real Estate Taxes* $26,845 *2022 taxes will be approx. $31,424 when the 5 year tax abatement expires
UNIT MIX BREAKDOWN 5.65% UNIT TYPE # OF UNITS APPROX. SF AVG. RENT IN PLACE CAP RATE 2 Bed/1 Bath 2 1,000 $1,875 3 Bed/2 Bath 4 1,500 $2,494 Totals/Averages 6 1,333 $2,288 JERSEY CITY
8 $164,700 EFFECTIVE GROSS INCOME
113-115 WALES AVENUE AVENUE 113-115 WALES $115,889
NET OPERATING INCOME 113-115 WALES AVENUE
JERSEY CITY SUMMARY OF TERMS INTEREST OFFERED Marcus & Millichap has been selected to exclusively market for sale 113-115 Wales Avenue, a 6-unit, multifamily property located in Jersey City, New Jersey. .
TERMS OF SALE 9
113-115 Wales Avenue, Jersey City is being offered for $2,050,000 free and clear of debt. JERSEY CITY
PROPERTY TOURS 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. 113-115 WALES AVENUE, JERSEY CITY INVESTMENT OVERVIEW
Marcus & Millichap has been selected to exclusively market for sale 113- 115 Wales Avenue in Jersey City. Built in 2015, the property consists of 6 apartments and 4 garage parking spaces and is currently 100% occupied. Each unit has its own washer and dryer, furnaces, granite counters, stainless steel appliances and wood floors. The units are all separately metered.
Journal Square is a lively business district, residential area and transportation hub. Jersey City is becoming a more prosperous area for people seeking an affordable alternative to New York City. The property is an approximately a 12-minute walk from Journal Square PATH Station with a 11-minute trip to the World Trade Center and a 23-minute ride to Midtown Manhattan via Path, situated closely to Newark Liberty Airport, JFK and La Guardia Airport. JERSEY CITY The property has easy access to Route 1 & 9, Interstate 95, I-78, and are in
10 walkable distance to restaurants, theaters and many national retailers.
113-115 Wales Avenue is located in the Journal Square section of Jersey City. Journal Square historically has been the center of commerce for the state’s second largest city, a retail center to which people have flocked for decades. Hudson County, and specifically Jersey City, has seen a massive influx in development and capital investors. The first tower constructed off the Gold Coast in over a decade was constructed in Journal Square by The Kushner Companies and the City has approved multiple large projects to attract New Yorkers. 113-115 WALES AVENUE AVENUE 113-115 WALES
113-115 WALES AVENUE INVESTMENT HIGHLIGHTS
PRIME LOCATION BUILDING HIGHLIGHTS • Located in Journal Square • New 2015 construction
• 15 minutes to NYC and minutes from Historic Downtown Jersey City • Nice unit mix of two bed and three bed apartments • Residents have quick access to key employment centers of Manhattan
• Four garage parking spaces in the back of the building . • Minutes from the Holland Tunnel, Lincoln Tunnel and GW Bridge • Granite counter tops, washer and dryer in unit and stainless steel appliances • Easy access to Garden State Parkway, I-95, I-78, Route 1&9 and more • Tenants are responsible for utilities • Situated closely to Newark, JFK and La Guardia Airport • Landlord is responsible for water, sewer and common area electric • Walkable distance to restaurants, theaters and many national retailers 11
JERSEY CITY
DIRECT ACCESS TO NEW YORK CITY STABILIZED OPPORTUNITY • The property is located an approximate 12 min walk from the Journal • The property currently has an effective gross income of $164,700 and a Square Transportation Center 5.65% cap rate with future upside. • 11-min. ride to the World Trade Center • 23-min. ride to Midtown Manhattan • Journal Square Transportation Center includes a bus terminal with a 28-minute ride into the Manhattan ROBERTHUDSON TOWERS COUNTY LOCATION OVERVIEW HUDSON COUNTY JERSEY CITY
Being the largest municipality in Hudson County, it rests at the seat of Northern New Jersey and the center of many attractions. The city is bound on the east coast by the Hudson River and offers numerous transportation options for its residents to both Manhattan and other surrounding areas.
Jersey City offers an abundance of local choices from restaurants, shops, and entertainment. Main commercial corridors, including Newark Avenue Downtown, and Central Avenue in the Heights, boost an array of commercial options. Pedestrian-friendly communities encourage foot-traffic and public transportation. JERSEY CITY
12 Jersey City is the second-most populous city in the U.S. state of New Jersey, after Newark. It is the seat of Hudson County as well as the county’s largest city. As of 2018, the Census Bureau’s Population Estimates Program calculated that Jersey City’s population was 265,549,with the largest population increase of any municipality in New Jersey since 2010,an increase of about 9.4% from the 2010 United States Census, when the city’s population was at 247,597 ranking the city the 78th-most-populous in the nation. 113-115 WALES AVENUE AVENUE 113-115 WALES
JERSEY CITY DEMOGRAPHICS 5-MILE RADIUS DEMOGRAPHICS
POPULATION 1-MILE 3-MILES 5-MILES 2023 Projection 75,025 384,355 1,306,186
2018 Population 75,448 367,748 1,259,129 2010 Population 69,526 336,817 1,088,955 $129,794 AVERAGE HOUSEHOLD INCOME HOUSEHOLDS 1-MILE 3-MILES 5-MILES
JERSEY CITY 2023 Households 29,359 159,032 606,889
13 2018 Households 28,930 148,885 576,490 2010 Households 26,516 135,283 534,628 1,259,129 2018 Daytime Population TOTAL POPULATION
INCOME 1-MILE 3-MILES 5-MILES 2018 Average Household Income $74,653 $112,623 $129,794 2018 Median Household Income $49,501 $72,772 $78,617 576,490 2018 Per Capita Income $28,926 $45,877 $59,928 TOTAL HOUSEHOLDS 113-115 WALES AVENUE AVENUE 113-115 WALES
Journal Square Transportation Center
Journal Square Bus Terminal 12 Min. 11 Min. 23 Min. average walk to average ride to average ride to Journal Square World Trade Center Midtown Manhattan Transportation Center 113-115 WALES AVENUE
12 Min. 28 Min. average walk to average ride to Journal Square Midtown Manhattan Bus Terminal
113-115 WALES AVE .
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JERSEY CITY Approx. 10-minute walk
Journal Square Transportation Center Lincoln tunnel
MIDTOWN MANHATTAN
113-115 WALES AVE JERSEY CITY
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Holland tunnel 113-115 WALES AVENUE AVENUE 113-115 WALES
BROOKLYN JERSEY CITY
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6 Miles New York Penn Station 113-115 WALES AVE 113-115 WALES AVENUE AVENUE 113-115 WALES 6.2 Miles Port Authority Terminal
11 Miles Newark Liberty Airport 113-115 WALES AVENUE
113-115 WALES AVENUE, JERSEY CITY
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PROPERTY PHOTOS JERSEY CITY SECTION 02 JERSEY CITY
18 113-115 WALES AVENUE AVENUE 113-115 WALES
113-115 WALES AVE INTERIOR PHOTOS HUDSON COUNTY JERSEY CITY
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INTERIOR PHOTOS 113-115 WALES AVENUE
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JERSEY CITY 113-115 WALES AVENUE, JERSEY CITY
JERSEY CITY FINANCIAL ANALYSIS
21 SECTION 03 113-115 WALES AVENUE AVENUE 113-115 WALES
RENT ROLL
RESIDENTIAL
UNIT # UNIT TYPE APPROX. SF MONTHLY RENT $ / SF PRO FORMA PRO FORMA MONTHLY RENT $ / SF 1 2 Bed/1 Bath 1,000 $1,850 $22 $2,000 $24 2 3 Bed/2 Bath 1,500 $2,300 $18 $2,600 $21 3 3 Bed/2 Bath 1,500 $2,600 $21 $2,600 $21 4 2 Bed/1 Bath 1,000 $1,900 $23 $2,000 $24 5 3 Bed/2 Bath 1,500 $2,600 $21 $2,600 $21 6 3 Bed/2 Bath 1,500 $2,475 $20 $2,600 $21 Total / Averages 6 8,000 $13,725 $21 $14,400 $22 JERSEY CITY
22 CURRENT PRO FORMA
Total Annual Income $164,700 $172,800 113-115 WALES AVENUE AVENUE 113-115 WALES
INCOME STATEMENT
Building SF (Approx.) 8,000 Number of Units 6
ACTUAL 113-115 WALES AVENUE INCOME %EGI
Gross Potential Income $164,700
Less Vacancy & Credit Loss -$6,588 5%
Other Income(1) $4,560
Effective Gross Income $162,672
EXPENSES Per Unit .
Property Taxes (2) $26,845 $4,474
Insurance $3,300 $550 23
JERSEY CITY Water/Sewer $4,758 $793
PSEG $500 $83
Repairs & Maintenance $2,400 $400
Payroll $1,800 $300
Management Fee $4,880 $813
Legal & Accounting $800 $133
Reserves $1,500 $250
Effective Gross Income $46,783
Net Operating Income $115,889
(1) Parking Income - 3 Spots at $125 a spot (2) Five year step up abatement through 2022 113-115 WALES AVENUE
JERSEY CITY, NEW JERSEY
FAHRI OZTURK First Vice President Investments [email protected] 201.742.6170
DAVID FERBER, CPA Associate Investments [email protected] 201.742.6129
RICHARD GATTO First Vice President Investments [email protected] 201.742.6137 113-115 WALES AVENUE, JERSEY CITY
OFFERING MEMORANDUM