downtown summit boutique - loopnet...• downtown summit parking deck located directly behind...

Alan Cafiero First Vice President InvestmentsDirectorCell: (201) 240-7367Office: (201) [email protected]

Ben Sgambati First Vice President InvestmentsDirectorCell: (201) 819-5282Office: (201) [email protected]

428 SPRINGFIELD AVE | OFFERING MEMORANDUMSUMMIT, NJ

DowntownSummit

Boutique

The Offering

Property Address428 Springfield Avenue

Summit, NJ

Year Built/Renovated 1930/2018

Type of Ownership Fee Simple

Site Description

Parcel Size 0.08 AC

Rentable Square Feet 6,430 SF

Building Description

Number of Stories 2

Exterior Brick

Basement Full Basement (storage for S&L)

ParkingStreet & Town Parking Deck (adjacent to

property)

Marcus & Millichap is pleased to present for sale 428 Springfield Avenue, a +/- 6,430 square foot two-story mixed-use building that

is 100% occupied by two tenants. The anchor tenant, Serena & Lily, occupies the entire first floor of the property and the front half

of the second floor of the property. The second tenant, Fly on the Wall, occupies the rear portion of the second floor.

• 100% Occupied two-tenant mixed use bldg. – Fully Renovated

• Rare opportunity to purchase an asset in Downtown Summit

• Very low vacancy in Summit (4% for retail – 2.3% for office)

• Serena & Lily invested over $1 million in their space

• Other Serena & Lily locations located in Los Angeles, Newport Beach,

the Hamptons, Atlanta, San Francisco, & Westport

• Serena & Lily has 3% annual rent increases starting in year 3

• Fly on the Wall has 3% annual rent increases

• Fly on the Wall has been a tenant for the last 15 years

• Below market rent for both tenants

• Both tenants have triple net lease agreements where they each pay

their proportionate share of taxes, insurance, and CAM

• Downtown Summit Parking Deck located directly behind property

• 3 minute walk to Summit Train Station

• Superb demographics – over 228,000 people within 5 miles

• Average household income within 1 mile exceeds $202,000

428 Springfield AvenueOFFERING HIGHLIGHTS

DOWNTOWN SUMMIT OVERVIEW 428 Springfield Avenue

• 200+ unique boutiques, shops, & restaurants• 3 Minute walk to NJ Transit Train Station to

NYC• Municipal Parking Deck directly behind

Subject Property

• Several nearby national retailers include Starbucks, Chase Bank, CVS, & Dunkin’ Donuts

• One of the highest average household incomes in New Jersey surpassing $202,000 within 1 mile

• Significant daytime population with many large office buildings nearby

• Easy access to major roadways including I-78, I-287, Garden State Parkway, & Route 24

DOWNTOWN SUMMIT OVERVIEW 428 Springfield Avenue

Driven mainly by its transit-hub which provides directrail access to NYC, Summit has remained atop NJ’s listsof most desirable areas to “Live, Work, Play”.

Summit’s vibrant downtown receives high foot trafficdue to its walkable nature and hundreds of dailycommuters in and out of NYC and the tri-state area.

As a result, Summit’s boutique shops, restaurants, bars,services and more are bolstered and continue to performat the highest level. This trend continues to be proven bylimited availabilities and high rental rates within thisstrong downtown real estate market.

TENANT OVERVIEW

Serena & Lily is a nationally known boutique of high-end furniture designs specializing in making custom furniture. This company provides products ranging from outdoor furniture to duvet covers and quilts. Serena & Lily stores are located all across the nation in Atlanta, The Hamptons, Los Angeles, San Francisco and more. Founded in 2003 by Serena Dugan and Lily Kanter, it became their goal to design furniture with a relaxed yet refined look.

“At Serena & Lily, we combine our love of breezy California style with our passion for great design. Our look is casual and coastal, relaxed yet refined. Our designs blend classic influences with modern lines; eclectic inspiration with great American style. We love spaces that feel put together, yet livable – well-traveled with a personal point of view. We believe home should be a welcome oasis – your favorite place to retreat, to gather, to live well everyday.”

The Fly on the Wall, Inc. publishes digital real-time financial news. The company hosts a live news feed and distributes content to partners, including proprietary On The Fly updates, such as Wall Street research, company announcements, regulatory filings, market rumors, and media reports.

Additionally, it offers a live feed with updates and real-time stock market news; a listing of upcoming IPO's and secondary offerings accompanied by The Fly's proprietary deal analysis; a calendar of conferences, earnings calls, and analyst events; and a live squawk broadcast with break-in calls of critical news throughout the day.

The company serves professional and individual investors in the United States and internationally. The Fly on the Wall, Inc. founded in 1998 and is based in Summit, New Jersey with additional offices in New York and Argentina.

428 Springfield Avenue

PROPERTY IMAGES 428 Springfield Avenue

REGIONAL MAP 428 Springfield Avenue

PROPERTY AERIAL 428 Springfield Avenue

OFFERING SUMMARY

Price $3,758,760

Gross Leasable Area 6,430 SF

Cap Rate – Current 5.00%

NOI - Current $187,938

INCOME

Base Rent $187,938

Expense Reimbursements

$51,032

TOTAL Income $238,970

Less Total Expenses $51,032

NET OPERATING INCOME

$187,938

EXPENSES

Taxes $32,084

Insurance $6,582

Sewer $916

Water $1,200

Repairs & Maintenance $1,622

Management Fee $8,628

Total Expenses $51,032

FINANCIAL SUMMARY 428 Springfield Avenue

Tenant Name GLA (SF) % of GLA Lease Start Lease Exp. Annual Rent Rental Increases Options Rent/SF Lease Type

Serena & Lily* 4,940 77% 7/1/2017 1/31/2025 $150,000 3% Annual Starting in Year 3

(2) 5 Year Options $30.36 NNN

Fly On The Wall 1,490 23% 9/1/2016 8/31/2021 $37,938 3% Annual None $25.46 NNN

TOTAL 6,430 100% $187,938

*Serena & Lily square footage breakdownStreet Level – 3,330 SF2nd Floor – 1,640 SFBasement – 2,209 SF

Tenant Name Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Serena & Lily $150,000 $154,500 $159,135 $163,909 $168,826 $173,891 $179,108 $184,481 $190,015 $195,716

Fly On The Wall $37,938 $39,076 $40,248 $47,680** $49,110 $50,584 $52,101 $53,664 $55,274 $56,932

Total Net Income $187,938 $193,576 $199,383 $211,589 $217,936 $224,475 $231,209 $238,145 $245,289 $252,648

Unlevered Return 5.00% 5.15% 5.30% 5.63% 5.80% 5.97% 6.15% 6.34% 6.53% 6.72%

428 Springfield Avenue10 YEAR HOLD

**Year 4 Fly on the Wall rent assumes bringing rent to market at $32/psf NNN with 3% annual rent increases going forward

2017 Estimated Population

1 Mile……………………………………….………. 14,213

3 Mile………………………………………………. 81,917

5 Mile………………………………………………. 228,203

2017 Estimated Households

1 Mile……………………………………….………. 5,252

3 Mile………………………………………………. 30,322

5 Mile………………………………………………. 82,645

2017 Estimated Average Household Income

1 Mile……………………………………….………. $202,589

3 Mile………………………………………………. $199,770

5 Mile………………………………………………. $177,160

DEMOGRAPHICS HIGHLIGHTS 428 Springfield Avenue

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Population 14,125 82,405 229,967

▪ 2017 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2017 Estimate 23,285 95,123 265,962

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2022 Projection

Total Households 5,230 30,656 83,828

▪ 2017 Estimate


Average (Mean) Household Size 2.68 2.69 2.73

▪ 2010 Census


▪ 2000 Census


▪ Occupied Units

2022 Projection 5,230 30,656 83,828

2017 Estimate 5,431 31,105 84,510

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2017 Estimate

$150,000 or More 43.30% 43.19% 38.28%

$100,000 - $149,000 14.98% 17.51% 18.75%

$75,000 - $99,999 9.41% 9.74% 10.63%

$50,000 - $74,999 9.99% 10.82% 12.12%

$35,000 - $49,999 6.45% 6.47% 6.96%

Under $35,000 15.87% 12.28% 13.25%

Average Household Income $202,589 $199,770 $177,160

Median Household Income $122,245 $127,147 $116,104

Per Capita Income $74,976 $74,017 $64,382

MARKET OVERVIEW 428 Springfield Avenue

NORTHERN NEW JERSEYOVERVIEW

Northern New Jersey consists of Bergen, Hudson, Passaic, Essex,

Morris and Union counties. The region contains roughly 4 million

residents in more than 200 municipalities. Bergen county is home to

roughly 1 million people, while Essex County, which includes the city

of Newark, is at approximately 800,000 citizens. The region is

bordered to the east by the Hudson River and New York City, to the

south by Middlesex and Somerset counties, to the west by Warren

and Sussex counties, and to the north by New York state. A large

portion of the area is almost fully developed and densely populated.

The region is a part of the New York metro and is linked to the city by

the George Washington Bridge, the Lincoln Tunnel, the Holland

Tunnel, several ferries and commuter rail tunnels.

METRO HIGHLIGHTS

DIVERSE INDUSTRIES

Pharmaceuticals, healthcare and finance are a few

of the segments that contribute to the metro’s

economic base.

LARGE LABOR POOL

The region’s diverse and highly skilled labor pool, as

well as access to workers in other nearby metros,

draws businesses.

UNIQUE ECONOMY

Northern New Jersey has its own economic drivers

and is connected to New York City’s robust

economy.

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the partyreceiving 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 apreliminary 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 thesubject property, the future projected financial performance of the property, the size and square footage of the property and improvements, thepresence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition ofthe improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue itsoccupancy 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 conductedany investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is aservice mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. Thepresence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely includedfor 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.

Alan Cafiero First Vice President InvestmentsDirectorCell: (201) 240-7367Office: (201) [email protected]

Ben Sgambati First Vice President InvestmentsDirectorCell: (201) 819-5282Office: (201) [email protected]

CONFIDENTIALITY & DISCLAIMER 428 Springfield Avenue

downtown summit boutique - loopnet...• downtown summit parking deck located directly behind...

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