-
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
Total Population 14,213 81,917 228,203
▪ 2010 Census
Total Population 13,721 79,413 221,912
▪ 2000 Census
Total Population 13,642 76,960 213,845
▪ 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
Total Households 5,252 30,322 82,645
Average (Mean) Household Size 2.68 2.69 2.73
▪ 2010 Census
Total Households 5,022 29,236 79,807
▪ 2000 Census
Total Households 5,210 29,240 78,890
▪ 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