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Gebroe-Hammer Associates 2 West Northfield Road, Livingston, NJ 07039Phone: 973.994.4500 • Fax: 973.994.9752www.gebroehammer.com
OAK TREE PLAZA36 APARTMENT-HOME UNITS / 19,000 SF RETAIL • OLD BRIDGE , NJ
CONFIDENTIAL OFFERING MEMORANDUM
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
Gebroe-Hammer Associates (hereinafter “GHA”), has been retained as exclusive Broker for the sale of captioned premises located in Old Bridge, N.J.
This Offering Memorandum has been prepared by GHA for use by a limited number of parties and does not purport to provide a necessarily accurate summary of the property or any of the documents related thereto, nor does it purport to be all inclusive or to contain all of the information which prospective investors may need or desire. All projections have been developed by GHA, the Owners and designated sources and are based upon assumptions relating to the general economy, competition and other factors beyond the control of the Owner, and therefore are subject to variation. GHA or owner makes no representation as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, GHA, Owner and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from the Memorandum or another written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the Offering memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchasers.
Additional information and an opportunity to inspect the Property will be made available upon request to interested and qualified prospective purchasers.
The Owner and GHA each expressly reserve the right, in their sole discretion, to reject any and all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase of the Property has been fully executed, delivered and approved by the Owner and its legal counsel, and any conditions to the Owner’s obligations there under have been satisfied or waived. GHA is not authorized to make any representations or agreements on behalf of Owner.
This Offering Memorandum and its contents, except such information that is a matter of public record or is provided in sources available to the public (such contents as so limited herein called the “Contents”) are of a confidential nature. By accepting the Offering memorandum, you agree (i) to hold and treat it in the strictest confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the Offering Memorandum or any of its contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of the Owner or GHA.
OAK TREE PLAZA OLD BRIDGE, NJ
CONFIDENTIALITY AGREEMENT
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
TABLE OF CONTENTS
04 Executive Summary
05 Property Quick Facts
06 Investment Highlights
17 Market Analysis
27 Financial Analysis
33 About Gebroe-Hammer Associates
34 Contact Information
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
Gebroe-Hammer Associates is pleased to present Oak Tree
Plaza, a fully approved suburban mixed-use development
opportunity in the heart of affluent Old Bridge Township, New
Jersey. This rare construction-ready parcel encompasses site-
plan approval for one three-story apartment-home building
with 36 luxurious 1 BR (760 SF), 2 BR (1,100 SF) and 3 BR (1,300
SF) layouts, of which 30 are market-rate rentals and 6 are
moderate-income (COAH) designated units. Additionally, the
commercial component features two separate one-story retail
buildings totaling approximately 19,000 SF (9,500 each) with
direct driveway access along the highly trafficked NJ Route 34,
with 650 LF of frontage exposure.
Strategically situated adjacent to the Route 34 / Canyon Woods
Drive intersection, within the southeast corner of affluent
Middlesex County, Oak Tree Plaza features a prime geographic
location with exceptional residential and commercial appeal.
The mixed-use property offers front-door NJ Transit bus service,
proximity to Aberdeen-Matawan Rail Station (2.4 miles away)
along the New Jersey Coast Line and connectivity to U.S. Route 9,
NJ Route 79 and the Garden State Parkway.
As the corridor’s newest high-identity residential and retail enclave,
Oak Tree Plaza poses long-term appeal among the submarket’s
ever-growing established millennial, C-suite executive and highly
educated empty-nester tenant and consumer pipeline.
EXECUTIVE SUMMARY
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
PROPERTY QUICK FACTS
ADDRESS538 Route 34, Old Bridge
COUNTY Middlesex
NEIGHBORHOOD Cheesequake / Morristown
PROPERTY TYPE Mixed-Use Development Site
SITE READY / YEAR BUILTApril, 2020 / 2020
RESIDENTIAL UNITS 36 (30 market rate; 6 COAH)
LAYOUTS 1 BR, 2 BR, 3 BR
RESIDENTIAL STORIES3 (1 Elevator / 2 Staircases)
COMMERCIAL SPACE 19,000 SF (2 Buildings / 1 Story)
PARKING125 On-Premises Paved Surface
BLOCK / LOT 11252.14 / 21.11
ACREAGE 6.3
FRONTAGESouth side of NJ Route 34 / 650 LF Exposure
DISTANCE TO NYCDowntown 45 min. / Midtown 70 min.
TRANSITFront door NJ Transit Bus Route 133 (NYC Direct) Aberdeen-Matawan Rail Station (2.4 miles away)
HIGHWAY CONNECTIVITY U.S. Route 9, NJ Route 79 & Garden State Parkway
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
INVESTMENT HIGHLIGHTS ■ Investment Overview
■ Nearby Points of Interest
■ Commercial / Retail Component
■ Development Investment Description & Costs
■ Site Plan and Floor Plans
■ Maps
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
Investment Overview
Given its prominent suburban Southeastern Middlesex/Northern Monmouth County corridor location, Oak Tree Plaza poses
an extremely unique development acquisition opportunity associated with extremely favorable multi-family fundamentals
throughout the Central New Jersey metro and the top-income-growth Cheesequake/Morristown neighborhood in Old Bridge:
■ Exclusive shovel-ready 6+-acre land parcel to be delivered in April, 2020 with full site plan approvals for 36 architecturally distinct multi-family units and two single-story commercial buildings totaling approximately 19,000 SF
■ One new three-story luxury apartment-home building approved for initial-phase construction featuring (16) 1 BR, (18) 2 BR and (2) 3 BR units, all with modern finishes, first-class amenities and picturesque park-like-setting views
■ 30 market-rate and 6 COAH-designated one-, two- and three-bedroom market-unique layouts ranging from 760 SF to 1,300 SF featuring kitchen and baths with condominium-style finishes and amenities
■ Premier Southeast Middlesex/Northern Monmouth County suburban locale within one of the strongest apartment-rental corridors where development will continue to be limited and the estimated absorption rate is 14 leased units per month based on nearby comparable communities
■ Prominent curb identity within the Cheesequake/Morristown neighborhood, where the average rental price is $2,415 and 41.3% of the working population is employed in executive, management and professional occupations (Neighborhoodscout.com)
■ Overall rent gains forecasted at +2.5% per year during 2020 and 2021 (Reis)
■ Prime geographic positioning within the Central Jersey metro, which has the lowest vacancy rate in the nation (Reis)
■ Strategically located at a major state-highway/NJ Transit bus stop intersection within minutes of restaurants, grocery stores, coffee houses, banks and retail shops
■ Ease of commuting along the New York City/Philadelphia employment corridor, offering highway access to the Garden State Parkway and NJ Turnpike and NYC-direct bus transit connections to Midtown and Downtown Manhattan as well as Center City, Philadelphia
INVESTMENT HIGHLIGHTS
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
INVESTMENT HIGHLIGHTS
Nearby Points of Interest Transit
Matawan-Aberdeen Station 2.6 miles
Old Bridge Airport 11.0 miles
Metropark Station 12.9 miles
Colleges / Universities
Brookdale Community College 9.8 miles
Rutgers University – New Brunswick 14.6 miles
Chamberlain University College of Nursing 15.0 miles
Middlesex County College 15.1 miles
Monmouth University 21.0 miles
Parks / Recreation
Cheesequake State Park 1.8 miles
Geick Park 2.2 miles
John Piccolo Arena 3.2 miles
Veteran’s Memorial Park 4.0 miles
Matawan Point 4.1 miles
Old Bridge Waterfront Park 4.3 miles
Laurence Harbor Beachfront 4.3 miles
Keyport Yacht Club 4.5 miles
Old Bridge Township Raceway Park 10.9 miles
Local Schools
Cheesequake Elementary School 1.2 miles
Old Bridge High School 1.2 miles
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
INVESTMENT HIGHLIGHTS
Commercial / Retail Component
■ Approximately 19,000 SF of free-standing commercial space fronting NJ Route 34 with 650 LF of frontage exposure
■ Two separate single-story buildings of 9,500+ SF each located adjacent to 36 luxury new-construction apartment homes designed to appeal to the region’s upper-income professional tenant base
■ High foot-traffic and vehicle counts along Route 34 within the Southeastern Middlesex/Northern Monmouth County Region, a high-population-density business and residential corridor
■ Immediate two-way driveway access to NJ Route 34 with connectivity to U.S. Route 9, NJ Route 79, Garden State Parkway and NJ Turnpike
■ Daily traffic count of 18,545
■ Neighborhood average household income of $108,303
■ High-density population of 75,000 people within a 3-mile radius and 182,233 people within a 5-mile radius
Neighborhood Retailers ● Buttonwood Manor Catering● Buy Rite Liquors● Carter’s Children’s Clothing● Cinderella Bridals● Ganga Asian-Fusion Restaurant
● Ginkaku Japanese Bistro● Jersey 34 Tennis Club● Kearny Bank● Matawan Montessori Academy● New York Sports Clubs
● Pauline’s Italian Cuisine● Retro Fitness● State Farm Insurance● Learning Experience Day Care
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
INVESTMENT HIGHLIGHTS
Development Investment Description
Property Address 538 Route 34, Old Bridge, NJ
Lot Size 6.3 acres
Unit Breakdown Residential – 36 units
Commercial Building 1 – 9,500 SF
Commercial Building 2 – 9,500 SF
Location At the intersection of NJ Route 34 / Canyon Woods Drive
Zoning Code R-30 Residential
Development Fully approved final site plan (Resolution December 5, 2019) Planning Board/Township of Old Bridge Twp.) for 36 total multi-family units [30 market-rate; 6 COAH designated] and 2 low-rise commercial buildings
Construction Low-rise wood construction
Development Costs
Land $2,495,000
Sitework: Includes everything (based on quotes received) – curbing, asphalt, water retention, sewer storm pipe, lights etc.
$1,400,000
Soft Costs:
Financing, Permits, Staging $500,000
Hard Costs:
Residential Building $3,000,000
Retail Building $60/SF x 9500 x 2 = $1,140,000
Total Hard Costs $4,140,000
Sewer / Water Connection Fee $350,000
Total Costs $8,885,000
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
INVESTMENT HIGHLIGHTS
Site Plan
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
INVESTMENT HIGHLIGHTS
1 BR / 1 Bath■ 760 SF
2 BR / 2 Bath■ 1195 SF
2 BR / 2 Bath■ 1055 SF
Floor Plans
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
INVESTMENT HIGHLIGHTS
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
INVESTMENT HIGHLIGHTS
Hig
hvie
w Te
rrace
Sasha Ct
Stratton RoadWindham Court
Stratton Road
NJ Route 34
NJ Route 34
Oak Tree Plaza
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
INVESTMENT HIGHLIGHTS
Oak Tree PlazaAberdeen-Matawan
Train Station
12
3 24
5
6
7
8
10
9
11
12
1. The Pine Tavern
2. Cheesequake Farms
3. Rt. 34 Auto
4. Big Ed’s Barbecue
5. Retro Fitness
6. New York Sports Club
7. Smile Cleaners
8. Dunkin’ Donuts
9. Maloney’s Pub & Grill
10. Starbucks
11. Walgreens
12. TD Bank
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
Old Bridge, NJ
INVESTMENT HIGHLIGHTS
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
Located at the midpoint between New York and Philadelphia, Middlesex County is comprised of 25 unique-in-character and historic communities that are a mix of small municipalities, urban centers and rural towns. Known for its award-winning schools and highly educated and skilled workforce, it is one of the most affluent and “youngest” counties in the nation. Among its population of 829,685 people, the average household income is $89,554 and the median age is 38.7 years old.
MARKET ANALYSIS ■ About Middlesex County ■ Middlesex County’s Top Employers■ About Old Bridge, NJ■ Middlesex County Transit
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
MARKET ANALYSIS
About Middlesex County, New Jersey
Centrally located within the state,
Middlesex County has earned the
distinction as one of the largest
commercial real estate markets in
the country. As a major residential,
employment and retail hub,
numerous Fortune 500 companies
have established regional, satellite
or headquarters operations throughout
the county. Each of these entities are attracted to the region’s
highly talented labor pool and transportation infrastructure as
well as ease of highway access along the New York/New Jersey/
Philadelphia corridor and nearby air and rail links.
As the second most-populous county in the state of New Jersey,
Middlesex County also is home to three universities, including
Rutgers – the state university – and world-class healthcare
and research facilities. Calling the county home are several
major award-winning healthcare organizations such as RWJ/
Barnabas University Hospital, St. Peter’s University Hospital
and University Medical Center of Princeton at Plainsboro
as well as pharmaceutical giants Bristol-Myers Squibb and
Johnson & Johnson. The region has earned the reputation for
being a thriving live/work choice among people of all ages and
socioeconomic backgrounds.
Today, nearly every major north/south rail and roadway on
the East Coast intersects within the borders of Middlesex
County. This vast network eases commutes and facilitates
rapid commerce and travel locally, regionally, nationally and
internationally.
Known as the
heart of the
Garden State,
Middlesex
County has set
itself apart as
the best place
to live and to
work in the
region.
Middlesex County, NJ
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MARKET ANALYSIS
Middlesex County Demographics and Facts
POPULATION 829,685
LAND AREA322.8 miles
MEDIAN AGE 38.7 years old
AVG. HOUSEHOLD INCOME $89,554
HOUSING UNITS302,239
HOUSEHOLDS284,174
MAJOR ROADWAYSI-95/NJ Turnpike; U.S. Routes 1, 9 & 130I-287 & Garden State Parkway
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
Top Middlesex County, NJ Employers Number of Employees
Robert Wood Johnson University Hospital 5,000 – 5,249
Novo Nordisk 4,500 – 4,579
Wakefern Food Corp., Edison, NJ 3,500 – 3,749
J.F.K. Medical Center, Edison, NJ 3,000 – 3,369
Bristol-Myers Squibb 3,000 – 3,249
St. Peter’s Healthcare System 2,750 – 2,999
Silverline Building Products 2,250 – 2,299
Johnson & Johnson 2,000 – 2,249
Raritan Bay Medical Center 2,000 – 2,249
Home Depot, Edison, NJ 1,750 – 1,999
United Parcel Service, Edison, NJ 1,750 – 1,999
Amerada Hess Corporation 1,500 – 1,749
Walmart Stores Inc., Edison, NJ 1,250 – 1,499
Ericsson 1,000 – 1,249
Prudential Insurance Company, Edison, NJ 1,000 – 1,249
Aetna/US Healthcare 1,000 – 1,249
BASF Catalyst, LLC, Edison, NJ 1,000 – 1,249
Colgate-Palmolive 1,000 – 1,249
Dow Jones & Company 1,000 – 1,249
White Rose Inc. 750 – 1,000
MARKET ANALYSIS
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MARKET ANALYSIS
About Old Bridge, New Jersey
Boasting roots tied to old mill streams, the clay industry and apple farming – during the heyday of the industrial and agricultural era – modern-day Old Bridge has since evolved into a sought-after suburban bedroom enclave favored by New York City-bound commuters. The township is
strategically located across the Raritan Bay from Staten Island, about 25 miles from Manhattan and 30 miles south of Newark.
Classified as a medium-sized municipality, the Old Bridge Township area has a highly educated, affluent population of 65,898 people residing across nine constituent neighborhoods. Many of these include unincorporated communities and census-designated places (CDPs), such as Brownville, Laurence Harbor and Madison Park as well as Cheesequake, Cottrell Corners, Morristown and Sayre Woods South.
Situated in the southeast corner of Central Jersey’s extremely affluent Middlesex County, Old Bridge is bordered by East Brunswick, Monroe Township, Sayreville and Spotswood. It also shares a boundary with Aberdeen Township, Manalapan Township, Marlboro Township and Matawan in Monmouth County.
Like many of its Middlesex County counterparts, Old Bridge’s housing costs are among some of the highest in the nation. In total, the township features 7,789 total housing units (homes and apartments) and a residential landscape dominated by single-family homes. Interestingly, Old Bridge’s housing stock
has a severe disconnect between supply of apartment rentals (11.8% of total units) as compared to its renter population of 15.5%. As a result, based on projected East Middlesex County submarket and Central Jersey Metro fundamentals, tenant demand for upscale apartment-home living will continue to outpace the existing supply as well as new-construction project deliveries.
A decidedly white-collar town, 86.16% of the Old Bridge workforce is employed in office-based jobs – well above the national average. Overall, a high concentration of occupations span professionals
and managers as well as sales and office workers. There are especially a lot of people living in Old Bridge who work in office and administrative support
TOTAL AREA POPULATION
65,898
NUMBER OF HOMES & APARTMENTS
7,789
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
(15.66%), management occupations (13.38%) and sales jobs (13.28%). Also of interest is that Old Bridge has more people living here who work in computers and math than 95% of the places in the nation – a characteristic that bodes well in terms of household income growth and public school performance.
The Old Bridge Township Public Schools serve students from K-12 at 15 schools. In total, enrollment exceeds 8,734 students taught in classrooms with a 12.2:1 student-to-teacher ratio. District schools include the M. Scott Carpenter, Cheesequake, Leroy Gordon Cooper, Virgil I. Grissom, Madison Park, James A. McDivitt, Memorial, Walter M. Schirra, Alan B. Shephard, Southwood and Raymond E. Voorhees Elementary Schools as well as Jonas Salk and Carl Sandburg Middle Schools and Old Bridge High School.
Eighth grade students also are eligible for programs at Middlesex County Vocational and Technical Schools, Middlesex Academy in Edison and the Academy for Allied Health and Medical Sciences in Woodbridge. In addition, there are multiple private schools: Calvary Christian School, St. Ambrose School and St. Thomas Apostle School, recognized in 2018 by the National Blue Ribbon Schools Program of the U.S. Dept. of Education.
Out-Commuter Enclave
Old Bridge’s geographic appeal and transit connectivity have fed the township’s population growth in the past two decades. The region is home to a wide network of interstate, regional and local highways spanning over 222 miles. The primary highway artery is the Garden State Parkway, which passes through Old Bridge and connects to Aberdeen Township (Monmouth County) to the south and Sayreville in the north. Other routes include U.S. Route 9 and NJ Routes 18, 34 and 35 as well as County Routes 516, 520, 527 and 615.The New Jersey Turnpike is minutes north, along Route 18 just beyond the township limits in East Brunswick and Monroe Township.
MARKET ANALYSIS
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Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
MARKET ANALYSIS
This commuter-friendly hub also has an extensive mass transit network that encompasses NJ Transit bus and rail service. Bus service is offered along Routes 131, 133, 134, 135 and 139 – all of which connect to Port Authority Bus Terminal in Midtown Manhattan. Additional routes travel to Newark and Jersey City. Rounding out the area’s transit options are cross-county shuttles operated by Middlesex County Area Transit (MCAT). These operate between Brunswick Square and two destinations – Old Bridge and South Amboy.
Local Recreation and Leisure Pursuits
Once described by the New York Times as one of the fastest-growing municipalities in New Jersey with a “country ambiance,” Old Bridge has a wide array of offerings that appeal to residents and visitors of all ages. These include the Old Bridge Arena, a 40,000-square-foot ice skating rink; 1,300-acre Cheesequake State Park, which offers camping, picnicking, a bicycle trail, a visitors center, an interpretive nature center, six miles of hiking trails and the eight-acre Hooks Creek Lake; and 40-acre Geick Park.
Thanks to its waterfront boundary along Raritan Bay, the township also features a beachfront park at Laurence Harbor and proximity to several boating clubs and waterfront parks.
It is this combination of urban-sophisticate lifestyle amenities, excellent public schools and abundant recreation centers that have earned Old Bridge Township recognition as a contender for Money Magazine’s “Best Places to Live” in the United States. It also was named a SafeWise community in 2016 – ranking the second-highest among the other 12 New Jersey municipalities also named to the list.
Old Bridge Demographics and Facts
LAND AREA42 s/m
AREA POPULATION65,898
POPULATION DENSITY1,717.7 s/m
HOUSING STOCK 7,789 homes & apartments
APARTMENT INVENTORY11.8%
RENTER POPULATION15.5%
MEDIAN HOUSEHOLD INCOME$89,140
WHITE-COLLAR WORKFORCE86.16%
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MARKET ANALYSIS
Metro: Central Jersey Submarket: East Middlesex Region Submarket
Submarket Overview
With 31,622 units, amounting to 17.6% of the total metro inventory,
the East Middlesex submarket is the largest of the nine distinct
geographic concentrations that form the Central New Jersey
apartment market. In the 10-year period beginning with Q4 2009,
new additions to the submarket totaled 1,561 units, amounting to
an annualized inventory growth rate of 0.5%, which matches the
overall metro growth rate.
In terms of projections during 2020 and 2021, Reis anticipates that
asking-rent growth will accelerate to an annualized average of 2.5%
to reach a level of $1,520 per unit. Effective rents are anticipated to
advance at the more modest rate of 1.8%, as some landlords offer
concessions packages to new tenants.
Submarket Unit Mix
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People Quick Facts Old Bridge Township Middlesex County New JerseyPOPULATIONPopulation estimates, July 1, 2018, (V2018) 65,898 829,685 8,908,520Population, percent change - April 1, 2010 (estimates base) to July 1, 2018, (V2018) 0.80% 2.40% 1.30%Population, Census, April 1, 2010 65,375 809,858 8,791,894HOUSING Housing units, July 1, 2018, (V2018) NA 302,239 3,628,302Owner-occupied housing unit rate, 2014-2018 66.50% 63.30% 63.90%Median value of owner-occupied housing units, 2014-2018 $343,200 $336,200 $327,900 Median selected monthly owner costs -with a mortgage, 2014-2018 $2,384 $2,447 $2,439 Median selected monthly owner costs -without a mortgage, 2014-2018 $987 $1,027 $1,031 Median gross rent, 2014-2018 $1,243 $1,432 $1,295
Building permits, 2018 NA 2,737 27,942FAMILIES AND LIVING ARRANGEMENTSHouseholds, 2014-2018 24,268 284,174 3,213,362Persons per household, 2014-2018 2.7 2.8 2.71EDUCATIONHigh school graduate or higher, percent of persons age 25 years+, 2014-2018 92.70% 89.80% 89.50%Bachelor's degree or higher, percent of persons age 25 years+, 2014-2018 39.50% 42.70% 38.90%ECONOMYIn civilian labor force, total, percent of population age 16 years+, 2014-2018 29.40% 64.50% 65.50%Total accommodation and food services sales, 2012 ($1,000) 71,417 1,387,200 19,673,558Total merchant wholesaler sales, 2012 ($1,000) D 40,540,733 288,467,844Total retail sales, 2012 ($1,000) 756,283 11,869,778 133,665,728Total retail sales per capita, 2012 $11,428 $14,422 $15,079 TRANSPORTATIONMean travel time to work (minutes), workers age 16 years+, 2014-2018 38.8 33.9 31.7INCOMEMedian household income (in 2018 dollars), 2014-2018 $89,140 $85,954 $79,363 Per capita income in past 12 months (in 2018 dollars), 2014-2018 $42,126 $38,140 $40,895 BUSINESSESTotal employer establishments, 2017 NA 21,850 233,907Total employment, 2017 NA 393,849 3,679,443Total annual payroll, 2017 ($1,000) NA 24,817,893 220,310,440Total employment, percent change, 2016-2017 NA 1.60% 1.20%Total nonemployer establishments, 2017 NA 60,075 716,918GEOGRAPHYPopulation per square mile, 2010 1,717.70 2,621.60 1,195.50Land area in square miles, 2010 38.06 308.91 7,354.22FIPS Code 3402354705 34023 34
QuickFacts data are derived from: Population Estimates, American Community Survey, Census of Population and Housing, Current Population Survey, Small Area Health Insurance Estimates, Small Area Income and Poverty Estimates, State and County Housing Unit Estimates, County Business Patterns, Nonemployer Statistics, Economic Census, Survey of Business Owners, Building Permits.
MARKET ANALYSIS
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Middlesex County Transit
Rail:
Three major passenger lines serve Middlesex County. Passenger rail
service is provided by NJ Transit on the Northeast Corridor, North
Jersey Coast and Raritan Valley Lines. Amtrak runs on the Northeast
Corridor Line, extending passenger service to New York, Philadelphia
and Washington, D.C. Amtrak also operates Boston-to-Washington
service, with stops in Middlesex County.
Bus:
NJ Transit, Academy Transit, Suburban Transit and private carriers
provide service on local, inter-county, and interstate routes between
New Jersey, New York and Pennsylvania.
Vehicle Traffic:
Middlesex County is among the highest in New Jersey in vehicle
miles traveled, with over 21 million of the State’s total of 199 million
in vehicle miles traveled. Major accessible roadways near the site
include the New Jersey Turnpike, Garden State Parkway, Interstate
287 and U.S. Routes 9 and 35.
MARKET ANALYSIS
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FINANCIAL ANALYSIS ■ Financial Summary
■ Rent Roll
■ Rent Comparables
■ Retail Comparables
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FINANCIAL ANALYSIS
Oak Tree Plaza Quick FactsAddress 538 Route 34, Old Bridge
County Middlesex
Neighborhood Cheesequake / Morristown
Property Type Mixed-Use Development Site
Site Ready April, 2020
Residential Units 36 (30 market rate; 6 COAH)
Layouts 1 BR, 2 BR, 3 BR
Residential Stories 3 (1 Elevator / 2 Staircases)
Commercial Space 19,000 SF (2 Buildings / 1 Story)
Parking 125 On-Premises / Paved Surface
Block / Lot 11252.14 / 21.11
Acreage 6.3
Year Built 2020
Frontage South side of NJ Route 34 / 650 LF Exposure
Distance To NYC Downtown 45 min. Midtown 70 min.
Transit Front door NJ Transit Bus Route 133 (NYC Direct) Aberdeen-Matawan Rail Station (2.4 miles away)
Highway Connectivity U.S. Route 9, NJ Route 79 & Garden State Parkway
Oak Tree Plaza Unit Mix (Residential)Unit Type # Units
1 Bedroom 16
2 Bedrooms 18
3 Bedrooms 2
TOTAL: 36
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Assumptions:■ Annual Rental Income: Estimated Rent Roll
■ Vacancy: 3% of Annual Rental Income for Apartments
■ Vacancy: 7% of Annual Rental Income for Retail
■ CAM: Based @ $4.50/Ft From Retail
Financial Summary: Oak Tree Plaza Estimated Rent Roll: Oak Tree Plaza
ANNUAL INCOME Totals
RETAIL REVENUE
Potential Base Rent @ $24/FT $456,000
CAM $4.50 / FT $85,500
TOTAL RENTAL INCOME $541,500
Vacancy Allowance (7%) ($37,905)
EFFECTIVE RETAIL REVENUE $503,595
MULTIFAMILY REVENUE
Potential Market Rent $850,200
Vacancy Allowance (3%) ($25,506)
EFFECTIVE MULTIFAMILY REVENUE $824,694
POTENTIAL GROSS REVENUE $1,328,289
ANNUAL EXPENSES (Estimated) Totals
Real Estate Taxes $122,400
Utilities $10,800
Insurance $14,400
Payroll $30,000
Elevator $3,000
Landscaping / Snow Removal $15,000
Management (3%) $39,849
Repairs and Maintenance $20,000
TOTAL EXPENSES $255,449
NET OPERATING INCOME $1,072,840
The above figures were obtained from the owner and have not been verified by the broker.
FINANCIAL ANALYSIS
Unit Type No. of Units
Sq. Feet Monthly Rent
1B 15 734 $1,850
1BA Affordable 1 734 $1,200
2B2 12 1178 $2,250
2BA Affordable 3 1090 $1,550
2BS 3 1170 $2,250
3BA Affordable 2 1170 $1,750
TOTALS: 36 $70,850
Gebroe-Hammer Associates | 30
Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
FINANCIAL ANALYSIS
Development Costs
Land $2,495,000
Sitework: Includes everything (based on quotes received) – curbing, asphalt, water retention, sewer storm pipe, lights etc.
$1,400,000
Soft Costs:
Financing, Permits, Staging $500,000
Hard Costs:
Residential Building $3,000,000
Retail Building $60/SF x 9500 x 2 = $1,140,000
Total Hard Costs $4,140,000
Sewer / Water Connection Fee $350,000
Total Costs $8,885,000
Stabilized Value:• 5.5 cap: . . . . . $19.5M• 6 cap: . . . . . . . $17.9M• 6.5 cap: . . . . . $16.5M
Gebroe-Hammer Associates | 31
Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
RENT COMPARABLES
Oak Tree Plaza • 538 Route 34, Old Bridge, NJ • 36 Units
UNIT TYPE SQ. FEET MONTHLY RENT
1 Bedroom 734 $1,850
2 Bedroom 1090–1178 $2,250
Woodhaven Commons528 Texas Road, Old Bridge, NJ
Built 2016 • 144 Units
Unit Type Square Ft Monthly Rent
— — —
2 BR 1115 $2,100
The Link at Aberdeen Station1101 Schindler Drive, Aberdeen, NJ
Built 2018 • 220 Units
Unit Type Square Ft Monthly Rent
1 BR 747 $1,850
2 BR 1198 $2,410
Hidden Village Aberdeen1101 Whispering Way, Aberdeen, NJ
Built 2017 • 200 Units
Unit Type Square Ft Monthly Rent
1 BR 787 $1,950
2 BR 1133 $2,550
Gebroe-Hammer Associates | 32
Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
RETAIL COMPARABLES
Oak Tree Plaza538 Route 34, Old Bridge, NJ
19,000SF of Retail
Type Square Ft Monthly Rent
Retail 19,000 $24/SF + CAM
Woodhaven Commons272 Texas Road, Old Bridge, NJ
Built 2018
Type Square Ft Rental Price
Retail 27,000 $22/SF + $4.50NNN
• Presently 90% leased (80% leased in 1 year)
• Located on a transit-access road without immediate residential in close proximity
CKO Retail CenterAddress, Old Bridge, NJ
Built 2015
Type Square Ft Monthly Rent
Retail 10,000 $26/SF + CAM
• Located 0.25 Miles from subject property
• 100% leased by owner during construction
Gebroe-Hammer Associates | 33
Confidential Offering Memorandum • Oak Tree Plaza • Old Bridge, New Jersey
Gebroe-Hammer Associates’ dedicated investment brokerage specialists focus on core primary and secondary submarkets
throughout the entire state of New Jersey as well as Eastern Pennsylvania and New York State. In addition to representing long-time
and first-time clients with diverse portfolios and interests, ranging from multi-family properties to neighborhood retail and small
office centers, Gebroe-Hammer records the highest deal velocity within its competitive set to dominate on a regional and national
scale. As a result, Gebroe-Hammer exclusively represents property owners and investors in sales involving the region’s highly
trafficked lifestyle-necessity retail and office assets.
As the market’s preeminent investment brokerage firm, Gebroe-Hammer focuses on well-positioned urban and suburban
properties throughout well-established and emerging primary and secondary submarkets.
Gebroe-Hammer is the NJ/PA/NY Metro Area’s top investment brokerage firm, based on year-over-year sales transaction
benchmarks and its extensive client network, from private, locally based family offices and individuals to national institutional
investment groups. Throughout the course of its 44-year history, the firm has established a reputation for:
■ Area market specialists who possess creative deal-structuring
acumen and collective and individual knowledge of the New
Jersey, New York State and Pennsylvania corridor’s primary and
secondary submarkets
■ Highest volume of pre-1970s-era multi-family asset sales
spanning re-emerging urban core and well-established
suburban municipalities
■ Extensive client roster that includes family offices, private
owners, REITS, private equity funds and other institutional
investors
■ Customized, hands-on brokerage-team approach to facilitating
each transaction from inception to close
■ Unparalleled success advising investors seeking to expand their
portfolio holdings to pursue new opportunities throughout the
tri-state area
■ Active involvement in industry groups, including the New Jersey
Apartment Association and Property Owner’s Association,
National Property Owner’s Association and local business and
community groups
Gebroe-Hammer Associates
15-time CoStar Power Broker
ABOUT GEBROE-HAMMER ASSOCIATES
Gebroe-Hammer Associates | 34
OAK TREE PLAZAOLD BRIDGE , NJ
FOR MORE INFORMATION, PLEASE CONTACT:
Adam ZweibelSenior Vice President
Gebroe-Hammer AssociatesMobile: 201.953.9532Office: 973.994.4500
Email: [email protected]
2 West Northfield Road, Livingston, NJ 07039 Phone 973.994.4500 • Fax 973.994.9752
www.gebroehammer.com