391 LAKESIDE AVENUEORANGE, NEW JERSEY

VACANT INDUSTRIAL BUILDING | PRICE $3,300,000 | $53 P.P.S.F. | CONVERSION OPPORTUNITY

OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com

NON ENDORESEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMERThe 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. © 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. 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 S H OW I N GS ARE BY A P P O I N T M E N T ONLY.PLEASE CONSULT YOUR MARCUS & M I L L I C H A P AGENT FOR MORE DETAILS.

EXCLUSIVELY LISTED BY

391 LAKESIDE AVENUE

RICHARD GATTONational Multi Family Housing Group

NEW JERSEY OFFICETel: (201) 742.6137

Richard.Gatto@marcusmil l ichap.com

FAHRI OZTURK Vice President Investments

NEW JERSEY OFFICETel: (201) 742.6170

Fahri .Ozturk@marcusmil l ichap.com

THOMAS CLEARYAssociate InvestmentsNEW JERSEY OFFICE

Tel: (201) 742.6142Thomas.Cleary@marcusmil l ichap.com

391 LAKESIDE AVENUE 01INVESTMENT OVERVIEWExecutive Summary

02PROPERTY MAPS & PHOTOSProperty MapsExterior PhotosInterior Photos

03FINANCIALSIncome StatementRent RollConversion Assumptions

04MUNICIPAL INFORMATIONSurveyTax MapZoning Information

05MARKET OVERVIEWLocation OverviewDemographics

TABLE OF CONTENTS

01S E C T I O N

EXECUTIVESUMMARY

391 LAKESIDE AVENUE

IMMEDIATE ACCESS TO TRANSPORTATION•Located 0.5 of a mile from the Orange Train Station

•Located 14 miles from Newark Liberty Airport

CENTRAL LOCATION• Easy access to Garden State Parkway, I-78, Route 1&9 and more

• Located 19 miles from Manhattan, 14 miles from Newark Airport, and 19 miles from Jersey City

I N V E S T M E N T H I G H L I G H T S

INDUSTRIAL VALUE ADD (1)

The property offers immediate upside through leasing up the vacant space, with a pro forma net operating income of $434,368

representing a 13.16% cap rate.

EXECUTIVE SUMMARY 6

MULTI-FAMILY CONVERSION OPPORTUNITY•Potential to be converted into a four story multi-family building

•52 Apartments / 23 Parking Spaces•The building is fully sprinklered

DEVELOPMENT IN ORANGEThe Valley neighborhood in Orange and West Orange has

experienced massive influx in development, with projects like Hat City Lofts, Edison Lofts and the Harvard Printing Apartments opening their

doors close to the Highland Avenue Train Station.

(1) Assumes lease up

391 LAKESIDE AVENUE

EXECUTIVE SUMMARY 7

Marcus & Millichap has been selected to exclusively market for sale 391 Lakeside Avenue, Orange, New Jersey – a 61,630 vacant

industrial building. The property offers a conversion opportunity in Orange, with the potential to convert the property to 52 apartment

units and 23 parking spaces.

The subject property located 0.5 of a mile from the Orange Train Station and has easy access to Garden State Parkway, I-78, Route

1&9 and more. Additionally, the property is located 0.5 of a mile from the Orange Train Station, 14 miles from Manhattan and 14

miles from Newark Liberty Airport.

PROPERTY SUMMARY

Address 391 Lakeside Ave, Orange, New Jersey 07050

Block & Lot 1103 / 1

Price $3,300,000

Zoning CDA – Mixed-Use Commercial

Lot Size 27,300 Sq. Ft.

Existing Building Size 61,630 Sq. Ft.

Number of Stories 4

Occupancy Vacant

Real Estate Taxes $29,790

OFFERING SUMMARY

CONVERSION ASSUMPTIONS (1)

Lot Coverage 90%

Building Footprint Sq. Ft. 15,624

Existing Stories 4 + Basement

Total Convertible Sq. Ft. 61,630

Number Apartments 52

Avg. Apartment Size (Sq. Ft.) 850

Number of Parking Spaces (Surface) (2)23

Parking Ratio 0.45(1) May require variance(2) If basement is utilized for parking the number of spaces can increase to 42.

02S E C T I O N

PROPERTYMAPS & PHOTOS

391 LAKESIDE AVENUE

9PROPERTY PHOTOS

AERIAL PHOTO

Lakeside Ave

City of Orange Park Improvement

Orange Police Station

10PROPERTY MAPS

391 LAKESIDE AVENUE

Lakeside Ave

Alden St

NJ Transit Bus Garage

Tri Corner Homes

Star Tavern

IN CLOSE PROXIMITY TO

Orange Train Station 0.5 Miles

Newark Airport 14 Miles

Port Authority 16 Miles

11PROPERTY MAPS

Orange Train Station

391 LAKESIDE AVENUE

IN CLOSE PROXIMITY TOMiles

Newark 5

Manhattan 19

Morristown 19

PROPERTY MAPS 12

391 LAKESIDE AVENUE Manhattan

Newark

East Orange

Morristown

52POTENTIAL UNITS

391 LAKESIDE AVENUE

13

14PROPERTY PHOTOS

EXTERIOR PHOTO

15PROPERTY PHOTOS

PROPERTY OUTLINE

Lakeside Ave

Hig

h St

16PROPERTY PHOTOS

INTERIOR PHOTOS

17PROPERTY PHOTOS

INTERIOR PHOTOS

03S E C T I O N

FINANCIAL ANALYSIS

391 LAKESIDE AVENUE

19FINANCIAL ANALYSIS

PRO FORMA RENT ROLL

Floor Tenant Square Feet ActualPro FormaMonthly Rent

Pro FormaRent PSF

Pro FormaAnnual Rent

Basement Vacant 8,822 $0 $2,941 $4.00 $35,288

Floor 1 Vacant15,624

$0$13,020 $10.00 $156,240

Floor 2 Vacant14,112

$0$11,760 $10.00 $141,120

Floor 3 Vacant14,112

$0$9,408 $8.00 $112,896

Floor 4 Vacant8,960

$0$5,973 $8.00 $71,680

Total / Averages 61,630 $43,102 $8.39 $517,224

INCOME STATEMENT

FINANCIAL ANALYSIS 20

PRO FORMA

INCOME %EGI

Gross Potential Income $517,224

Less Vacancy & Credit Less -$51,722 10%

Tenant CAM/TAX Reimbursements $312,849

Effective Gross Income $778,351

EXPENSES %EGI $/SF

Property Taxes (1) $123,260 16% $2.00

Insurance $15,408 2% $0.25

Utilities - PSEG $92,445 12% $1.50

Water & Sewer $14,421 2% $0.26

Repairs & Maintenance $30,815 4% $0.50

Elevator Maintenance $4,000 1% $0.06

Snow Removal $10,000 1% $0.16

Landscaping & Trash Removal $7,500 1% $0.12

Contract Services $5,000 1% $0.08

Cleaning & Supplies $10,000 1% $1.00

Management Fees $31,134 4% $0.51

Total Expenses $343,983 44% $6.45

Net Operating Income $434,368

Cap Rate 13.16%

(1) $123,260 is estimated after lease up, the current taxes are $29,760.

SALE COMPARABLESINDUSTRIAL

FINANCIAL ANALYSIS 21

ADDRESS DATE SALE PRICE SQ. FT. P.P.S.F (1) VACANCY

50 S Center Street Jun-2017 $6,251,000 111,229 $56 83%

(1) Price Per Square Foot

50 S Center St

RENTAL COMPARABLES 22

RENTAL COMPARABLES

50 S CENTEROrange, New Jersey 07051

200 S JEFFERSONOrange, New Jersey 07050

1 3 95 FREEWAY DRIVE WOrange, New Jersey 07050

Lease Type Units SF Rent Rent/SF

Modified Gross 1 3,232 $3,232 $12.00

Lease Type Units SF Rent Rent/SF

Net Lease - 5,000 $3,125 $7.50

YEAR BUILT: 2018

2

INDUSTRIAL

Lease Type Units SF Rent Rent/SF

Net Lease 1 3,587 $2,914 $9.75

50 S CENTER

95 FREEWAY DRIVE W200 S JEFFERSON

391 LAKESIDE AVENUE

RENTAL COMPARABLES 23

RENTAL COMPARABLES

EDISON LOFTSWest Orange, New Jersey 07052

SILK MILL LOFTSBloomfield, New Jersey 07003

1 3

Unit Type Units SF Rent Rent/SF

Studio - 354-648 $1,625-$1,717 $3.62

1 Br/1 Ba - 796-1,145

$2,123-$2,922 $2.60

2 Br/2 Ba - 1,241 $2,954 $2.38

Total/Avg 343 837 $2,268 $2.87

PARK WAY LOFTSBloomfield, New Jersey 07003

Unit Type Units SF Rent Rent/SF

1 Br/1 Ba - 727-834 $2,055-$2,125 $2.68

Total/Avg 48 780 $2,090 $2.28

Unit Type Units SF Rent Rent/SF

Studio - 511-709 $1,620-$3,155 $3.81

1 Br/1 Ba - 700-1,145 $1,925-$3,395 $2.86

2 Br/2 Ba - 1,119 $2,925-$3,935 $3.07

Total/Avg 361 837 $3,191 $3.24

YEAR BUILT: 2014

391 LAKESIDE AVENUE

EDISON LOFTS

SILK MILL LOFTS

PARKWAY LOFTS

YEAR BUILT: 2005YEAR BUILT: 2018

2

MULTI FAMILY

CONVERSION SPECIFICS

Lot Size 27,300 Sq. Ft.

Lot Coverage 90%

Building Footprint 15,624 Sq. Ft.

Stories 4 + 1 Basement

Total Buildable Sq. Ft. 61,630

Total Buildable Apartments 52

Total Parking Spaces 23

APARTMENTS

Stories 4 + 1 Basement

Residential Gross Sq. Ft. 52,808

Loss Factor 17%

Rentable Sq. Ft. 43,831

Avg. Apartment Size 850

Buildable Apartments 52

PARKING (1)

Decks 0

Usable Sq. Ft. 11,676

Avg. Space Size 500

Number of Spaces 23

Parking Ratio 0.45

52 Converted Units

23 Parking Spaces

$69,231Per Converted Unit

CONVERSION ANALYSIS 24

CONVERSION ASSSUMPTIONS

(1) If basement is utilized for parking the number of spaces can increase to 42 spaces.

04S E C T I O N

MUNICIPAL INFORMATION

391 LAKESIDE AVENUE

TAX MAP 26

SURVEY

TAX MAP 27

TAX MAP

* PSE&G has access to the property using the driveway.

TAX MAP 28

TAX MAP

LAK

ES

IDE

AV

E

HIGH ST

ZONING MAP 29

ZONING MAP

391 LAKESIDE AVENUE

ZONING INFORMATION 30

ZONING INFORMATION

CDA – MIXED-USE COMMERCIAL

The purpose of this district is to allow existing commercial and industrial uses inportions of the former D-1 District with the intention of phasing out heavy industrial usein favor of light industry mixed with small-scale residential and certain commercial uses.CDA zones are located in five areas in the northern part of the city, which were formallyzoned D-1. These areas include Thomas Boulevard and Washington Main Street and I-280. The area of the Valley which was previously zoned as industrial D-1 waseliminated and the area rezoned as residential (A-1 and A-2) and commercial (C-1).

05S E C T I O N

MARKETOVERVIEW

391 LAKESIDE AVENUE

32MARKET OVERVIEW

Source: © 2017 Experian

DEMOGRAPHICS

IncomeIn 2017, the median household income for your selected geography is$42,535, compare this to the US average which is currently $56,286.The median household income for your area has changed by 14.64%since 2000. It is estimated that the median household income in yourarea will be $48,031 five years from now, which represents a changeof 12.92% from the current year.

The current year per capita income in your area is $23,481, comparethis to the US average, which is $30,982. The current year averagehousehold income in your area is $62,742, compare this to the USaverage which is $81,217.

PopulationIn 2017, the population in your selected geography is 39,819. Thepopulation has changed by -0.18% since 2000. It is estimated that thepopulation in your area will be 39,101.00 five years from now, whichrepresents a change of -1.80% from the current year. The currentpopulation is 47.14% male and 52.86% female. The median age of thepopulation in your area is 35.62, compare this to the US averagewhich is 37.83. The population density in your area is 12,653.54people per square mile.

HouseholdsThere are currently 14,840 households in your selected geography.The number of households has changed by 0.82% since 2000. It isestimated that the number of households in your area will be 14,806five years from now, which represents a change of -0.23% from thecurrent year. The average household size in your area is 2.69persons.

EmploymentIn 2017, there are 11,421 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that57.37% of employees are employed in white-collar occupations in thisgeography, and 43.32% are employed in blue-collar occupations. In2017, unemployment in this area is 7.86%. In 2000, the average timetraveled to work was 33.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:20.55% White, 61.47% Black, 0.01% Native American and 2.31%Asian/Pacific Islander. Compare these to US averages which are:70.42% White, 12.85% Black, 0.19% Native American and 5.53%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 26.71% of the current yearpopulation in your selected area. Compare this to the US average of17.88%.

HousingThe median housing value in your area was $283,783 in 2017,compare this to the US average of $193,953. In 2000, there were4,398 owner occupied housing units in your area and there were10,321 renter occupied housing units in your area. The median rent atthe time was $640.

MARKET OVERVIEW 33

DEMOGRAPHICS

POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection

Total Population 39,101 284,467 741,639 2017 Estimate

Total Population 39,819 286,004 740,159 2010 Census

Total Population 38,545 278,494 717,725 2000 Census

Total Population 39,889 293,386 735,164 Daytime Population

2017 Estimate 29,441 218,894 652,619

HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection

Total Households 14,806 107,505 274,729 2017 Estimate

Total Households 14,840 106,763 271,274Average (Mean) Household Size 2.69 2.64 2.67

2010 CensusTotal Households 14,308 103,529 261,825

2000 CensusTotal Households 14,719 107,003 264,497

Growth 2015-2020 -0.23% 0.69% 1.27%

HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units

2022 Projection 14,806 107,505 274,7292017 Estimate 15,888 117,343 295,381Owner Occupied 4,044 39,887 113,122Renter Occupied 10,796 66,877 158,152Vacant 1,048 10,579 24,107

Persons In Units2017 Estimate Total Occupied Units 14,840 106,763 271,2741 Person Units 32.49% 30.62% 28.23%2 Person Units 23.00% 25.68% 26.43%3 Person Units 16.58% 17.20% 17.99%4 Person Units 13.73% 13.59% 14.76%5 Person Units 7.02% 7.16% 7.28%6+ Person Units 7.18% 5.75% 5.31%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate

$200,000 or More 3.09% 6.57% 7.78%$150,000 - $199,000 2.69% 5.27% 5.78%$100,000 - $149,000 8.92% 11.83% 12.79%$75,000 - $99,999 10.65% 10.92% 10.79%$50,000 - $74,999 18.83% 16.75% 16.29%$35,000 - $49,999 12.82% 11.61% 11.70%$25,000 - $34,999 13.08% 10.18% 9.36%$15,000 - $24,999 12.84% 10.76% 10.47%Under $15,000 17.08% 16.10% 15.02%

Average Household Income $62,742 $81,553 $88,098Median Household Income $42,535 $51,876 $54,835Per Capita Income $23,481 $30,643 $32,597

POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2017 Estimate Total Population 39,819 286,004 740,159Under 20 27.15% 26.87% 26.46%20 to 34 Years 21.93% 21.21% 21.13%35 to 39 Years 7.31% 7.12% 7.00%40 to 49 Years 13.44% 13.91% 14.12%50 to 64 Years 18.42% 18.72% 19.02%Age 65+ 11.76% 12.14% 12.27%Median Age 35.62 36.33 36.72

Population 25+ by Education Level2017 Estimate Population Age 25+ 26,317 189,513 492,356Elementary (0-8) 7.25% 5.02% 5.55%Some High School (9-11) 8.79% 8.07% 8.16%High School Graduate (12) 32.88% 30.47% 29.87%Some College (13-15) 20.55% 19.14% 18.08%Associate Degree Only 8.27% 6.60% 5.82%Bachelors Degree Only 13.28% 18.22% 19.27%Graduate Degree 6.66% 10.74% 11.46%

Population by Gender2017 Estimate Total Population 39,819 286,004 740,159Male Population 47.14% 46.69% 47.54%Female Population 52.86% 53.31% 52.46%

ORANGE, NEW JERSEY

391 LAKESIDE AVENUE