CONFIDENTIAL OFFERING MEMORANDUM · 2020-02-03 · Gebroe-Hammer Associates 2 West Northfield Road, Livingston, NJ 07039 Phone: 973.994.4500 • Fax: 973.994.9752 OAK TREE PLAZA 36

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

Gebroe-Hammer Associates | 2

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



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



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



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



INVESTMENT HIGHLIGHTS ■ Investment Overview

■ Nearby Points of Interest

■ Commercial / Retail Component

■ Development Investment Description & Costs

■ Site Plan and Floor Plans

■ Maps



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




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




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




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




Site Plan




1 BR / 1 Bath■ 760 SF

2 BR / 2 Bath■ 1195 SF

2 BR / 2 Bath■ 1055 SF

Floor Plans







Hig

hvie

w Te

rrace

Sasha Ct

Stratton RoadWindham Court

Stratton Road

NJ Route 34

NJ Route 34

Oak Tree Plaza




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



Old Bridge, NJ




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



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



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



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



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



(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



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%



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



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



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



FINANCIAL ANALYSIS ■ Financial Summary

■ Rent Roll

■ Rent Comparables

■ Retail Comparables



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



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


2BS 3 1170 $2,250


TOTALS: 36 $70,850



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



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



1 BR 747 $1,850

2 BR 1198 $2,410

Hidden Village Aberdeen1101 Whispering Way, Aberdeen, NJ



1 BR 787 $1,950

2 BR 1133 $2,550



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 Center745 Route 34, 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’ 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


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

Documents

CONFIDENTIAL OFFERING MEMORANDUM · 2020-02-03 · Gebroe-Hammer Associates 2 West Northfield Road, Livingston, NJ 07039 Phone: 973.994.4500 • Fax: 973.994.9752 OAK TREE PLAZA 36