ANDOVER MINI MALL521-531 Route 206 • Andover, NJ 07821
Offering Memorandum
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and 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 SHOWINGS ARE BY APPOINTMENT ONLY.
PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
ANDOVER MINI MALL
Newton, NJ
ACT ID Y0280931
2
TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01Offering Summary
Location Overview
Regional Map
Local Map
Aerial Photo
FINANCIAL ANALYSIS 02Tenant Summary
Operating Statement
Notes
Pricing Detail
Acquisition Financing
MARKET OVERVIEW 03Market Analysis
Demographic Analysis
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INVESTMENT
OVERVIEW
ANDOVER MINI MALL
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EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER# OF
EMPLOYEES
North Jersey Health Care Corp 1,100
Hopatcong High School 530
The Sussex Cnty Cmm Colge Fnd
525
Dew Associates 400
All Quality Care Inc 300
Lowes 300
Space and Navigation 300
Walmart 300
New Jersey Dept Human Services
256
Newton School District Inc 250
YMCA Camp Ralph S Mason Inc
250
Sussex County Technical School
246
DEMOGRAPHICS
3-Miles 5-Miles 10-Miles
2016 Estimate Pop
11,600 29,882 117,796
2016 Census Pop 12,083 30,919 119,049
2016 Estimate HH 4,252 10,706 43,755
2016 Census HH 4,458 11,132 44,249
Median HH Income
$78,387 $89,961 $91,085
Per Capita Income $36,914 $41,892 $43,540
Average HH Income
$98,916 $115,079 $116,637
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VITAL DATA
YEAR 1 YEAR 2
Price $975,000 CAP Rate 8.69% 8.69%
Loan Amount $731,250Net Operating Income
$84,680 $84,680
Loan Type Proposed NewNet Cash Flow After Debt Service
14.22% / $34,652 14.22% / $34,652
Interest Rate / Amortization
4.75% / 25 Years
Total Return 20.63% / $50,283 20.94% / $51,042
Gross Leasable Area (GLA)
11,000 SF
Price/SF $88.64
Current Occupancy 100.0%
Year Built / Renovated 1982
Lot Size 1.14 acre(s)
ANDOVER MINI MALL
OFFERING SUMMARY
100% Leased Strip Center
Priced at $975,000
Large Parking Lot
Daily Traffic Count of 17,714 Vehicles Per Day
Roof Replaced in 2010
All HVAC Units are 1-4 Years Old, Except One
INVESTMENT HIGHLIGHTS
Marcus & Millichap is pleased to exclusively list for sale a 12,000 SF Retail Strip Center Located in Andover Township (Sussex
County), New Jersey. Andover Mini Mall is 100% Leased to tenants who have been in the same location for numerous years.
Andover Township is a township located in Sussex County, New Jersey. The subject property is approximately 43 miles
northwest of New York. The municipalities that share their border with Andover are Newton, Fredon, Byram Township, Hampton,
Lafayette and Sparta. The major roadways that cut through or near the township are the city are Route 206, CR-15, CR-181, CR-
94, and CR-606.
Within a 5-mile radius of Andover, the median household income is $93,962 among the 29,740 individuals who resides within a 5-
mile radius of the subject property.
The asking price of $975,000 represents a 8.69 percent cap rate.
INVESTMENT OVERVIEW
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ANDOVER MINI MALL
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OFFERING SUMMARY
PROPERTY OVERVIEW
Andover Township is a township located in Sussex County, New Jersey. The subject
property is approximately 43 miles northwest of New York. The municipalities that
share their border with Andover are Newton, Fredon, Bynam, Hampton, Lafayette
and Sparta. The major roadways that cut through or near the township are the city
are Route 206, CR-15, CR-181, CR-94, and CR-606.
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ANDOVER MINI MALL
PROPERTY SUMMARY
OFFERING SUMMARY
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THE OFFERING
Property Andover Mini Mall
Price $975,000
Property Address 521-531 Route 206, Andover, NJ
SITE DESCRIPTION
Year Built/Renovated 1982
Gross Leasable Area 11,000 SF
Ownership Fee Simple
Lot Size 1.14 acre(s)
PROPOSED FINANCING
First Trust Deed
Loan Amount $731,250
Loan Type Proposed New
Interest Rate 4.75%
Amortization 25 Years
Loan Term 5 Years
Loan to Value 75%
Debt Coverage Ratio 1.69
#
LOCATION OVERVIEW
CLOSE PROXIMITY TO:
521-531 Route 206, Newton, NJ 07860
LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX
PROPERTY NAMEANDOVER MINI MALL
PRICING AND VALUATION MATRIX
PROPERTY NAMEANDOVER MINI MALL
LOCATION OVERVIEW
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REGIONAL MAP
ANDOVER MINI MALL
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LOCAL MAP
ANDOVER MINI MALL
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PROPERTY PHOTO
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ANDOVER MINI MALL
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FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
ANDOVER MINI MALL
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TENANT SUMMARY
LEASE EXPIRATION SUMMARY
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TENANT SUMMARY
FINANCIAL ANALYSIS
ANDOVER MINI MALL
OPERATING STATEMENT
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FINANCIAL ANALYSIS
ANDOVER MINI MALL
PRICING DETAIL
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MARCUS & MILLICHAP CAPITAL CORPORATION
CAPABILITIES
MMCC—our fully integrated, dedicated financing arm—is committed to
providing superior capital market expertise, precisely managed execution, and
unparalleled access to capital sources providing the most competitive rates and
terms.
We leverage our prominent capital market relationships with commercial banks,
life insurance companies, CMBS, private and public debt/equity funds, Fannie
Mae, Freddie Mac and HUD to provide our clients with the greatest range of
financing options.
Our dedicated, knowledgeable experts understand the challenges of financing
and work tirelessly to resolve all potential issues to the benefit of our clients.
National platform
operating
within the firm’s
brokerage
offices
$5.63 billion
total national
volume in 2017
Access to
more capital
sources than
any other firm
in the industry
Optimum financing solutions
to enhance value
Our ability to enhance
buyer pool by expanding
finance options
Our ability to enhance
seller control
• Through buyer
qualification support
• Our ability to manage buyers
finance expectations
• Ability to monitor and
manage buyer/lender
progress, insuring timely,
predictable closings
• By relying on a world class
set of debt/equity sources
and presenting a tightly
underwritten credit file
WHY MMCC?
Closed 1,707
debt and equity
financings
in 2017
ACQUISITION FINANCING
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MARKET
OVERVIEW
MARKET OVERVIEW
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.
MARKET OVERVIEW
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.
ANDOVER MINI MALL
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MARKET OVERVIEW
ECONOMY Northern New Jersey is home to numerous Fortune 500 companies including Prudential
Financial, Merck, PBF Energy and Honeywell International.
The airline industry accounts for a significant share of jobs in the region. United Airlines has
a major presence at Newark Liberty International Airport.
Trade is a key employment sector, at Port Newark-Elizabeth Marine Terminal with vehicle
imports accounting for a substantial amount of the port’s business.
Spillover from Wall Street bolsters finance jobs in Essex, Hudson and Bergen counties.
SHARE OF 2016 TOTAL EMPLOYMENT
MAJOR AREA EMPLOYERS
Prudential
UAL (United Continental Holdings)
University of Medicine and Dentistry of NJ
Hackensack Medical Center
New Jersey Transit
Englewood Hospital Association
Novartis Pharmaceuticals Corp.
St. Joseph’s Hospital and Medical Center
Valley Health Systems
ISO Services Inc.* Forecast
MANUFACTURING
6%GOVERNMENT
HEALTH SERVICES
EDUCATION AND
+OTHER SERVICES
4%
LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES
22%
AND UTILITIES
TRADE, TRANSPORTATION CONSTRUCTION
PROFESSIONAL AND
BUSINESS SERVICES
2%INFORMATION
17%
4%
14% 8% 7%
16%
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MARKET OVERVIEW
DEMOGRAPHICS
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
The borough is expected to add nearly 60,000 people and approximately 35,000
households through 2021, generating demand for housing.
The homeownership rate of 54 percent is below the national rate of 64 percent,
maintaining a strong rental market.
Approximately 38 percent of residents hold a bachelor’s degree, including 14
percent who have also obtained a graduate or professional degree.
Northern New Jersey offers a variety of amenities and cultural activities. Sports and
entertainment are available in East Rutherford at the Meadowlands. The MetLife Stadium is
home to the Giants and Jets of the NFL. The Prudential Center, also known as the Rock, is
an indoor arena in downtown Newark where the Devils (NHL) and Seton Hall University
play. Downtown Newark also houses the New Jersey Performing Arts Center and Bears
and Eagles Riverfront Stadium, home of the Newark Bears, a minor-league baseball team.
Numerous community colleges and universities are located in the metro, including Seton
Hall University, the Newark campus of Rutgers University, Stevens Institute of Technology
and Bergen Community College.
38.3
2016MEDIAN AGE:
U.S. Median:
37.7
$69,800
2016 MEDIAN HOUSEHOLD INCOME:
U.S. Median:
$54,500
4M
2016POPULATION:
Growth2016-2021*:
1.5%
1.5M
2016HOUSEHOLDS:
2%
Growth2016-2021*:
QUALITY OF LIFE
2016 Population by Age
0-4 YEARS
6%5-19 YEARS
19%20-24 YEARS
6%25-44 YEARS
28%45-64 YEARS
27%65+ YEARS
14%
* Forecast
Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s
Analytics; U.S. Census Bureau
ANDOVER MINI MALL
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PROPERTY NAME
MARKETING TEAM
ANDOVER MINI MALL
DEMOGRAPHICS
Source: © 2016 Experian
Created on November 2017
POPULATION 3 Miles 5 Miles 10 Miles
2021 Projection
Total Population 11,646 30,278 120,707
2016 Estimate
Total Population 11,418 29,740 117,937
2010 Census
Total Population 11,950 30,901 119,054
2000 Census
Total Population 11,333 29,680 113,961
Current Daytime Population
2016 Estimate 10,444 29,060 93,836
HOUSEHOLDS 3 Miles 5 Miles 10 Miles
2021 Projection
Total Households 4,302 10,899 45,148
2016 Estimate
Total Households 4,186 10,658 43,868
Average (Mean) Household Size 2.57 2.66 2.64
2010 Census
Total Households 4,404 11,126 44,250
2000 Census
Total Households 4,105 10,542 41,207
Occupied Units
2021 Projection 4,302 10,899 45,148
2016 Estimate 4,620 11,970 49,014
HOUSEHOLDS BY INCOME 3 Miles 5 Miles 10 Miles
2016 Estimate
$150,000 or More 12.64% 17.01% 16.83%
$100,000 - $149,000 24.20% 24.47% 24.97%
$75,000 - $99,999 14.78% 13.97% 14.86%
$50,000 - $74,999 13.88% 12.19% 15.25%
$35,000 - $49,999 7.91% 8.13% 8.47%
Under $35,000 22.69% 19.22% 15.18%
Average Household Income $104,555 $118,884 $118,875
Median Household Income $84,614 $93,962 $93,664
Per Capita Income $38,994 $43,273 $44,433
HOUSEHOLDS BY EXPENDITURE 3 Miles 5 Miles 10 Miles
Total Average Household Retail Expenditure
$75,651 $78,113 $78,661
Consumer Expenditure Top 10 Categories
Housing $24,012 $24,804 $25,151
Shelter $15,775 $16,333 $16,523
Transportation $11,911 $12,432 $12,702
Personal Insurance and Pensions $7,103 $7,610 $7,787
Food $6,971 $7,215 $7,324
Health Care $5,063 $5,195 $5,255
Utilities $4,659 $4,805 $4,894
Entertainment $2,633 $2,700 $2,749
Education $2,091 $2,322 $2,319
Apparel $1,830 $1,946 $2,004
POPULATION PROFILE 3 Miles 5 Miles 10 Miles
Population By Age
2016 Estimate Total Population 11,418 29,740 117,937
Under 20 23.21% 24.35% 24.05%
20 to 34 Years 14.87% 14.04% 15.70%
35 to 39 Years 5.05% 4.91% 5.50%
40 to 49 Years 14.50% 14.83% 15.39%
50 to 64 Years 23.42% 24.33% 24.35%
Age 65+ 18.93% 17.54% 15.02%
Median Age 45.13 45.01 43.52
Population 25+ by Education Level
2016 Estimate Population Age 25+ 8,140 20,883 82,928
Elementary (0-8) 2.08% 1.84% 1.64%
Some High School (9-11) 6.13% 5.25% 4.31%
High School Graduate (12) 30.92% 28.52% 28.25%
Some College (13-15) 18.06% 18.18% 19.16%
Associate Degree Only 7.63% 8.14% 8.83%
Bachelors Degree Only 22.26% 24.32% 24.69%
Graduate Degree 12.41% 13.09% 12.52%
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Income
In 2016, the median household income for your selected geography is
$93,962, compare this to the US average which is currently $54,505.
The median household income for your area has changed by 41.44%
since 2000. It is estimated that the median household income in your
area will be $111,908 five years from now, which represents a change
of 19.10% from the current year.
The current year per capita income in your area is $43,273, compare
this to the US average, which is $29,962. The current year average
household income in your area is $118,884, compare this to the US
average which is $78,425.
Population
In 2016, the population in your selected geography is 29,740. The
population has changed by 0.20% since 2000. It is estimated that the
population in your area will be 30,278.00 five years from now, which
represents a change of 1.81% from the current year. The current
population is 49.29% male and 50.71% female. The median age of
the population in your area is 45.01, compare this to the US average
which is 37.68. The population density in your area is 378.01 people
per square mile.
Households
There are currently 10,658 households in your selected geography.
The number of households has changed by 1.10% since 2000. It is
estimated that the number of households in your area will be 10,899
five years from now, which represents a change of 2.26% from the
current year. The average household size in your area is 2.66 persons.
Employment
In 2016, there are 13,677 employees in your selected area, this is also
known as the daytime population. The 2000 Census revealed that
70.47% of employees are employed in white-collar occupations in
this geography, and 29.44% are employed in blue-collar occupations.
In 2016, unemployment in this area is 4.69%. In 2000, the average
time traveled to work was 38.00 minutes.
Race and Ethnicity
The current year racial makeup of your selected area is as follows:
90.55% White, 3.00% Black, 0.02% Native American and 2.50%
Asian/Pacific Islander. Compare these to US averages which are:
70.77% White, 12.80% Black, 0.19% Native American and 5.36%
Asian/Pacific Islander. People of Hispanic origin are counted
independently of race.
People of Hispanic origin make up 7.80% of the current year
population in your selected area. Compare this to the US average of
17.65%.
PROPERTY NAME
MARKETING TEAM
ANDOVER MINI MALL
Housing
The median housing value in your area was $310,475 in 2016,
compare this to the US average of $187,181. In 2000, there were
8,111 owner occupied housing units in your area and there were
2,431 renter occupied housing units in your area. The median rent at
the time was $668.
Source: © 2016 Experian
DEMOGRAPHICS
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ANDOVER MINI MALL
DEMOGRAPHICS
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