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1116 ANNA STREET ELIZABETH
41 UNITS | 7.66% PRO FORMA CAP RATE | 22% UPSIDE VALUE ADD OPPORTUNITY
N O N - E N D O R S E M EN T & D I S C L A I M E R N O T I C E
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 SHOW INGS ARE BY APPO I NT MENT ONLY.PLEASE CONSULT YOUR MARCUS & MI L L I CHAP AGENT FOR MORE DETAILS.
OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com
EXCLUSIVELY LISTED BY
RICHARD GATTONational Multi Housing Group
NEW JERSEY OFFICETel: (201) 742.6137
Richard.Gatto@marcusmill ichap.com
FAHRI OZTURKFirst Vice President Investments
NEW JERSEY OFFICETel: (201) 742.6170
Fahri .Ozturk@marcusmill ichap.com
THOMAS CLEARYAssociate Investments
NEW JERSEY OFFICETel: (201) 742.6142
1116 ANNA STREET
1116 ANNA STREET, ELIZABETH
01INVESTMENT OVERVIEWExecutive SummaryInvestment HighlightsLocation Overview Demographics
02PROPERTY MAPS & PHOTOSProperty MapsExterior PhotosInterior Photos
03FINANCIAL ANALYSISOffering SummaryIncome StatementRent RollRent Roll Analysis
TABLE OF CONTENTS
01S E C T I O N
EXECUTIVESUMMARY
1116 ANNA STREET
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real
Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap
141N U M B E R O F B U I L D I N G SN U M B E R O F U N I T S
EXECUTIVESUMMARY
SUBJECTPROPERTIESADDRESSES UNITS APPROX. SF1116 Anna St, Elizabeth 41 33,100
UNIT MIXUNIT TYPE NUMBER OF UNITS AVERAGE UPSIDE1 Bed/1 Bath 40 23%3 Bed/1 Bath 1 3%
41
$5,000,000OFFERING PRICE
$279,235CURRENT NOI
5.58%CURRENT CAP RATE
7.66%PRO FORMA CAP RATE
9.83CURRENT GRM
VITAL DATA CURRENT PRO FORMA
Price $5,000,000 Cap Rate 5.58% 7.66%
Down Payment $1,250,000 GRM 9.83 8.07
Loan Amount $3,750,000 Cash-on-Cash 4.89% 13.49%
Amortization 30 Years Net Operating Income $279,235 $382,991
Interest Rate 3.98% Net Cash Flow After Debt Service $64,917 $168,673
Number of Units 41
Price/Unit $121,951
EXECUTIVE SUMMARY 7
IMMEDIATE ACCESS TO TRANSPORTATION• Located approximately 0.5 miles from the Elizabeth Train Stationwhich offer a 30-minute ride to Penn Station Manhattan
DESIRABLE WORKFORCE HOUSING•Rapidly growing multifamily market•Several nearby apartment complexes under construction
CENTRAL LOCATION• Easy access to Garden State Parkway, I-95, Route 1&9, Route 27 & more
• Approx. 15-minute drive to Newark International Airport
I N V E S T M E N T H I G H L I G H T S
STABLE CASH FLOW• Effective gross income of $508,392 representing a 5.58% cap rate at asking price and equaling a 4.89% leveraged cash-on-cash return
EXECUTIVE SUMMARY 8
VALUE ADD OPPORTUNITY• Current market rents are about 22% below market• Landlord friendly rent control
ATTRACTIVE FINANCING AVAILABLE• 3.98% interest rate• 5-year term• 30-year amortization
BUILDING INFORMATION• Currently 100% occupied
• Recently renovated units with granite and stainless steel appliances,
lobbies and security systems.
Marcus & Millichap has been selected to exclusively market for sale the 1116 Anna Street, a 41-Unit multifamily building in Elizabeth, New Jersey. The property consists of 40 one-bedrooms and one three bedroom. The building has received recent renovations including modern finishes to the lobbies, unit upgrades with granite and stainless steel, and security systems throughout.
The property is currently 100% occupied and has a stead cash flow with an effective gross income of $508,392 representing a 5.58% cap rate at asking price and equaling a 4.89% leveraged cash-on-cash return. The subject property offers a value add opportunity with current market rents about 22% below market.
Elizabeth has excellent accessible public transportation. The building is about an 8 minute walk to Elizabeth Train Station with a 30-minute ride or less to Penn Station Manhattan and located five miles from the Newark International Airport.
Additionally, the property is in the Garden State Parkway, Interstate 78, Route 1 & 9, Route 27 and more. The sites are situated in a strong 5-mile demographic.
INVESTMENT OVERVIEW
1116 ANNA STREET, ELIZABETH
EXECUTIVE SUMMARY 9
P O P U L AT I O N 1 - M I L E 3 -MI LE S 5 -MI LE S2022 Projection 68,049 221,042 588,501
2017 Population 67,598 219,491 583,602
2010 Population 64,782 211,372 565,470
H O U S E H O L D S 1 - M I L E 3 - M I L E S 5 - M I L E S2022 Households 23,307 76,417 209,709
2017 Households 22,843 75,064 205,785
2010 Households 21,799 72,034 198,185
I N C O M E 1 - M I L E 3 - M I L E S 5 - M I L E S2017 Average Household Income $53,307 $66,639 $70,895
2017 Median Household Income $39,774 $47,574 $50,026
2017 Per Capita Income $20,700 $24,339 $29,610
DEMOGRAPHICS
588,501TOTAL POPULATION
$70,895AVERAGE HOUSEHOLD
INCOME
5- MILE RADIUSDEMOGRAPHICS
196,512TOTAL HOUSEHOLDS
ELIZABETH
DEMOGRAPHICS 10
02S E C T I O N
PROPERTYMAPS & PHOTOS
1116 ANNA STREET
IN CLOSE PROXIMITY TOMiles
Newark Liberty Airport 10
New York Penn Station 15
12PROPERTY MAP
1116 Anna St, Elizabeth
IN CLOSE PROXIMITY TOMiles
Jersey City 11
Midtown 18
Brooklyn 18
Midtown
Brooklyn
13PROPERTY MAP
1116 Anna St, Elizabeth
41UNITS
1116 ANNA STREET, ELIZABETH
15PROPERTY PHOTOS
14 Miles to New York
1116 Anna St
16PROPERTY PHOTOS
EXTERIOR PHOTOS
17PROPERTY PHOTOS
INTERIOR PHOTOS
03S E C T I O N
FINANCIALANALYSIS
1116 ANNA STREET
OFFERING SUMMARY
19FINANCIAL ANALYSIS
Summary Operating Data Current Pro FormaPrice $5,000,000 Gross Potential Income $508,392 $619,800
Down Payment 25% $1,250,000 Less Vacancy & Credit Loss 3% -$15,252 3% -$18,594
Number of Units 41 Laundry $1,571 $1,571
Price Per Unit $121,951 Effective Gross Income $494,711 $602,777
Price Per SqFt $151 Less: Expenses 44% $215,476 36% $219,786
Rentable SqFt (Approx.) 33,100 Net Operating Income $279,235 $382,991
Returns Current Proforma Cash Flow $279,235 $382,991
CAP Rate 5.58% 7.66% Debt Service $214,318 $214,318
GRM 9.83 8.07 Cash Flow After Debt Servicve 5.19% $64,917 13.49% $168,673
Cash-on-Cash 4.89% 13.49% Principle Reduction $53,133 $53,133
Total Return 9.44% $118,050 17.74% $221,806
Available FinancingInputs Expenses Current Pro FormaMax LTV 75% Property Taxes $67,228 $68,573
Min DCR 1.20 Insurance $15,990 $16,310
Interest Rate 3.98% Water & Sewer $38,415 $39,183
Term 5 years PSE&G $37,852 $38,609
Amortization 30 years Repairs & Maintenance $16,400 $16,728
Debt Due Jun-2024 Pest Control $1,200 $1,224
Loan Sizing Superintendent $18,450 $18,819
Max Loan Amount $3,750,000 Management Fee $14,841 $15,138
Annual Debt Service $214,318 Legal & Accounting $1,000 $1,020
Reserves $4,100 $4,182
Total Expenses $215,476 $219,786
Expenses Per Unit $5,256 $5,361
RENT ROLL
20FINANCIAL ANALYSIS
Unit # Bedrooms SF (approx) Actual $/PSF Pro Forma $/PSF21A 1 Bed/1 Bath 800 $875 $13 $1,250 $191B 1 Bed/1 Bath 800 $1,020 $15 $1,250 $191C 1 Bed/1 Bath 800 $995 $15 $1,250 $191D 1 Bed/1 Bath 800 $771 $12 $1,250 $191E 1 Bed/1 Bath 800 $845 $13 $1,250 $191F 1 Bed/1 Bath 800 $1,150 $17 $1,250 $191G 1 Bed/1 Bath 800 $1,170 $18 $1,250 $191H 1 Bed/1 Bath 800 $1,250 $19 $1,250 $192A 1 Bed/1 Bath 800 $790 $12 $1,250 $192B 1 Bed/1 Bath 800 $1,250 $19 $1,250 $192C 1 Bed/1 Bath 800 $1,150 $17 $1,250 $192D 1 Bed/1 Bath 800 $900 $14 $1,250 $192E 1 Bed/1 Bath 800 $910 $14 $1,250 $192F 1 Bed/1 Bath 800 $825 $12 $1,250 $192G 1 Bed/1 Bath 800 $810 $12 $1,250 $192H 1 Bed/1 Bath 800 $1,150 $17 $1,250 $193A 1 Bed/1 Bath 800 $1,170 $18 $1,250 $193B 1 Bed/1 Bath 800 $885 $13 $1,250 $193C 1 Bed/1 Bath 800 $950 $14 $1,250 $193D 1 Bed/1 Bath 800 $985 $15 $1,250 $193E 1 Bed/1 Bath 800 $1,150 $17 $1,250 $193F 1 Bed/1 Bath 800 $1,170 $18 $1,250 $193G 1 Bed/1 Bath 800 $910 $14 $1,250 $193H 1 Bed/1 Bath 800 $904 $14 $1,250 $194A 1 Bed/1 Bath 800 $875 $13 $1,250 $194B 1 Bed/1 Bath 800 $1,120 $17 $1,250 $194C 1 Bed/1 Bath 800 $1,025 $15 $1,250 $194D 1 Bed/1 Bath 800 $775 $12 $1,250 $194E 1 Bed/1 Bath 800 $1,200 $18 $1,250 $194F 1 Bed/1 Bath 800 $1,250 $19 $1,250 $194G 1 Bed/1 Bath 800 $1,170 $18 $1,250 $194H 1 Bed/1 Bath 800 $920 $14 $1,250 $195A 1 Bed/1 Bath 800 $1,070 $16 $1,250 $195B 1 Bed/1 Bath 800 $1,150 $17 $1,250 $195C 1 Bed/1 Bath 800 $881 $13 $1,250 $195D 1 Bed/1 Bath 800 $1,150 $17 $1,250 $195E 1 Bed/1 Bath 800 $865 $13 $1,250 $195F 1 Bed/1 Bath 800 $1,150 $17 $1,250 $195G 1 Bed/1 Bath 800 $1,170 $18 $1,250 $195H 1 Bed/1 Bath 800 $1,010 $15 $1,250 $19
BSMT 3 Bed/1 Bath 1,100 $1,600 $17 $1,650 $18
Total 33,100 $42,366 $15 $51,650 $19
Annual Residential Income $508,392 $619,800
RENT ROLL ANALYSIS ELIZABETH
21FINANCIAL ANALYSIS
Unit Type
Units Avg SF Avg Rent Avg $/PSF Market Rent Avg $/PSF % Upside
1 Bed/1 Bath 40 800 $1,019 $15 $1,250 $19 23%
3 Bed/1 Bath 1 1,100 $1,600 $17 $1,650 $18 3%
Total 41
Actual Market Rent
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Avg Rent Market Rent
INCOME STATEMENT
22FINANCIAL ANALYSIS
A C T U A L M A R K E T
INCOME %EGI %EGI
Gross Potential Income $508,392 $619,800
Less Vacancy & Credit Loss -$15,252 3% -$18,594 3%
Laundry $1,571 $1,571
Effective Gross Income $494,711 $602,777
EXPENSES %EGI Per Unit %EGI Per Unit
Property Taxes $67,228 14% $1,640 $68,573 11% $1,673
Insurance $15,990 3% $390 $16,310 3% $398
Water & Sewer $38,415 8% $937 $39,183 7% $956
PSE&G $37,852 8% $923 $38,609 6% $942
Repairs & Maintenance $16,400 3% $400 $16,728 3% $408
Pest Control $1,200 0% $29 $1,224 0% $30
Superintendent $18,450 4% $450 $18,819 3% $459
Management Fee $14,841 3% $362 $15,138 3% $369
Legal & Accounting $1,000 0% $24 $1,020 0% $25
Reserves $4,100 1% $100 $4,182 1% $102
Total Expenses $215,476 44% $219,786 36%
Net Operating Income $279,235 $382,991
EXCLUSIVELY LISTED BY
RICHARD GATTONational Multi Housing Group
NEW JERSEY OFFICETel: (201) 742.6137
Richard.Gatto@marcusmill ichap.com
FAHRI OZTURKFirst Vice President Investments
NEW JERSEY OFFICETel: (201) 742.6170
Fahri .Ozturk@marcusmill ichap.com
THOMAS CLEARYAssociate Investments
NEW JERSEY OFFICETel: (201) 742.6142
1116 ANNA STREET
1116 ANNA STREET ELIZABETH
