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FO
R S
AL
E Mainland Profess ional Of f i ce Park1750 Zion Road, Northfield, NJ 08225
C a p i t a l M a r k e t s | I n v e s t m e n t P r o p e r t i e s
CBRE, Inc. (“CBRE) has been retained by ownership as the exclusive
marketing advisory for the sale of Mainland Professional Office Park located
at 1750 Zion Road in Northfield, NJ (“The Property”). Mainland Professional
Office Park is a unique, three-building, +/- 21,440 SF professional and medical
office complex with a central two-story landscaped courtyard.
T H E O F F E R I N G
The Property benefits from a tremendous location within the prominent Northfield community along the Route 9 Commercial and Professional corridor, equidistant to the three major Hospitals in this area.
Originally built between 1973 and 1976, the Property was developed, managed and partly occupied by a prominent regional physician. His thriving medical practice and several others provided nearly 100% occupancy for most of the Property’s history. When he retired, his space was filled by other practitioners. A fire in Building B in 2009 that spread to portions Building C created unusual forced vacancies that have been partially re-leased.
Approximately half of the square footage was mostly completely reconstructed in 2011 as a result of the fire and most of the remainder of the property also received new interior finishes after the fire. Consequently, the condition of the improvements overall is much better than most comparable properties with a far lower effective age.
A U N I Q U E O P P O R T U N I T Y
I N V E S T M E N T T H E S I S
• Opportunity to accelerate leasing and rents by:
» moving from “gross full-service” leases to a “net lease” or “plus electric” structure would be more consistent with market and provide a better basis for comparison for prospective tenants
» aggressively targeting a broader tenant base beyond medical
» engaging the brokerage community
• In place condo structure and low interest rates create a lucrative future
exit strategy option.
• Sale price at 9% cap rate on current 65% occupancy:
» is priced well below replacement cost
» offers huge upside on the vacant space
• Cash Flow
Assuming 25% down, estimated annual cash flow on equity after debt payments would equal a 17% cash return at the existing occupancy minimizing downside and providing considerable upside on the vacant space
Estimated annual cash flow on equity after debt payments would
equal a 17% cash return at the exiting occupancy minimizing
downside & providing considerable upside
on vacant space
A unique opportunity for great investment returns. This institutional quality brick and steel building was originally built by a very prominent doctor in the 1970s for his own large practice, and for other doctors, and he continues to own and manage the property today. Built for his own use, it is higher quality than competing buildings, many of which are residential in nature. Consider the following:
Occupancy was reported to be consistently at or near full for ~30 years until the devastating fire and subsequent reconstruction was completed in 2011] Many tenants were forced to relocate, and others were impacted by the reconstruction. Three vacant spaces, while newly rebuilt, have not been refit beyond vanilla shell.
Through active entrepreneurial management and leasing, targeting a broader array of commercial tenants, the 65% occupied property could essentially DOUBLE its NOI. The property is very conservatively priced on the currently reduced NOI providing tremendous upside potential.
I N V E S T M E N T H I G H L I G H T S
• Ideal Location
Well located in a sought after prominent community with good commercial exposure and convenience to the three major hospitals in the area - Shore Medical Center and Atlanticare Regional Medical Center.
• Unique Structure
Attractive and desirable, unique property and building design with a serene ambiance.
• Strong Occupancy & Upside Potential - Could DOUBLE NOI
Strong occupancy history but with substantial upside potential through lease-up of vacant spaces to medical or traditional commercial tenants.
• High Real Estate Investment Area
Located near several tremendously affluent barrier island vacation communities, resale interest by real estate investors who have interests in the area should be much higher than other locations.
INVESTMENT PROFILE
Address 1750 Zion Road Northfield, NJ
Property Type Multi-Tenant Professional Condo/Rental
Year Built 1972 & 1975 / Rebuilt & Renovated in 2010
Total SF 21,440 +/- (excludes 2,867 SF separately owned)
Occupied SF 13,842 SF
Occupancy % 64.56%
Vacancy % 35.44%
In-Place NOI $189,270 ($8.83/SF)
Asking Price $2,100,000
Price Per SF $98/SF
Cap Rate (In-Place) 9.01%
Return on Cash 17%
ZION ROADZION ROAD
ZION ROADZION ROAD
NEW ROAD
NEW ROAD
JUNIPER DRIVE
JUNIPER DRIVE
WEST MILL
ROAD
WEST MILL
ROAD
WEST MILL
ROAD
WEST MILL
ROAD
NEW ROAD
NEW ROAD
Building B
Building A
Building C
Bill Tourtellotte
Senior Vice President+1 609 707 [email protected]: NJ, PA
Steven Doherty
Debt & Structured Finance+1 610 251 5175 [email protected]
Elli Klapper
Senior Vice President+1 718 289 [email protected]: NJ
CBRE, Inc.
1000 Howard Boulevard, Suite 104Mount Laurel, NJ 08054+1 856 359 9500www.cbre.usLicensed Real Estate Broker
P L E A S E C O N T A C T :
Mainland Profess ional Of f i ce Park
1750
Zio
n Ro
ad, N
orth
field
, NJ
0822
5
© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.
C a p i t a l M a r k e t s | I n v e s t m e n t P r o p e r t i e s
