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

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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

6

ANDOVER MINI MALL

#

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

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LOCAL MAP

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PROPERTY PHOTO

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FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

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TENANT SUMMARY

LEASE EXPIRATION SUMMARY

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TENANT SUMMARY

FINANCIAL ANALYSIS

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OPERATING STATEMENT

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FINANCIAL ANALYSIS

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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.

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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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DEMOGRAPHICS

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