NION AVENUE,NEWBURGH,NY12550

Transcription

BESEN EXCLUSIVE: 1124 UNION AVENUE, NEWBURGH, NY 12550
34,136 SF Movie Theater
on a 8.72-Acre Parcel
Offering Memorandum
Matthew Slonim
Chief Operating Officer
(212) 951-8405 Direct
(212) 689-9518 Fax
[email protected]
BESEN EXCLUSIVE:
1124 UNION AVENUE, NEWBURGH, NY 12550
34,136 SF± MOVIE THEATER ON A 8.72-ACRE PARCEL
Executive Summary
Address:
1124 Union Avenue, Newburgh, NY 12550 (Orange County District)
AKA 1420 Route 300 (Union Avenue)
Between Route 52 (South Plank Road) and Meadow Avenue
Description:
The Property is a 1-story movie theater building located on an irregularly-shaped 8.72acre parcel of land zoned Interchange Business. The Property has a Gross Leasable Area
of 34,136 SF and has 10 digitally upgraded theaters with 1,680 movie seats and 561 total
outdoor parking spots. Built in 1986 and renovated in 2003, the building is NN leased to
Showtime Cinemas through 12/31/2022.
Investment Highlights

Development Potential. Potential to redevelop land parcel and add usable square
footage up to a total of 149,336± sf depending on use (additional 16,000 SF of retail /
theater extension or additional 115,200 SF storage building.

7.0% Cap Rate In Place & 9.0% with Upside. The Property is offered at a 7.0%
Asking Capitalization Rate applying the 2014 base rent of $480,000 per annum. The
rent equates to $14.12/sf and is slightly below current comparable market retail rental
rates. The pro-forma value-add capitalization rates increase to 9.0% (retail) or 9.1%
(storage) if additional buildable square footage is developed.

High Traffic & Centrally Located Retail Hub. The Property, less than 70 miles
from NYC, is located at the intersection of highly trafficked Route 300 and Route 52
only ¼-mile east of Exit 17 of the NYS Thruway (I-87) and nearby accessibility to I84 and Stewart International Airport. The Hudson Valley area has over 100 Fortune
500 companies and is a thriving and growing business area. The immediate area
features many national retailers and banks as well as the 388,000 SF Newburgh Mall.

Minimal Management Required. Single tenant net leased the Property and is
responsible for all utility and operating expenses (except RE taxes) and maintenance.
Pricing
Ask Price:
$6,150,000 Price Break: $ 5,400,000 All Cash
Ask Metrics:
Initial Cap. Rate:
Pro forma Cap. Rate:
Pro forma Cap. Rate:
7.0% (2014)
9.0% (Retail) [1]
9.1% (Storage) [1]
Price/ Building SF:
Price/ Acre:
$158/SF
$619,270
Footnotes: [1] Incorporates construction/and lease up costs and marginal NOI from
development of available air rights (SEE Development).
Although all information furnished regarding property for sale, rental or financing is from sources deemed reliable, no express representation is made nor is any implied
as to the accuracy thereof and is subject to error, omissions, change of price, rental or other conditions, prior sale, rental or financing or withdrawal without notice. No
warranties or representations are made as in the condition of the property of any hazards contained therein nor are any implied.
MS/MB01112013
Besen & Associates, Inc., 381 Park Avenue South, New York, NY 10016
(212) 689-8488 Tel · (212) 689-9518 Fax · www.besenassociates.com
BESEN EXCLUSIVE:
Location Overview

Located at 1124 Union Avenue (Route 300), the Property is less than 0.25 miles east from NYS
Thruway (Exit 17) and is less than 90 minutes drive to New York City.

The City of Newburgh provides connections to the regional transportation system, including
Interstate I-84 and the New York State Thruway (I-87), Hudson River access, and accessibility to
Stewart International Airport.

60,000 + Annual Average Daily Traffic on Route I-84/NYS Thruway (data as of 2009).

The Hudson Valley area has over 100 Fortune 500 companies, including IBM, MasterCard, PepsiCo,
Siemens Medical, Novartis, United Healthcare, Morgan Stanley, Mitsubishi, Verizon Wireless,
Toshiba, and Kraft.
Location Map
70 miles from New York City (A=Newburgh, NY & B=New York City)
MS/MB01112013
BESEN EXCLUSIVE:
Area Map
1124 Union Avenue
Aerial Photo
MS/MB01112013
BESEN EXCLUSIVE:
Rent Roll
Movie Theater (Showtime Cinemas):
Rent Schedule from 1/1/2013 to 12/31/2022
1124 Union Avenue, Newburgh, NY 12550
PERIOD
BASE
RENT/MONTH
BASE RENT
/YEAR
NET SF
BASE RENT
/SF/YEAR
1/1/2013-12/31/2013
$35,000
$420,000
34,000
$12.35
1/1/2014-12/31/2014
$40,000
$480,000
34,000
$14.12
1/1/2015-12/31/2015
$40,000
$480,000
34,000
$14.12
1/1/2016-12/31/2016
$40,000
$480,000
34,000
$14.12
1/1/2017-12/31/2017 [1]
$40,000
$480,000
34,000
$14.12
1/1/2018-12/31/2018 [1]
$40,000
$480,000
34,000
$14.12
1/1/2019-12/31/2019 [1]
$40,000
$480,000
34,000
$14.12
1/1/2020-12/31/2020
$42,500
$510,000
34,000
$15.00
1/1/2021-12/31/2021
$42,500
$510,000
34,000
$15.00
1/1/2022-12/31/2022
$42,500
$510,000
34,000
$15.00
RENT ESCALATION
14.3%
6.3%
Footnotes:
[1]
As per a lease amendment dated June 1st, 2012, if the Tenant’s annual gross receipts for the
operation of its business at the Premises is at least $3,000,000 (the “Threshold”) in 2016, then
the annual rent for the periods 1/1/2017 – 12/31/2019 will be $510,000. If the Threshold is met
in 2017, the increased rent of $510,000/year applies for 1/1/2018-12/31/2018. If the Threshold is
met in 2018, the increased rent of $510,000/year applies for 1/1/2019-12/31/2019.
MS/MB01112013
BESEN EXCLUSIVE:
Financial Summary
Profit & Loss
Statement:
Below is a table that summarizes the estimated profit and loss statement for 2014:
1124 Union Avenue, Newburgh, NY 12550
REVENUE:
AMOUNT
$/SF
Rent (as of 1/1/2014)
$480,000
$14.06
$104,000
$3.05
Total Expenses:
$104,000
$3.05
Net Operating Income:
$376,000
$11.01
EXPENSES: (ESTIMATED)
RE Taxes
[1]
Footnote:
[1]
As per a lease amendment dated June 1st, 2012, the Landlord is responsible for paying
the Real Estate taxes. Real Estate taxes are pro forma for the recent settlement with the
assessor’s office to reducing real estate taxes from $165,676 to a fixed $104,000 per
annum for the next three years.
Property Entrance with Signage on Route 300
(100 Feet of Frontage)
MS/MB01112013
BESEN EXCLUSIVE:
Financial Summary
(Continued)
Pro Forma
Develop Lot:
On the next Page is a table that summarizes two potential redevelopments of the Property
that keep the existing structure and tenant while adding additional square footage to the
Property. Plans are available upon request. Plans meet bulk requirements except for the
300 foot minimum frontage requirement for which Property currently has variance
approval.
Add Storage SF Scenario maximizes total buildable square foot adding a second
building to the Property totaling 115,200 SF +/- for storage use in addition to the existing
movie theater. We estimate a market rent of $10.00 less 20% of that incremental rent in
the form of higher real estate taxes. The Total Cost is estimated at $14.3 million and
includes the current Asking Price to acquire the Property plus development costs of
$75/sf or $8.6 million in construction costs plus 25% of the projected incremental annual
rent for leasing fees.
Add Movie/Retail SF Scenario allows for an extension of an additional16,000 SF of
movie theater and/or retail use. The Gross Leasable area after the extension would total
50,000 SF +/-. We estimate a market rent of $18.00 less 20% of that incremental rent in
the form of higher real estate taxes. The Total Cost is estimated at $6.8 million and
includes the current Asking Price to acquire the Property plus development costs of
$80/sf or $1.3 million in construction costs plus 25% of the projected incremental annual
rent for leasing fees.
Secondary Entrance on Route 52
MS/MB01112013
BESEN EXCLUSIVE:
Financial Summary
(Continued)
Additional Development Potential Value (By Use)
Use:
Size
Existing SF
Additional BSF
Total SF
Movie/Storage
Movie/Retail
34,000
115,200
149,200
34,000
16,000
50,000
$ 75.00
$ 8,640,000
$ 288,000
$ 5,400,000
$ 80.00
$ 1,280,000
$ 72,000
$ 5,400,000
Total Costs $ 14,328,000
$ 6,752,000
Pro Forma Rent & NOI
Gross Market Rent For New SF/Use $ 10.00
$ 18.00
Proforma Additional Net Rent $ 1,152,000
Proforma RE Tax Increase $ (230,400)
$ 288,000
$ (57,600)
Pro forma Additional NOI $ 921,600
Existing Actual NOI (2014)
$376,000
Total Actual & Projected NOI $ 1,297,600
$ 230,400
$376,000
$ 606,400
Cost
$/SF Cost to Build Extension
$ Cost to Build Extension
Leasing Costs
Land Acquisition Cost / Purchase Price
Pro Forma Cap. Rate w/Additional NOI
9.1%
9.0%
Note:
[1] Acres of land excludes quarter‐acre easement and half acre of undeveloped land.
MS/MB01112013
BESEN EXCLUSIVE:
Site Details, Zoning & Requirements,
& Development Potential
Section
Block-Lot:
60-3-22.22 & 60-3-16.1
Building
Dimensions:
304’ x 137.35’ (IRR)
Site Size:
Building Height: Front 23’ / Rear 28’
Existing Land Parcel (lot 22.22):
7.90 Acres±
Easement Land Parcel:
0.32Acres±
Undeveloped Land Parcel (lot 16.1): 0.50 Acres±
8.72 Acres±
IB (Interchange Business)
Zoning:
Permitted Use: Theaters, Storage, Shopping Centers, Hotels, & Retail
(Subject to Review by Planning Board).
Block &
Lot Map:
Easement
Site
Additional
Undeveloped Parcel
Development
Potential [1]:
[1]
Permitted Use
1. Existing Theater Building Only:
2. Extension of Existing Theater Building:
3. Existing Theater & Storage Building:
Existing
SF [2]
34,136
34,000
34,000
Additional
SF
16,000
115,200
Pro Forma
SF Total
34,136
50,000
149,200
MS/MB01112013
BESEN EXCLUSIVE:
Bulk
Requirements:
Site
Bulk Requirements
Details
Lot Area (Acres):
8.72 Acres
Lot Width/Frontage:*
100 FT.
Lot Depth:
NA
Front Yard Setback:
60 FT.
Rear Yard Setback:
60 FT.
Side Yard Setback:
60 FT.
Side Yard Setback (Total):
NA
Bldg. Coverage:
41%+/Max. Building Height:
<40 FT.
# of Parking Spaces:
355
# of Permanent Seats
1,650
Parking Ratio (Space to Seats):
[1]
Required / Allowable
1. As Is
2. Theater 3. Theater
Theater
Extension + Storage
3 Acres
NA
5 Acres
300 FT.
Same as 1.
400 FT.
300 FT.
Same as 1.
NA
60 FT.
Same as 1.
60 FT.
60 FT.
Same as 1.
60 FT.
50 FT.
Same as 1.
50 FT.
100 FT.
Same as 1.
NA
NA
25%
40 FT.
40 FT.
40 FT.
560
620
287
1,650+/2,450+/1,650+/1 to 3
1 to 3
1 to 3
Footnotes:
[1]
Information about the potential development is based on Concept Plan Models
performed by McCarthy Kerekes Company that specializes in land planning, design and
development projects. As of 2008, McCarthy Kerekes has developed a Concept Plan K-2
that shows a 15,100 square-foot potential extension for commercial use.
[2]
The existing square footage for this table is as provided from plans provided by
Architect. All other references to total existing square footage are estimated at 34,136 SF.
MS/MB01112013
BESEN EXCLUSIVE:
Additional Property Photos
Facing Showtime Cinemas from Main Entrance
Property Entranceway
MS/MB01112013
BESEN EXCLUSIVE:
Local Retail Market & Neighboring Retailers
The Property is located on a highly trafficked road amid many national retailers, banks and strip centers
including the Newburgh Mall. Below is a map of select neighboring retailers.
Map of Select Retailers in the Immediate Area
MS/MB01112013
BESEN EXCLUSIVE:
Retail Neighbor at Union Avenue
Retail Neighbor at Intersection of Route 52 & Union Avenue
Retail Neighbor Across Union Avenue
MS/MB01112013
BESEN EXCLUSIVE:
Nearby Newburgh Mall
The Newburgh Mall, a 388,000 square foot community shopping center is located ½ a mile north of the
Property and is anchored by Sears, The Bon-Ton, Bed Bath and Beyond and Office Depot. The Mall and
features over 65 specialty retail stores including Bath & Body Works, Champs, and The Children's Place.
MS/MB01112013
BESEN EXCLUSIVE:
Retail Rental Market
The immediate Newburgh area has limited retail vacancies. Below are details for select retail stores and
related asking rents for spaces currently available in the area. The asking rents range from $17.00/sf to
$36.00/sf.
Retail Rental Rates (Asking Rents)
1290 Route 300, Newburgh, NY 12550
Retail Rental Rate
$36.00
($/SF/Year)
Property Sub-Type:
Restaurant
SF available for rent :
1402 Union Avenue, Newburgh, NY 12550 (Newburgh Commons)
Retail Rental Rate
$18.00
($/SF/Year)
t
6,000
Property Sub-Type:
801 Park Place, Newburgh, NY 12550
Retail Rental Rate
$34.50
($/SF/Year)
Retail Rental Rate
($/SF/Year)
Property Sub-Type:
Property Sub-Type:
Retail/Bank
4,000
Strip Center
6,000
$18.00
Strip Center
5,800
190 South Plank Road, Newburgh, NY 12550 (Algonquin Plaza)
Retail Rental Rate
$23.33
($/SF/Year)
77 North Plank Road, Newburgh, NY 12550
Retail Rental Rate
$17.00
($/SF/Year)
Property Sub-Type:
Property Sub-Type:
Strip-Center
3,600
SF available for rent:
Community
Center
5,800
MS/MB01112013
BESEN EXCLUSIVE:
Neighborhood Description
Newburgh is a City located in Orange County, NY. Its close proximity to New York City and the Hudson
River make Newburgh an ideal place to live, work, or visit.
It is a densely established community totaling 3.8 square miles. The City of Newburgh is connected by the
Town of Newburgh on the west and north, the Hudson River on the east and the Town of New Windsor on
the south. The city and its immediate suburbs have a population of more than 100,000 people.
Newburgh is a City with many distinctions and a noteworthy history. It abounds scenic views, cultural
history, and beautifully designed neighborhoods like Washington Heights and Colonial Terraces. Historic
architecture accents every block and 19th-century styles like Federal, Greek, Revival, High-Victorian,
Gothic Revival and Picturesque are displayed throughout the City.
In addition to being astatically pleasing Newburgh is unique in that it housed the first Edison power plant
making it the first American city to be electrified.
MS/MB01112013
BESEN EXCLUSIVE:
Landmarks & Local Snapshot
Downing Park was a farm owned by the Smith family before becoming a park in 1894. The Park was
designed by Calvert Vaux and Frederick Law Olmsted, the designers of New York City's Central Park. It
opened to the public in 1897 and featured an observatory overlooking the Hudson River and a bandshell,
which would later be demolished. In 1964 an outdoor amphitheatre was added to the Park and today is
used weekly for live band concerts. Its 35-acre picturesque landscape highlights long paths, hills and
valleys, streams, a pond, and a variety of vegetation.
Downing Park
East End Historic District. The City of Newburgh has the second largest historic district in New York
State preserving history tracing back to 1850. Washington’s Headquarters, the nation’s first publicly
owned historic site, can be found in the City of Newburgh along with the Gothic Revival Dutch Reformed
Church and David Crawford House Museum. The East End Historic District contains over 4,000 buildings
of historic interest and has some of the most diverse neighborhoods in Newburgh.
Delano-Hitch Recreational Park is 26-acres and includes a 2000-capacity baseball stadium, a soccer
field, a softball diamond, and multiple little league baseball diamonds, tennis courts, and basketball courts.
It also features an Aquatic Center, playgrounds, horseshoe pitches, a soccer/football field, the Fast Pitch
Softball Hall of Fame, and the multipurpose Activity Center.
Delano-Hitch Recreational Park
MS/MB01112013
BESEN EXCLUSIVE:
Appendix & Due Diligence
Upon request, we can forward a secure web link with the below property and financial due diligence
information for your review:
-
Concept Plans for Movie Theater/Retail Redevelopment
Concept Plans for Storage Redevelopment
Concept Plans for Various Other Redevelopment Options
Block & Lot Map (Survey)
Tenant Lease & Lease Amendment
Tenant Estoppel Certificate
Area Demographics
Video of Land Parcel.
Zoning Bulk & Other Regulations
For More Information Contact
Matthew Slonim
Chief Operating Officer
(212) 951-8405 Direct
(212) 689-9518 Fax
[email protected]
MS/MB01112013

NION AVENUE,NEWBURGH,NY12550

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