hotel development site

HOTEL DEVELOPMENT SITE
BELLEVILLE, NEW JERSEY
For information, contact:
Bradley Burwell
T 212.984.8278
[email protected]
Master Planned Site
Hotel Site
Ron Danko
T 212.984.8327
[email protected]
Patrick J. Cirella
T 212.895.0963
[email protected]
CBRE
200 Park Avenue
New York, New York 10166
T 212.984.8000
F 212.984.7168
www.cbrehotels.com
LOCATION
Location:
The Site is located at 11 Franklin Avenue, at the southwest corner of the intersection of Franklin Avenue (CR-645)
and Mill Street.
City:
Belleville, NJ, approximately 13 miles west of Manhattan
Access/Visibility: The Site is visible from Franklin Avenue (CR-645) adjacent to the east end of the Site, and it offers convenient
access to Newark and surrounding thoroughfares leading to New York City
Neighborhood: Residential and medical development surrounds the Site
© 2016, CBRE, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and
make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for
example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct
your own investigation of the property and transaction.
HOTEL DEVELOPMENT SITE
BELLEVILLE, NEW JERSEY
SITE
BELLEVILLE
Meadowlands
Sports Complex
(5 miles away)
New Jersey
Clara Maass
Medical Center
For information, contact:
Bradley Burwell
T 212.984.8278
[email protected]
Ron Danko
T 212.984.8327
[email protected]
Patrick J. Cirella
T 212.895.0963
[email protected]
CBRE
200 Park Avenue
New York, New York 10166
T 212.984.8000
F 212.984.7168
www.cbrehotels.com
Newark Liberty
International
Airport
(6 miles away)
Manhattan
(13 miles away)
© 2016, CBRE, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and
make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for
example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct
your own investigation of the property and transaction.
HOTEL DEVELOPMENT SITE
BELLEVILLE, NEW JERSEY
PROPERTY DESCRIPTION
Offering
Listing Price:
$5,000,000 for development rights to the leasehold interest in a master-planned site
Site Size:
2.78± acres (121,131± SF)
Hotel
Description:
FAR:
Floors:
Parking:
100 to 150-rooms, with a 50-seat restaurant and lobby,151 parking spaces
No restrictions
The redevelopment plan allows 4 stories with a provision to go to 7 with structured parking or mixed use
building
Requires one stall per room
Remainder of the site
 85,000± SF Medical Office Space
 12,500± SF Pharmacy
ZONING MAP
 Several quick-service
restaurants
 Fire House
For information, contact:
Condition of site at delivery
Bradley Burwell
T 212.984.8278
[email protected]
Ron Danko
T 212.984.8327
[email protected]
 Utility hookups
 Fully graded
 Infrastructure to be provided
Patrick J. Cirella
T 212.895.0963
[email protected]
CBRE
200 Park Avenue
New York, New York 10166
T 212.984.8000
F 212.984.7168
www.cbrehotels.com
© 2016, CBRE, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and
make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for
example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct
your own investigation of the property and transaction.
HOTEL DEVELOPMENT SITE
BELLEVILLE, NEW JERSEY
SITE LAYOUT
For information, contact:
Bradley Burwell
T 212.984.8278
[email protected]
Ron Danko
T 212.984.8327
[email protected]
Patrick J. Cirella
T 212.895.0963
[email protected]
CBRE
200 Park Avenue
New York, New York 10166
T 212.984.8000
F 212.984.7168
www.cbrehotels.com
© 2016, CBRE, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and
make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for
example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct
your own investigation of the property and transaction.
HOTEL DEVELOPMENT SITE
BELLEVILLE, NEW JERSEY
INVESTMENT HIGHLIGHTS
HOTEL MARKET HIGHLIGHTS
PART OF MASTER-PLANNED SITE - The Hotel development site is
part of a mixed use master-planned site. The master-planned site
is will have 85,000 square feet of medical office space, a 12,000
square foot pharmacy, several quick-service restaurants and a fire
house.
MARKET IMPROVEMENTS WITH NEW SUPPLY- The competitive
market has seen significant increases to supply over the period of
exceptional growth. Since 2009 available room nights for the
market have increased by 42.8% or almost 200,000 room
nights. The market has readily absorbed the new supply and
continued to grow suggesting that the market is still
undersupplied and the development of a nationally branded
property would benefit from the excess demand.
UNENCUMBERED SITE - The Site is offered free of management
and franchise encumbrances. As a result, a clean slate exists for
investors to develop and manage the hotel product they deem to
be the highest and best use for the site. A plethora of Marriott,
Hilton and IHG brands are available.
For information, contact:
Bradley Burwell
T 212.984.8278
[email protected]
Ron Danko
T 212.984.8327
[email protected]
Patrick J. Cirella
T 212.895.0963
[email protected]
CBRE
200 Park Avenue
New York, New York 10166
T 212.984.8000
F 212.984.7168
www.cbrehotels.com
CENTRAL
LOCATION
WITH
EXCELLENT
MASS
TRANSPORATION - Belleville, New Jersey is situated immediately
northwest of the Newark, 13 miles from New York City and six
miles from Newark Liberty International Airport. The Site is
approximately one half mile north of the New Jersey Transit Newark Light Rail Line’s Silver Lake Station, which is located in
Belleville at the intersection of Belmont Avenue and Franklin
Street. During rush hour, this stop has less than ten minute
headways between trains. The Site is also approximately one half
mile north of the Branch Brook Park Station, located in Newark at
the intersection of Franklin Avenue and Heller Parkway.
Additionally, at the intersection of Franklin Avenue and Mill Street
there is a New Jersey Transit bus stop, which is served by three
different bus lines which allow for excellent access to the
surrounding area
CLARA MAASS MEDICAL CENTER- The Site would be the closest
property to the Clara Maass Medical Center, a hospital of over
550 physicians, 1,600 total employees and 429 beds. The
Hospital is one of the largest employers in Belleville and the
driving force behind the proposed medical office space in the
master plan. The Site’s proximity to the hospital and lack of
nationally branded hotels in the submarket will create a
significant built in base of demand.
STRONG, REBOUNDING PERFORMANCE- Nearby comparable
hotels have experienced a robust improvement since the
economic downturn in 2009. A sample competitive set for the
Property includes 13 properties totaling 1,952 rooms: Element
Harrison Newark, Hampton Inn & Suites Newark Harrison
Riverwalk, Residence Inn West Orange, Courtyard Lyndhurst
Meadowlands, Fairfield Inn East Rutherford Meadowlands,
Homewood Suites East Rutherford Meadowlands, Residence Inn
Secaucus Meadowlands, Hilton Garden Inn Secaucus
Meadowlands, Courtyard Secaucus Meadowlands, aloft Hotel
Secaucus, Courtyard Newark Downtown, Hotel Indigo Newark
Downtown and Hampton Inn Newark Airport. These properties
have experienced an incredible 25% increase in RevPAR over that
period totaling over $30. Additionally, total revenue earned at
the properties increased by nearly $36M over the same period, a
clear indication of the solid lodging fundamentals in the area.
The table below illustrates historical RevPAR performance.
RevPAR PERFORMANCE: 2010 – 2014
Union County
Comp Set
$115.00
$110.00
$105.00
$100.00
$95.00
$90.00
$85.00
$80.00
2010
2011
© 2016, CBRE, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and
make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for
example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct
your own investigation of the property and transaction.
2012
2013
2014
HOTEL DEVELOPMENT SITE
BELLEVILLE, NEW JERSEY
HISTORICAL COMPETATIVE SET PERFORMANCE
Av erage Daily Rms
Supply % Change
Room
Demand % Change Occupancy % Change
---
294,846
---
65.7%
---
$117.55
---
$77.26
---
2010
1,229
0.0%
334,177
13.3%
74.5%
13.3%
$118.78
1.0%
$88.49
14.5%
2011
1,230
0.1%
346,632
3.7%
77.2%
3.7%
$124.14
4.5%
$95.87
8.3%
2012
1,253
1.9%
352,764
1.8%
77.2%
-0.1%
$130.52
5.1%
$100.71
5.0%
2013
1,353
8.0%
383,527
8.7%
77.6%
0.6%
$134.21
2.8%
$104.21
3.5%
2014
1,447
6.9%
414,685
8.1%
78.5%
1.1%
$140.19
4.5%
$110.07
5.6%
2015
1,755
21.3%
493,508
19.0%
77.0%
-1.9%
$143.78
2.6%
$110.77
0.6%
Av erage Annual Compund Change
5.2%
7.6%
$145.00
$135.00
Patrick J. Cirella
T 212.895.0963
[email protected]
CBRE
200 Park Avenue
New York, New York 10166
T 212.984.8000
F 212.984.7168
www.cbrehotels.com
80.0%
25.0%
75.0%
20.0%
70.0%
$115.00
$105.00
65.0%
$95.00
60.0%
$85.00
$75.00
55.0%
2010
2011
2012
2013
ADR
RevPAR
Occupancy
2014
Occupancy
ADR /
RexPAR
$125.00
2009
2.3%
2.9%
5.3%
DEMAND VS. SUPPLY (% CHANGE)
For information, contact:
Ron Danko
T 212.984.8327
[email protected]
Rev P AR % Change
1,229
ADR, RevPAR AND OCCUPANCY
Bradley Burwell
T 212.984.8278
[email protected]
ADR % Change
2009
15.0%
10.0%
5.0%
2015
0.0%
2011
2012
2013
Supply (Percent Change)
Demand (Percent Change)
© 2016, CBRE, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and
make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for
example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct
your own investigation of the property and transaction.
2014
2015
HOTEL DEVELOPMENT SITE
BELLEVILLE, NEW JERSEY
GENERAL AREA OVERVIEW
Belleville is located in Essex County in northeast New Jersey. It is situated immediately northwest of the Newark, 10 miles
from New York City and six miles from Newark Liberty International Airport. Belleville’s proximity to Newark will allow the
Hotel to benefit from the massive resurgence underway. In 2013, the city opened its first new office tower in 20 years: the
new 340,000 sq. ft. North American headquarters of electronic giant Panasonic, relocating 800 employees from
Secaucus. Prudential Life Insurance, which has been headquartered in Newark since 1929 is expanding its presence in
Newark by building a new 20 story, 740,000 sq. ft. office building along with plans for a second tower leading to a
consolidation of employees. From Panasonic and Audible to smaller startups, high-tech companies are being drawn to
Newark due to its access to New York City, a major technology center, fiber-optic infrastructure and resources like the
New Jersey Institute of Technology (NJIT) and the Rutgers Business School in Newark. Biotrial S.A., a French research
corporation, decided to build its North American headquarters in Newark’s burgeoning Science Park district, an emerging
mixed-use technology park in Newark adjacent to the University of Medicine and Dentistry of New Jersey, NJIT and
Rutgers. Biotrial’s continues the trend of biotech and pharma companies migrating to Newark as a place that is bridging
the gap between medical research and treatment. Fifteen of the world’s 25 largest pharmaceutical companies have
facilities in New Jersey. Newark’s Prudential Center Arena, home to the New Jersey Devils, and major entertainment
events, while Red Bull Arena, New York Red Bulls of Major League Soccer are nearby in Harrison.
For information, contact:
Bradley Burwell
T 212.984.8278
[email protected]
Ron Danko
T 212.984.8327
[email protected]
Patrick J. Cirella
T 212.895.0963
[email protected]
CBRE
200 Park Avenue
New York, New York 10166
T 212.984.8000
F 212.984.7168
www.cbrehotels.com
The Meadowlands Sports Complex is a sports and entertainment complex located in East Rutherford, approximately five
miles from the development site. The complex currently consists of MetLife Stadium, Meadowlands Racetrack, American
Dream Meadowlands and the Quest Diagnostics Training Center. MetLife Stadium is the home of the New York Giants
and New York Jets of the NFL, and is the only facility home to two NFL franchises. The stadium opened in 2010,
following the closing and demolition of their previous home, Giants Stadium. At a construction cost of approximately $1.6
billion, it is the most expensive stadium ever built and the largest stadium in the NFL in terms of permanent seating
capacity.
Newark Liberty International Airport was the first major airport in the metropolitan area, opening on October 1, 1928.
The airport was built on 68 acres of marshland by the City of Newark and quickly became the world's busiest commercial
airport. After the Port Authority took over the airport in 1948, the agency immediately began making major
improvements, which continue today, with Newark Liberty on the forefront of the campaign for NextGen technology and
so much more. Located partly in Newark and partly in Elizabeth, Newark is located only 14 miles from Manhattan, serving
a critical role for the New York-New Jersey metropolitan area. In 2014, EWR serviced 35.6 million domestic and
international passengers. Through October 2015 year-to-date passenger traffic is 4.9 percent higher. Continuing a trend
established earlier this year, EWR's traffic growth was led by the domestic sector, which posted a 14.8 percent increase.
Airlines expanded domestic capacity by 11.5 percent, with United's 15.7 percent seat capacity expansion and accounting
for 92 percent of the domestic passenger gain. In contrast, international traffic was down 1.7 percent following two
months of increased activity. International seat capacity fell 5.4 percent, led by cuts from United, Virgin Atlantic and British
Airways. Conversely, Aer Lingus will initiate daily service from Dublin to EWR in September 2016.
© 2016, CBRE, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and
make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or
other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for
example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct
your own investigation of the property and transaction.