OFFERING MEMORANDUM 130,000+/

OFFERING MEMORANDUM
Online Real Estate Auction: January 28
130,000+/- SF Class A Office Building
65 Willowbrook Boulevard, Wayne, NJ 07470
Excellent Value-Add Opportunity!
Contents
• Introduction & Inspection Dates
• Executive Summary
• Property Information
• Site Plan, Floor Plans, & Pictures
• Property Performance Information
• Local Market Information
• Terms of Sale
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Introduction & Inspection Dates
This offering is for a prime, class A office building conveniently located in Wayne, New Jersey. This 6 story office building sits above a 3 level
parking garage and is located directly across the street from the Willowbrook Mall and Wayne Town Center, two of the region’s largest malls.
Property Highlights Include:
- Great location in strong retail and office corridor
- Excellent proximity to I-28, I-80, Route 46, and Route 23
- Ample Parking to house any business or agency
- Recent renovations including new roof, new HVAC, and new paving in the parking garage
Included in this offering memorandum is detailed property information, pictures, and the Terms of Sale. A virtual deal room has been created
which contains additional due diligence information to review prior to participating in the auction. Due Diligence Documents are available online
under the “Documents” tab once you have properly registered at http://auctions.hilcoreal.com/.
Property Inspections:
Wednesday January 13th & 20th from Noon to 2:00pm or Call for an appointment, 847-418-2703. Please call or email if you plan to attend.
Auction Information:
Online Auction:
Thursday, January 28th, 2016 , 10:00 AM – 5:00 PM EST
Suggested Opening Bid:
$4,000,000
Certified Funds Required to Bid:
$50,000
Buyer’s Premium:
A 5% Buyer’s Premium will be added to the high bid price per the Terms of Sale.
Call for More Information:
Jeff Azuse– [email protected]
847.418.2703
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Executive Summary
Built in 1986, 65 Willowbrook Boulevard is a prime six story office building totaling approximately 130,319 square feet. The
building sits on 5.262 acres and sits above a three story parking garage. Due to current ownerships focus on other projects
the property is underperforming in its market segment, although it remains to be a well designed and thought out structure
located in a good area. Based on its strong location in a growing market, there is potential to attract high quality tenants at
market rental rates, making it quickly possible for this building to become a stabilized, well performing investment.
Currently, there is approximately 6,000 SF of space rented and the tenants are all located on the 4th floor, all other floors are
vacant.
The subject property is on an out lot of the Wayne Town Center and Willowbrook malls, which drive traffic into the
community from throughout the region with major anchor tenants including Lord & Taylor, Sears, Bloomingdales, and
Macy’s. The property is in close proximity to Interstate 80, Interstate 28, Route 46, and Route 23. There is also nearby
access to the Garden State Parkway and I-287. The building was developed as part of a larger parcel, which included the
adjacent Sony Theater (now Lowes Theater) as well as a Costco retail center to the west.
The property is located less than 20 miles from Midtown Manhattan. Wayne is located 26 miles from Newark Liberty
International Airport and 30 miles from LaGuardia Airport in Flushing, Queens. Two miles north of the property, New Jersey
Transit services the area at the Route 23 station with service to Hoboken and Penn Station in Midtown Manhattan. The area
is also serviced by several bus routes.
Overall, the building’s exterior and interior are in good condition. Common hallways are wide and include standard finishes
of carpeting, lighting, and wall covering. Restrooms throughout the building, as well as hallways on three of the levels have
been renovated in recent years. Additionally, a new roof, new HVAC system, and new pavement in the parking garage have
recently been installed.
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Property Information
Address:
65 Willowbrook Boulevard, Wayne, New Jersey 07470
Tax Block/Lot:
210/11
Site Size:
5.262 +/- Acres (irregular shape)
Building Size:
130,319 SF
Type:
Office Building
Year Constructed:
1986
Zoning:
RR (Regional Retail), allows for office, bank, theater, hotel and most
retail uses.
Easements:
Standard Utility Easements. No adverse easements noted.
Improvements:
Six-Story, office building with an attached three story parking garage.
Elevator access to all floors
Recent Renovations:
New roof, new HVAC, and new paving in the parking garage
Flood Zone:
Within 100 year Flood Zone. Property insured for floods.
Utilities:
Public water, sewer, gas, electric, telephone, cable.
Real Estate Taxes:
2014 - $226,825.00
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Property Information Cont.
Property Information Continued:
Framer/Exterior:
Structural steel covered with masonry panels and a ribbon of aluminum framed
double paned windows.
Floor Plates:
Approximately 22,000 SF per floor, 130,319 SF total floor area
Add-on Factor:
Estimated at 15% for multi-tenanted floors
Roof Covering:
Recently replaced. Stone ballasted, single ply, rubber composition.
Interior:
Multi-tenanted with typical office finishes.
Columns:
30’ 5” bays
Elevators:
Three Schindler Elevators: two glass enclosed passenger cards and one freight
elevator serve all office floors and parking deck levels. One scissor freight lift, at grade
level, to P-1 lobby.
Emergency Generator:
One 175 watt diesel Cat (model 3306) generator at the P-2 parking level with interior
250 gallon diesel fuel tank. Only serves emergency lighting and generators.
HVAC:
Distributed over 2 horizontal zones (floors 1-3 and 3-6). Recently replaced HVAC
including two roof top air conditioner package units each with four compressors and
its own cooling tower. Heat by circulating hot water from two roof top gas fired
boilers.
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Property Information Cont.
Property Information Continued:
Fire Protection:
The office building is fully sprinklered and has smoke detectors throughout. The
garage is also fully sprinklered but with a dry system.
Parking:
There are approximately 830 parking spaces (6.33/1,000 SF) available to the building
including approximately 446 spaces in the 3 level deck area, approximately 84 in the
rear lot and the use of (by easement) an additional 300 spaces approximately in the
adjourning Sony Theatre (office parking limited here Monday through Friday during
daytime business hours). Similarly, the 3 level garage and surface lot at 65
Willowbrook Boulevard is shared with the Sony Theatre after 6 PM Monday through
Friday and on weekends. The parking deck, an attractive leasing feature, was recently
repaved. The combined cost of maintaining both parking areas (surface lots and
parking deck) is shared equally by both owners.
There are approximately 2 acres of paved parking area in the southwest corner of the
subject’s 5.2 acre site not available to 65 Willowbrook Boulevard tenants. Costco
Center, the adjoining neighbor has exclusive parking rights to that area (It is not
included in the 830 parking spaces listed above).
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Site Plan/Survey
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Typical Floor Plate
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Property Photos
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Property Performance Information
The current tenants are all located on the 4th floor and occupy approximately 6,000 SF total. All the other floors in the
building are vacant. Below is a list of the current tenants including the cell tower tenant. All the tenants are on month to
month leases.
Tenant Name
Lease Start Date
Lease Term
Monthly Rent
Annual Rent
Boulevard Café
8/1/2010
M/M
$0.00
$0.00
Quickconnect.com
7/1/2012
M/M
$2,649.67
$31,796.04
Helpful Hands
8/1/2010
M/M
$5,500.00
$66,000.00
Circle Computer Group
8/1/2010
M/M
$3,703.00
$44,436.00
Van Palmer Group
8/1/2010
M/M
$2,400.00
$28,800.00
SUB Carrier Communications, Inc.
(roof)
8/1/2010
M/M
$7,121.33
$85,455.96
Totals $21,374.00
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$256,488.00
Wayne, NJ – Market Overview
Outlook:
After a rather substantial downturn of the real estate market as a whole in the early 2000s, the northeastern suburban New
Jersey office market has shown substantial and consistent signs of recovery. Stabilization and absorption rates in the market
have been fueled by growth in the healthcare and pharmaceutical industries, as well as general improvement throughout all
areas of the economy and job growth. The state of New Jersey has also provided numerous incentives in hopes of attracting
out of state businesses.
Strong growth in the local office market has not only been of benefit to landlords and the local economy but also to new
construction and value add developers as rents tend to rise and cap rates fall.
Economic Forces:
The estimated populations of Wayne, Passaic County, and New Jersey have all steadily grown by minimal amounts from
2000 to 2010, and the local economy has remained strong. The median income and per capita income levels of Wayne, NJ,
have increased as have the average household incomes. Unemployment levels have continued to improve over the past five
years. Recorded data tends to indicate a reasonably strong economic environment. Wayne is a regional shopping
destination. Willowbrook Mall, the fourth largest mall in the state, as well as the neighboring Wayne Town Center, drive
traffic from surrounding communities to Wayne. Wayne is home to corporate headquarters for Valley National Bank and
Toys “R” Us.
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Aerial Area View
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Area Overview
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TERMS OF SALE
AUCTION FORMAT: Bidding will be done ONLINE. To bid during the auction, you need to register online at http://auctions.hilcoreal.com/ and
click on the View Auction link then click on the green “Register” button located on the top left hand side of the property page. Once registered
you will receive an acknowledgement email, login with your email and password and click on the “Documents” tab where you will find more
detailed instructions to be approved by the transaction team in order to bid. Please call 847-418-2703 for further instructions.
AUCTION DATE/LOCATION: The auction will be conducted online. The online auction will open at 10:00 a.m. and will close at 5:00 p.m. EST on
Thursday, January 28, 2016. You will need to be registered and be approved to bid by our transaction team, which requires accepting the Terms
of Sale, accepting the Purchase and Sale Agreement and depositing the required initial earnest money deposit. Please call 847-418-2703 for
further instructions.
CERTIFIED FUNDS OR WIRE TRANSFERRED FUNDS ARE REQUIRED: Certified funds in the amount of $50,000, as an initial down payment are
required to bid at the auction. Online bidders are required to mail, overnight or wire transfer funds to Hilco Real Estate Attn: Jeff Azuse, 5 Revere
Drive Suite 320, Northbrook, IL 60062, initial deposit cashiers checks or wire transfers for on-line bidders must be received no later than 2:00
p.m. EST Wednesday, January 27, 2016. For wiring instructions please email Jeff Azuse at [email protected] or they are located in the
“Documents” tab after you have registered online. Upon the conclusion of bidding and the Seller’s acceptance of the Purchase and Sale
Agreement, the funds will be deposited as earnest money as provided in the Purchase and Sale Agreement. If you are not the winning bidder
your funds will be returned to you.
ASSETS AVAILABLE: The Property to be sold includes all or substantially all real property, fixtures, and the improvements thereon at 65
Willowbrook Boulevard, Wayne, New Jersey 07470 (collectively, the “Assets”). The Property is being sold for all-cash in its existing as-is, where-is
condition and subject to no contingencies including financing.
BUYER'S PREMIUM: Auction purchaser shall pay a Buyer‘s Premium equal to 5% of the high bid price. This amount shall be added to the High Bid
and the sum will be the Total Purchase Price in the Purchase and Sale Agreement.
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TERMS OF SALE – Cont.
AUCTION PROCEDURE
RESERVE OFFERING: The property is being offered with reserve and is subject to Seller’s acceptance within five (5) business days of the auction.
The winning bid must remain irrevocable by the High Bidder during this period. The Suggested Opening Bid of $4,000,000 in the marketing
materials are simply the Auctioneer's suggestion as to where the bid may open; it is not a minimum bid and in no way obligates the Seller as to
the bid amount that he will accept or reject.
Suggested Opening Bid - $4,000,000
ATTORNEY REVIEW: All information contained in the auction-related marketing material, should be carefully reviewed by an attorney prior to the
auction.
CONDUCT OF THE AUCTION: Conduct of the auction and increments of bidding are at the direction and discretion of the Auctioneer. In the event
of a dispute between bidders, the Auctioneer shall make the final decision to accept the final bid, to re-offer and resell the Property, or to
remove the Property from the auction. If any disputes should arise following the auction, the Auctioneer's records shall be conclusive in all
respects.
INSPECTION: The Property is being offered for sale in its existing condition subject to the terms of the Purchase and Sale Agreement. The
Purchaser may not rely upon any disclosures, representations or warranties other than those provided in the Purchase and Sale Agreement. We
recommend you thoroughly inspect the Property prior to the auction. Those inspecting the Property assume all risk associated with any
inspection.
INSPECTION DATES: Please call for inspection dates, 847-418-2703.
DOCUMENTS AVAILABLE: Due Diligence Documents are available online under the “Documents” tab once you have properly registered at
http://auctions.hilcoreal.com/ and includes the Purchase and Sale Agreement, detailed Property information, copies of the real estate tax bill,
and other applicable information. Seller, Seller’s Broker and Auctioneer shall not be liable for any inaccuracy contained in any reports furnished
to buyers originating from third party experts.
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TERMS OF SALE – Cont.
REQUIREMENTS OF THE SUCCESSFUL HIGH BIDDER: The successful high bidder will be required to sign the Purchase and Sale Agreement upon
the conclusion of bidding, acknowledging the purchase, and their $50,000 initial down payment will become non-refundable. The initial down
payment MUST be increased to 10% of the purchase price by cashiers or certified check or wire transfer within three business days following
Sellers acceptance. All registering bidders may also be asked to sign a statement that the bidder has inspected the Property and reviewed
documents related to the Property and the Auction.
CLOSING DATE: The Standard Closing Date shall be on or before 30-days from Seller’s Acceptance.
AGENCY DISCLOSURE: In Cooperation with Cushman & Wakefield of New Jersey, Inc., Hilco Real Estate, LLC, and all licensees employed by or
associated with Cushman & Wakefield of New Jersey, Inc., or Hilco Real Estate, LLC who are involved with this auction, represent the Seller in this
real estate transaction. For additional Terms of Sale, see the Purchase and Sale Agreement. The Seller, Auctioneer and their agents assume no
liability for inaccuracies, errors or omissions in the auction marketing materials.
ALL SQUARE FOOTAGE, DIMENSIONS, COMMON AREA CHARGES (IF, ANY), FINANCIAL INFORMATION AND TAXES IN THIS AND OTHER
MARKETING MATERIALS ARE APPROXIMATE. This offering may be withdrawn, modified or canceled without notice at any time.
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BROKER PARTICIPATION
BUYER’S AGENT COMPENSATION: Hilco Real Estate will pay an approved buyer’s broker, upon closing, a fee equal to 1% (one percent) of the
High Bid Price paid by his or her client. In order to be eligible for compensation, the buyer’s agent must hold an active real estate license in the
state in which the property is located, or possess a valid real estate license and act in conformance with the laws for paying a referral fee to an
out of state broker as promulgated by the state in which the property is located, and register the client by letter sent via email to
[email protected] or overnight carrier to Hilco Real Estate, 5 Revere Drive, Suite 320, Northbrook, Illinois 60062, Attention: Jeff Azuse, or
hand delivered to a Hilco Real Estate representative during one of the viewings. The receipt of the letter by Hilco Real Estate will be
acknowledged in writing. The letter must contain a signed acknowledgement of the Buyer’s Agency relationship by the client. This registration
letter must be received before any inspection of the property by the client, and no later than three (3) business days prior to the Bid Deadline.
The Buyer’s Agent must register in person with the client during an onsite inspection. All registrations will be acknowledged in writing and the
Buyer’s Agent must include the registration acknowledgment letter with the submission of the bid. No oral registrations will be accepted. No
agency relationship will be recognized for a client who has been previously contacted by the Seller, or agents. Referral fees are based on the
High Bid Price at Closing. The Seller has provided a dual commission arrangement for the sale of this property in this offering. If an Agent has
not met all of these requirements, no compensation will be paid, even if the Agent’s client purchases the property.
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For additional information or questions please Call or Email:
Jeff Azuse
(Direct)847-418-2703
(Cell) 773-456-5032
[email protected]
Hilco Global Headquarters
5 Revere Drive, Suite 320
Northbrook, IL 60062 USA
www.hilcorealestate.com
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