Month: June 2014

Harrison & The Red Bulls Stadium

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Red Bulls Stadium

The Red Bulls are the Major League Soccer team for the NY tri-state area. The stadium is a short ride on the PATH to the Harrison train station, and I would encourage you to make a trip to see one of the games, the tickets start at $25!!

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Frank E Rodgers Blvd, Harrison NJ

Separately, the township of Harrison has really been focused over the past several years on building around this area, which was previously an old industrial park. After developing the NY Red Bulls arena in 2010, the Harrison redevelopment team has been holding out for upside on the economic recovery, but I was pleased to see yet another residential & retail site coming up rapidly on a nearby lot less than a block from the stadium.

With FIFA World cup this year, it is possible we are seeing the mainstream acceptance of Soccer as a major US sport? The success of the Red Bulls franchise will inevitably mean the success of the new sprouting businesses in the area. I will be keeping an eye on the progress of this site, and hope to report later this year on the retail and residential landscape.

 

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Union Theatre-UPDATE

990 Stuvesant, Union NJ (2)Having completed my research for the week on the property, I can now present some of my analysis on the site. First, I’d like to thank the broker who took the time to provide neighborhood demographics and full property report. Super Helpful, and I hope some of the work I’ve done will help one of their potential investors. Here goes:


Sales Price: $740,000.00.  Based on the fact that this property requires extensive renovation capital (upwards of $70/Sq Ft to demo, remediation of major structural issues along with tenant improvements), I would require a 5-10% discount on the purchase price, offering between $660,000 and at most $705,000 to purchase.

While I love the idea of a theater in Union, this use is not sustainable here. First, there is NO PARKING on the site. Major drawback for theater goers  having to spend the afternoon looking for parking. Second, the location is in the heart of the central business district, where there is major foot traffic during business hours, why not have your business maximize on this? A conversion to retail would cost upwards of $70/SF so almost another $Million to convert. We are looking at a total investment of about $1,700,000.

Investment Strategy: If you borrowed 65% of the total investment, your equity partners would put up the additional 35% (about $580,000), 15 yr Commercial loan at 5%? I think its doable. The biggest contingency on this deal would be our ability to secure a retail tenant at NO LESS than $20/PSF in rent. The comps in the area range greatly from $10 per sq. ft to up to $30 per sq. ft. Feels risky…but, if achievable, you’re looking at a 15% cash on cash return at the beginning of the 2nd year of occupancy and a 20% IRR (internal rate of return)….music to my ears….

If you are interested or have comments, leave a reply or send me a message and i’ll share my spreadsheet and additional assumptions.

Union Theatre

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Theatre for sale by Exit Realty

Union Theatre is at the center of Union township, NJ. At the border of Morris and Stuyvesant Avenues, this location is a major retail and business hub of the Union area. On a busy Saturday afternoon, you would normally see a crowd of people waiting to see an afternoon show, with plenty of nearby bakeries, restaurants, hair salons and stores to fill in the time as you wait. Unfortunately, the theatre was not profitable or in my opinion poorly managed, and so the owners have put the property up for sale. I  had to do a post on this property, its 14,000SF of prime space, seemingly an amazing development opportunity. I’m reaching out to the brokers for more info, and I’ll post an update on my thoughts on the highest and best use of the site.

It was also perfect timing having come across this theatre, as I happen to be wearing vintage from head to toe. Enjoy the pics!

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Union Theaters, 990 Stuyvesant Avenue Union NJ.

 

 

 

200 Varick Street- SOB’s

Today was one of those rare Sundays where I braved the traffic of the tunnels to meet up with friends in Manhattan. This occasion was my good friend Kosi’s Birthday, where we met and had brunch with a few other High School friends who celebrated their birthdays in May. We met up for the Bossa Nova Brunch at SOB’s (Sounds of Brazil) which is a great venue, live performance club at nightAviary Photo_130461400865903184200 Varick Street SOB's and great place to sit and have Latin food by day. Its easy to get distracted by the live venue on site, this property is actually a hybrid building built in 1926 with office space, multi-family,  several units of retail, over 400,000 square feet of space, and 12 stories. One major downside of this location, the daily traffic headed to the Holland Tunnel; the fumes from the cars idling all afternoon combined with the nightly activities of the club would be a tough sell for me as a multifamily residence. I would be interested to hear what the residents have to say about this…

And let me point out these Carlo Pazolini strappy heels that i’ve adopted for my summer wardrobe. I test drove them to brunch today and i’m in LOVE.

Maplewood Crossings

Maplewood Crossings

Maplewood Crossings, 92 Burnett Avenue Maplewood NJ

Went on a stroll through the park on first warm day of the season recently and came across this quaint garden style community nestled behind a children’s park. The property is Maplewood Crossings, managed by Elite Properties. Garden Style apartment complexes are typical to most areas of New Jersey (and the US, outside of major metropolitan areas like New York City). This particular property had amazing curb appeal and was tucked away in a quiet block of Maplewood.

To my delight, I also found that the property participated in an affordable housing program where applicants at 40, 50 and 60% of the area median income could qualify for rents as low as $328 to $986 for the largest units. Considering that the smallest market rate 1 Bedroom apartment was $1600, this would be a deal for a family who could qualify to meet the paltry maximum income requirements.

And you know how you can tell you are in a quality township? Well maintained public bathrooms, one that I was pleased to find right in the park. Great use of your township tax dollars!