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NNN-Leased MF Building | Strong VA Tenancy 521-523 Washington St

21 Apartment Units Online Auction Sale Newark, NJ 07102

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INVESTMENT HIGHLIGHTS

  • Please contact Michael Sherman at (631)235-9741 or email at Michael@baselinerealestate.com for any questions in regard to the offering.
  • Excellent location 1 mile to Downtown Newark, Penn Station, and I-95 accessibility and 4.3 miles from the East Orange VA Hospital.
  • Tenant is on their second five year term, the VA contract is for 5 years and tenant can only sign lease for duration of VA contract.
  • NNN $279,937 per year Guaranteed lease with government backing for this 38-bed multifamily asset operating as a VA rehabilitation facility.
  • Strong investment with a NNN lease through October 2028 with annual in-place increases, allowing for high NOIs.
  • Extremely high probability of renewal as it is very hard to get sites approved by the VA.

EXECUTIVE SUMMARY

521-523 Washington Street represents the perfect investment opportunity in Newark. The 4,838-square-foot property is spread between three stories and 21 units with 38 total beds. The property is built out specifically for the Veterans Affairs Usage. The extensive build out includes therapy rooms, classrooms, recreation space, a large communal kitchen and dining area, a garden, sleeping rooms and separate bathrooms/showers in the hallway. Built in 1915, the multifamily asset is a staple in the Newark community. The property is master leased to a tenant specializing in housing veterans, with a triple net lease and a corporate guarantee in place. The company has a five-year contract with extensions with the U.S. Department of Veteran Affairs (VA) with yearly escalations built into the lease. The tenant also has two other similar facilities in operation in the Bronx and Brooklyn. The tenant has been in operation for seven years and has a strong working relationship with the VA. They have a contract from the VA for many more beds then they are currently operating. This asset is ideal for investment largely because buildings are hard to get VA approved. Once approved, it’s rare for the tenant to move facilities creating a long-term plan.

The tenant is a community-based nonprofit organization that has provided a variety of essential social services to vulnerable populations in New Jersey for over two decades. Their mission is to increase the quality of life for the economically disadvantaged and to make a permanent and positive change in the life of each person they serve. The goal is to help people move from homelessness, substance abuse, dependency, and public assistance into permanent employment and stable housing. The organization serves approximately 2,000 economically disadvantaged individuals/families per year. The tenant currently maintains 600 beds in six facilities for emergency housing. This asset benefits greatly from being located in the Greater Newark Multifamily Submarket.

Greater Newark is also the largest submarket in Northern New Jersey, with nearly 32,200 units, a product of years of development meant to revitalize the historic city. Average rents of $1,560 per month keep the submarket the most affordable in Northern New Jersey. Northern New Jersey presents a strong location with a stable economy. Northern New Jersey's economy remains on solid footing, as rising payrolls and accelerating population growth provide a strong backdrop for consumer spending and housing demand. Robust wage growth remains a key driver of healthy fundamentals in the retail and multifamily property sectors. Northern New Jersey saw 159,000 jobs created during the past year.

The positioning of 521-523 Washington Street is ideal for multifamily use within Newark. The South Broad Street neighborhood is positioned south of Downtown Newark. Nearby Penn Station makes accessibility a breeze. Interstate 95 allows convenience for renters and the property is also 4.3 miles from the East Orange VA Hospital. Newark International Airport is close by, as well as Rutgers University and access to Manhattan. Many local restaurants and necessities, including Bergen Pharmacy, McDonald’s, Family Dollar, Dunkin’, and countless others, surround the asset. The property sits within walking distance of Lincoln Park where locals gather for events year-round. With incredible accessibility, this well-maintained multifamily asset is primed to offer an ideal hands-off investment for years to come. Property tours are available by appointment only. Please contact the listing broker to schedule.

Property tours are available by appointment only, please contact the listing broker to schedule.

OFFERING MEMORANDUM Click Here to Access

DATA ROOM Click Here to Access

MARKET ANALYTICS Click Here to Access

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Market Sale Price per Unit

Northern New Jersey - NJ USA

Market Cap Rate

Northern New Jersey - NJ USA

Market Sale Price per Unit by Star Rating

1 - 2 Star

3 Star

4 - 5 Star

Market Cap Rate by Star Rating

1 - 2 Star

3 Star

4 - 5 Star

Market Sale Price per Unit Distribution

Market Cap Rate Distribution

PROPERTY FACTS

Sale Type Investment NNN
Sale Condition Auction Sale
Type of Ownership Fee Simple
No. Units 21
Property Type Multifamily
Property Subtype Apartment
Apartment Style Low Rise
Building Class C
Lot Size 0.09 AC
Building Size 4,838 SF
Average Occupancy 100%
Number of Floors 3
Year Built 1915

AMENITIES

UNIT AMENITIES

  • Microwave
  • Kitchen
  • Refrigerator
  • Oven
  • Tub/Shower

UNIT MIX INFORMATION

DESCRIPTION NO. UNITS Avg. Rent.Mo SF
1+1 21 - -
Walk Score®
Very Walkable (87)
Transit Score®
Excellent Transit (77)
What is a Walk Score®, Transit Score® & Bike Score®?
Walk Score® measures the walkability of any address.
Transit Score® measures access to public transit.
Bike Score® measures bikeability of a location.
What is a Walk Score®
, Transit Score® & Bike Score?
Walk Score® measures the walkability
of any address. Transit Score®
measures access to public transit. Bike Score®
measures bikeability of a location.®

PROPERTY TAXES

PROPERTY TAXES

Parcel Number
14-00122-0000-00043
Land Assessment
£125,258
Improvements Assessment
£510,259
Total Assessment
£635,518

SALE ADVISOR

SALE ADVISOR

(513) 300-0763
Contact
Brian Brockman, President
(513) 300-0763
Contact
Brian is one of a handful of real estate brokers and auctioneers who is licensed in all 50 states and the District of Columbia. Brian has over 15 years in asset management experience and has sold properties for investors, developers, and many local, national, and international financial institutions. Over the last 10 years, Brian has grown his two-person real estate sales team in Cincinnati, OH into a nationally recognized commercial brokerage. Brian is known for finding solutions and repositioning assets to maximize their value while mitigating risk for his clients. Brian has sold a former Fortune 100 corporate campus, hospital, golf course, car wash, churches, and abandoned apartment buildings that many other brokers refused or failed to market effectively. Brian also specializes in the analysis, acquisition, and sale of commercial real estate debt and single-family residential loan pools. Brian has a dual BSBA in Finance and Economics from Xavier University.

ABOUT THE AUCTION PLATFORM

Ten-X Commercial is the leading end-to-end digital transaction platform for commercial property. With over $26bn sold, Ten-X’s platform empowers brokers, sellers and buyers with data-driven technology and comprehensive marketing tools to expand market visibility and decrease time to close. Ten-X consistently yields trade rates at two times the industry average. Ten-X expedites the entire CRE transaction timeline by enabling brokers and sellers to tap into a digital platform that makes it easy to onboard properties, evaluate the success of complimentary omnichannel marketing campaigns and follow up on the strongest pre-qualified leads. Buyers are precision-matched with properties aligned with their investment goals, with unprecedented access to market analysis and due diligence documents to help them securely acquire properties online, with confidence.
Read More

AUCTION CONTACT

Pace Zambito
Auctioneer License: Ten-X Commercial, LLC Arlene Richardson RE Brkr 2187404
  • Listing ID: 31727012

  • Date on Market: 18/02/2025

  • Last Updated:

  • Address: 521-523 Washington St, Newark, NJ 07102

Transaction Fee Schedule
Based on Percentage of Winning Bid Amount.
Winning Bid Amount Transaction Fee
$0m to < $1m 5.00% ($20,000 min)
$1m to < $3m 3.00%
$3m to < $5m 2.50%
$5m to < $10m 2.25%
$10m to < $15m 2.00%
$15m to < $25m 1.75%
$25m to < $35m 1.50%
$35M to < $45M 1.00%
$45M to < $55M 0.75%
$55M and Up 0.50%
Example Calculation
Winning Bid Amount $4,000,000 Transaction Fee $100,000 (2.5%) Total Purchase Price $4,100,000

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