market positioning and pricing analysis...households by expenditure 1 miles 5 miles total average...

P R E S E N T E D B Y

Michael Lombardi

First Vice President Investments

Director - Net Leased Properties Group

New Jersey Office

Tel: (201) 742-6125

Fax: (201) 742-6110

[email protected]

License: NJ 0569706

Market Positioning and Pricing Analysis

BERKSHIRE BANK GROUND LEASE537 U.S. 130 • Hamilton, NJ 08691

BERKSHIRE BANK GROUND

LEASE

Hamilton, NJ

ACT ID ZAA0280895

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-EndorsementsMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any

corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or

subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about

this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has

been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References

to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus &

Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

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TABLE OF CONTENTS

SECTION

FINANCIAL ANALYSIS 01

INVESTMENT OVERVIEW 02Location Overview

Regional and Local Map

Aerial Photo

MARKET OVERVIEW 03Market Analysis

Demographic Analysis

BERKSHIRE BANK GROUND LEASE

3


4

FINANCIAL

ANALYSIS

OFFERING SUMMARY

Price $3,300,000

Net Operating Income $193,601

Capitalization Rate – Current 5.87%

Price / SF $1,338.74

Rent / SF $78.54

Lease Type Absolute Net

Gross Leasable Area 2,465 SF

Year Built / Renovated 2009

Lot Size 1.13 acre(s)

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

#

FINANCING

Down Payment All Cash

Net Cash Flow 5.87% / $193,601

Cash on Cash Return 5.87%

Total Return 5.87% / $193,601


5


5

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES *

GENESIS 5,037

Integrity Staffing Solutions 2,230

Hamilton Township Bd Educatn 1,500

Robert Wood Johnson 1,500

West Windsor Campus 1,400

Woodbridge Developmental Ctr 1,300

St Francis Medical Center 1,050

Damco Solutions Inc 1,000

Capital Health System Inc 889

Robert WD Jhnson Univ Hosp Inc 829

Offic Information Technology 720

UPS 543

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2019 Estimate Pop 3,814 49,873 143,820

2010 Census Pop 3,711 49,370 142,067

2019 Estimate HH 1,475 18,934 53,453

2010 Census HH 1,417 18,496 52,280

Median HH Income $96,765 $91,254 $80,929

Per Capita Income $44,257 $46,288 $41,169

Average HH Income $114,209 $119,521 $109,753

* # of Employees based on 5 mile radius

537 U.S. 130, Hamilton, NJ 08691

PRICING AND VALUATION MATRIX

NOTES

PROPERTY NAMEBERKSHIRE BANK GROUND LEASE



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PRICING AND VALUATION MATRIXPRICING AND VALUATION MATRIX




6


6

Parent Company Berkshire Hills Bancorp – BBB+ Rating On Senior Debt

2020

#

PROPERTY SUMMARY

OFFERING SUMMARY

#

NOTES


7

OFFERING SUMMARY


8

INVESTMENT

OVERVIEW


OFFERING SUMMARY

▪ 2,465 Square Foot Building (Ground Lease)

▪ Built in 2009 - Situated On 1.13 Acres

▪ Over Nine Years Remaining on Absolute Net Lease

▪ Corporate Guarantee

▪ One Five-Year Renewal Option

▪ 10% Rent Increases Every Five Years

▪ Over $91,000,000 In Deposits

▪ Courtyard By Marriott Being Developed Directly Across Highway

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to exclusively list for sale a 2,465 square foot single tenant Berkshire Bank Ground Lease located in Hamilton

Township, (Mercer County) New Jersey. Located on 1.13 acres, Berkshire Bank has about nine years remaining on their absolute net lease.

Berkshire Bank has one five-year option with a current rent of $193,601, including 10% increases every five years. Berkshire Bank has been

established in this location since 2009, and the lease is corporately guaranteed. Berkshire Bank’s parent company, Berkshire Hills Bancorp,

has a BBB+ rating on senior debt. Deposits at this branch exceed $91,000,000.

Berkshire Bank is situated on Route 130 northbound (33,000+ VPD). The site, which was formerly The Shoppes At Hamilton, is currently

undergoing a redevelopment. Behind the subject property, a 170,000 +/- square foot warehouse distribution center is planned for development

including parking for 180 cars. Directly across Route 130, a Courtyard by Marriott is currently being developed with expected 2020 completion.

The subject property will be on a separate tax lot sold as a condo position, a condo association is currently being set up.

Within a five mile radius of Hamilton, the average household income is $104,029 among the 142,709 individuals who resides within a five mile

radius of the subject property.

The asking price of $3,300,000 represents a 5.87% cap rate.

INVESTMENT OVERVIEW

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12

TENANT PROFILES


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Berkshire Bank

Berkshire Bank is a bank headquartered in Boston, Massachusetts. It is

a subsidiary of Berkshire Hills Bancorp, a bank holding company. The

bank operates 113 branches in New England, New York, and the Mid-

Atlantic, and is the largest regional bank headquartered in

Massachusetts. The bank acquired Woronoco Savings Bank in 2005,

Factory Point National Bank in 2007, Rome Savings Bank in April

2011, Legacy Banks in July 2011, Connecticut Bank & Trust Company

in April 2012, Beacon Federal Bank in May 2012, Hampden Bank in

April 2015, First Choice Bank in December 2016, and Commerce Bank

& Trust Company in October 2017.

General Information

Tenant Name Berkshire Bank

Website www.berkshirebank.com

Parent Company N/A

Headquartered Boston, MA

Rentable Square Feet 2,465 SF

Percentage of RBA 100%

Lease Commencement 5/30/2009

Lease Expiration 5/31/2029

No. of Locations 113

#

CLOSE PROXIMITY TO:

537 U.S. 130, Hamilton, NJ 08691

▪ Ground Lease Position – Condo Interest

▪ Over Nine Years Remaining on Absolute Net

Lease

▪ One Five-Year Renewal Option

▪ Over $91 Million in Deposits

▪ 10% Increases Every Five Years

Hamilton Township is located in Mercer

County, New Jersey. The major roads that cut

through the township are the New Jersey

Turnpike (Interstate 95), Interstate 295,

Interstate 195, U.S. Route 130, U.S. Route

206, U.S. Route 33, County Road 524, Count

Road 533, and County Road 535. New Jersey

Transit offers train and bus service in the

township. The Hamilton Train Station offers

service to New York Penn Station and the

Trenton Train Station on the Northeast

Corridor Line. NJ Transit offers bus service in

the township to Philadelphia on the 409 route

and to Trenton on the 601, 603, 606, 607,

608, and 608 Routes.

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX




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LOCATION OVERVIEW

#

537 U.S. 130, Hamilton, NJ 08691

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX




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REGIONAL AND LOCAL MAP

AERIAL PHOTO


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SUBJECT PROPERTY

Senior Living

Facility

Over 33,000

VPD

PROPERTY PHOTO


14

PROPERTY PHOTO


15

PROPERTY PHOTO


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PROPERTY PHOTO


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PROPERTY PHOTO


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SITE PLAN


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Hamilton Tap & GrillBerkshire Bank

SITE PLAN


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Berkshire BankHamilton Tap & Grill


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MARKET

OVERVIEW

OVERVIEW

TRENTON

DEMOGRAPHICS

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ECONOMY

METRO HIGHLIGHTS

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

HAMILTON TAP & GRILL

Housing the capitol of New Jersey, the market is a hub for the state government

as well as a center for learning, manufacturing and biotechnology. Encompassing

all of Mercer County, the Trenton metro is home to 373,000 people. The area’s

many colleges and universities, led by Princeton, provide employers with a well-

educated labor pool, as 41 percent of residents hold bachelor’s degrees,

compared with 30 percent for the nation.

URBAN ENTERPRISE ZONEPortions of Trenton are part of an urban enterprise zone, which provides

benefits to encourage employment and a reduced sales tax on retail goods.

STATE CAPITOLThe government is the largest employer in the city, providing jobs for more than

20,000 workers.

CULTURAL MUSEUMS AND SITESThe metro is home to several monuments and museums, focusing on the

Revolutionary War, World War I and local natural history.

▪ An expanding biotechnology corridor is underpinned by Danish multinational pharmaceutical giant

Novo Nordisk. The company is based in Plainsboro, New Jersey, just north of Trenton.

▪ Healthcare remains a major driver of the local economy, boosted by Capital Health Medical Center

and St. Francis Medical Centers, which provide thousands of jobs.

▪ The local manufacturing industry contributes a significant number of positions, primarily at companies

like the Hibbert Group, Hutchinson Industries and Marshal Industrial Technologies.

▪ Public and private partnerships providing community services for the state of New Jersey are

significant job creators in the local economy

373K

2019POPULATION:

137K

2019HOUSEHOLDS:

38.7

2019MEDIAN AGE:

$82,700

2019 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

38.1U.S. Median:

$60,8001.4%

Growth2019-2024*:

1.0%

Growth2019-2024*:

NATIONAL NET-LEASED RETAIL REPORT

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PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2019 Experian

Created on March 2020

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Population 3,565 51,880 144,918

▪ 2018 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2018 Estimate 4,757 47,468 120,207

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2023 Projection

Total Households 1,400 19,930 54,242

▪ 2018 Estimate


Average (Mean) Household Size 2.55 2.47 2.62

▪ 2010 Census


▪ 2000 Census


▪ Occupied Units

2023 Projection 1,400 19,930 54,242

2018 Estimate 1,360 19,808 55,146

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2018 Estimate

$150,000 or More 19.70% 20.34% 17.22%

$100,000 - $149,000 26.36% 22.22% 19.82%

$75,000 - $99,999 15.10% 15.77% 15.17%

$50,000 - $74,999 13.54% 16.28% 17.09%

$35,000 - $49,999 12.38% 10.30% 10.97%

Under $35,000 12.91% 15.07% 19.73%

Average Household Income $109,877 $114,018 $104,660

Median Household Income $93,352 $87,922 $78,433

Per Capita Income $42,626 $44,283 $39,350

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure

$91,358 $89,046 $84,431

▪ Consumer Expenditure Top 10 Categories

Housing $28,655 $27,989 $26,623

Shelter $18,318 $17,938 $17,118

Transportation $13,687 $13,171 $12,187

Personal Insurance and Pensions $10,554 $10,082 $9,297

Food $8,612 $8,267 $7,774

Health Care $6,595 $6,270 $5,638

Utilities $5,823 $5,564 $5,203

Education $3,258 $3,083 $2,892

Entertainment $3,025 $2,958 $2,786

Cash Contributions $2,409 $2,282 $2,041

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2018 Estimate Total Population 3,416 50,424 141,028

Under 20 17.42% 20.35% 23.81%

20 to 34 Years 14.94% 20.79% 20.26%

35 to 39 Years 4.15% 5.38% 6.43%

40 to 49 Years 12.79% 12.78% 13.61%

50 to 64 Years 28.55% 22.07% 20.82%

Age 65+ 22.16% 18.62% 15.08%

Median Age 50.41 43.07 39.63

▪ Population 25+ by Education Level

2018 Estimate Population Age 25+ 2,602 35,170 96,639

Elementary (0-8) 1.91% 1.67% 3.52%

Some High School (9-11) 5.13% 4.86% 6.02%

High School Graduate (12) 35.44% 30.36% 31.85%

Some College (13-15) 21.79% 20.46% 19.61%

Associate Degree Only 7.39% 8.65% 7.47%

Bachelors Degree Only 17.07% 22.06% 20.01%

Graduate Degree 10.69% 11.27% 10.47%

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Income

In 2019, the median household income for your selected geography is

$78,433, compare this to the US average which is currently $58,754.

The median household income for your area has changed by 38.38%

since 2000. It is estimated that the median household income in your

area will be $91,553 five years from now, which represents a change

of 16.73% from the current year.

The current year per capita income in your area is $39,350, compare

this to the US average, which is $32,356. The current year average

household income in your area is $104,660, compare this to the US

average which is $84,609.

Population

In 2019, the population in your selected geography is 141,028. The

population has changed by 9.39% since 2000. It is estimated that the

population in your area will be 144,918.00 five years from now, which

represents a change of 2.76% from the current year. The current

population is 49.68% male and 50.32% female. The median age of the

population in your area is 39.63, compare this to the US average

which is 37.95. The population density in your area is 1,792.88 people

per square mile.

Households

There are currently 52,478 households in your selected geography.

The number of households has changed by 8.37% since 2000. It is

estimated that the number of households in your area will be 54,242

five years from now, which represents a change of 3.36% from the

current year. The average household size in your area is 2.62

persons.

Employment

In 2019, there are 57,700 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

67.47% of employees are employed in white-collar occupations in this

geography, and 32.48% are employed in blue-collar occupations. In

2019, unemployment in this area is 3.04%. In 2000, the average time

traveled to work was 28.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

69.69% White, 13.64% Black, 0.10% Native American and 5.97%

Asian/Pacific Islander. Compare these to US averages which are:

70.20% White, 12.89% Black, 0.19% Native American and 5.59%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 17.75% of the current year

population in your selected area. Compare this to the US average of

18.01%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $257,408 in 2019,

compare this to the US average of $201,842. In 2000, there were

36,355 owner occupied housing units in your area and there were

12,069 renter occupied housing units in your area. The median rent at

the time was $665.

Source: © 2019 Experian

DEMOGRAPHICS

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market positioning and pricing analysis...households by expenditure 1 miles 5 miles total average...

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