Stuart Conston 610.645.7700 x105 [email protected]Ed Ginn 610.645.7700 x101 [email protected]Equity Retail Brokers • 531 W. Germantown Pike, Suite 103 • Plymouth Meeting • PA 19462 • (office) 610.645.7700 • equityretailbrokers.com NEW CONSTRUCTION *Photo not of subject property. Professional Photos will be taken. OFFERING MEMORANDUM - QUICKCHEK | RARITAN, NJ | NEW YORK METRO 119 N Route 202, Raritan, Somerset County, NJ 08869 SET TO OPEN SUMMER 2018
This report and any attachments to it contain information from Equity Retail Brokers, Inc. which is confidential and privileged. Some information may have been obtained from sources considered to be reliable, but Equity Retail Brokers, Inc. makes no representations and/or warranties, expressed or implied, as to the accuracy of the information. All the information is also subject to market conditions, the state of the economy, especially the economy as it relates to realestate is subject to volatility. Equity Retail Brokers, Inc is licensed in PA, NJ, & DE.
Equity Retail Brokers | 531 W. Germantown Pike, Ste 103 | Plymouth Meeting, PA 19462 | T: 610.645.7700 | www.equityretailbrokers.com
Executive Summary & Investment Highlights
QUICKCHEK | 119 N Route 202, Raritan, Somerset County, NJ 08869
EXECUTIVE SUMMARY
Equity Retail Brokers is pleased to offer for sale to qualified investors an opportunity to
acquire a new QuickChek Convenience Store under construction in Raritan, NJ. Raritan is
located in Somerset County, Northern New Jersey, approximately 50 minutes Southwest
of New York City, and is part of the New York Metropolitan Area. This asset sits on
approximately 1.5 acres and is expected to open in July 2018.
QuickChek signed a 20 year, absolute net corporate ground lease with 10% rent escalations
every five years and in the subsequent four, 5-year renewal options. The lease is backed by
a corporate guarantee from QuickChek Corporation, a privately-owned company with over
150 retail locations throughout New Jersey and New York. There are absolutely no landlord
responsibilities for operating or maintaining, or capital expenses related to the property.
The subject property sits at the Somerville Circle, at the junction of the highly trafficked
US Hwy. Route 202 & US Hwy. Route 206, with over 93,000 vehicles per day along Route
202 and over 32,000 vehicles per day along Route 206, and is part of the Bridgewater/
Somerville super regional retail market. The property is conveniently located with access
from I-287 and US Hwy Route 22, with over 140,000 vehicles per day along I-287 and over
102,000 vehicles per day along Route 22.
The property sits across from the Somerset Shopping Center, containing 218,000 SF of
retail stores, and the Somerville Circle Shopping Center, containing 150,000 SF, and which
both contain numerous national Jr. box retailers. The property is close to the Bridgewater
Commons super regional enclosed shopping mall containing over 1 million SF anchored by
Bloomingdales, Lord & Taylor, Macy’s, AMC Theatres and 160 retailers. Also in the market
area south of the property is Bridgewater Towne Center anchored by Wegman’s, Home
Depot, and other major jr. box retailers.
STRONG CORPORATE TENANT
Tenant: QuickChek Corporation.
Corporate Guarantee; Approximately 150 Stores in New Jersey and New York.
STABLE INCOME
Brand new construction QuickChek estimated opening July, 2018.
20 Years on primary term, with options extending an additional 20 years.
10% Rental Increases every five years throughout the lease term.
Absolute NNN Ground Lease - No Landlord Responsibilities.
Multi-million dollar capital investment by tenant in the property.
STRONG RETAIL LOCATION
Highly visible location at the junction of strongly trafficked US Hwy. Route 202 & US Hwy. Route 206, with entrances from both Route 202 and 206.
Excellent Traffic Counts: over 93,000 vehicles per day along Route 202 and over 32,000 vehicles per day along Route 206.
Conveniently located with access from I-287 and US Hwy Route 22, with over 140,000 vehicles per day along I-287 and over 102,000 vehicles per day along Route 22.
Strong Demographics: Within 5 miles radius: over 115,000 population; Avg. HH Income over $130,000; plus daytime population over 119,000.
Bridgewater/Somerville Super Regional Retail Market: Over 2.2 million sq. ft. of retail space: Nearby tenants in the retail market include Wegman’s, Home Depot, Christmas Tree Shops, Staples, Petco, Barnes & Noble, Best Buy, DSW, TJ Maxx, plus the 1 Million SF Bridgewater Commons super regional enclosed shopping mall anchored by Bloomingdales, Macys, Lord & Taylor, AMC Theatres and 160 specialty stores.
INVESTMENT HIGHLIGHTS
Equity Retail Brokers | 531 W. Germantown Pike, Ste 103 | Plymouth Meeting, PA 19462 | T: 610.645.7700 | www.equityretailbrokers.com
TERM ANNUAL RENT MONTHLY RENT
Years 1-5 $450,000.00 $37,500.00
Years 6-10 $495,000.00 $41,250.00
Years 11-15 $544,500.00 $45,375.00
Years 16-20 $598,950.00 $49,912.50
Years 21-25 (Option 1) $658,845.00 $54,903.45
Years 26-30 (Option 2) $724,729.50 $60,394.13
Years 31-35 (Option 3) $797,202.45 $66,433.54
Years 36-40 (Option 4) $876,922.70 $73,076.89
PRICE NET OPERATING INCOME CAP RATE
$9,375,000 $450,000 4.8%
RENT SCHEDULE
Financial Overview
QUICKCHEK | 119 N Route 202, Raritan, Somerset County, NJ 08869
LEASE SUMMARY
LEASE TYPE Triple Net (NNN) Ground Lease
INITIAL LEASE COMMENCEMENT Estimated July, 2018
LEASE EXPIRATION DATE 20 Years Following Commencement Date
TERM REMAINING 20 Year
RENEWAL OPTIONS Four (4) 5-Year Options
RENTAL INCREASE 10% Every Five Years
ROOF, STRUCTURE & PARKING LOT Tenant
REPAIRS & MAINTENANCE Tenant
PROPERTY TAXES Tenant
COMMON AREA MAINTENANCE Tenant
INSURANCE Tenant
UTILITIES Tenant
Years 1-5$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Years 6-10 Years 11-15 Years 16-20 Years 21-25 Years 26-30 Years 31-35 Years 36-40
Options
Annu
al R
ent 4.8%
CAP
5.28%CAP
5.81%CAP
6.39%CAP
7.03%CAP
7.73%CAP
8.5%CAP
9.35%CAP
This report and any attachments to it contain information from Equity Retail Brokers, Inc. which is confidential and privileged. Some information may have been obtained from sources considered to be reliable, but Equity Retail Brokers, Inc. makes no representations and/or warranties, expressed or implied, as to the accuracy of the information. All the information is also subject to market conditions, the state of the economy, especially the economy as it relates to realestate is subject to volatility. Equity Retail Brokers, Inc is licensed in PA, NJ, & DE.
Equity Retail Brokers | 531 W. Germantown Pike, Ste 103 | Plymouth Meeting, PA 19462 | T: 610.645.7700 | www.equityretailbrokers.com
Property Overview
QUICKCHEK | 119 N Route 202, Raritan, Somerset County, NJ 08869
This report and any attachments to it contain information from Equity Retail Brokers, Inc. which is confidential and privileged. Some information may have been obtained from sources considered to be reliable, but Equity Retail Brokers, Inc. makes no representations and/or warranties, expressed or implied, as to the accuracy of the information. All the information is also subject to market conditions, the state of the economy, especially the economy as it relates to realestate is subject to volatility. Equity Retail Brokers, Inc is licensed in PA, NJ, & DE.
Equity Retail Brokers | 531 W. Germantown Pike, Ste 103 | Plymouth Meeting, PA 19462 | T: 610.645.7700 | www.equityretailbrokers.com
QUICKCHEK CORPORATION
QuickChek is a leader in food services with an exceptional fresh coffee and handcrafted
fresh food program that has been voted the best in America in a national consumer survey.
QuickChek stores provide one-stop shopping, offering a wide variety of grocery and
market items including fresh baked goods from an in-store bakery and excellent customer
service provided by locally hired team members. The company continues to expand its
mobile ordering menu to meet the needs of today’s on-the-go consumer.
Modern by industry standards, the privately-held company maintains bright clean stores,
well-lighted fuel stations and parking lots with wide, easy-to-use entrances and exits that
add to a shopper’s convenience. Amenities include no-fee ATMs which provide additional
added value to consumers; eight gasoline pumps offering high-quality fuel at value prices.
The QuickChek story began in 1888 when Durling Farms was founded to serve the central
New Jersey region. Over the following 75 years, the Durling Farms brand grew to become
synonymous with quality milk and dairy products delivered fresh to the customer’s door.
In 1967, Carlton C. Durling founded QuickChek to ensure that loyal Durling Farms customers
had a neighborhood shopping destination not only for their milk but for a full range of
deli and other food products. Much more than a typical convenience store, QuickChek has
grown to be the market leader in the New York metropolitan area through innovation and
its focus on fresh food, fresh coffee, fast fuel and friendly people --- the neighborhood
shopping destination close to where you live and work.
Guided by the principles of Total Customer Dedication, we are committed to delivering
what the customer wants. Continuing to define the term “fresh convenience,” QuickChek
remains the market leader by providing one-stop shopping, offering value and a wide
variety of grocery and market items to meet your needs.
Privately-held, QuickChek has grown from its very first location in Dunellen, N.J. to
operating 150 + stores with more than 4,000 team members throughout New Jersey
and New York. QuickChek has been named one of the 50 Fastest Growing Companies by
NJBIZ as well as one of the magazine’s Top 100 privately-held companies in New Jersey
in 2010 and 2011. Among its many industry honors, QuickChek was voted as having
the Best Overall Beverage Quality (coffee) and Best Food Quality in America in a 2014
Technomic survey. The company was awarded the Hot Beverage Innovator Gold Medal
in 2012 and in 2014 by Convenience Store News magazine and received the magazine’s
Foodservice Innovator Silver Medal award in 2013.
Tenant Overview
QUICKCHEK | 119 N Route 202, Raritan, Somerset County, NJ 08869
HEADQUARTERS:
3 Old Highway 28Whitehouse, NJ 08889
908.534.2200
www.quickchek.com
202
202
206
22
22
287
287
Easton Turnpike
Easton Turnpike
32,753 ADT
84,10
8 ADT
93,421 ADT
102,359 ADT
41,040 ADT
32,753 ADT
84,10
8 ADT
93,421 ADT
102,359 ADT
41,040 ADT
140,258 ADT
140,258 ADT
PROMENADE
CHIMNEY ROCK
SITE
SOMERVILLE CIRCLE SC
BRIDGEWATER TOWNE CENTER
SOMERSET SHOPPING CENTER
BRIDGEWATER COMMONS
NNNNNNNNNNNNAerial Source: Google Earth Pro & Traffic Count Source: NJ DOT (‘15, ‘16, ‘17)
Compliments of: Equity Retail Brokers 531 W. Germantown Pike, Ste 103 Plymouth Meeting, PA 19462 Main 610.645.7700 Fax 610.645.5454 www.equityretailbrokers.com
BRIDGEWATER/SOMERVILLE MARKET AERIALRoute 202 | Somerset County, NJ
04/18
MHMH
MH
MH
WV
PROPOSED 1-STORY RETAIL SPACE12,193 S.F.
LOADING ZONE
(8 OUTDOOR SEATS)(13 INDOOR SEATS)
(5,496 SF)
PROPOSED
1-STORY
RETAIL(S)
(12,193 SF)
ZONE B-3
ZONE R-3
D
ZONE B-3
ZONE R-3
LOADING ZONELOA
SITEMH
MH
MH
WV
ZONE B-3ZONE B-
ZONE R-3ZONE R-
Z
ZProposed 1-Story Retail(s) 12,193 SF
Route 202 9
3,421 ADT
Route 206 32,753 ADTRoute
202 93,421 A
DT
Route 206 32,753 ADT
Aerial Source: Google Earth Pro & Traffic Count Source: NJ DOT (‘16, ‘17)
NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN
Compliments of: Equity Retail Brokers 531 W. Germantown Pike, Ste 103 Plymouth Meeting, PA 19462 Main 610.645.7700 Fax 610.645.5454 www.equityretailbrokers.com 02/18
RARITAN SITE AERIALQuickChek - Route 202 | Somerset County, NJ
This report and any attachments to it contain information from Equity Retail Brokers, Inc. which is confidential and privileged. Some information may have been obtained from sources considered to be reliable, but Equity Retail Brokers, Inc. makes no representations and/or warranties, expressed or implied, as to the accuracy of the information. All the information is also subject to market conditions, the state of the economy, especially the economy as it relates to realestate is subject to volatility. Equity Retail Brokers, Inc is licensed in PA, NJ, & DE.
Equity Retail Brokers | 531 W. Germantown Pike, Ste 103 | Plymouth Meeting, PA 19462 | T: 610.645.7700 | www.equityretailbrokers.com
LOCATION OVERVIEW - RARITAN BOROUGH, NJ
Raritan Borough is located in Somerset County, NJ. The borough borders
Bridgewater Township, Hillsborough Township and Somerville. The major roadways
through Raritan include US Route 202, US Route 206, State Hwy. Route 28, and
County Route 567.
HIGHLIGHTS OF SOMERSET COUNTY, NJ
• Strong Demographics. The population of Somerset County is approximately
334,511 residents, and is projected to increase by 3.6% from 2015-2020. It is the
13th largest county in the state, in terms of population.
• Somerset County is ranked the 3rd wealthiest county in New Jersey, and among
the fifteen wealthiest counties in the U.S., with $104,478 Median Household
Income. Median Home Value is $474,657, 3rd largest in New Jersey.
• Largest employers in Somerset County includes:
• Located close to New York. Somerset County is located approximately 50 minutes (44 miles) Southwest from New York City, and is part of the Newark, NJ–PA Metropolitan
Division of the New York–Newark–Jersey City, NY–NJ–PA Metropolitan Statistical Area. Because of its central location, Somerset County is an easy drive to New York City,
Philadelphia, and the Jersey Shore.
• Transportation. Somerset County is approximately 33 minutes from Newark Liberty International Airport, and is easily accessible from New York City, Newark NJ, and Newark
Liberty International Airport by car, and NJ Transit train and bus.
QUICKCHEK | 119 N Route 202, Raritan, Somerset County, NJ 08869
• Sanofi US• Verizon Business• Janssen Research & Dev. LLC• Johnson & Johnson• Chubb Group of Insurance Co
• Pfizer Inc• Ortho-McNeill Pharmaceuticals• Northwestern Pacific Indemnity• Executive Risk Indemnity• Met Life
Location Overview
This report and any attachments to it contain information from Equity Retail Brokers, Inc. which is confidential and privileged. Some information may have been obtained from sources considered to be reliable, but Equity Retail Brokers, Inc. makes no representations and/or warranties, expressed or implied, as to the accuracy of the information. All the information is also subject to market conditions, the state of the economy, especially the economy as it relates to realestate is subject to volatility. Equity Retail Brokers, Inc is licensed in PA, NJ, & DE.
Equity Retail Brokers | 531 W. Germantown Pike, Ste 103 | Plymouth Meeting, PA 19462 | T: 610.645.7700 | www.equityretailbrokers.com
QUICKCHEK | 119 N Route 202, Raritan, Somerset County, NJ 08869
Location Overview Map
SITE
1-3-5 Mile Radius
This report and any attachments to it contain information from Equity Retail Brokers, Inc. which is confidential and privileged. Some information may have been obtained from sources considered to be reliable, but Equity Retail Brokers, Inc. makes no representations and/or warranties, expressed or implied, as to the accuracy of the information. All the information is also subject to market conditions, the state of the economy, especially the economy as it relates to realestate is subject to volatility. Equity Retail Brokers, Inc is licensed in PA, NJ, & DE.
Equity Retail Brokers | 531 W. Germantown Pike, Ste 103 | Plymouth Meeting, PA 19462 | T: 610.645.7700 | www.equityretailbrokers.com
QUICKCHEK | 119 N Route 202, Raritan, Somerset County, NJ 08869
Location Overview Map
SITE
1 Mile Radius
Equity Retail Brokers | 531 W. Germantown Pike, Ste 103 | Plymouth Meeting, PA 19462 | T: 610.645.7700 | www.equityretailbrokers.com
Demographics
Equity Retail Brokers | 531 W. Germantown Pike, Ste 103 | Plymouth Meeting, PA 19462 | T: 610.645.7700 | www.equityretailbrokers.com
Confidentiality & Disclaimer
The information contained in this Offering Memorandum is proprietary and strictly confidential. It is furnished solely for the purpose of review by a prospective purchaser of the subject property and is not to be used for any other purposes or made available to any person without the expressed written consent of the Seller or Equity Retail Brokers. The information in this prospectus has been compiled from sources deemed to be reliable. However, neither the information nor the reliability of their sources are guaranteed by Equity Retail brokers or the Seller. Neither Equity Retail Brokers nor the Seller have verified, and will not verify, any of the information contained herein, nor has Equity Retail Brokers or the Seller conducted any investigation regarding the information contained herein. Neither Equity Retail Brokers nor the Seller makes any representation or warranty whatsoever regarding the accuracy or completeness of the information provided herein.
A prospective purchaser must make its own independent investigations, projections, and conclusions regarding the acquisition of the property without reliance on this or any other confidential information, written or verbal, from Equity Retail Brokers or the Seller. This Confidential Offering Memorandum does not constitute an offer to accept any investment proposal, but is merely a solicitation of interest with respect to the investment described herein. This Confidential Offering Memorandum does not constitute an offer of security.
Prospective purchasers are recommended to seek professional advice. This includes legal, tax, environmental, engineering and other as deemed necessary relative to a purchase of this property. All the information is also subject to market conditions, the state of the economy, especially the economy as it relates to real estate is subject to volatility. The Owner expressly reserves the right, at its sole discretion, to reject any offer to purchase the property or to terminate any negotiations with any party, at any time, with or without written notice. The Seller and Equity Retail Brokers reserve the right to negotiate with one or more prospective purchasers at any time. Only a fully-executed Real Estate Purchase Agreement, approved by Seller, shall bind the property. A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or the information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in a fully executed Real Estate Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against the Seller or Equity Retail Brokers or any of their affiliates, officers, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
Each prospective purchaser and/or broker proceeds at its own risk.Equity Retail Brokers, Inc is licensed in PA, NJ, & DE.
Ed GinnEquity Retail Brokers, Inc.531 W. Germantown Pike, Suite 103Plymouth Meeting, PA 19462Office 610.645.7700 x101Fax [email protected] Ginn is a licensed real estate salesperson in PA & NJ.
Stuart ConstonEquity Retail Brokers, Inc.531 W. Germantown Pike, Suite 103Plymouth Meeting, PA 19462Office 610.645.7700 x105Fax [email protected] Conston is a licensed real estate salesperson in PA & NJ.
Agents
CONFIDENTIALITY STATEMENT | DISCLAIMERQUICKCHEK | 119 N Route 202, Raritan, Somerset County, NJ 08869
Equity Retail Brokers | 531 W. Germantown Pike, Ste 103 | Plymouth Meeting, PA 19462 | T: 610.645.7700 | www.equityretailbrokers.com
About Us
Expert Guidance. Prompt Solutions.Equity Retail Brokers – Real Estate Experts
Local Relationships + Nationwide Coverage = Maximum Value
Equity Retail Brokers
We have a dedicated team ready to help you and your company with the leasing and sale of your commercial real estate.
Our hands-on approach, property specific marketing techniques, and proven transparent marketing methods lead to an expeditious conclusion to assignments.
Our approach is to properly analyze the situation, assist in determining the economics of the real estate transaction, implement a pre-approved marketing strategy, provide consistent reliable reporting, produce offers, give guidance on the offers produced, assist in the closing process, and close a transaction.
Retail Brokers Network
Equity Retail Brokers is an active member of the Retail Brokers Network. This association gives us a keen understanding of the commercial real estate market and access to thousands of buyers, users, and tenants that can close on a transaction. The RBN has qualified retail specialists in over 75 independent commercial real estate offices located throughout North America and Puerto Rico. www.retailbrokersnetwork.com
Below is partial list of companies that have worked with Equity Retail Brokers:
Wells Fargo, Alliance Bank Corp, Inc. of Pennsylvania (ALLB), American Financial Realty Group (AFRT), Commerce Bank, Ambler Savings Bank, Washington Savings Bank, VIRIVA, KIMCO Realty, Kin Properties, and the Inland Real Estate Group of Companies, Inc., Autozone, Safeway, Super Valu, Office Depot and more.
