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All information furnished herein is deemed reliable and is submitted subject to errors, omissions, change of terms, and conditions prior sale or withdrawal without notice. We do not represent or guarantee the accuracy of any information and are not liable for any reliance thereon.
Questions? Call Swali – 732-549-1998 xt 166
3 Property Portfolio – College Ave New Brunswick Campus
Umang Swali of KWC - Power Moves Team is proud to present an opportunity to purchase a portfolio of
3 cash cow properties housing a total of 31 students on the Rutgers New Brunswick College Ave
Campus. Since the early 2000s, the portfolio has held a 0% vacancy rate. Rents have increased 2.5%
or greater year over year, leasing up a record pace. The Rutgers New Brunswick campus has 42,000
students enrolled. Rutgers University Housing only has 16,000 beds; there is a shortfall in supply of off
campus housing. The situation is undersupplied such that RU Housing hosts a lottery for student housing.
Since 2011, 300-600 students were housed in hotels 15 minutes from campus due to the lack of housing
supply. These three properties continue to benefit from rent increases, and no vacancy. 5 Out of the 6
Units in this portfolio have already been rented at higher rents for the upcoming 2016-2017 term.
Moreover, 2 of 3 of these lots are adjacent, creating potential for a future development opportunity. The
strength of this deal lies in the location, strong cash flow, reliably tenancy, and upside in future land
value. A lender is ready to finance this purchase with 25% down for a creditworthy sponsor.
$2,471,000 Purchase Price
NOI $176,831
Cap Rate 7.16%
Cash on Cash Returns: 10.74%
Lender Ready to Finance With
25% down
Long Term Tenancy
Leased Through June 2017
Fully Leased 6 months prior to
expiration
Discounted from $2,704,938 If
purchased as a package
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All information furnished herein is deemed reliable and is submitted subject to errors, omissions, change of terms, and conditions prior sale or withdrawal without notice. We do not represent or guarantee the accuracy of any information and are not liable for any reliance thereon.
Questions? Call Swali – 732-549-1998 xt 166
167 Hamilton Street (CLICK) 171 Hamilton Street (CLICK)
3 Family Unit – 11 Total Students 1 Family Unit – 6 Total Students
Rent Unit 1: $1,306
Rent Unit 2: $2,163 Total Rent: $4,066 (2015-2016)
Rent Unit 3: $3,520
Total Rent : $6989 (2015-2016)
173 Hamilton Street (CLICK)
2 Family Unit – 14 Student Occupants
Rent Unit 1: $2,524
Rent Unit 2: $6,022
Total Rent: $8,546
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All information furnished herein is deemed reliable and is submitted subject to errors, omissions, change of terms, and conditions prior sale or withdrawal without notice. We do not represent or guarantee the accuracy of any information and are not liable for any reliance thereon.
Questions? Call Swali – 732-549-1998 xt 166
INVESTMENT SUMMARY – STUDENT HOUSING
Price: $2,471,000
Net Operating Income: $176,831
Acquisition Cap Rate: 7.16%
CASH ON CASH RETURNS: 10.74%
COMMERCIAL LENDER READY TO FINANCE
Housing 31 Students
3 Properties
One Three (3) Unit property
One Two (2) Unit Property
One One (1) Unit Unit Property
All Legal, Registered Rents with the City
of New Brunswick
Well-Maintained Assets
Private Garbage Removal
Updated Kitchens & Bathrooms, recessed
lighting
New roofs and Windows installed in early
2000s
In House Washer / Dryer in most units
Dishwasher in most units
No Oil Tanks
Steam & Gas Heat
Private Backyards
Private Basement
None of the properties are in a flood zone
Separately Metered
Tenants Pay All Utilities including Sewer,
Gas, Electric, Etc.
Fully Leased through June 2016
Every Year, Portfolio Leases up 6 months
before Expiration
In 2014, 2015 – Portfolio Leased up 6
Months Before Expiration (Fastest on
Record)
4.1% Rent Increase June 2015-2016 Year
<10 Minute walk to Lecture Halls,
Student Center, College Ave Gym,
Restaurants and Amenities
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All information furnished herein is deemed reliable and is submitted subject to errors, omissions, change of terms, and conditions prior sale or withdrawal without notice. We do not represent or guarantee the accuracy of any information and are not liable for any reliance thereon.
Questions? Call Swali – 732-549-1998 xt 166
Executive Summary
We are proud to present this opportunity to purchase a portfolio of 3 cash flowing properties
located on Rutgers University’s College Avenue Campus in New Brunswick, New Jersey. The
portfolio is comprised of one, two and three family units, housing a total of 31 students. The
properties are located less than 10 minutes walking distance to College Ave, Robert Wood Johnson
Hospital, Rutgers University Facilities, Lecture Halls, Bookstores, Student Center, Buses, Gyms,
NJ Transit, Restaurants, and the arts district of New Brunswick. The majority of the units feature
in-house washer/dryer, dishwasher, steam/gas heat, and private garbage removal. All of the
properties have been fully occupied with a 0% vacancy rate for over 15 years. Going forward,
the landlord has signed leases for the June 2016-2017 school year. This turn-key stable investment
opportunity is a cash cow with upside potential as the Rutgers Campus expands with the growing
Student Enrollment at Rutgers New Brunswick.
The properties are primarily located within the 6th ward of New Brunswick. While all of the
properties are income producing, it is important to note two of the three properties are adjacent to
one another, and the third offered property is separated by just one other owner. As Rutgers
University expands its campus to accommodate its rapid growth, the land these properties are on
may increase in desirability.
www.powermovesproperties.com
All information furnished herein is deemed reliable and is submitted subject to errors, omissions, change of terms, and conditions prior sale or withdrawal without notice. We do not represent or guarantee the accuracy of any information and are not liable for any reliance thereon.
Questions? Call Swali – 732-549-1998 xt 166
Fastest Lease Up Since 2009
All of the five properties within this portfolio
have signed leases in place for the June 2015-
May 2016 year. The entire portfolio was
leased up, at higher rents by November 15,
2014, seven months before lease
expiration. The Landlord states that
normally they all lease up by March, three
months before expiration. This year set a
record for fastest lease up period. Moreover,
the rent roll is to increase by 2% starting June,
2015.
Lender Ready To Finance
Given the portfolio’s stability and
irreplaceable location, there is a lender ready
to finance this portfolio purchase. The lender
is offering fixed rate financing with recourse
and non-recourse options. Please review the
“Buy Side Analysis” and “Key Facts”
(pages 8-10 for details).
Growth & Demand Drivers
Landlords in the New Brunswick College
Avenue Campus benefit from robust demand
generated by a fast growing student
population. Enrollment in Rutgers University
has increased 14% since 2006.
The university had an increase in enrollment
of 7% from the 2012-2013 school year.
Rutgers received 33,315 applications from
new students and transfer students in 2013
across its three campuses. That is more than
1,700 more than 2012 year and a 5 percent
increase.
The Association for International Educators
awarded Rutgers University with the Simon
Award in the year of 2014. The university has
welcomed international students and scholars
on a record basis each year. Rutgers had a
61% increase in undergraduate
international student enrollment and 13%
increase in graduate international student
enrollment between the 2010-2011 and 2012-
2013 academic years. In 2013-2014, Rutgers
New Brunswick Campus had a 17.6%
increase. This translates to 3,900
international students housed on the New
Brunswick campus as of 2014.
www.powermovesproperties.com
All information furnished herein is deemed reliable and is submitted subject to errors, omissions, change of terms, and conditions prior sale or withdrawal without notice. We do not represent or guarantee the accuracy of any information and are not liable for any reliance thereon.
Questions? Call Swali – 732-549-1998 xt 166
UMDNJ MERGER
In July of 2013, Rutgers University acquired
7 of the 8 colleges run by the University of
Medicine and Dentistry of NJ (UMDNJ).
Accordingly, the number of students at
Rutgers University has grown from 40,000 to
65,000 students from 2010 to 2014, making
it the largest increase in students in the
University’s history.
BIG TEN CONFERENCE
In November 2012, Rutgers was accepted
into the Big 10 Conference. This 14 member
conference is made up of prominent
academic institutions. The conference, which
includes Penn State, Ohio State, University
of Michigan, collectively awards 15% of the
nation’s doctoral degrees. The most popular
conference in the nation has driven a national
spotlight on the University.
EMPLOYMENT CENTER
The City of New Brunswick is buoyed by
many other demand factors including major
employers like Robert Wood Johnson, St
Peters Hospital, Johnson & Johnson,
Research Centers, and the thousands of
employees of the city. New Brunswick
houses employers in the Information
Technology, Banking & Insurance Services,
Real Estate, Legal, and Accounting
Industries.
New Housing Supply
Before 2010, the last time Rutgers built
new housing was in the 1980s. By April
2009, the University was holding lotteries for
students in need of Rutgers Housing. In 2010
and 2011, the university was short 600 dorms
on the College Avenue campus. The students
who did not win the lottery were put in hotel
rooms in Somerset, NJ. The Gateway Center
at Easton Ave & Somerset Street, built by
DevCo, added 192 rental units, 42 condos,
and 60,000 square feet of retail space to the
supply of housing. The entire project sold out
in 2012, including the retail, rentals and the
condominiums. Today, the same
condominiums are selling for 13% higher
than 2012, yielding an average equity
appreciation of 6.5% year-over-year. The
rentals sold out at $1900 per month for
1BR/1BA units. Tenants have to meet
salary requirements of 35X monthly Rent.
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All information furnished herein is deemed reliable and is submitted subject to errors, omissions, change of terms, and conditions prior sale or withdrawal without notice. We do not represent or guarantee the accuracy of any information and are not liable for any reliance thereon.
Questions? Call Swali – 732-549-1998 xt 166
Infrastructure - Transit
The city of New Brunswick is served rail by NJ Transit and Amtrak. With NJTransit, Patrons can
reach New York City within 1 hour, and Philadelphia within 1 hour. The major highway arteries
serving New Brunswick include Route 18, Route 1, Route 27, Interstate 287 and NJ Turnpike. The
Newark International Airport is 40 minutes north by Train or Car. New Brunswick is served by
two major hospitals, including Robert Wood Johnson (on College Ave Campus) and St. Peters
Hospital. The University is served by an extensive bus transportation system, connecting all campus
facilities for students across the campuses with very short commute times for students and faculty.
In September 2013, DevCo broke ground on a new $330,000,000 project, known as the College
Avenue Redevelopment Initiative. This project will add a new Exclusive Honors College, Academic
Building, Honors-Student Dorms, and a Campus Green with a 600-foot Outdoor Screen to broadcast
football games and movies. DevCo will also build new facilities for Rutgers Hillel and the New
Brunswick Theological Seminary. The College Avenue Campus Redevelopment Initiative will
provide long overdue infrastructure improvements along College Avenue and connections between the
new facilities by upgrading utility installments, pedestrian walkways, bike paths, ADA accessibility as
well as other essential and aesthetic streetscape elements.
www.powermovesproperties.com
All information furnished herein is deemed reliable and is submitted subject to errors, omissions, change of terms, and conditions prior sale or withdrawal without notice. We do not represent or guarantee the accuracy of any information and are not liable for any reliance thereon.
Questions? Call Swali – 732-549-1998 xt 166
Key Facts – Hamilton Street - Rutgers Campus Portfolio
Address 167 Hamilton 171 Hamilton 173 Hamilton
Total Monthly Rent $6,989 $4,066 $8,546
Lease Commencement June 1, 2015 June 1, 2015 June 1, 2015
Lease Expiration May 18, 2016 May 18, 2016 May 18, 2016
Number of Students 11 6 14
Legal Occupancy 15 7 17
BR/BA Unit 1 1BR/1BA 3BR/2BA 2BR/1BA
BR/BA Unit 2 4BR/1BA 5BR/2BA
BR/BA Unit 3 5BR/2BA
Number of doubles 4 3 6
Number of Singles 6 0 2
Lot 44 46 47
Block 57 57 57
Lot Size 33’ x 102’ 25’ x 100’ 25’ x 146’
Lot Size (Acreage) 0.0773 acres 0.0574 acres 0.0838 acres
Year Built 1867 1872 1892
Dishwasher N Y Apt 1 NO / Apt 2
Yes
Washer/Dryer in unit N Y Y
Oil Tank N N N
Radiant Heat Y Y Y
AC – Wall Units N Central AC Apt 2 Central AC
Garage N N N
Driveway Y N N
Private Garbage Removal N N N
Water Heater install date (if
available)
Recent Recent Recent
Boilers installation date (if
available)
Recent Recent Recent
Property Survey Available Yes Yes Yes
Video Tour Yes Yes Yes
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All information furnished herein is deemed reliable and is submitted subject to errors, omissions, change of terms, and conditions prior sale or withdrawal without notice. We do not represent or guarantee the accuracy of any information and are not liable for any reliance thereon.
Questions? Call Swali – 732-549-1998 xt 166
Income & Expenses
% of
Gross
167
Hamilton
171
Hamilton
173
Hamilton 2015
Total Monthly Rent
$
6,989
$
4,066
$
8,546 $
19,601
Total Yearly Rent 100%
$
83,868
$
48,792
$
102,552
$
235,212
If Sold As Individual Sales –
Price Per Property
$
964,482
$
561,108
$
1,179,348 $2,704,938
Lease Commencement Jun-15 Jun-15 Jun-15
Lease Expiration May-16 May-16 May-16
Number of Students 11 6 14 Total
Students 31
Legal Occupants Permitted 15 7 17
Operating Expenses
% of
Gross
Property Taxes 15.41% $12,924
$
6,120
$
17,280 $36,324
Snow Removal 0.39% $325 $325 $325 $975
Landscaping 0.48% $400 $400 $400 $1,200
Repairs & maintenance 1.11% $1,150 $800 $750 $2,700
Three Year Fire Safety
Inspection 0.04% $35 $35 $35 $105
Property Management (3%)
(see notes) 3% $2,516 $1,464 $3,077 $7,056
Vacancy Allowance (2%) (see
notes) 2% $1,677 $976 $2,051 $4,704
Gas & Electric (Tenant) 0 $0 $0 $0 $0
Sewer (City Bills LL, Tenant
Pays) 0 $0 $0 $0 $0
Garbage Removal (Private) 0.60% $500 $500 $500 $1,500
Insurance (through June 2015) 1.70% $1,428
$
1,140
$
1,248 $3,816
Total Expenses 24.72% $20,955 $11,760 $25,666 $58,381
Net Operating Income $62,913 $37,032 $76,886 $
176,831
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All information furnished herein is deemed reliable and is submitted subject to errors, omissions, change of terms, and conditions prior sale or withdrawal without notice. We do not represent or guarantee the accuracy of any information and are not liable for any reliance thereon.
Questions? Call Swali – 732-549-1998 xt 166
Buy Side Analysis
Down Payment 25%
Purchase Price (As a Package of three) $ 2,471,000
Down Payment (Equity) - Includes Closing Costs* $657,750
Est Closing Costs (Mortgage Broker, Legal, Inspection, Appr. Env. Etc) $40,000
Mortgage Amount (Debt) $ 1,853,250
Monthly Net Operating Income $14,735.92
Monthly Mortgage (4%, 5/30, Reset) $8,847
Monthly Profit (Cash Flow) $5,889
Yearly Profit (Cash Flow) $70,662
Debt Coverage Ratio 1.67
Cash on Cash Returns 10.74%
The portfolio houses total 31 students (all legal).
Landlord makes 355 day leases, commencing June 1, and ending on May 18.
This Gives Landlord 13 days time to accommodate the space for new tenants.
171 & 173B forced hot air & central air conditioning. 167A, 167B & 173A hot water baseboard.
167C Steam.
None of the properties have oil tanks, as per Landlord.
Community Bank is offering purchase financing with 25% down payment. They also have a
NON-RECOURSE option with a larger down payment
A lender is interested in providing one commercial mortgage for the entire portfolio.
Verbal Terms Quoted
5 years fixed
30 years amortization - reset after 5 years
4% - 4.25% Interest Rate
With 25% down payment, bank requires personal guarantees
Standard environmental, appraisal, commitment fees and prepayment fees involved.
www.powermovesproperties.com
All information furnished herein is deemed reliable and is submitted subject to errors, omissions, change of terms, and conditions prior sale or withdrawal without notice. We do not represent or guarantee the accuracy of any information and are not liable for any reliance thereon.
Questions? Call Swali – 732-549-1998 xt 166
Underwriting Facts
One 3-family, one 2-family and one 1-family properties.
All units pre-leased for the 2015-2016 as well as 2016-2017 school year, 6 months before expiration.
Leases (12 months) Begin June 1, 2014 and expire May 18, 2015
Leases have been signed for June 1, 2015 to May 18, 2016 term
Rent increases every year through its holding period
Property Management (3%) is not an actual expense to Landlord.
Vacancy (2%) is not an actual expense to LL.
The Landlord's ACTUAL Vacancy has been 0% per year since taking ownership (15+ years).
Broker has deducted for conservative underwriting.
All Leases have 1.5 months security deposit
All rents are registered rents with the city of New Brunswick
Landlord Pays extra for private garbage removal on all of the properties.
Tenants Pay All Utilities
LL Collects Water and Sewer Bill and Tenant Reimburses
www.powermovesproperties.com
All information furnished herein is deemed reliable and is submitted subject to errors, omissions, change of terms, and conditions prior sale or withdrawal without notice. We do not represent or guarantee the accuracy of any information and are not liable for any reliance thereon.
Questions? Call Swali – 732-549-1998 xt 166
OFFERING OVERVIEW
We are proud to present you with this stable, cash-flowing investment portfolio in the burgeoning
New Brunswick College Ave Market. The portfolio has held a 0% vacancy rate since ownership,
and is fully leased for the coming school year at increased rents. Moreover, these houses are
adjacent and therefore have future development potential. This investment offers long term upside
while providing reliable cash flows for years to come. A lender has stepped up to the plate to offer
competitive terms on financing the purchase.
Please note* Investors are free to use any source of funding they choose.
PLEASE EMAIL [email protected]
OR CALL 732-549-1998 XT 166 TO CONFIRM AN
APPOINTMENT
Feel free to CALL SWALI with any
questions
732-549-1998 XT 166 Thank you for your time in considering this investment opportunity!
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