Investment Overview

The Geller Group at Marcus & Millichap is pleased to exclusively offer for sale 242 Possum Hollow Road, Monroe Township, New Jersey, a fully occupied, multi-tenant industrial/flex portfolio comprising approximately 46,633 square feet across five buildings on approximately 6.76 acres, at an offering price of $12,500,000. Seller financing is available, providing prospective purchasers with additional flexibility in structuring the acquisition. The property is located within Monroe Township's L-I Light Industrial District and features 20-foot clear heights, 14 drive-in doors, approximately 50 passenger parking spaces, wet sprinkler systems, and fully air-conditioned space. The property is currently 100% leased to eight tenants, generating approximately $783,067 in current annual gross rental income, with pro forma annual gross rent of approximately $813,569. Current average rent is approximately $16.79 per square foot, while the financial analysis identifies approximately $608,711 of current NOI and $636,051 of pro forma NOI. The combination of existing cash flow and contractual rental increases provides investors with established income while upcoming lease expirations create opportunities to reposition lease economics over the ownership period. The portfolio's relatively short lease-duration profile provides a compelling mark-to-market and lease-restructuring opportunity. The proposal calculates a weighted-average remaining lease term of approximately 2.4 years, with a significant portion of the portfolio rolling through 2029. Most leases are structured on a modified-gross basis, with tenants generally paying utilities while ownership retains responsibility for certain property-level operating and capital expenses. The asset is further supported by L-I Light Industrial zoning, which permits uses including assembly and finishing, fully enclosed wholesale, distribution and storage establishments, research laboratories, and business and professional offices. Certain additional uses, including light manufacturing, processing, metal welding and machine shops, are permitted conditionally under the ordinance. This range of allowable uses provides flexibility for future leasing and repositioning. Strategically situated within the Central New Jersey industrial market, 242 Possum Hollow Road offers convenient connectivity to Route 33, Route 130 and the New Jersey Turnpike, providing access throughout Middlesex, Mercer, Monmouth and Ocean counties and the broader New York metropolitan region. At the $12,500,000 offering price, the acquisition equates to approximately $268 per square foot and a 4.87% current cap rate / 5.09% pro forma cap rate based on the proposal's financial analysis. Importantly, seller financing is available, creating the potential for a purchaser to structure the acquisition outside of conventional third-party financing. The proposed terms contemplated consist of an 80% seller note, 20% buyer equity, +/-4.0% interest-only coupon and five-year term, although final financing terms would be subject to negotiation between the buyer and seller.