Investment Overview

Marcus & Millichap is pleased to conduct an evaluation for the owner of The 905 Summit Avenue (block: 43 Lot:22) in Union City, Hudson County, New Jersey. The property is a four-story walk up building with thirteen (13) apartments, comprised of six (6) 1-bedroom/1-bathroom apartments, seven (7) 2-bedroom/1-bathroom apartments and a 6,000 square foot. ground floor retail unit. The property was constructed in 1960 on a 50’x146’ (.168 acre) lot. The unit mix is well suited for Union City’s market demand for larger units as evidenced by the owner’s historical 100% occupancy rate. The building is very well maintained, and several units in the building have been fully renovated with new kitchens and bathrooms. Every unit is separately metered with tenants covering their own cooking gas and electric usage. The landlord pays hot and cold water and sewer for the apartments plus common area electric. The property is located midblock on the northwest side of Summit Avenue between 8th and 10th streets. Summit Avenue is one of the major retail corridors in Hudson County. The property is approximately two miles south of the Lincoln Tunnel, granting tenants easy access to NYC. Union City is the 18th most densely populated city in the country, making it a strong rental market that has successfully captured tenants from New York City, Jersey City, Weehawken and Hoboken because of its better “bang for the buck” and easy access to New York City. All points of interest in New Jersey and New York City are easily accessible via Interstates 495 and 78, the Lincoln Tunnel, Routes 1-9 and 139 all within 2 miles of the property. Tenants in the building could reach New York City Port Authority in 30 minutes by car or 45 minutes via New Jersey Transit buses and Trains. The property located at 905 Summit Avenue in Union City, Hudson County, New Jersey represents a solid investment based on the strength of the current and historically low vacancy rate. Additionally, the retail tenant is currently below market by approximately 13.17%. This increase would increase the current gross rental income from $293,295 to $331,910 as the retail lease expires, increasing the cap rate from 6.51% to 7.99%. Similarly, the current Net Operating income of $140,886 becomes $172,936 generating a Cash-on-Cash increase from 4.51% to 8.74% with minimal upfront costs.