Investment Overview

Marcus & Millichap is pleased to exclusively represent the owner in the sale of the property located at 70 City Hall Plaza (Block:373 Lot:3) in East Orange, Essex County, New Jersey. The property is a three story, brick, walk-up building constructed in 1919 and fully gut renovated in 2021 on a 97'x90' (0.20 acre) lot. It contains a 1,000 sqft. ground floor catering hall under four apartments. The apartments are two 2-bedroom/1-bathroom units and two 3-bedroom/1-bathroom units. Five surface level parking spaces are available for tenants at the rear of the property. The unit mix is well suited for East Orange's market demand for larger units as evidenced by the owner's 100% occupancy rate, since the building has been gut renovated. Every unit has an individual hot water heater in the basement and a boiler in the unit. All units are separately metered with the tenants covering their own heat, cooking gas and electric usage. The landlord pays for hot and cold water and sewer for the apartments and common area electric. The property is located midblock on the northwest side of City Hall Plaza between North Arlington and North Walnut Streets. 70 City Hall Plaza is located immediately opposite the East Orange, NJ Transit train station, less than 1 block from the East Orange Municipal buildings and it leads directly in to Main Street, a major retail corridor in the City of East Orange. The location is a commuter's dream with easy access to I-280, less than 5 blocks away, providing access to the Garden State Parkway, I-78 and all points in New Jersey. 70 City Hall Plaza represents a solid investment based on the strength of the current rent roll and its 100% occupancy as turnkey investment. The apartment rents increase a healthy 4% annually for existing tenants and 5% for new tenants. The retail lease runs through the end of 2028. The current Net Operating Income of $85,548 can be increased to $100,937 driving the cap rate from 6.48% to 7.65%. Similarly the Cash on Cash return increases from 3.47% to 6.80% with minimal upfront costs.