Investment Overview

Marcus & Millichap Real Estate Investment Services has been exclusively retained by the seller to present the opportunity to acquire 149 Verona Ave Newark NJ 07104 (The Subject Property) to qualified investors. The +/-9,500 SF industrial building set on +/-3 AC is in Newark, New Jersey's West Newark submarket. The Property is 100% occupied and leased to 1 industrial tenant and 2 with apartment renters. West Newark's vacancy rate of 6.4% compares to the submarket's five-year average of 4.6% and the 10-year average of 4.3%. The West Newark industrial submarket has roughly 1.5 million SF of space listed as available, for an availability rate of 7.6%. As of the third quarter of 2025, there is 75,000 SF of industrial space under construction in West Newark. In comparison, the submarket has averaged 110,000 SF of under construction inventory over the past 10 years. The West Newark industrial submarket contains roughly 19.1 million SF of inventory. The submarket has approximately 14.3 million SF of logistics inventory, 180,000 SF of flex inventory, and 4.6 million SF of specialized inventory. Market rents in West Newark are $14.40/SF. Rents average around $14.30/SF for logistics buildings, $14.00/SF for flex properties, and $15.00/SF for specialized assets. Despite positive renter demand, multifamily vacancy across Greater Newark is ticking higher heading into midyear, owing to a busy April for project completions. Newark's apartment market set a new all-time high last year with a net absorption tally of 1,473 units, a testament to the city's ability to attract renters to its location, transit connectivity, and employment opportunities. The average vacancy drifted lower for much of the year and settled around 6.4% at the end of December. However, an influx of nearly 400 units to Greater Newark's apartment inventory this year has been putting near-term pressure on vacancy measures. As of June, the average vacancy rate is approaching 7%, as initial lease-up progresses on the newest projects, such as The Ballantine in the North Ironbound neighborhood. Yet, with not much supply-side pressure expected for the remainder of 2025, the positive demand backdrop will allow landlords to accelerate the pace of asking rent growth on new leases from the current 1.2%. Average rents in Greater Newark, at $1,600/month, help keep the submarket as the most affordable in all of Northern New Jersey. A major reason for the submarket's relative affordability compared with the rest of the metro is that over half of the rental stock in Greater Newark is comprised of lower-rated 1 & 2 Star properties, where the typical asking rent is $1,130/month. The Property's location falls between Rt 21, Rt 3, as well as the North/South Interstate I-95 & The Garden State parkway. The West Newark submarket provides a deep and diverse set of labor supporting the multiple industries in the area. This building is set on +/-.24 AC with +/-7,500 Sf warehouse and +/-2,000 SF Multifamily (2 Units). The warehouse space features 1 drive-in door and 15’ clear heights and is currently 100% leased to US Wholesale Tobacco with term through August 2027. The two residential units are 100% occupied. This offering represents the opportunity for an investor to acquire a well-located, deep-infill asset with superior accessibility (2 minutes to Route 21) and strong tenants in place. The property’s location allows employees immediate access to many amenities, retail and restaurant options, and ease of access from anywhere in the Newark, NJ MSA.