Single-Tenant Office

Margate Berkshire Hathaway Office

9218 Ventnor Ave, Margate City, NJ 08402

Listing Price: $3,400,000

Cap Rate
7.38%
Tenant Name
Fox & Roach LP
Years Remaining On Lease
4.30
Gross SF
7,916
Guarantor
Subsidiary of a Corporation
Rentable SF
7,916
Price/Gross SF
$429.51
Lease Type
Double Net
Rent Per Square Feet
$33.77

Investment Overview

Marcus & Millichap has been exclusively retained to market and sell the fee simple interest in the Berkshire Hathaway HomeService's Fox & Roach Margate, NJ Headquarters, located at 9218 Ventnor Avenue in Margate, New Jersey (the Property, Building). Fox & Roach LP (the Tenant; Parent Company Berkshire Hathaway Rated by Standard & Poors: AA), is in the first year of a seven year lease, with 3% annual rent escalations. Purchase of the Property includes assignment of a 50 year lease (37 years remaining) with the City of Margate to twenty parking spaces in the Margate City Municipal Parking Lot. The lot is located one block away and accommodates the employees working at the Property and their customers during the day while also being permitted for commercial use.

The Subject Property is a 7,916 square foot office building situated at the corner of Ventnor Ave (the primary commercial and retail corridor through Margate) and S. Decatur Avenue. It is less than two blocks from the beaches of Margate, which draw hundreds of thousands of visitors into Atlantic County every summer. Atlantic County and the adjacent Cape May County make up roughly one third of all of New Jerseys direct tourism sales--totaling over $40 billion annually--with the former recently seeing outstanding investment and growth. Casino revenues in Atlantic city (less than five miles from Margate) were up 22.5% in summer 2018.

Berkshire Hathaway is a staple residential brokerage in the Margate community, where the median home price is more than twice the national average. Margate itself has minimal existing office space that would serve as a suitable replacement for the Tenant. This, combined with the strength of the business, gives the Tenant significant staying power at this location and establishes a high level of security for the investment. Moreover, access to additional parking is an irreplaceable asset to the Tenant due to scarce parking during the summer months when the city is inundated with beach-going tourists.

The in-place 6.28% Cap rate on a net operating income of $244,968 equates to a purchase price of $3,900,000. In calculating the net operating income, no additional revenue is contributed to the use of the parking lot. Its use on a commercial basis presents significant additional value.

The Property's history of success as a Real Estate Sales & Leasing office and the 7 year lease guaranteed by Fox & Roach LP, coupled with the irreplaceable location along a major retail corridor and the Margate's exceptional real estate values, present qualified investors with a stable, low-risk investment opportunity with limited cost exposure and upside backed by one of the Nations most successful and well-respected companies.

Investment Highlights

  • High Quality Tenant
  • Low Probability of Tenant Relocation
  • Annual Rent Escalations
  • Limited Cost Exposure for Landlord
  • Potential Income from Parking Lot
  • Over Six Years Remaining Term

Exclusively Listed By

Single-Tenant Office

Margate Berkshire Hathaway Office

Listing Price: $3,400,000

Cap Rate
7.38%
Tenant Name
Fox & Roach LP
Years Remaining On Lease
4.30
Gross SF
7,916
Guarantor
Subsidiary of a Corporation
Rentable SF
7,916
Price/Gross SF
$429.51
Lease Type
Double Net
Rent Per Square Feet
$33.77

Investment Highlights

  • High Quality Tenant
  • Low Probability of Tenant Relocation
  • Annual Rent Escalations
  • Limited Cost Exposure for Landlord
  • Potential Income from Parking Lot
  • Over Six Years Remaining Term

Investment Overview

Marcus & Millichap has been exclusively retained to market and sell the fee simple interest in the Berkshire Hathaway HomeService's Fox & Roach Margate, NJ Headquarters, located at 9218 Ventnor Avenue in Margate, New Jersey (the Property, Building). Fox & Roach LP (the Tenant; Parent Company Berkshire Hathaway Rated by Standard & Poors: AA), is in the first year of a seven year lease, with 3% annual rent escalations. Purchase of the Property includes assignment of a 50 year lease (37 years remaining) with the City of Margate to twenty parking spaces in the Margate City Municipal Parking Lot. The lot is located one block away and accommodates the employees working at the Property and their customers during the day while also being permitted for commercial use.

The Subject Property is a 7,916 square foot office building situated at the corner of Ventnor Ave (the primary commercial and retail corridor through Margate) and S. Decatur Avenue. It is less than two blocks from the beaches of Margate, which draw hundreds of thousands of visitors into Atlantic County every summer. Atlantic County and the adjacent Cape May County make up roughly one third of all of New Jerseys direct tourism sales--totaling over $40 billion annually--with the former recently seeing outstanding investment and growth. Casino revenues in Atlantic city (less than five miles from Margate) were up 22.5% in summer 2018.

Berkshire Hathaway is a staple residential brokerage in the Margate community, where the median home price is more than twice the national average. Margate itself has minimal existing office space that would serve as a suitable replacement for the Tenant. This, combined with the strength of the business, gives the Tenant significant staying power at this location and establishes a high level of security for the investment. Moreover, access to additional parking is an irreplaceable asset to the Tenant due to scarce parking during the summer months when the city is inundated with beach-going tourists.

The in-place 6.28% Cap rate on a net operating income of $244,968 equates to a purchase price of $3,900,000. In calculating the net operating income, no additional revenue is contributed to the use of the parking lot. Its use on a commercial basis presents significant additional value.

The Property's history of success as a Real Estate Sales & Leasing office and the 7 year lease guaranteed by Fox & Roach LP, coupled with the irreplaceable location along a major retail corridor and the Margate's exceptional real estate values, present qualified investors with a stable, low-risk investment opportunity with limited cost exposure and upside backed by one of the Nations most successful and well-respected companies.

Exclusively Listed By

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