116 Lenox Avenue

East Orange, NJ

  • Target Annual Cash 8-15%
  • Target IRR 15%
  • Target Equity Multiple 1.5x
  • Asset Profile Core Plus
  • Min. Investment $50K
  • Estimated Hold 1-3Y

This deal is oversubscribed

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One Wall Partners LLC Newark, NJ

Multi-Family Property

About this Property

The building has just undergone a complete common area renovation with a few newly renovated apartments about to be leased. The property has historically been 94-100% occupied and generates an approximate 57% NOI margin at 95% economic occupancy. One Wall Partners expects to achieve consistent rent increases while maintaining high occupancy. They plan to continue managing the property intensively in an effort to maintain at least 95% occupancy with minimum 3% annual rent increases. The local rent control ordinance allows 4% increases on occupied units and 5% or higher increases on vacancies depending on renovations.

Through hands-on asset management One Wall Partners will seek to limit operating cost increases to 2.5% annually. They will also continue to pursue selective renovations and improvements to optimize potential rent. Although underwriting assumes only 3% rent increases, this is conservative compared to what they have achieved at similar buildings to date where they have generated 4-6% annual increases. The operating cost structure has been stabilized during their ownership to date and they continue to seek out new savings opportunities. Thus far, One Wall Partners added a boiler management system to maximize heat savings and also generated significant insurance savings from a master policy spread across their portfolio.

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Key Points

  • One Wall Partners have invested over $110,000 of capex in the property to date with a further $30,000 set aside during the investment period to be put primarily towards unit renovations
  • Stabilized property that has been under their ownership and management for almost 2 years; eliminating acquisition risk
  • 10-20%+ current rent upside on units that have not yet turned over
  • Equity being recapitalized at a discount to appraised value and replacement cost
  • High occupancy, stable, affordable, rental driven market with significant development and population growth underway
  • Attractive building with newly renovated common area and renovated apartments generating significant premium to prior rents
  • Total preferred return of 15% payable with conservative underwriting

Financials

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Offering Financial

Location Details

East Orange, NJ

The property is centrally located in East Orange with a walk score of 86. It is

  • Within minutes of I-280 and the Garden State Parkway
  • Within 5 blocks of Brick Church and East Orange train stations (NJ Transit), shopping and retail
  • Within blocks of multiple NJ Transit bus stops
  • Less than 1 mile to hospitals
  • Less than 1/2 mile to civic center/downtown
  • Within two miles of several local schools
  • 3-7 miles to Newark (i.e. Penn Station, NJPAC, Prudential Center, Red Bull Arena, Ironbound, University Hospital, NJ Institute of Technology, Rutgers)
  • Within 10-15 miles of Newark Airport, Port of Newark and New York Container Terminal
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Documents

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  • View, download, and print the detailed financial projections
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Offering Agreement Documents

Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

The Sponsor owns 100% of the entity at present; this a recapitalization not an acquisition. The property was originally purchased in September 2016 for $1,360,000. Since then, approximately $110,000 of capex has been invested and the NOI has increased by more than 34%. The Sponsor presently owns 100% of the equity and is offering equity at an asset valuation of $2,187,500 which is a 5% discount to lender’s appraised value of $2,300,000.

The funding deadline for this opportunity is July 11th, 2018.

The first projected distribution is scheduled for September 2018.

Distributions are scheduled to go out on a quarterly basis.

Yes, non-US residents are welcome to apply. Please contact the sponsor for more details.

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Have a Question?

Send One Wall Partners LLC and/or RealCrowd a message. If you have a question about this offering ask One Wall Partners LLC. If you have a question about the transaction process or other general inquiry, RealCrowd will be happy to help.

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