Property SUMMARY

The property is comprised of approximately 30,000 square feet of retail stores, situated on 100,000 square feet of land located at 679-717 Route 23, Pompton Plains, NJ, and 2035 Monroe St, Hollywood, FL.

Pompton Plains is situated in the valley of the Pompton River, which forms the eastern border of the community, the township, and Morris County. Across the river to the east is Wayne in Passaic County, and across the river to the northeast is the borough of Pompton Lakes. Neighboring communities in Morris County are Riverdale to the north, Kinnelon to the west, Lincoln Park to the southwest, and the remainder of Pequannock Township to the south.

New Jersey Route 23 runs through the east side of the community, leading northwest22 miles (35 km) to Franklin and south 5 miles (8 km) to Interstate 80 in Wayne. Interstate 287 passes through the northwest part of Pompton Plains, with the closest access from Exit 52 (Route 23) in Riverdale.

Route 23 serves as a prominent retail corridor in northern New Jersey, hosting a diverse array of retailers, including Stop and Shop, TJ Maxx/HomeGoods, 7-Eleven, Dunkin' Donuts, Target, and various other businesses. 

We believe that the proximity of Route 23 to Wayne, NJ, coupled with the substantial daily traffic of over 50,000 cars passing by this building, the acquisition of the property at a price significantly below its replacement cost, and the inadequate maintenance and lack of renovations by the current owner, who has not increased the leases, lead us to the conviction that, upon updating the building, we will attract quality tenants, raise rental rates, and consequently enhance the overall value of the property.

The fund will be managed by the Fund Manager. Under the current proposed structure, the Fund is designated to invest in Holdco, which will own the Property. The Fund Manager plans to raise around $5 million from Equity Investors and secure approximately $3.125 million in owner financing. These funds will be utilized to purchase and develop the property. The plan involves obtaining permits from the city to renovate the façade of the shopping center, upgrade the stores, change storefronts, introduce new landscaping, and install electric lights. The aim is to attract high-quality retail tenants who will yield higher returns than the current owner receives.

The renovation is expected to take approximately 18 months, during which we will simultaneously start leasing the available spaces. After fully renting the shopping center, our plan is to refinance the property, returning around 70% of the equity to investors. This will allow us to benefit from the cash flow generated by the building. Subsequently, after an additional 3 years, we plan to sell the property. The overall timeframe for the project is estimated to be about 5 to 7 years.

It's important to note, however, that the development of the project is contingent upon obtaining necessary permits and approvals from the relevant authorities. If approved, the project is designed to include 30,000 square feet of retail space.