2820 MT Ephraim Avenue, LLC

2820 Mt.
Ephraim Avenue, LLC

Market Study
2820 Mt. Ephraim Avenue, LLC | Market Study Page 1
Prepared by: Worldwide Asset Assessment 420 Lexington Ave New York, NY 10170 (212 999 6240) (www.waacompany.com)
March, 17, 2016
Title and Subtitle:

2820 Mt. Ephraim Avenue, LLC
Authors:
Joseph Yaron & Chase Hughes
Abstract:
The following market study is related to the commercial property located at 2820 Mt. Ephraim
Avenue. Worldwide Asset Assessment has analyzed several dimensions of the market including
the economics and demographics of Camden City, Camden County, and the surrounding area. It
has also analyzed the strengths, weaknesses, opportunities, and threats related both to the
specific location and Camden City in general. The research suggests that the property is located
along high volume commuter routes into the closest metropolitan area of Philadelphia. However,
Camden City has a lower than average household income, a problem that is being addressed at
the state level.
A rental analysis has also been performed based on both the sale price and lease price of
comparable commercial retail space within Camden and the surrounding counties. For the
purposes of conservatism, properties within Philadelphia have not been used for purposes of
comparison, as rent prices are higher, on average. A price per square foot for comparable retail
locations ranges from $15 20 SF/Year on average, depending upon the condition of the property
and specific location. In general there was a smaller amount of commercial retail space available
to lease relative to other areas in New Jersey.
All market information used within this report has been compiled based upon U.S. Census Data,
including the most recent 2014 survey results and the current prices of commercial property on
the market as of 03/17/2016.
Approval
Joe Yaron
Managing Member
Worldwide Asset Assessment
Table of Contents
Economic & Demographic Analysis............................................................................................................... 4

Camden City Analysis ............................................................................................................................... 4
Camden County Analysis........................................................................................................................... 5
Regional Facility Profiles ............................................................................................................................... 5
Commercial Pricing Analysis (as of 03/17/2016): ..................................................................................... 5
Commercial Rental Analysis (as of 03/17/2016):...................................................................................... 6
SWOT Analysis............................................................................................................................................... 7
Strengths ................................................................................................................................................... 7
Weaknesses .............................................................................................................................................. 8
Opportunities ............................................................................................................................................ 8
Threats ...................................................................................................................................................... 9
SWOT Conclusion ...................................................................................................................................... 9
Appendix: New Jersey Economic Opportunity Act of 2014 ........................................................................ 10
Economic Opportunity Act Description .................................................................................................. 10
Data on Camden City, NJ............................................................................................................................. 12
Site Photos .................................................................................................................................................. 13
Building Floor Plan ...................................................................................................................................... 14
Table of Figures
Figure 1: City of Camden, NJ ......................................................................................................................... 4

Figure 2: Camden County.............................................................................................................................. 5
Figure 3: Arial View One ............................................................................................................................. 13
Figure 4: Arial View Two ............................................................................................................................. 13
Economic & Demographic Analysis
The following economic & demographic analysis has been performed on the city of Camden, NJ
as well as the surrounding areas. It provides information related to the historical growth of the
area economically as well as the demographics of the residents in order to provide insights into
the regions prospective stability and capability to sustain commercial tenants at the location of
2820 Mt. Ephraim Avenue. Information for the purposes of this analysis has been exclusively
based on U.S. Census Data, including the most recent 2014 data accessible in raw format on the
U.S. Census website.
Overall, Camden County and the specific city of Camden has its opportunities as well as
prospective risks. One major advantage to Camden City is its proximity to Philadelphia, along a
major commute route between I-676 and I-76. The potential risk is that the specific city of
Camden has a smaller than average median income relative to the entire state and national level.
There is also a higher than average (39.3%) amount of people in poverty.
Camden City Analysis

The specific city of Camden has an
estimated population of 77,344 with a
density of 8,669.6/sq. mi. The median
household income in Camden City is
$26,201, with a poverty rate of 39.3%,
nearly half the median household
income in New Jersey. However, the
city is located along major travel
routes to Philadelphia and the
surrounding cities which are likely to
drive higher income individuals to the
Figure 1: City of Camden, NJ
location as its convenience during a
route to work, along with potential
gentrification as Philadelphia
residents expand their proximity.
Camden County Analysis
Camden County covers a much larger
area of 227,293 sq. mi with a density
of 2,309/sq. mi. The median
household income is over twice that
within Camden City at $61,842. With
only 13% of people in poverty, much
more comparable to the state
average. With a median commute
time to work being 27.9 minutes, it is
likely that many residents within
Camden County work in Philadelphia
and commute along Highway 130, or Figure 2: Camden County
Interstate 76, making Camden City a
convenient place to commute to
before or after work.
Regional Facility Profiles

There are several locations that sell comparable commercial property that has been fractioned
to serve multiple tenants within Camden and the surrounding counties. The specific price for rent
and purchasing the facilities varies depending upon their accessibility via major highways and
interstates, as well as their proximity to major cities.
Commercial Pricing Analysis (as of 03/17/2016):
- 425 Broadway, Gloucester City, NJ 08030 (15,780 SF): $1,950,000

- 1845 Rt. 70 East, Cherry Hill, NJ 08003 (9,111 SF): $1,350,000
- 782 Emerson Ct, Lindenwold, NJ 08021 (13,000 SF): $2,650,000
- 108-110 Greentree Rd. Turnersville, NJ 08012 (23,400 SF): $2,600,000
- 102-122 Warwick Rd., Stratford, NJ 08084 (66,000 SF): $2,499,000
Commercial Rental Analysis (as of 03/17/2016):
The properties selected for analysis are commercial shopping complexes that are flexible enough
to be used as medical offices, retail stores, business offices, and restaurants. Most are located
along highways or off interstates along accessible routes to city centers.
For the purposes of being conservative, the analysis focuses on property within New Jersey and
not Pennsylvania, which in consistently higher in most cases and even at a closer proximity to
Camden than the comparable companies selected.
We believe that this value is discounted due to the population within Philadelphia having a higher
household income than those of Camden and the surrounding counties, along with a higher
population density that a higher rent price within the surrounding counties of Camden is unable
to replicate.
- 805 Rt. 38, Cherry Hill, NJ 08002 (8,000 SF) - $20/SF/Year

- 600 W. Cuthbert Blvd., Haddon Township, NJ 08108 (19,000 SF) - $16/SF/Year
- 30 Haddon Ave, Haddon Township, NJ 08108 (2,000 SF) - $15/SF/Year
- 54 Haddonfield Road, Cherry Hill, NJ 0800 (22,000 SF) - $18/SF/Year
- 2232 Marlton Pike W, Cherry Hill, NJ 08002 (129,400 SF) - $15/SF/Year
Based on an average range of the comparable properties, a rent price anywhere from $15
20/SF/Year would be suitable given the proximity of 2820 Mt. Ephraim Avenue to major
interstates and highways entering Philadelphia.
SWOT Analysis
A SWOT analysis has been performed based on an analysis of the site relative to others in similar
markets and the macroeconomic factors that may impact 2820 Mt. Ephraim Ave. directly. The
conclusion to the SWOT has also been listed at the end of this section.
Strengths
The New Jersey Economic Opportunity Act of 2014 offers 100% of the financing for
construction redevelopment within the city of Camden. Therefore, the buyer has the
option to receive 100% of the financing from the state of New Jersey.
Camden City is located within a 15 -20 minute commute to Philadelphia. This means that
many residents within Camden City are likely to frequently commute along the Interstates
and Highways leading to Philadelphia that are nearly the property.
The site is located along two major interstates and a highway, making it more accessible
than other locations that may be based in a residential borough.
Residents in Camden county and New Jersey travel a median time of 27.9 minutes to work.
This assumes that many of them will be traveling along the routes that pass the property.
With autonomous cars and fuel efficiency, suburban areas are increasingly popular. It is
probable that Camden City will experience a long-term gentrification.
The building has had previous tenants and has been well maintained. It has prior
experience demonstrating its capability of sustaining tenant demand.
Comparable commercial properties within Camden appear to be at full occupancy. There

are very few commercial locations within Camden City that are available for lease.
The subject site and its redevelopment being planned with Mosaic Developers.
The Save-A-Lot, which is presently located in a 10,000SF building on an adjacent parcel,
has been operating at this location in the City of Camden for nearly 30 years.
Weaknesses
Many residents in Camden City have a much lower than average household income
compared to the state averages of Camden County, New Jersey, and overall United States.
The poverty level in Camden City is also much higher than average.
It is probable that as Camden City sprawls, new commercial development will take place
and it will displace smaller locations that have already been constructed.
Being located along an Interstate may mean that many travelers could face challenges
exiting in order to stop at the location. Some stores could also face visibility issues from
many commuters traveling at high speeds.
Opportunities
Investments are being made by state and local governments in order to develop Camden
City, which will likely result in a higher income demographic entering the area and
increase the prices of properties in the area.
As a state, New Jersey and Pennsylvania residents have higher than national average
median household incomes, a trend that is likely to continue.
Increasing investments into infrastructure and transit systems between New Jersey and
Philadelphia are likely to continue, further increasing the amount of commuters from
Camden County into Philadelphia.
Camden County is redeveloping 178,000SF of office space within the Camden City limits
and only a few properties from the subject location on Route 168.
The surrounding suburban municipalities include Haddon Township, Collingswood,
Pennsauken, Cherry Hill and Brooklawn, among others, which towns enjoy a much higher
household income level than Camden.
The Company has 1,000 stores in like areas throughout the country and is very interested
in relocating into its current geographic sales concept footprint into a 20,000SF facility
with loading dock on the subject site.
Route 130 is primarily commercial and the Route 168 commercial strip located in Camden
City, due the availability of public transportation (a NJ transit Bus Stop is located on the
subject property), close proximity to the residents of the surrounding municipalities and
its location within a UEZ (Urban Enteprise Zone where a 50% NJ sales tax rate applies) the
area has been and is expanding into a boomerang shopping center cluster.
Threats
If the poverty level persists in Camden City and is not addressed at the municipal level, it
could lead to static rental prices and the inability to sustain large shopping conglomerates
that would be ideal long-term tenants.
If the poverty level does not persist and the community quickly develops, it is possible
that large shopping conglomerates and franchises will build-out from scratch and
compete with the 2820 Mt. Ephraim Avenue location.
It is possible that if the poverty level worsens within Camden City, that it will force
companies to leave the area and rent prices will decline.
SWOT Conclusion
Based on our analysis of the strengths and weaknesses of the site, relative to the markets
opportunity and weaknesses, we have formed the following conclusions that have been factored
into our analysis.
The property location at 2820 Mt. Ephraim Avenue is located along two major Interstates
and a major Highway that link Camden County with the surrounding counties in New
Jersey and Philadelphia. This means that many commuters working in Philadelphia are
likely to travel nearby the property location, thus making it convenient for them.
The New Jersey Economic Opportunity Act of 2014 offers 100% of the financing for
construction redevelopment within the city of Camden. Therefore, the buyer has the
option to receive 100% of the financing from the state of New Jersey.
The existing population within Camden City has a median household income far below
the national average and a poverty rate far above the national average. There are state
and local initiatives in place to address this, but whether it will perpetuate or dissipate
cannot be determined with precision at this point.
As the property exists, it is likely to benefit tenants that serve commuters along the major
roads it is accessible to, along with the local residents of Camden City. Should the city
experience gentrification over the next five to ten years, which is highly probable given
its proximity to Philadelphia, rent prices are likely to increase and with most sustainable
tenants.
Appendix: New Jersey Economic Opportunity Act of 2014

The Economic Opportunity Act of 2014 will consolidate five of New Jerseys economic incentive
programs for businesses into two -- the Grow New Jersey (Grow NJ) Assistance Program and
the Economic Redevelopment and Growth Grant Program (ERGG).
Economic Opportunity Act Description
The act provides tax credits to eligible businesses for an eligibility period not to exceed ten years.
The Grow NJ tax credit, ranging from $500 to $5,000 per job, is mainly tied to the number of jobs
created or retained by the project and to the location of the project. A project must meet
minimum capital investment and jobs-created or jobs-retained thresholds in order to be eligible
for the tax credit. However, for projects located in Garden State Growth Zones and in Atlantic,
Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean and Salem counties, these
thresholds are reduced. The minimum capital investment required is reduced by one-third in
these areas, and the minimum number of new or retained full-time jobs required is reduced by
one-quarter in these areas.
The ERGG additionally creates a redevelopment incentive of up to 40% of a developers total
project costs for a project located in a Garden State Growth Zone (as opposed to 30% for a project
located outside of this zone). For those qualified residential projects that have already applied
for the Urban Transit Hub Tax Credit, a tax credit of up to 35% of their capital investment or up
to 40% of the capital investment for projects in a Garden State Growth Zone can be received.
The definition of what constitutes a capital investment, in a Garden State Growth Zone, is
expanded to include any and all redevelopment and relocation costs such as site acquisition (if
made within 24 months of application to the authority); engineering, legal, accounting and other
professional services; and relocation, environmental remediation and infrastructure
improvements for the project area, such as on and off site utility, road, pier, wharf, bulkhead, or
sidewalk construction or repair.
The tax credit will apply dollar for dollar against certain tax liabilities, including the corporation
business tax and the premiums tax on domestic and foreign insurers. It can also be transferred,
in lieu of the business being allowed a credit against its tax liability. It may be sold or assigned,
either fully or partially (typically in an amount not less than $100,000), to any other person that
may have certain tax liabilities.
Data on Camden City, NJ
Site Photos
Figure 3: Arial View One
Figure 4: Arial View Two
Building Floor Plan

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2820 Mt.

Ephraim Avenue, LLC

2820 Mt. Ephraim Avenue, LLC | Market Study Page 1

Title and Subtitle:

2820 Mt. Ephraim Avenue, LLC | Market Study Page 2

Economic & Demographic Analysis............................................................................................................... 4

Figure 1: City of Camden, NJ ......................................................................................................................... 4

2820 Mt. Ephraim Avenue, LLC | Market Study Page 3

Camden City Analysis

2820 Mt. Ephraim Avenue, LLC | Market Study Page 4

Regional Facility Profiles

Commercial Pricing Analysis (as of 03/17/2016):

- 425 Broadway, Gloucester City, NJ 08030 (15,780 SF): $1,950,000

2820 Mt. Ephraim Avenue, LLC | Market Study Page 5

- 805 Rt. 38, Cherry Hill, NJ 08002 (8,000 SF) - $20/SF/Year

2820 Mt. Ephraim Avenue, LLC | Market Study Page 6

Comparable commercial properties within Camden appear to be at full occupancy. There

2820 Mt. Ephraim Avenue, LLC | Market Study Page 7

2820 Mt. Ephraim Avenue, LLC | Market Study Page 9

Appendix: New Jersey Economic Opportunity Act of 2014

Economic Opportunity Act Description

2820 Mt. Ephraim Avenue, LLC | Market Study Page 10

2820 Mt. Ephraim Avenue, LLC | Market Study Page 11

2820 Mt. Ephraim Avenue, LLC | Market Study Page 12

Figure 3: Arial View One

Figure 4: Arial View Two

2820 Mt. Ephraim Avenue, LLC | Market Study Page 13

2820 Mt. Ephraim Avenue, LLC | Market Study Page 14

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