NNN-Leased MF Building | Strong VA Tenancy 521-523 Washington St

521-523 Washington Street represents the perfect investment opportunity in Newark. The 4,838-square-foot property is spread between three stories and 21 units with 38 total beds. The property is built out specifically for the Veterans Affairs Usage. The extensive build out includes therapy rooms, classrooms, recreation space, a large communal kitchen and dining area, a garden, sleeping rooms and separate bathrooms/showers in the hallway. Built in 1915, the multifamily asset is a staple in the Newark community. The property is master leased to a tenant specializing in housing veterans, with a triple net lease and a corporate guarantee in place. The company has a five-year contract with extensions with the U.S. Department of Veteran Affairs (VA) with yearly escalations built into the lease. The tenant also has two other similar facilities in operation in the Bronx and Brooklyn. The tenant has been in operation for seven years and has a strong working relationship with the VA. They have a contract from the VA for many more beds then they are currently operating. This asset is ideal for investment largely because buildings are hard to get VA approved. Once approved, it’s rare for the tenant to move facilities creating a long-term plan.

The tenant is a community-based nonprofit organization that has provided a variety of essential social services to vulnerable populations in New Jersey for over two decades. Their mission is to increase the quality of life for the economically disadvantaged and to make a permanent and positive change in the life of each person they serve. The goal is to help people move from homelessness, substance abuse, dependency, and public assistance into permanent employment and stable housing. The organization serves approximately 2,000 economically disadvantaged individuals/families per year. The tenant currently maintains 600 beds in six facilities for emergency housing. This asset benefits greatly from being located in the Greater Newark Multifamily Submarket.

Greater Newark is also the largest submarket in Northern New Jersey, with nearly 32,200 units, a product of years of development meant to revitalize the historic city. Average rents of $1,560 per month keep the submarket the most affordable in Northern New Jersey. Northern New Jersey presents a strong location with a stable economy. Northern New Jersey's economy remains on solid footing, as rising payrolls and accelerating population growth provide a strong backdrop for consumer spending and housing demand. Robust wage growth remains a key driver of healthy fundamentals in the retail and multifamily property sectors. Northern New Jersey saw 159,000 jobs created during the past year.

The positioning of 521-523 Washington Street is ideal for multifamily use within Newark. The South Broad Street neighborhood is positioned south of Downtown Newark. Nearby Penn Station makes accessibility a breeze. Interstate 95 allows convenience for renters and the property is also 4.3 miles from the East Orange VA Hospital. Newark International Airport is close by, as well as Rutgers University and access to Manhattan. Many local restaurants and necessities, including Bergen Pharmacy, McDonald’s, Family Dollar, Dunkin’, and countless others, surround the asset. The property sits within walking distance of Lincoln Park where locals gather for events year-round. With incredible accessibility, this well-maintained multifamily asset is primed to offer an ideal hands-off investment for years to come. Property tours are available by appointment only. Please contact the listing broker to schedule.

Property tours are available by appointment only, please contact the listing broker to schedule.