Shoppes at Godwin
Accordia acquired the property in the summer of 2013 for a total acquisition cost of $3,240,163. The property is a two story mixed-use building consisting of retail, apartments and office space located in the prestigious and affluent borough of Midland Park, New Jersey.
The Plaza is run down and reached obsolescence due to absentee ownership and outdated management techniques. As part of the asset management plan, Accordia is planning to redevelop the property and upgrade its image. Upgrades to the property will include a new façade, new store fronts and entrances and new utilties.
Godwin Plaza is a 24,000 square foot mixed-use building consisting of five residential units, two office units, twelve retail units and a three car garage. The property was 81% occupied at the time of acquisition. The second story office and residential tenants are currently being vacated from the premises in order to begin renovations.
The building was originally constructed in the 1960s and has had little to no renovations done since. Accordia plans to move forward with renovations of the building in its existing footprint. The sponsor also plans to do a gut rehab to the existing second floor and the five apartments will be redesigned and remodeled to be market quality units.
Currently, the property has twelve retail tenants, seven of which are on month-to-month leases. At acquisition the decision was made by Accordia to move all tenants to month to month terms as the leases expired. This plan was to simplify the redevelopment process. It gave Accordia the option to move tenants around if need be during renovations, and/or vacate tenants if leasing to new tenants became more beneficial to the property. The seven tenants on month to month leases include Jade Massage Parlor, V&V Hair Salon, Brigette Bogart Planning, Tomy’s Interiors, Meaningful Movements Dance Studio, Patricia’s Coiffures Hair Salon, and House of Nails. The building is currently 75% occupied and almost all tenants have expressed a desire to remain in the building through construction.
The existing tenants on term leases are as follows:
- Bills Shoe Repair, expiring 4/18
- Plaza Dry Cleaners, expiring 11/17
- Tony’s Pizzeria, expiring 10/17
- Care Chiropractic Center, expiring 9/16
- Hairtique Salon, expiring 6/17
Accordia is currently in discussion with Bills Shoe Repair and Care Chiropractic Center to relocate both operations within the property to create more desirable units for National/new tenants at FMV rental rates.
The activity on the building has been extremely positive. Accordia signed a new 10 year lease with Domino’s for 1,350 SF; they are currently completing their approval process to build out their space. Accordia is also in negotiations with several other national/local users for prime retail space at the Property. We are currently negotiating two LOI’s with Jersey Mikes and Westside Bagel. Jersey Mikes is looking for 1,750 SF of prime retail space for their food service, and Westside Bagel (a family owned bagel store with one other location in Ridgewood, NJ) is looking for 1,500 SF for their second location. The terms of these deals are as follows:
TIMELINE & SCHEDULE
Progress to date:
- Permits filed for demolition.
- Residential tenants have been vacated and commercial tenants have been advised of pending construction.
- Some tenants have agreed to move within the Center.
- Construction Drawings are 80% complete.
- Construction is anticipated to begin once permits have been received and equity raise has been completed.
- Estimated start date – October 1, 2015
- Length of construction
- 6 to 9 months for base building work.
- 12 months for site improvements – some of which require Borough approval.
- Lease up of retail space 12 to 18 months.
Midland Park is a small borough of approximately 1.6 square miles ideally situated in Northern Bergen County, New Jersey. Its 7,500 residents enjoy a high quality of life with fine schools and recreation programs, and easy access to area shopping and cultural activities. Midland Park’s blend of retail centers and residential areas make the Borough a unique suburban community with something to offer everyone.
Bergen County is the most populous county in the State of New Jersey. As of the 2010 United States Census, its population was 905,116, an increase of 2.4% from the 2000 census. As of 2013 the County’s population was estimated to have increased by 2.2% since 2010. Bergen County is one of the wealthiest counties in the United States, with a median household income of $81,708 per the 2010 Census.
Godwin Plaza is located directly between Ridgewood and Wyckoff. It is less than a quarter mile from downtown Midland Park and just a half mile from NJ Transit services. A short drive away there is great access to Routes 17, 287, the New York State Thruway, as well as Routes 208, 202, 4 and the Garden State Parkway. Newark Airport is approximately 25 miles from the project, and New York City is about a 25 minute drive from the property.
The Borough is situated near the large shopping malls of North Jersey. Only a short drive away is the Paramus Park Mall, Garden State Plaza, Riverside Square, Bergen Mall and Willowbrook Mall. In New York State are the Nanuet Mall, Palisades Center and Woodbury Commons. There are several other local shopping centers just down the road in either direction.