exclusive listing - Agorafy
225 E 82nd ST, New York, NY 10028
303 EAST 56TH STREET NEW YORK, NY 10022
EXCLUSIVE LISTING 1
Company Overview
3
The Opportunity Investment Summary Key Points
Property Overview
4 5 6
Property Description
7
Financial Overview
8
Financials
9
Floor Plan
10
Multifamily
12
Market Dynamics
Comparable Multifamily Sales
Residential Sales
Comparable Residential Sales
Retail
13 14 15 16
Office
17
Neighborhood Overview
19
Upper East Lifestyle
Transportation
Renowned Restaurants & Eateries
Notable Retailers
Confidentiality Agreement
Table of Contents Company Overview
Rent Roll
20 21 22 23
2
EPIC Commercial Realty represent clients from around the world, focusing on investment sales in the bustling New York metropolitan area. We provide the highest level of professionalism, comprehensive and innovative real estate solutions to investors, property owners, and corporations world-wide, and ensure our clients optimum, fast, and smooth transactions.
Collectively, EPIC professionals bring nearly 70 years of commercial real estate experience to your portfolio. Not surprisingly, such teamwork produces results beyond expectations as we incessantly deliver full consultation services based on detailed research and evaluation. Every indication demonstrates our talented and accomplished professionals are performing well beyond the industry standard for commercial real estate firms producing with excellence for clients in a global arena. EPIC continues to expand its management of commercial real estate investments throughout the Greater New York Metropolitan Area, including New York State and New Jersey.
Company Overview Company Overview
Based in Soho, NY our clients include storefront owners, retail chains, institutional landlords and real estate developers. EPIC is dedicated to continuously developing dynamic relationships resulting in increased capital beyond the expectation of our clients. Through such principles as integrity and hard work, we strive to develop into an esteemed commercial investment resource for property owners, investors, and corporations worldwide. The measure of our successes is determined by the quality of business relationships we forge. A multi-tier approach allows every aspect of our service to manage transactions for each client with specialized attention to maintaining our focus on timing and the market place.
3
This Value-add opportunity is located in the nucleus of the emerging Upper-East Side region bound by 2nd & 3rd Avenue. Progressive zoning, coupled with the highly anticipated launch of the 2nd Avenue Subway line, has rewritten the script of the Upper-Eastside corridors, East of Lexington Avenue. The region has long failed to experience the abundance of luxury retailers, residential developments, and rich history witnessed by the neighboring region defined as the Upper-East Side Historic District.
These numerous development projects, alongside the anticipated completion of reliable transportation infrastructure, have led investors to believe that retail and residential metrics in the region will greatly flourish, launching the region’s 2nd Avenue & 3rd Avenue corridor(s) into the upper echelon of New York City’s most dynamic and desirable corridors. The range of progressive market indicators suggest that 225 E 82nd St is ripe for investment; 225 E 82nd St stands as limited opportunity for groups seeking residential buildings in the region, to capitalize on the unequivocal, impending reallocation of value which is prone to have an accretive impact.
Investment Summary Company Overview
Favorable market fundamentals have greatly altered the scope of development projects which have long failed to break ground along 2nd Avenue & 3rd Avenue in the Upper-Eastside. Today, the global economy’s uncertainty has resulted in an influx of yield-seeking global capital into NYC real estate market, which investors have identified as a desirable alternative investment, with evidently strong market fundamentals. Market dynamics in the Upper Eastside submarket(s), east of Lexington Avenue are extremely appealing, leading a range of institutional groups to deploy capital dedicated toward development projects, opportunistic retail investments and yield driven – value add investments, in the region which characterizes the Upper East Side Corridor(s), East of Lexington Avenue.
4
The Six-Story, Residential Building is situated on E 82nd St between 2nd & 3rd Avenue(s) The building comprises of 27 Residential; 21 units are FM & 6 units are RS The building is built to 11,849 Sf and serves as a fundamentally strong investment opportunity with impending value-add potential Located within walking distance to Lexington Avenue/ 86th St 4,5,6 Train(s) and the 2nd Avenue/E 86th St Q Train (Scheduled to open on 12/2016)
Key Points Overview Company 5
225 E 82nd St
Property Overview
6
Property Description Lot Dimensions
225 East 82nd St 25.83’ X 102.17’
Lot SF
2,639 SF
Building Dimensions
25’ X 84’
Building SF FAR Max FAR
Assessment Taxes (15/16)
4.49 4 R8B $1,227,780 $158,175
Property Description Company Overview
Zoning
11,849 SF
7
$639,822 $2,700 $642,522
EXPENSES Property Taxes (15/16) Water and Sewer Insurance Fuel Utilities Payroll Elevator Supplies/Misc Repairs and Maintenance Total Expenses
$158,175 $12,500 $7,500 $12,000 $6,002 5,000 2,500 4,500 $4,000 $213,677
Net Operating Income
$428,845
INCOME BREAKDOWN Total Number of Residential Units Total Number of Rooms Usable SF Cap Rate RESIDENTIAL UNIT BREAKDOWN Total FM Units Total RS Units Total RC Units
27 60 11,849 3.3%
21 6 0
Financial Overview Company Overview
INCOME Gross Residential Rent Laundry Effective Gross Income
Asking Price: $13,000,000 8
1066 2ND Avenue Residential TENANT STATUS Free Market Free Market Free Market Free Market Free Market Free Market Free Market Free Market Free Market Free Market Rent Stabilized Rent Stabilized Rent Stabilized Free Market Free Market Rent Stabilized Free Market Rent Stabilized Rent Stabilized Free Market Free Market Free Market Free Market Free Market Free Market Free Market Free Market
LXP 6/30/2016 5/31/016 7/31/2015 5/31/2016 6/30/2016 7/31/2015 5/31/2015 7/31/2015 9/30/2015 1/31/2016 2/29/2016 1/31/2016 2/29/2016 7/31/2015 7/31/2015 1/31/2016 5/31/2016 3/31/2018 3/31/2016 7/31/2015 5/31/2016 10/31/2015 7/1/2016 7/31/2015 8/31/2015 7/31/2015 7/31/2015
Total
RENT/MONTH $1,650 $2,100 $2,140 $2,475 $2,000 $2,060 $2,080 $2,470 $2,060 $2,025 $924 $1,455 $1,569 $2,110 $2,110 $1,214 $1,985 $987 $1,777 $2,625 $2,100 $2,180 $2,100 $2,675 $2,110 $2,160 $2,160
RENT/YEAR $19,800 $25,200 $25,680 $29,700 $24,000 $24,720 $24,960 $29,640 $24,720 $24,300 $11,083 $17,462 $18,823 $25,320 $25,320 $14,568 $23,820 $11,846 $21,320 $31,500 $25,200 $26,160 $25,200 $32,100 $25,320 $25,920 $25,920
$53,544
$642,522
Rent Roll Overview Company
UNIT # ROOMS 1A 2 1B 2 1C 2 2A 3 2B 2 2C 2 2D 2 3A 3 3B 2 3C 2 3D 2 4A 3 4B 2 4C 2 4D 2 3 5A 5B 2 5C 2 5D 2 6A 3 6B 2 6C 2 6D 2 7A 3 7B 2 7C 2 7D 2
Other TENANT Laundry
LXP 7/31/19
RENT/MONTH $225
RENT/YEAR $2,700
9
Floor Plan
10 10
Market Dynamics
11 11
MultifamilyOverview Company
Manhattan Multifamily Sales Market is growing at an exponential pace. The growth is derived from a strong local economy, consistent job market, and favorable demographics, which have resulted in a robust rental market with limited vacancy rates. A trio of factors—the strong underlying fundamentals of the Manhattan rental market, an environment of low interest rates spurred by expansionary global monetary policy, and inconsistent global economic growth—has pushed traditional and non-traditional investment groups to pursue acquisitions of Mixed-Use buildings throughout New York City. Growth in the multifamily segment is evident throughout the sales market, and transaction and dollar volumes have reached new highs. Global economic volatility, increasing demand for housing in NYC fueled by dynamic job growth in the local market and the low-interest-rate/low-yield environment suggest that investment in the multifamily market will continue to yield relatively high dividends for investors.
12
Bldg dimensions 33 ft x 75 ft 40 ft x 87 ft 28 ft x 76 ft 25 ft x 77 ft 28 ft x 70 ft 25 ft x 75 ft 25 ft x 80 ft
Com units Res. units 1 17 2 28 n/a 24 n/a 28 n/a 25 1 19 n/a 20
Zoning C1-9 R8B C1-9 R8B R8B C2-8 R8B
Multifamily CompanySales Overview
1. 2. 3. 4. 5. 6. 7.
Address Gross SF Price per SF Price/FAR Sale price 266-268 E 78 St 22,761 $909 $2,069,053 $20,690,536 328-330 E 78 St 16,440 $936 $3,850,000 $15,400,000 244 E 75 St 12,882 $1,065 $1,372,869 $13,728,697 228 E 81 St 10,060 $1,203 $3,027,112 $12,108,449 312 E 85 St 11,760 $887 $2,608,920 $10,435,682 1485 1 Ave 16,100 $878 $1,414,168 $14,141,682 227 E 89 St 10,465 $1,194 $3,125,000 $12,500,000
13
Progressive growth in the dynamic residential sales market in New York City is rooted in 2013 economics. Improving economic indicators in the U.S., combined with a politico-economic troika (uncertain state of the global economy, geopolitical turbulence, and record low interest rates fueled by expansionary monetary policy), ignited the rapid expansion of the residential sales market in New York City.
Although, average PPSF has increased across most segments of the residential sales market, the transaction volume has failed to correspond. The market will hold its strength, and continue to breakthrough price resistance as we anticipate a divergence between the U.S and global monetary policy. Underlying strength in the local economy, healthy gains in the U.S stock market, and consistent demand for secure investments from foreign investors, despite the abnormal excess supply driven by new development which expected to hit the market over with the next 24 months, will continue to support price levels present in the existing residential sales market.
Residential Sales Company Overview
Co-op and condo sales have experienced rapid price appreciation at healthy transaction levels, with the luxury segment and new developments propelling a majority of growth in average sales price. Average sales price for residential condominiums and co-ops in Manhattan as of 3Q-2015 stand at $1,684,729, $1,270 PSF, a 12.8% average PSF increase from 3Q2014.
*Data derived from Elliman Report 3Q 2015 – Manhattan Sales
14
Residential Condo Sales ADDRESS
BEDS
BATHS
SQ SF
SALE PRICE
200 East 94th Street
2 beds
2 baths
975 $ 1,624,278
150 East 85th Street
1 bed
1 bath
605 $
200 East 94th Street
2 beds
2 baths
245 East 93rd Street
2 beds
304 East 65th Street
2 beds
200 East 66th Street
PRICE PER SF $
1,666
$
1,311
1,048 $ 1,440,823
$
1,375
2.5 baths
1,356 $ 1,737,500
$
1,281
2 baths
1,541 $ 1,995,000
$
1,295
2 beds
2 baths
1,460 $ 3,022,500
$
2,070
300 East 64th Street
1 bed
1 bath
636 $
993,988
$
1,563
350 East 82nd Street
1 bed
1 bath
718 $
775,000
$
1,079
166 East 63rd Street
3 beds
3 baths
1,615 $ 2,902,012
$
1,797
1438 Third Avenue
1 bed
1.5 baths
990,000
$
1,281
422 East 72nd Street
3 beds
2.5 baths
1,880 $ 2,700,000
$
1,436
450 East 83rd Street
2 beds
2.5 baths
1,618 $ 2,230,000
$
1,378
188 East 78th Street
5 beds
4.5 baths
2,874 $ 6,300,000
$
2,192
401 East 60th Street
2 beds
2.5 baths
1,956 $ 5,900,000
$
3,016
225 East 81st Street
3 beds
2.5 baths
1,766 $ 3,563,875
$
2,018
510 East 80th Street
1 bed
2 baths
950 $
903,000
$
951
171 East 84th Street
1 bed
1 bath
636 $
765,000
$
1,203
245 East 93rd Street
3 beds
3.5 baths
40 East 78th Street
2 beds
2 baths
340 East 64th Street
1 bed
305 East 85th Street 141 East 88th Street
773 $
2,000 $ 3,350,000
$
1,675
909 $ 2,450,000
$
2,695
1.5 baths
1,052 $ 1,025,000
$
974
2 beds
2 baths
1,300 $ 2,180,000
$
1,677
3 beds
3.5 baths
2,738 $ 8,527,106
$
3,114
1110 Park Avenue
5 beds
5.5 baths
5,702 $ 18,583,062
$
3,259
1110 Park Avenue
3 beds
3.5 baths
2,851 $ 8,655,125
1 bath
350 East 62nd Street
465 $
$
3,036
500,000
$
1,075
404 East 79th Street
2 beds
2 baths
1,042 $ 1,375,000
$
1,320
422 East 72nd Street
2 beds
2 baths
1,586 $ 1,715,000
$
1,081
515 East 72nd Street
3 beds
3 baths
2,214 $ 4,123,912
$
1,863
141 East 88th Street
3 beds
3.5 baths
2,844 $ 8,750,000
$
3,077
40 East 62nd Street
3 beds
2.5 baths
2,064 $ 4,717,500
$
2,286
188 East 70th Street
2 beds
2 baths
1,340 $ 2,300,000
$
1,716
157 East 74th Street
2 beds
2.5 baths
1,277 $ 2,475,000
$
1,938
1623 Third Avenue
2 beds
2 baths
1,162 $ 1,350,000
$
1,162
Residential Sales Company Overview
793,000
15
Forward-looking economic indicators, improving demographics, a series of ground-up residential development projects, and strong office fundamentals have further strengthened the robust retail segment in Manhattan. Although Madison Avenue in the Upper-Eastside has long served as the focal point for luxury retailers all around the globe, the corridors east of Madison Avenue in the region have remained mellow. The lack of established retailers is evident throughout these corridors; however new groundup development projects with a heavy emphasis on luxury residential market, combined with existing transportation infrastructure, especially the highly anticipated launch of the 2nd Avenue Subway line, will effectively reallocate value along the Midtown East Corridors.
Retail Overview Company 16
The Manhattan office market has long been distinguished as the premier office destination for the most reputable financial services and media companies. Progressive growth in the U.S. economy has stimulated tremendous demand for office space in the Midtown markets, driving Class A office rents to reach new heights while maintaining demand and consistent absorption levels. Class A asking rents in the neighboring Midtown market stand at $85 PSF, with an average occupancy rate of 9.9%. The Midtown office market and submarkets display tremendous strength, and the markets will persist to experience gradual growth as the job market strengthens (NYC average unemployment rate is 6.4%). The underlying strength will further drive the demand for residential rental and sales market in the Upper East Side, consequently bringing vibrancy to the existing retail market in the region. *Data derived from DTZ Office Market Report
Office Overview Company 17
Upper Eastside Lifestyle
18 18
Midtown East
Transit The following trains and stops have served as the main source of transportation for the Upper East Side: Lexington Ave & 68th St: 6 Lexington Ave & 77th St: 6 Lexington Ave & 86th St: 4, 5, 6 Lexington Ave & 96th St: 6 Phase 1 of the long awaited 2nd Avenue Subway line is expected to open in December 2016
Neighborhood Overview Company Overview
About the Neighborhood The Upper East Side is Home to some of the City's premier museums, restaurants and shops, as well as the stately mansions and townhouses where New York's elite have lived for generations, the Upper East Side exudes elegance on every block. Museum Mile—which runs along Fifth Avenue between East 82nd and East 105th Streets—boasts eight world-class cultural institutions, while Madison Avenue teems with the biggest names in haute couture, both in designer boutiques and at resale shops that sell high-end brands at nearly half-price. When hunger strikes, choose from down-home diners, posh sushi spots and nearly every other conceivable option you might imagine. Have a sweet tooth? There are few things better than enjoying one of the City's best ice cream sundaes after a day surrounded by exotic wildlife at Manhattan's only zoo. Elegant, historic and occasionally cutting edge, the Upper East Side is a neighborhood that offers something for everyone. Geography The Upper East Side is bound by Central Park/Fifth Avenue, 59th Street, the East River, and 96th Street. Some of New York’s most prestigious landmarks call this this neighborhood home and the convenience of easy transportation makes it a premier neighborhood.
19
The Second Avenue Subway will be NYC’s first major expansion in over fifty years, with phase 1 expected open during the month of December 2016. Phase 1 will include stations at 2nd Avenue & E 72nd St, E 86th St, E 89th St. The totality of the proposed project is planned to stretch 8.5 miles long, running alongside Manhattan’s East Side. The line will start at 125th Street in Harlem down to Hanover Square in Lower Manhattan. There will be an additional track connection to the existing 63rd Street and Broadway lines, providing direct service from East Harlem and the Upper East Side to West Midtown.
Transportation Company Overview
Second Avenue Subway Line
When complete, the line will boast 16 new stations, including a station for Midtown East. All stations are planned to have elevator and escalator access for the disabled and featured climate control for customer support.
20
Address 166 E 82nd St, New York, NY 10028
2. Flex Mussels
174 E 82nd St, New York, NY 10028
3. Om
1593 2nd Avenue, New York, NY 10028
4. Bondurants
303 E 85th St, New York, NY 10028
5. Heidi's House
308 E 78th St, New York, NY 10075
6. Uva
1486 2nd Avenue, New York, NY 10075
7. Vella Wine Bar + Kitchen
1480 2nd Avenue, New York, NY 10075
8. Boqueria
1460 2nd Avenue, New York, NY 10075
Notable Restaurants Company Overview
Attractions 1. Toloache
21
Address
1.
Central Park
2.
The Metropolitan Museum of Art
1000 5th Avenue, New York, NY 10028
3.
Solomon R. Guggenheim Meuseum
1071 5th Avenue, New York, NY 10128
4.
The Frick Collection
1 E 70th St, New York, NY 10021
5.
Gracie Mansion
88th St and East End Avenue, New York, NY 10028
6.
92nd St Y
1395 Lexington Avenue, New York, NY 10128
Local Attractions Company Overview
Attractions
22
Confidential Agreement This Offering Memorandum has been prepared exclusively by EPIC Commercial Realty on behalf of Ownership, the (“Owner”), regarding the potential purchase of the properties described herein at 225 E 82nd St New York, NY 10028 (“Property”). The materials and information contained in this Offering Memorandum do not purport to be all-inclusive or to contain all of the information which prospective investors may need or desire. All materials have been developed by EPIC Commercial Realty , the Owners and other sources and are subject to variation. No representation is made by EPIC Commercial Realty or the Owners as to the accuracy or completeness of the information contained herein and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, EPIC Commercial Realty and the Owners and their employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information.
The Owners and EPIC Commercial Realty each expressly reserve the right, in their sole discretion, to reject any and all expressions of interest or offer regarding the Property and/or terminate discussions with any entity at any time with or without notice. The Owners shall have no legal commitment or obligation to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase of the properties has been fully executed, delivered and approved by the Owners and its legal counsel and any conditions to the Owners’ obligations there under have been satisfied or waived. EPIC Commercial Realty is not authorized to make any representations or agreements on behalf of the Owners. This Offering Memorandum and its contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein called the “Contents”) are of a confidential nature. By accepting the Offering Memorandum, you agree (i) to hold and treat it in the strictest confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the Offering Memorandum or any of its contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of the Owners or EPIC Commercial Realty , (iv) not to use the Offering Memorandum or any of its contents in any fashion or manner detrimental to the interest of EPIC Commercial Realty, and (v) to return it to EPIC Commercial Realty immediately upon request of EPIC Commercial Realty or the Owners. If you have no further interest in the Property, please return the Offering Memorandum forthwith. No inspections of the Property are permitted unless accompanied by the Owners or a representative from EPIC Commercial Realty
Confidentiality Agreement Company Overview
Further, EPIC Commercial Realty the Owners and their employees disclaim any and all liability for representations and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property or the Owners since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the Property will be made available upon request to interested and qualified investors.
23
Epic Commercial Realty 580 Broadway, Suite 1107 New York, NY 10012 Tel: (212) 226-9000
Yona Edelkopf
CEO (646) 278-4614 [email protected]
Baruch Edelkopf
Investment Sales Associate (646) 278-4678 [email protected]
303 EAST 56TH STREET NEW YORK, NY 10022
EXCLUSIVE LISTING 1
Company Overview
3
The Opportunity Investment Summary Key Points
Property Overview
4 5 6
Property Description
7
Financial Overview
8
Financials
9
Floor Plan
10
Multifamily
12
Market Dynamics
Comparable Multifamily Sales
Residential Sales
Comparable Residential Sales
Retail
13 14 15 16
Office
17
Neighborhood Overview
19
Upper East Lifestyle
Transportation
Renowned Restaurants & Eateries
Notable Retailers
Confidentiality Agreement
Table of Contents Company Overview
Rent Roll
20 21 22 23
2
EPIC Commercial Realty represent clients from around the world, focusing on investment sales in the bustling New York metropolitan area. We provide the highest level of professionalism, comprehensive and innovative real estate solutions to investors, property owners, and corporations world-wide, and ensure our clients optimum, fast, and smooth transactions.
Collectively, EPIC professionals bring nearly 70 years of commercial real estate experience to your portfolio. Not surprisingly, such teamwork produces results beyond expectations as we incessantly deliver full consultation services based on detailed research and evaluation. Every indication demonstrates our talented and accomplished professionals are performing well beyond the industry standard for commercial real estate firms producing with excellence for clients in a global arena. EPIC continues to expand its management of commercial real estate investments throughout the Greater New York Metropolitan Area, including New York State and New Jersey.
Company Overview Company Overview
Based in Soho, NY our clients include storefront owners, retail chains, institutional landlords and real estate developers. EPIC is dedicated to continuously developing dynamic relationships resulting in increased capital beyond the expectation of our clients. Through such principles as integrity and hard work, we strive to develop into an esteemed commercial investment resource for property owners, investors, and corporations worldwide. The measure of our successes is determined by the quality of business relationships we forge. A multi-tier approach allows every aspect of our service to manage transactions for each client with specialized attention to maintaining our focus on timing and the market place.
3
This Value-add opportunity is located in the nucleus of the emerging Upper-East Side region bound by 2nd & 3rd Avenue. Progressive zoning, coupled with the highly anticipated launch of the 2nd Avenue Subway line, has rewritten the script of the Upper-Eastside corridors, East of Lexington Avenue. The region has long failed to experience the abundance of luxury retailers, residential developments, and rich history witnessed by the neighboring region defined as the Upper-East Side Historic District.
These numerous development projects, alongside the anticipated completion of reliable transportation infrastructure, have led investors to believe that retail and residential metrics in the region will greatly flourish, launching the region’s 2nd Avenue & 3rd Avenue corridor(s) into the upper echelon of New York City’s most dynamic and desirable corridors. The range of progressive market indicators suggest that 225 E 82nd St is ripe for investment; 225 E 82nd St stands as limited opportunity for groups seeking residential buildings in the region, to capitalize on the unequivocal, impending reallocation of value which is prone to have an accretive impact.
Investment Summary Company Overview
Favorable market fundamentals have greatly altered the scope of development projects which have long failed to break ground along 2nd Avenue & 3rd Avenue in the Upper-Eastside. Today, the global economy’s uncertainty has resulted in an influx of yield-seeking global capital into NYC real estate market, which investors have identified as a desirable alternative investment, with evidently strong market fundamentals. Market dynamics in the Upper Eastside submarket(s), east of Lexington Avenue are extremely appealing, leading a range of institutional groups to deploy capital dedicated toward development projects, opportunistic retail investments and yield driven – value add investments, in the region which characterizes the Upper East Side Corridor(s), East of Lexington Avenue.
4
The Six-Story, Residential Building is situated on E 82nd St between 2nd & 3rd Avenue(s) The building comprises of 27 Residential; 21 units are FM & 6 units are RS The building is built to 11,849 Sf and serves as a fundamentally strong investment opportunity with impending value-add potential Located within walking distance to Lexington Avenue/ 86th St 4,5,6 Train(s) and the 2nd Avenue/E 86th St Q Train (Scheduled to open on 12/2016)
Key Points Overview Company 5
225 E 82nd St
Property Overview
6
Property Description Lot Dimensions
225 East 82nd St 25.83’ X 102.17’
Lot SF
2,639 SF
Building Dimensions
25’ X 84’
Building SF FAR Max FAR
Assessment Taxes (15/16)
4.49 4 R8B $1,227,780 $158,175
Property Description Company Overview
Zoning
11,849 SF
7
$639,822 $2,700 $642,522
EXPENSES Property Taxes (15/16) Water and Sewer Insurance Fuel Utilities Payroll Elevator Supplies/Misc Repairs and Maintenance Total Expenses
$158,175 $12,500 $7,500 $12,000 $6,002 5,000 2,500 4,500 $4,000 $213,677
Net Operating Income
$428,845
INCOME BREAKDOWN Total Number of Residential Units Total Number of Rooms Usable SF Cap Rate RESIDENTIAL UNIT BREAKDOWN Total FM Units Total RS Units Total RC Units
27 60 11,849 3.3%
21 6 0
Financial Overview Company Overview
INCOME Gross Residential Rent Laundry Effective Gross Income
Asking Price: $13,000,000 8
1066 2ND Avenue Residential TENANT STATUS Free Market Free Market Free Market Free Market Free Market Free Market Free Market Free Market Free Market Free Market Rent Stabilized Rent Stabilized Rent Stabilized Free Market Free Market Rent Stabilized Free Market Rent Stabilized Rent Stabilized Free Market Free Market Free Market Free Market Free Market Free Market Free Market Free Market
LXP 6/30/2016 5/31/016 7/31/2015 5/31/2016 6/30/2016 7/31/2015 5/31/2015 7/31/2015 9/30/2015 1/31/2016 2/29/2016 1/31/2016 2/29/2016 7/31/2015 7/31/2015 1/31/2016 5/31/2016 3/31/2018 3/31/2016 7/31/2015 5/31/2016 10/31/2015 7/1/2016 7/31/2015 8/31/2015 7/31/2015 7/31/2015
Total
RENT/MONTH $1,650 $2,100 $2,140 $2,475 $2,000 $2,060 $2,080 $2,470 $2,060 $2,025 $924 $1,455 $1,569 $2,110 $2,110 $1,214 $1,985 $987 $1,777 $2,625 $2,100 $2,180 $2,100 $2,675 $2,110 $2,160 $2,160
RENT/YEAR $19,800 $25,200 $25,680 $29,700 $24,000 $24,720 $24,960 $29,640 $24,720 $24,300 $11,083 $17,462 $18,823 $25,320 $25,320 $14,568 $23,820 $11,846 $21,320 $31,500 $25,200 $26,160 $25,200 $32,100 $25,320 $25,920 $25,920
$53,544
$642,522
Rent Roll Overview Company
UNIT # ROOMS 1A 2 1B 2 1C 2 2A 3 2B 2 2C 2 2D 2 3A 3 3B 2 3C 2 3D 2 4A 3 4B 2 4C 2 4D 2 3 5A 5B 2 5C 2 5D 2 6A 3 6B 2 6C 2 6D 2 7A 3 7B 2 7C 2 7D 2
Other TENANT Laundry
LXP 7/31/19
RENT/MONTH $225
RENT/YEAR $2,700
9
Floor Plan
10 10
Market Dynamics
11 11
MultifamilyOverview Company
Manhattan Multifamily Sales Market is growing at an exponential pace. The growth is derived from a strong local economy, consistent job market, and favorable demographics, which have resulted in a robust rental market with limited vacancy rates. A trio of factors—the strong underlying fundamentals of the Manhattan rental market, an environment of low interest rates spurred by expansionary global monetary policy, and inconsistent global economic growth—has pushed traditional and non-traditional investment groups to pursue acquisitions of Mixed-Use buildings throughout New York City. Growth in the multifamily segment is evident throughout the sales market, and transaction and dollar volumes have reached new highs. Global economic volatility, increasing demand for housing in NYC fueled by dynamic job growth in the local market and the low-interest-rate/low-yield environment suggest that investment in the multifamily market will continue to yield relatively high dividends for investors.
12
Bldg dimensions 33 ft x 75 ft 40 ft x 87 ft 28 ft x 76 ft 25 ft x 77 ft 28 ft x 70 ft 25 ft x 75 ft 25 ft x 80 ft
Com units Res. units 1 17 2 28 n/a 24 n/a 28 n/a 25 1 19 n/a 20
Zoning C1-9 R8B C1-9 R8B R8B C2-8 R8B
Multifamily CompanySales Overview
1. 2. 3. 4. 5. 6. 7.
Address Gross SF Price per SF Price/FAR Sale price 266-268 E 78 St 22,761 $909 $2,069,053 $20,690,536 328-330 E 78 St 16,440 $936 $3,850,000 $15,400,000 244 E 75 St 12,882 $1,065 $1,372,869 $13,728,697 228 E 81 St 10,060 $1,203 $3,027,112 $12,108,449 312 E 85 St 11,760 $887 $2,608,920 $10,435,682 1485 1 Ave 16,100 $878 $1,414,168 $14,141,682 227 E 89 St 10,465 $1,194 $3,125,000 $12,500,000
13
Progressive growth in the dynamic residential sales market in New York City is rooted in 2013 economics. Improving economic indicators in the U.S., combined with a politico-economic troika (uncertain state of the global economy, geopolitical turbulence, and record low interest rates fueled by expansionary monetary policy), ignited the rapid expansion of the residential sales market in New York City.
Although, average PPSF has increased across most segments of the residential sales market, the transaction volume has failed to correspond. The market will hold its strength, and continue to breakthrough price resistance as we anticipate a divergence between the U.S and global monetary policy. Underlying strength in the local economy, healthy gains in the U.S stock market, and consistent demand for secure investments from foreign investors, despite the abnormal excess supply driven by new development which expected to hit the market over with the next 24 months, will continue to support price levels present in the existing residential sales market.
Residential Sales Company Overview
Co-op and condo sales have experienced rapid price appreciation at healthy transaction levels, with the luxury segment and new developments propelling a majority of growth in average sales price. Average sales price for residential condominiums and co-ops in Manhattan as of 3Q-2015 stand at $1,684,729, $1,270 PSF, a 12.8% average PSF increase from 3Q2014.
*Data derived from Elliman Report 3Q 2015 – Manhattan Sales
14
Residential Condo Sales ADDRESS
BEDS
BATHS
SQ SF
SALE PRICE
200 East 94th Street
2 beds
2 baths
975 $ 1,624,278
150 East 85th Street
1 bed
1 bath
605 $
200 East 94th Street
2 beds
2 baths
245 East 93rd Street
2 beds
304 East 65th Street
2 beds
200 East 66th Street
PRICE PER SF $
1,666
$
1,311
1,048 $ 1,440,823
$
1,375
2.5 baths
1,356 $ 1,737,500
$
1,281
2 baths
1,541 $ 1,995,000
$
1,295
2 beds
2 baths
1,460 $ 3,022,500
$
2,070
300 East 64th Street
1 bed
1 bath
636 $
993,988
$
1,563
350 East 82nd Street
1 bed
1 bath
718 $
775,000
$
1,079
166 East 63rd Street
3 beds
3 baths
1,615 $ 2,902,012
$
1,797
1438 Third Avenue
1 bed
1.5 baths
990,000
$
1,281
422 East 72nd Street
3 beds
2.5 baths
1,880 $ 2,700,000
$
1,436
450 East 83rd Street
2 beds
2.5 baths
1,618 $ 2,230,000
$
1,378
188 East 78th Street
5 beds
4.5 baths
2,874 $ 6,300,000
$
2,192
401 East 60th Street
2 beds
2.5 baths
1,956 $ 5,900,000
$
3,016
225 East 81st Street
3 beds
2.5 baths
1,766 $ 3,563,875
$
2,018
510 East 80th Street
1 bed
2 baths
950 $
903,000
$
951
171 East 84th Street
1 bed
1 bath
636 $
765,000
$
1,203
245 East 93rd Street
3 beds
3.5 baths
40 East 78th Street
2 beds
2 baths
340 East 64th Street
1 bed
305 East 85th Street 141 East 88th Street
773 $
2,000 $ 3,350,000
$
1,675
909 $ 2,450,000
$
2,695
1.5 baths
1,052 $ 1,025,000
$
974
2 beds
2 baths
1,300 $ 2,180,000
$
1,677
3 beds
3.5 baths
2,738 $ 8,527,106
$
3,114
1110 Park Avenue
5 beds
5.5 baths
5,702 $ 18,583,062
$
3,259
1110 Park Avenue
3 beds
3.5 baths
2,851 $ 8,655,125
1 bath
350 East 62nd Street
465 $
$
3,036
500,000
$
1,075
404 East 79th Street
2 beds
2 baths
1,042 $ 1,375,000
$
1,320
422 East 72nd Street
2 beds
2 baths
1,586 $ 1,715,000
$
1,081
515 East 72nd Street
3 beds
3 baths
2,214 $ 4,123,912
$
1,863
141 East 88th Street
3 beds
3.5 baths
2,844 $ 8,750,000
$
3,077
40 East 62nd Street
3 beds
2.5 baths
2,064 $ 4,717,500
$
2,286
188 East 70th Street
2 beds
2 baths
1,340 $ 2,300,000
$
1,716
157 East 74th Street
2 beds
2.5 baths
1,277 $ 2,475,000
$
1,938
1623 Third Avenue
2 beds
2 baths
1,162 $ 1,350,000
$
1,162
Residential Sales Company Overview
793,000
15
Forward-looking economic indicators, improving demographics, a series of ground-up residential development projects, and strong office fundamentals have further strengthened the robust retail segment in Manhattan. Although Madison Avenue in the Upper-Eastside has long served as the focal point for luxury retailers all around the globe, the corridors east of Madison Avenue in the region have remained mellow. The lack of established retailers is evident throughout these corridors; however new groundup development projects with a heavy emphasis on luxury residential market, combined with existing transportation infrastructure, especially the highly anticipated launch of the 2nd Avenue Subway line, will effectively reallocate value along the Midtown East Corridors.
Retail Overview Company 16
The Manhattan office market has long been distinguished as the premier office destination for the most reputable financial services and media companies. Progressive growth in the U.S. economy has stimulated tremendous demand for office space in the Midtown markets, driving Class A office rents to reach new heights while maintaining demand and consistent absorption levels. Class A asking rents in the neighboring Midtown market stand at $85 PSF, with an average occupancy rate of 9.9%. The Midtown office market and submarkets display tremendous strength, and the markets will persist to experience gradual growth as the job market strengthens (NYC average unemployment rate is 6.4%). The underlying strength will further drive the demand for residential rental and sales market in the Upper East Side, consequently bringing vibrancy to the existing retail market in the region. *Data derived from DTZ Office Market Report
Office Overview Company 17
Upper Eastside Lifestyle
18 18
Midtown East
Transit The following trains and stops have served as the main source of transportation for the Upper East Side: Lexington Ave & 68th St: 6 Lexington Ave & 77th St: 6 Lexington Ave & 86th St: 4, 5, 6 Lexington Ave & 96th St: 6 Phase 1 of the long awaited 2nd Avenue Subway line is expected to open in December 2016
Neighborhood Overview Company Overview
About the Neighborhood The Upper East Side is Home to some of the City's premier museums, restaurants and shops, as well as the stately mansions and townhouses where New York's elite have lived for generations, the Upper East Side exudes elegance on every block. Museum Mile—which runs along Fifth Avenue between East 82nd and East 105th Streets—boasts eight world-class cultural institutions, while Madison Avenue teems with the biggest names in haute couture, both in designer boutiques and at resale shops that sell high-end brands at nearly half-price. When hunger strikes, choose from down-home diners, posh sushi spots and nearly every other conceivable option you might imagine. Have a sweet tooth? There are few things better than enjoying one of the City's best ice cream sundaes after a day surrounded by exotic wildlife at Manhattan's only zoo. Elegant, historic and occasionally cutting edge, the Upper East Side is a neighborhood that offers something for everyone. Geography The Upper East Side is bound by Central Park/Fifth Avenue, 59th Street, the East River, and 96th Street. Some of New York’s most prestigious landmarks call this this neighborhood home and the convenience of easy transportation makes it a premier neighborhood.
19
The Second Avenue Subway will be NYC’s first major expansion in over fifty years, with phase 1 expected open during the month of December 2016. Phase 1 will include stations at 2nd Avenue & E 72nd St, E 86th St, E 89th St. The totality of the proposed project is planned to stretch 8.5 miles long, running alongside Manhattan’s East Side. The line will start at 125th Street in Harlem down to Hanover Square in Lower Manhattan. There will be an additional track connection to the existing 63rd Street and Broadway lines, providing direct service from East Harlem and the Upper East Side to West Midtown.
Transportation Company Overview
Second Avenue Subway Line
When complete, the line will boast 16 new stations, including a station for Midtown East. All stations are planned to have elevator and escalator access for the disabled and featured climate control for customer support.
20
Address 166 E 82nd St, New York, NY 10028
2. Flex Mussels
174 E 82nd St, New York, NY 10028
3. Om
1593 2nd Avenue, New York, NY 10028
4. Bondurants
303 E 85th St, New York, NY 10028
5. Heidi's House
308 E 78th St, New York, NY 10075
6. Uva
1486 2nd Avenue, New York, NY 10075
7. Vella Wine Bar + Kitchen
1480 2nd Avenue, New York, NY 10075
8. Boqueria
1460 2nd Avenue, New York, NY 10075
Notable Restaurants Company Overview
Attractions 1. Toloache
21
Address
1.
Central Park
2.
The Metropolitan Museum of Art
1000 5th Avenue, New York, NY 10028
3.
Solomon R. Guggenheim Meuseum
1071 5th Avenue, New York, NY 10128
4.
The Frick Collection
1 E 70th St, New York, NY 10021
5.
Gracie Mansion
88th St and East End Avenue, New York, NY 10028
6.
92nd St Y
1395 Lexington Avenue, New York, NY 10128
Local Attractions Company Overview
Attractions
22
Confidential Agreement This Offering Memorandum has been prepared exclusively by EPIC Commercial Realty on behalf of Ownership, the (“Owner”), regarding the potential purchase of the properties described herein at 225 E 82nd St New York, NY 10028 (“Property”). The materials and information contained in this Offering Memorandum do not purport to be all-inclusive or to contain all of the information which prospective investors may need or desire. All materials have been developed by EPIC Commercial Realty , the Owners and other sources and are subject to variation. No representation is made by EPIC Commercial Realty or the Owners as to the accuracy or completeness of the information contained herein and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, EPIC Commercial Realty and the Owners and their employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information.
The Owners and EPIC Commercial Realty each expressly reserve the right, in their sole discretion, to reject any and all expressions of interest or offer regarding the Property and/or terminate discussions with any entity at any time with or without notice. The Owners shall have no legal commitment or obligation to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase of the properties has been fully executed, delivered and approved by the Owners and its legal counsel and any conditions to the Owners’ obligations there under have been satisfied or waived. EPIC Commercial Realty is not authorized to make any representations or agreements on behalf of the Owners. This Offering Memorandum and its contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein called the “Contents”) are of a confidential nature. By accepting the Offering Memorandum, you agree (i) to hold and treat it in the strictest confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the Offering Memorandum or any of its contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of the Owners or EPIC Commercial Realty , (iv) not to use the Offering Memorandum or any of its contents in any fashion or manner detrimental to the interest of EPIC Commercial Realty, and (v) to return it to EPIC Commercial Realty immediately upon request of EPIC Commercial Realty or the Owners. If you have no further interest in the Property, please return the Offering Memorandum forthwith. No inspections of the Property are permitted unless accompanied by the Owners or a representative from EPIC Commercial Realty
Confidentiality Agreement Company Overview
Further, EPIC Commercial Realty the Owners and their employees disclaim any and all liability for representations and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property or the Owners since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the Property will be made available upon request to interested and qualified investors.
23
Epic Commercial Realty 580 Broadway, Suite 1107 New York, NY 10012 Tel: (212) 226-9000
Yona Edelkopf
CEO (646) 278-4614 [email protected]
Baruch Edelkopf
Investment Sales Associate (646) 278-4678 [email protected]
