305 Church Street (aka 32 Walker Street)

Asking Price: $4,750,000

CONTACT INFORMATION:

Maurice Suede Daniel Soyak Director Associate +1 212 589 5131 +1 212 698 5552 [email protected] [email protected] ` Offering Memorandum Disclaimer Table of Contents

This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the Executive Summary...... 46 terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and RentProperty Roll Descriptionand Expenses...... 146 constitutes part of the Confidential Information (as defined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possible investment in 305 TenancyLease Abstract Overview...... 227 Church Street, New York, NY 10013 (the “Property”), and is not to be used for any other purpose or made available to any other party without the prior written consent of the owner, PropertyMarket Overview Photos...... 288 or its exclusive broker, Cushman & Wakefield. This Memorandum was prepared by Cushman FloorLease PlansComparables...... 3412 & Wakefield based primarily on information supplied by Managing Member. It contains select information about the Project and the real estate market but does not contain all the MarketSales Comparables Overview...... 3814 information necessary to evaluate the Project. The financial projections contained herein AreaFinancials Demographics...... 4216 (or in any other Confidential Information) are for general reference only. They are based on assumptions relating to the overall economy and local competition, among other factors. Due Diligence ...... 20 Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. While the information contained in this Memorandum and any other Confidential Information is For more information, please contact believed to be reliable, neither Cushman & Wakefield nor Managing Member guarantees one of the following individuals: its accuracy or completeness. Because of the foregoing and since the investment in the Project is being offered on an “As Is, Where Is” basis, a prospective investor or other party Maurice Suede authorized by the prospective investor to use such material solely to facilitate the prospective Director purchaser’s investigation, must make its independent investigations, projections and +1 212 589 5131 conclusions regarding the investment in the Project without reliance on this Memorandum or [email protected] any other Confidential Information. Although additional Confidential Information, which may include engineering, environmental or other reports, may be provided to qualified parties as Daniel Soyak the marketing period proceeds, prospective purchasers should seek advice from their own Associate attorneys, accountants, engineers and environmental experts. Neither Cushman & Wakefield +1 212 698 5552 [email protected] nor Managing Member guarantees the accuracy or completeness of the information contained in this Memorandum or any other Confidential Information provided by Cushman & Wakefield and Managing Member. Managing Member expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at any time with or without written notice. Managing Member shall have no legal commitment or obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Managing Member and any conditions to Managing Member’s obligations thereunder have been satisfied or waived. Managing Member has retained Cushman & Wakefield as its exclusive broker and will be responsible for any commission due to Cushman & Wakefield in connection with a transaction relating to the Project pursuant to a separate agreement. Cushman & Wakefield is not authorized to make any representation or agreement on behalf of Managing Member. Each prospective investor will be responsible for any claims for commissions by any other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or its broker. This Memorandum is the property of Managing Member and all parties approved by Managing Member and may be used only by parties approved by Managing Member. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement.

2 cushmanwakefield.com 305 Church Street, New York, NY 10013 3 Executive Summary Cushman & Wakefield is retained exclusively on the sale of 305 Church Street, a 2-story, commercial building located on the corner of Church and Walker Streets. The building is comprised of a ground retail unit and an office on the 194 / 16 second floor. Belle Reve operates their restaurant on the ground floor with BLOCK LOT a lease expiring June 2024. The owner also has the flexibility to terminate the lease upon 180 days notice to the tenant. This opportunity allows for a developer to utilize approximately 6,250 buildable SF to construct 25‘ x 50’ BUILDING DIMENSIONS (APPROX.) a 5-story office, residential or mixed-use building on a corner in the heart of Tribeca. The property is one block from the infamous Tribeca Park and walking distance from the and 2,514 Franklin Street stations with access to the 1, A, C, E, N, Q, R, W GROSS SQUARE FOOTAGE (APPROX.) 6,250 3,736 TOTAL BUILDABLE SF AVAILABLE AIR RIGHTS

C6-2A, TMU 5.0 ZONING COMMERCIAL FAR

$544,050 ASSESSMENT (2019/2020)

$62,656 TAXES (2020/2021) Tax Class: 4

Highlight Property sits on the corner of Church and Walker Street and one block from Tribeca Park. Asking Price: $4,750,000 Investors have the opportunity to utililze 3,736 SF of available air rights and further develop an office or residential component in the heart of Tribeca.

Owner has the right to terminate the ground floor lease upon 180 days notice. Second floor office tenant has a month-to-month lease. Maurice Suede Daniel Soyak Director Associate +1 212 589 5131 +1 212 698 5552 Over 3,700 businesses and 41,457 employees within a quarter mile from the property. [email protected] [email protected]

Approximately 40,000 Average Daily Traffic Count, Over 15 Million subway riders at the Canal Street Station (Ranked #18 out of all subway stops). Rent Roll & Expenses LeaseRent Roll Abstract

Rent Roll Belle Reve Unit Tenant Status LXP Gross SF PPSF Monthly Rent Annual Rent Lower Level Restaurant June 2024 1,260 - - - Tenant: Belle Reve (Restaurant) Ground Floor Restaurant June 2024 1,260 $116 $12,250 $147,000 2nd Floor Office Month-to-month 1,260 $60 $6,300 $75,600 Address: 305 Church Street TOTALS 2,520 $222,600 Lease Type: Net Lease

Ground Floor: 1,260 SF (approx.)

Floors: Ground Floor and Basement Expenses Commencement Date: July, 2019

Expense Expiration Date: June, 2024 Expense Status Cost Per SF % of EGI Amount Real Estate Taxes Actual $22.08 20% $62,656 Renewal Options: 5-Year

Water/Sewer Projected at $1.00/SF $1.00 0.8% $2,514 Rent Escalation: $50 per year Insurance Projected at $1.50/SF $1.50 1.2% $3,771 Landlord can terminate lease with minimum 180 days written Con ED Projected at $1.50/SF $1.50 1.2% $3,771 Lease Termination Option: notice, but not prior to July 1, 2020. Landlord shall pay to Repairs & Maintenance Projected at $1.50/SF $1.50 1.2% $3,771 Tenant the Security deposited under the Lease. Legal Projected at $2,000 $0.80 0.7% $2,000 RE Taxes Base Year (2008/2009): $44,268 General/Administrative Projected at 1% of EGI $1.17 1% $2,961 RE Tax Owed (50% of any increases from Management Projected at 3% of EGI $3.52 3% $8,883 $9,194 Base Tax Year): TOTALS 29.1% (approx.) $90,327 Utility Charges Owed: 100%

Security Deposit: $36,750

Net Operating Income BASE RENT:

YEARS START DATE END DATE MONTHLY RENT ANNUAL RENT Gross Monthly Income $18,550 Gross Annual Income $222,600 1 July-19 June-20 $12,250 $147,000 Less Vacancy & Credit Loss Projected @ 3% of Gross Income $8,883 2 July-20 June-21 $12,300 $147,600 Effective Gross Annual Income $213,717 3 July-21 June-22 $12,350 $148,200 Less Expenses $90,327 4 July-22 June-23 $12,400 $148,800 NET OPERATING INCOME $123,390 5 July-23 June-24 $12,450 $149,400

6 nyinvestmentsales.com 305 Church Street, New York, NY 10013 7 Pictures

INTERIOR - BELLE REVE EXTERIOR

8 nyinvestmentsales.com 305 Church Street, New York, NY 10013 9 DueDue Diligence Diligence

Zoning - C6-2A, TMU

The property at 305 Church Street lies within the C6-2A zoning district. C6-2A is a general commercial district, typically mapped outside of central business districts.

The zoning district has rules for the conversion of non-residential space to residential uses.

C6 Districts typically permit the use of corporate headquarters, large hotels, department stores and entertainment facilities in high-rise mixed buildings.

C6 districts are well served by mass transportation, and off-street parking is generally not required.

The Floor Area Ratio or “FAR” for C6-2A, TMU is 5.0. Unlike other C6 districts, C6-2A, TMU is a contextual district with a maximum building height of 120 feet. Buildings in C6- 2A are to have a maximum base height of 85’. After surpassing this threshold a setback of 10’ is required for wide streets and 15’ for narrow streets.

The Zoning Resolution outlines several different Use Groups allowed in C6-2A. Use Groups play an integral part in defining the different zoning districts. Due Diligence

C6-2A As-of-Right Use Groups • 7 – Use Group 7 consists primarily of home maintenance or repair services that have a relatively small service area, and are • 1 – Use Group 1 consists of single-family detached residences. incompatible in primary retail districts since they break the continuity of retail frontage. • 2 – Use Group 2 consists of all other types of residences, such as apartment hotels and affordable independent residences for Examples include: transient accommodations seniors. such as motels and tourist cabins, retail or service establishments such as bicycle • 3 – Use Group 3 consists of community facilities that can provide educational and other essential services for the residents, perform rental or repair shops; electrical, heating, activities more effectively in a residential environment, and do not create significant objectionable influences in residential areas. roofing, plumbing, ventilating establishments Some of these facilities include: colleges or universities excluding business colleges or trade schools, college dormitories, libraries, wholesale establishments; and auto service museums, and art galleries. establishments. • 4 – Use Group 4 consists of community facilities that provide recreational, religious, health, and other essential services for • 8 – Use Group 8 consists primarily of residents. Examples include: Ambulatory diagnostic or treatment health care facilities, community centers or settlement houses, amusement or service establishments. Facilities houses of worship, philanthropic or non-profit institutions without sleeping accommodations, cemeteries, golf courses, public parks vary, from pool halls, and bowling alleys on or playgrounds, and agricultural uses such as greenhouses or nurseries. one end of the spectrum; with lumber stores, • 5 – Use Group 5 consists of hotels used for transient occupancy. upholstering shops, pawn shops, public parking garages and prisons on the other end. • 6 – Use Group 6 and its subsections consist primarily of retail and personal service establishments which provide a wide variety of local consumer needs and have a small service area making them distributed widely throughout the City. Establishments include: bakeries, drug stores, laundry establishments, restaurants*, food stores fire or police stations, court houses and non-commercial clubs • 9 – Use Group 9 consists primarily of business and other services serving a large area. Examples of such include: banquet or catering halls, business schools or colleges, studios or medical/dental laboratories designed for research or testing.

• 10 – Use Group 10 consists primarily of large retail establishments such as department stores. Examples include: carpet stores, clothing stores with no limitation on floor area, department stores, eating or drinking places*, furniture stores, office or business machine stores, and radio and television studios. Also included are large wholesale establishments serving wide areas.

• 11 – Use Group 11 consists primarily of custom manufacturing activities that benefit from a central location and are appropriate in the central business district. They generally do not create any significant objectionable influences, and involve products characterized by a high ratio of value to bulk so traffic is kept to a minimum. Examples include: manufacturing establishments and wholesalers

• 12 – Use Group 12 is characterized by large uses that have a wide service area and generate significant pedestrian or automotive traffic. Examples include: amusement and entertainment facilities, such as arenas and auditoriums; as well as toy stores, drug stores, police stations, water or sewage pumping stations, and public parking lots

*Refer to The City of New York Zoning Resolution for detailed regulations regarding eating and drinking establishments

Cushman & Wakefield deems the information above to be accurate, however, buyers are advised to consult The City of New York Zoning Resolution for a complete list of permitted uses in C6-2A or contact a zoning attorney.

12 nyinvestmentsales.com 305 Church Street, New York, NY 10013 13 Due Diligence

Tax Map Certificate of Occupancy

Tax Bill

14 nyinvestmentsales.com 305 Church Street, New York, NY 10013 15 DueArea Diligence Demographics

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!2 ! l 3 R w r t ark o 5 Dr Smood Soho 21 Maman Tribeca 5 Barry's Tribeca 8 California Closets Barc P a lay S St !3 e V h t P t ese c S 6 JOE & THE JUICE 22 Chipotle Mexican Grill Hotels 6 Planet Fitness 9 Duane Reade y St S r ! 2019 Median Household Income 2 th u d u l o h S 7 Chipotle Mexican Grill 23 Zutto Japanese American Pub 1 The Greenwich Hotel 7 Hudson Boxing Gym 10 Biscuits & Bath by Block Group o C G

8 Starbucks 24 Popeyes Louisiana Kitchen 2 NOMO SOHO 8 Crunch Fitness 11 Bed Bath & Beyond < $50,000 9 Jack's Wife Freda 25 Shanghai Dumpling 3 The Dominick 9 The Trinity Boxing Club 12 Barnes and Noble 10 Chopt Creative Salad 26 The Palm Restaurant 4 SIXTY SoHo 10 Tribeca Health & Fitness 13 Bluemercury $50,000 - $99,999 11 Osteria Morini 27 Whiskey Tavern 5 The James New York 11 Equinox 14 Mattress Firm $100,000 - $124,999 12 Le Pain Quotidien 28 Dunkin' 6

13 sweetgreen 29 Pret A Manger 7 Hilton Harden Inn Retail $125,000 - $174,999 14 sweetgreen 30 sweetgreen 1 Free People $175,000+ 15 Seamores 2 UNIQLO

DATA IS FROM SOURCES DEEMED RELIABLE BUT MAY BE SUBJECT TO ERRORS, OMISSIONS, OR MODIFICATIONS. THE INFORMATION HEREIN IS PROVIDED WITHOUT REPRESENTATION OR WARRANTY. DATA IS FROM SOURCES DEEMED RELIABLE BUT MAY BE SUBJECT TO ERRORS, OMISSIONS, OR MODIFICATIONS. THE INFORMATION HEREIN IS PROVIDED WITHOUT REPRESENTATION OR WARRANTY.

16 nyinvestmentsales.com 305 Church Street, New York, NY 10013 17 DueArea Diligence Demographics

TriBeCa Demographics

2000 2010 2016 2021 % Change % Change Population Demographics Census Census Estimates Projection 2010-2016 2016-2021

Total Population 10,179 16,362 17,427 19,719 6.5% 13.1%

Population Density (Pop/Sq. Mi.) 31,358.47 45,572.28 53,686.90 60,746.03 17.8% 13.1%

Total Households 5,015 7,651 8,128 9,204 6.2% 13.2%

2000 2010 2016 2021 % Change % Change Household Income Census Census Estimates Projection 2010-2016 2016-2021

$0-$15,000 404 8.1% 478 6.2% 501 6.2% 427 4.6% 4.8% -14.7%

$15,000-$24,999 325 6.5% 238 3.1% 272 3.3% 255 2.8% 14.2% -6.4%

$25,000-$34,999 504 10.0% 374 4.9% 318 3.9% 300 3.3% -14.9% -5.9%

$35,000-$49,999 487 9.7% 381 5.0% 362 4.5% 342 3.7% -4.9% -5.5%

$50,000-$74,999 497 9.9% 588 7.7% 596 7.3% 515 5.6% 1.4% -13.6%

$75,000-$99,999 513 10.2% 548 7.2% 509 6.3% 490 5.3% -7.1% -3.7%

$100,000-$149,999 681 13.6% 1,430 18.7% 1,308 16.1% 1,564 17.0% -8.5% 19.6%

$150,000+ 1,625 32.4% 3,614 47.2% 4,261 52.4% 5,311 57.7% 17.9% 24.6%

Average Income $173,817 $222,249 $235,083 $268,560 5.8% 14.2%

Median Income $89,649 $139,055 $162,108 $190,702 16.6% 17.6%

Income Per Capita $85,640 $104,065 $109,765 $125,465 5.5% 14.3%

2016 Daytime Population Demographics

Total Daytime Population 98,068 Age 16 and Over at the Workplace 81,501

Population age 16 and under (Children) 2,252 Age 16 and Over Unemployed 385

Daytime Population Age 16 and Over 95,815 Age 16 and Over Working from Home 1,064

Students Pre-K to 8th Grade 1,193

Students 9th Grade to 12th Grade 17

Post-Secondary Students 12,590

Homemakers Aged 16 and Over 1,033

18 nyinvestmentsales.com 305 Church Street, New York, NY 10013 19 Market Overview

spectacular apartments. Many of New York City’s finest restaurants, in the area. Tenants and retailers have shown increasing optimism antique and craft stores are located in TriBeCa. With easy access to and demand for space following the influx of new businesses and every corner of the island, it remains a sophisticated, cosmopolitan, residents into the area, which has pushed the average asking rent and glamorous New York neighborhood. along major retail corridors to $308 per square foot. TriBeCa The residential market has continued to perform extremely Consisting of over 88 million square feet of office space, Lower well. Sales activity has been extremely steady and the median Manhattan is one of the largest and most active business districts TriBeCa includes the area bounded by Canal Street (north), Vesey Development in the area was spurred by the extension of the IRT sales price hit a ten-year high. Lower Manhattan in particular is in the country. Lower Manhattan is expected to gain 40,000 new Street (south), Lafayette Street (east) and the Hudson River Broadway – Seventh Avenue Line, which opened for service in changing rapidly as more businesses and residents move to the jobs as its workforce continues to represent a diverse group of (west). TriBeCa, an acronym for Triangle Below Canal Street, was 1918, and the accompanying extension of Seventh Avenue and area. The district has rightfully gained the reputation of being the industries. Furthermore, over the next five years, the district is coined in the mid-1970’s as a result of City Planning studies and the widening of during subway construction in most affluent and fastest-growing residential community in New poised to bring the most significant employment surge in thirty the adoption of the Special Lower Manhattan Mixed Use District 1914. That resulted in better access to the area both for vehicles York City. The influx of high-end retailers, celebrity chefs, inviting years. Contributing to significant rise is The World Trade Center (LMM). TriBeCa retains much of the Bohemian quality that and for travelers using public transportation. The area was also parks and cultural institutions has been a major factor that has that is expected to bring 2.5 million square feet of new office once characterized the entire complex of cast-iron architecture served by the IRT Ninth Avenue Line, an elevated train line on contributed to this growth. By the end of 2019, Lower Manhattan space online through year end 2019. The employment growth of between Houston and Vesey streets before it went upscale. demolished in 1940. is expected to see an additional 5,200 new housing units as well as Lower Manhattan is estimated to be 2.4%, which exceeds the city’s 3,900 hotel rooms as tourism is expected to reach nearly 15 million overall average expected rate of 1.3%. This positive growth and The area was among the first residential neighborhoods Because this neighborhood overlaps the City Hall area, with annual visitors. According to the MNS November 2015 rental market development is great news for the future of Lower Manhattan and developed in New York beyond the boundaries of the city during its enormous daytime working population, it has been more report, TriBeCa has seen a year over year increase of 7.2% in rents especially TriBeca. colonial times, with residential development beginning in the late successful in resisting the tide of fad enterprise. Art and bolstered by nearby SoHo showing an increase of 19.7%. Residents 18th century. By the mid-19th century the area transformed into a commerce have, of course, transformed TriBeCa to a certain have shown a strong commitment to the Lower Manhattan area as Tourism is thriving in Lower Manhattan and hotel developers are commercial center, with large numbers of store and loft buildings degree, but they have not overwhelmed it. TriBeCa today is the population has doubled since 2001, allowing the district to remain capitalizing on the expected growth of the industry as major constructed along Broadway in the 1850s and 1860s. most sought after residential address in Manhattan. Many of the on track to become New York City’s premier residential destination. destinations come online including the World Trade Center old historic warehouses and loft buildings have been converted to Observatory, which is now open to the public and is expected to Lower Manhattan’s retail sector is undergoing a revival, with several welcome 3 million visitors a year. Currently, Lower Manhattan has major developments set to transform the entire landscape from only 4% of New York City’s hotel room inventory, but over 20% of what used to be a nine-to-five neighborhood, into one of New York hotel rooms in the pipeline. Over a 10—year span between 2006 and City’s hottest shopping and dining destinations. As major capital 2016, it is estimated that Lower Manhattan has seen an astounding improvements near completion, such as Fulton Center, Brookfield 318 percent increase in the number of hotel rooms. In fact, within Place, Westfield World Trade Center and South Street Seaport, the last 10 years, Lower Manhattan has experienced triple the more than 2 million square feet of new or repositioned retail is number of hotels equating to 5,600 rooms in 26 hotels. This is coming online within the next two years. Additionally, the streets in only the beginning for the development boom, as 18 additional close proximity to the property, such as and Church hotels are scheduled for competition, bringing 8,800 rooms in 44 Street, have both seen an influx in notable retailers over the years. hotels by year end 2019. This volume of investment pouring into Retailers to include are Calypso, American Apparel, J. Crew and Lower Manhattan’s hospitality industry is proof that the district Ibiza. There has also been a rise in exclusive boutiques featured has become one of New York City’s most desirable and dynamic in other high-end markets situated in the Hamptons, Miami, and locations for both business travelers and tourists. LA. Both national retailers and high-end boutiques surrounding the property complement TriBeCa’s chic appeal, and add a significant upscale in foot traffic that has been extremely beneficial for the retail Asking Price: $4,750,000

Maurice Suede Director +1 212 589 5131 [email protected]

Robert Burton DanielExecutive Soyak Director Associate +1 212 660 7770 +1 212 698 5552 [email protected] [email protected]

Keegan Mehlhorn Associate 1290+1 212Avenue 660 7718of the Amercias [email protected] York, NY, 10104 nyinvestmentsales.com