771 Ninth Avenue and 406 West 52Nd Street- Executive Summary.Pdf

Home , 52nd Street (Manhattan), 53rd Street (Manhattan), Ninth Avenue (Manhattan)

Strategic location. Located off the corner of 9th Avenue and West 52nd Street, these assets are located in the rapidly expanding neighborhood of Hell’s Kitchen. This location offers convenient Marcus & Millichap is pleased to offer the following opportunity access to subways, restaurants and other amenities in the located in the booming Midtown West neighborhood. 771 Ninth neighborhood. Because of these factors, renters typically pay more Avenue & 406 West 52nd are both located off of the southwest for buildings located in this immediate location. corner of Ninth Avenue and West 52nd Street. The buildings are connected in the rear and contain a combined gross square Multiple exit strategies. Ultimately a new buyer will be able to footage of 12,540. 771 Ninth Avenue is 25x100 and sits on a sell the asset for an appreciated value once the rent roll is 25x100 lot. 406 West 52nd Street is built 20x50 on a 20x50 lot increased and the building has been repositioned. An additional (Block: 1061 Lots: 34 & 136). option to increase value will be to potentially condo out the retail portion of the building and sell that separately or triple net lease the entire property to stabilize cash-flow in order to maximize income and future sales price.

Immediate Value-add. This is the first time ownership will change hands in over 30 years. Delivered vacant, this is perfect for an investor who would like a blank canvas to play with. Conjoined at the back, both 771 9th Avenue and 406 West 52nd Street offer large, unique spaces that would be ideal for PRICE /SF TOTAL SQUARE FEET investors, developers, and users.

Prime Retail Repositioning. Located on 9th Avenue, this offering is ideal for instant repositioning following acquisition. With over 5,900 Square Feet of retail on the 1st and 2nd floors, PRO FORMA CAP RATE PROJECTED TAXES an investor has the ability to renovate and tenant the retail. This area demands retail rents north of $135/SF on the ground floor. There is currently a garage with a curb-cut on West 52nd Street, which would be essential space for a restaurant, bar, store, or school. TOTAL AIR RIGHTS PRO FORMA GRM

Ability to Convert. With C1-5 & R8 zoning, there is an ability to operate either commercial, residential, or both on the premises. The property also boasts 8,578 square feet of unused air rights.

INCOME CURRENT PRO FORMA $13,000,000 Gross Potential Residential Rent $0 $0 OFFERING PRICE Gross Potential Commercial Rent $0 $984,000 Gross Income $0 $984,000 PRICE PER SQUARE FOOT $1,037 Effective Gross Income $0 $984,000 TOTAL SQUARE FEET 12,540 PRO FORMA CAP RATE 5.7% EXPENSES PRO FORMA GRM 13.21 Property Taxes $128,612 $128,612 PRO FORMA CASH ON CASH RETURN 5.88% Fuel $13,000 $20,000 Insurance $4,500 $12,500 Water and Sewer $9,000 $12,000 Repairs and Maintenance $7,500 $10,000 Common Electric (PPSF) $3,135 $3,135 Super Salary $0 $10,000 Management Fee $0 $39,360 Elevator Contract N/A $8,500 Total Expenses $165,747 $244,107 Net Operating Income ($165,747) $739,893

12,540 $1,037 13.21 5.7% SQUARE FEET

GROSS TOTAL SF $/SF PRO FORMA GRM PRO FORMA CAP RATE

ANNUAL RESIDENTIAL REVENUE $0 ANNUAL COMMERCIAL REVENUE $984,000

PRO FORMA TOTAL ANNUAL REVENUE $984,000 There are currently 0 vacant units in the building. The super lives off site.

EXPENSES Property Taxes $128,612 13% $10.26 Fuel $20,000 2% $1.59 100% Insurance $12,500 1% $1.00 Water and Sewer $12,000 1% $0.96 Repairs and Maintenance $10,000 1% $0.80 Common Electric (PPSF) $3,135 0.3% $0.25 Super Salary $10,000 1% $0.80 Management Fee $39,360 4% $3.14 PRO FORMA Elevator Contract $8,500 1% $0.68 EXPENSE RATIO Total Expenses $244,107 25% $19 PRO FORMA TAXES AS Net Operating Income $739,893 PERCENT OF EGI

25%

Manhattan is a significant part of a much larger population system; the New York City metropolitan area is the largest in the United States, with more than 19 million inhabitants in three states.

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City New York New York

State NY NY

Block & Lot 1061-34 1061-136

Lot Dimensions 25 x 100 20 x 50

Lot SF 2,500 1,000

Building Dimensions 25 x 100 20 x 50

Building SF 7,500 5,040

Zoning C1-5/R8 C1-5/R8

Max FAR 6.02 6.02

Available Air Rights 7,550 980

Landmark None None

Historic District None None

Annual Tax Bill space$105,408 space$23,204

Tax Class 4 2B

The island is one of New York City's five boroughs, is an island New York Harbor contains docks for freight and approximately 13 miles long and two miles wide. Solid bedrock passenger ships and provides ferry service to New provides a firm foundation for the high-rise buildings that dominate Jersey and around the city. the skyline.

Manhattan's deep-water port and proximity to the nation's interior bolster its position as a global economic powerhouse. Manhattan also contains Central Park, which encompasses 843 acres in the center of the island and is considered one of the nation's premier public spaces. Large population: New York City is the United States’ largest city, with upwards of 8 million residents.

Manhattan is home to over 1.6 million residents who are part of a Top address for corporate headquarters: much larger population system; the New York City metropolitan area 40+ Fortune 500 companies call New York is the largest in the United States, with more than 19 million City home. inhabitants in three states. New York City consists of five boroughs with about 8.4 million people. High barriers to development: few parcels of developable Manhattan is well placed, being 100 miles from Philadelphia, 210 land + high costs = limits to new construction. miles from Boston, 230 miles from Washington, D.C., and 790 miles from Chicago.

New York City has an extensive mass-transportation network. Subway and bus systems serve virtually every area in the five boroughs. There are 468 stations in the New York City Transit subway system, including 147 stations in Manhattan. Grand Central Station and Penn Station, both in Midtown Manhattan, provide rail service to the suburbs and long-distance connections, while three international airports offer flights to most global destinations.

The island of Manhattan is linked to the other boroughs and New Jersey by 11 bridges and four tunnels for vehicular traffic, with numerous additional tunnels for subway and rail lines. Highways along the borough's eastern and western edges connect to freeways throughout the five boroughs. Manhattan is also an important location for many retailers, both national and local. Retail sales in the borough typically New York City is home to around 40 Fortune 500 grew faster than the U.S. rate over the past decade. companies, more than any other MSA in the country, and most are located in Manhattan. The city serves as the epicenter for a wide variety of industries, making the performance of its local economy integral to the nation. The Job growth in Manhattan slowed over the past five years as Port of New York is also a vital component of New York’s the economic downturn weighed on the local centrality to American and regional trade. manufacturing; information; trade, transportation and utilities; and financial activities sectors. Losses will continue As one of the leading financial centers in the world, New in manufacturing through 2015, although the pace will York City boasts many international banks and financial decelerate from previous years. firms maintaining offices in the city. Professional and business services is the largest Wall Street is a major driver of the local economy, as a employment sector, accounting for over 470,000 positions, significant number of people are employed directly in the or 20 percent of the labor force. The government sector securities industry. The city is a hub for the media, follows closely, with 19 percent of jobs in Manhattan. These communications and publishing industries. The major sectors will post average annual gains of 2.3 percent and 1.2 television networks have substantial operations in percent, respectively, over the next five years. Manhattan, while hundreds of newspapers, magazines and several music recording companies are headquartered in The leisure and hospitality and education and health the city. In addition, New York City is the advertising capital services sectors will record the largest growth through 2015, of the United States and has a growing presence in the increasing at average annual rates of 3.1 percent and 2.9 Internet/new media field. The entertainment and tourism percent, respectively. An annual gain of 2.9 percent is also industries are crucial to the Manhattan economy, with expected in the other services sector. numerous theaters and attractions drawing billions of dollars each year.

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap Over half of Manhattan’s labor market is involved in A partial list of Manhattan’s most major employers is: financial activities and the services sectors. This is due to New York-Presbyterian Healthcare, Wellchoice Inc., United New York City being the headquarters of some of the Nations, Verizon Communications Inc., Continuum Health largest U.S.-based consulting businesses, accounting Partners Inc., Mount Sinai Hospital, New York University, offices, insurance companies and legal firms, as well as the Columbia University, Viacom, and Time Warner. United Nations. In addition, Manhattan is the financial center of the country and home to the New York Stock Exchange, being one of the only two Alpha++ cities in the world, sharing the title with London. Many of the world's New York City is the largest city in the United States, with top securities firms and banks are located here. Major over 8 million residents. An estimated 19 million people live employers in the finance industry based in Manhattan within the tri-state metro area. Among the five boroughs, include Goldman Sachs, JPMorgan Chase and Morgan Manhattan is third largest behind Brooklyn and Queens, Stanley Smith Barney. with a population of over 1.6 million. Manhattan grew 0.7 percent annually during the past decade, a rate expected to Media conglomerate Time Warner is the largest company in continue through 2015. the information sector, employing thousands of people in Manhattan from its headquarters at the Time Warner The share of Manhattan residents with a Bachelor’s degree Center in Midtown. Other large media employers in the is more than 34 percent, far above the national average of borough are Viacom and Verizon. The education and health almost 28 percent. Additionally, more than 14 percent of services sector accounts for 13 percent of jobs in the borough residents over age 25 have a graduate degree, Manhattan. Large employers include New York University, compared to just over 10 percent nationally. There are Columbia University, New York-Presbyterian Healthcare, significant and noteworthy differences between Mount Sinai Hospital and Continuum Health Partners Inc. Manhattan’s demographic profile and the profile of the nation. In particular, residents under age 20 make up only 20 A variety of entertainment options are available to percent of Manhattan's population, compared to 27 Manhattanites, including Broadway shows, first-run films percent at the U.S. level. Additionally, residents ages 25 to and famous nightlife venues. There are two MLB teams, two 44 comprise 37 percent of the local population, up from 27 NFL teams, two NHL teams and two NBA teams within the percent nationally, as this vital job market attracts many in metro. New York City has an extensive public park system, their prime working years. the jewel of which is Central Park in Manhattan.

Although Manhattan’s median household income stands at Central Park offers natural areas, lawns, playing fields, a healthy $68,100 annually, the borough also has one of the running trails, biking paths, boating facilities and a zoo. highest housing costs in the country, with the median home Manhattan's world class art museums include the price resting at nearly $1.2 million. Metropolitan Museum of Art, the Guggenheim and the Museum of Modern Art. The city's international flavor is on display in the island's many restaurants, featuring recipes from around the world. Manhattan offers a quality of life unique even within the nation’s largest cities. Although housing costs are among New York’s island of Manhattan continues to rise in culture, the most expensive in the country, the borough provides a quality of life, and wealth. As a global gateway city, New variety of cultural, entertainment and employment York will continue to deliver promising opportunities and opportunities. The area is one of the few places in the investment potential. United States where a person can live without a car and rely completely upon mass transit. You can get anywhere easily by taking the subway, buses or taxicabs, and rail terminals and airports make long-distance travel accessible.

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This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap Midtown West extends from 34th Street to 59th Street The “Plaza District,” a term frequently used to specify the between Fifth Avenue and the Hudson River. Within these most expensive region of Midtown from a commercial real boundaries lie renowned districts and streets that are estate standpoint, lies between 42nd and 59th Streets, from home to some of the most notable commercial buildings Third Avenue to Seventh Avenue. and attractions that Manhattan has to offer, which include: As New York’s largest central business district, Midtown • Hell’s Kitchen meets Central Park to the north at Manhattan serves as the busiest single commercial district Columbus Circle, located at 59th Street and 8th Avenue in the United States and is home to the most diverse group • Time Square and the Theatre District stretch from 42nd of real estate in the country. The majority of Manhattan’s Street to West 53rd Street tallest skyscrapers, hotels, and apartment establishments • Diamond District on West 47th Street between 6th and lie in the central business district of Midtown Manhattan. 5th Avenues • Garment District from West 42nd Street and West 34th Daily, more than 700,000 commuters travel to work to Street between 9th and 5th Avenues Midtown’s offices, hotels, and retail establishments, as wells • Herald Square at the intersection of Broadway, between as host thousands of tourists and visiting residents. 6th Avenue and West 34th Street Midtown West’s Times Square and Fifth Avenue hold the predominant number of retail shops, while Sixth Avenue is the home to three of the four major television networks. Midtown West is also growing as a financial epicenter, only Due to the close proximity to Midtown West’s commercial second in importance in the United States to Manhattan’s haven, residents have the luxury of walking to work – Financial District. Lastly, Midtown West is perhaps most whether that is to a Broadway audition in the Theatre notably known as a center of entertainment and American District or to an executive board meeting at Rockefeller theater. Developers have seen the amenities of this Center. commercial corridor as an opportunity to also incorporate residential development. Additional residential towers have When not at work, residents have no shortage of risen along Broadway and Eighth Avenue, incorporating entertainment with attractions such as Times Square, both rental and sales opportunities. Madison Square Garden, Rockefeller Center, Bryant Park, the Garment District, and the Diamond District. Activities range from ice skating in Rockefeller Center, to free movies and concerts in Bryant Park, or to simply reading a book in 7,Q,R,S,N,W to Times Square | 1,2,3 to Times Square | A,C,E the New York Public Library. The neighborhood is also to Times Square-Port Authority | B,D,F,V to 42nd St.-Bryant home to several core cultural institutions, such as Carnegie Park | B,D,F,N,Q,R,W,V to Herald Sq. | 1,2,3 to 34th St.-Penn Hall, Alvin Ailey, and Radio City Music Hall. Midtown West Station | A,C,E to 34th St.-Penn Station| E,V to Fifth Ave.- encompasses a wide array of fine and casual dining, along 53rd St. | B,D,F,V to Rockefeller Center | N,R,W to 49th St. | its Ninth Avenue restaurant strip and its 42nd street 1 to 50th St. | C,E to 50th St. | B,D,E to Seventh Ave. | F to restaurant row. 57th St. | N,Q,R,W to 57th St. | 1,A,B,C,D to Columbus Circle