544 West 26Th Street

Home , 100 Eleventh Avenue, 23rd Street (Manhattan), Chelsea Park, IAC Building

introduces

544 West 26th Street

SITE

W 25TH STREET THE HIGH LINE E NU AV 10 TH

Investment / development site for sale with income in place with credit tenant

Jamison Weiner 212.334.4666 x12 212.727.9378 [email protected] INTRODUCTION Approximately 49,500 to68,234BuildableSquareFeet purchaser significantfuturegrowthonthisinvestment. the ensure will potential development and location properties The T fashion designers, andmediatechnologycompanies. galleries,prominent most world’s the of many to home becoming exponentially,grown has neighborhood the years ten past the In Property’s developmentrightsstillinplace. the of all with site development unimproved an of upside future a tenant”by the “credit tenanted and property producing income 544 West 26th It is rare that a property like this becomes available in Manhattan. space. the balance being commercial office space and community facility with space retail floor ground prime into developed be can rights these of feet square 10,000 rights.Approximately development unused of feet square 65,000 approximately has Property The the West SideofManhattan. the of extension the staging of purpose to leased currently is Property The is withincloseproximitytothenewHighLinePark. District. Arts Chelsea Westthe in streets regarded Property”). 26th West 544 as known site park- lot/development surface ing the in interest simple fee the purchase for offer to Ownership by retained been has LLC Group Manhattes The 544 West 26thStreet he property is one of the last few undeveloped sites in Manhattan. e rpry s oae o oe f h ms highly most the of one on located is Property The Approximately 9,900 SFLotSize Street offers the purchaser the twin benefits of an 100’ ofFrontage he City of New of YorkCity The the for even (7) subway line on line subway (7) Seven he Property The re (“The Street

AREA DESCRIPTION

West Chelsea has become an emerging fashionable neighborhood and a new center for art galleries, boutiques, clubs and residential development. West Chelsea was a neglected New York City neighborhood until galleries forced out of SoHo due to high rents began moving into West Chelsea between 10th and 11th Avenue. This area has become the epicenter of New York City art and is now known as the “Gallery District”. Over 250 art galleries have moved to West Chelsea in the last 10 years. SU MM ARY

PROPERTY DESCRIPTION

Block: 697 Lot: 60 Lot Size: 100’ X 98.5’ Zoning: M1-5/WCH Current FAR: 5 to 6.5 with Community Facility Bonus

Building Description

Stories: 0 Size: Approximately 9,900

Sale Terms Price

Upon request ZONING ENVELOPE DIAGRAMS (Assumes 6.5FAR, 5FAR forcommercialand1.5FAR withCommunityFacility use) Stacking PlanDetailed Option1 ZONING ENVELOPE DIAGRAMS (Assumes 6.5FAR, 5FAR forcommercialand1.5FAR withCommunityFacility use) Stacking PlanDetailed Option2 LOCATION OVERVIEW continue toopenandflourish, dominatingthegroundfloorretailspaces. such as IAC have chosen West Chelsea for their world headquarters, and restaurants and art renowned galleries internationally by FrankGehry,and Nouvel Jean corporations designed as International such built. architects been recently have developments, commercial and condominium high-rise New emt eeoes o ul hg-est poet along streets. crosstown the projects of some high-density build to developers permit developments.mixed-use for allowing by changed WestChelsea plan rezoning 2005, of June In River Parktothe West andHudson Yards totheNorth. he Meat Packing District to the to District Packing Meat The the and east the to Avenue Residential DevelopmentProjectsin W est Chelsea 14th by bordered is Chelsea Chelsea. West 25th West 511-541 LOCATION OVERVIEW CHELSEA ENCLAVE 200 ELVNTH AVE 100 ELVNTH AVE CHELSEA MODERN 456 WEST 19THST PROJECT NAME M THE CALEDONIA 10 CHELSEAST ET AL HOUSES HL 23 SH U TTER e eatet f iy lnig dpe teWs Chelsea West the adopted Planning City of Department The re i lctd between located is Street 500 West 23rd Street 515 West 23rd Street 450 West 17thStreet 456 West 19thStreet 524 West 19thStreet 447 West 18thStreet 200 Eleventh Avenue 100 Eleventh Avenue 177 Ninth Avenue ADDRESS Hudson he changes in zoning paved the way for new life in West Chelsea. Westin life new for way the paved zoning in changes The he Flatiron District and Union and District South,Flatiron The iver to the West. In terms of neighborhoods, Chelsea borders neighborhoods,Chelsea of terms In West.the to River # OF APARTMENTS re t the to Street 190 Condominiums, 72 15 Condominium 11 Condominium 47 Condominium 53 Condominium 22 Condominium 110 Apartments 9 Condominium 288 Rentals Apartments Apartments Apartments Apartments Apartments Apartments Apartments

Condominium T nh and enth T nh and enth

uh 34th South,

eet Aeus i te er of heart the in Avenues, Eleventh residential propertyon New residential development that backs New residentialdevelopmentthatbacks construction, unobstructed views down Developed by with theGeneral this property on a long term land lease New 12 story project currently under New 14 story project currently under Jean Nouvel’s latest residential design garage for most apartment, architect eet Aeus a wl as well as Avenues, Eleventh T project, directlyadjacent totheIAC Unique design includes up to construction located on the corner construction locatedonthecorner roll up shutters for each apartment roll upshuttersforeachapartment of 23rdStreetand he Brodsky Organizatin developed this project is the southern most is currentlyunderdevelopment Unique façade which featrues quare to the east,the to Square 12 story building developed re t te ot, Fifth North, the to Street T is he World Headquarters. by MadisonEquities the HighLinePark facing thestreet. S H elldorf Architects. hese zoning changes zoning These ighline Park, the project The RelatedCompanies, znn Plan. Rezoning NOTE Theological Seminary. The HighLinePark. T enth Avenue. E n-suite sky Hudson

This

LOCATION OVERVIEW efot gen pc, comdtn bkr and bikers to Park tery accommodating wa- space, open, joggers with paved and designated paths running from into Bat- green transformed been terfront, have piers Multiple spaces to be developed in any urban setting in the country. Upper West This 550-acre waterfront park connects Battery Park to Hudson RiverP remains thecenterforgalleryactivityManhattan. area this ensuring of Chelsea,Westfurther portion mid-block same the in district Preservation historic a approved Landmarks 2008, of July In character. art-and-culture neighborhood’s the preserving in WestChelsea,streets thus side the of many to apply not does zoning large,of and change By the ties. As mentioned previously, the city rezoned this neighborhood to a higher density mixed-use zoning. galleries. Many of the top galleries located on the street level have purchased their respective proper & Cheim and Gallery Marlborough level galleries include Gagosian, Lehman Maupin, Axelle Fine Art, Marianne Boesky,world. the in galleries Pace art contemporary & prominent most the Wildenstein,of some to home is WestChelsea result of an abundance of industrial,loft-like space — which is critical to the art gallery business. compete with arriving luxury retailers. Led by a few pioneers, the industry flocked to West Chelsea as a in art world. In the late 90’s and early part of this decade, most contemporary art galleries were located years,ten last the contemporary of the course of the center Over the as emerged Westhas Chelsea West Chelseaontemporary Art District amenity to i i a n-fakn pr wt idgnu vgtto, etn ad akn paths. walking and seating vegetation, indigenous with park one-of-a-kind a is This and is scheduled to open in Q1, 2011. namic parkin Manhattan, maybe theworld. Park,Central to only grounds, restaurants and site seeing venues. courts, play- parks, children’s fields, tennis skateboard cer oho. As leases expired, galleries found themselves priced out of the of out priced themselves found galleries expired, leases Soho.As The Property. ide by way of one of the most unique public unique most the of one of way by Side he Upper WestUpper The Hudson ark iver Park is in the most dy- most the in is Park River Side. eid. Upper floors of loft office buildings are tenanted by smaller by tenanted are buildings office loft of floors Upper Reid. he park includes soc - includes park The The High Line Park has attracted national attention and renown. Second in size The HighLine continue north to 30th to north continue Meatpacking District, up to 20th 12th West below block one Street, Gansevoort from running public, the to open and of the conversion to Lower Westthe along freight Westthe called elevated spur railroad former the of section a on built The the eastern wall of the 511 building of The g Ln i a .5 ie e ok iy park City York New mile 1.45 a is Line High

The ide of Manhattan. Phase 1 Phase Manhattan. of Side Street. oho Market and unable to unable and Market Soho High Line Park is complete ide Line,runs Side which he park runs along runs park The Street. Phase 2 will i i a major a is This re, n the in Street, The Property T Street oday, -

THE APPLE STORE

MACELLERIA RESTAURANT

COOKSHOP RESTAURANT

PASTIS RESTAURANT

THE RED CAT RESTAURANT

100 ELEVENTH AVENUE THE PACE GALLERY SPICE MARKET

THE STANDARD GRILL CHELSEA PIERS

THE RED CAT RESTAURANT LOCATION OVERVIEW LOCATION 79 W 29TH ST W 29TH ST

W 28TH ST

W 27TH ST

12TH AVE 10TH AVE 9TH AVE 8TH AVE 69 70 544 W 26TH ST W 26TH ST 16 7 15 4 3 9 2 W 25TH ST W 25TH ST 13

A M ENITIES & NEIGHBORHOOD 18 5 10 1 11 6 W 24TH ST 67 12 8 76 14 62 36 W 23RD ST W 23RD ST 65 24 72 W 22ND ST W 22ND ST 44 51 17 W 21ST ST W 21ST ST 60

W 20TH ST W 20TH ST 21 74 27 66 32 64 W 19TH ST W 19TH ST 68 63 61 10TH AVE 9TH AVE 8TH AVE 71 11TH AVE W 18TH ST 34 W 17TH ST 59 73 28 30 31 W 16TH ST 22 20 23 43 33 W 15TH ST

50 54 52 39 49 40 W 14TH ST 46 45 53 58 47 77 W 13TH ST 25 37 41 42 38 19 35 26 57 75 56 48 W 4TH ST WASHINGTONGANSEVOORT ST 29 ST 78 HORATIO ST

JANE ST

W 12TH ST Galleries 1. Andrea Rosen 9. Marlborough Gallery 2. Betty Cunningham 10. Mary Boone 3. Cheim & Reid 11. Matthew Marks 4. Dillon Gallery 12. Mike Weiss 5. Gagosian 13. Pace & Wildenstein 6. Gladstone Gallery 14. Perry Rubenstein 7. Lehmann Maupin 15. Robert Miller Gallery 8. Marianne Boesky 16. Tony Shafrazi

A M ENITIES & NEIGHBORHOOD Restaurants / Hotels 17. Billy’s Bakery 28. La Bottega 18. Bottino 29. Macelleria 19. Buddha Bar 30. Maritime Hotel 20. Buddakan 31. Matsuri 21. Cookshop 32. Moran’s 22. Craft Steak 33. Morimoto 23. Del Posto 34. The Park 24. Don Giovanni’s Pizza 35. Pastis 25. Fig & Olive 36. The Red Cat 26. Hotel Gansevoort 37. Spice Market 27. La Bergamote 38. The Standard

Retail 39. Alexander McQueen 49. Hugo Boss 40. Apple Store 50. Jeffrey 41. Calypso St. Barth 51. Printed Matter 42. Catherine Malandrino 52. Puma The Black Store 43. Chelsea Market 53. Scoop NYC 44. Comme Des Garçons 54. Stella McCartney 45. Design Within Reach 55. Tesla Motors (511 building) 46. Diane Von Furstenberg 56. Theory 47. Ed Hardy 57. Tory Birch 48. Helmut Lang 58. Vitra

New Residential Developments 59. The Caledonia 65. 10 Chelsea Street 60. Chelsea Enclave 66. 100 Eleventh Avenue 61. Chelsea Modern 67. 200 Eleventh Avenue 62. HL 23 68. 456 West 19th Street 63. The IAC Building 69. Avalon Bay 64. Metal Shutter Houses

Public Spaces / Museums / Clubs 70. Chelsea Park 75. The Highline 71. Chelsea Piers 76. Hudson River Greenway 72. Dia Art Foundation 77. Soho House 73. Equinox Gym 78. Whitney Museum (planned) 74. General Theological 79. Hudson Yards THE IAC BUILDING seminary redevelopment Project TENANT SUMMARY CASH FLOWSUMMARY be requiredduetoproximity toMT with respect to construction on the lot. MT MT tion with respect to subway work on adjacent lot and to cause the • Affirmative covenant by NYC to provide periodic design informa - • NYCmustprovideanestoppelletteron30days notice THAN thevalueoncommencementdateof lease • If NYC ends up condemning the lot, the value shall be NO LESS pursuant toancillaryagreementandindemnification Penske by performed being is cleanup environmental Current • ties, exceptmaintenanceof$1MMliabilitycoverage responsibili- landlord other NYC.No by services and utilities • All over 2007-2008baseyear • NYC pays as additional rent, 50% of Real Estate Tax escalations NYC default a of event in rate legal highest at interest to entitled Landlord • $1,000,000 perannum $600,000. is rent 8, year for option its exercises quarterly.NYC paid If $500,000 of rental Annual • • NYCcanterminatetheleaseearlyonsixmonthswritten notice. same the in condition asittookover Owner to lot return to required is and lot adjacent on done being work tunnel for area staging as lot use to NYC • need thelotfor4-5years likely most will NYC that told been have We 6/1/07. commences term Lease year. 8th an for option an with term lease year 7 • • LeasebetweencurrentOwnerand The CityofNew York Lease Abstract NOI $474,000 Expenses: $26,000(InsuranceandRealEstate Revenue: $500,000peryearpaidquarterly t epdtosy eiw n dsg sbitl b Landlord by submittals design any review expeditiously to A A facilitiesonnext-door lot. oldover rent thereafter is thereafter rent Holdover A approval would likely T axes) TENANT SUMMARY claims undertheGeneralRelease agreement and the the lease and Owner is indemnified from under any such claims environmental from indemnified fully is NYC • from theNY plete the remediation and monitoring until a NFA Letter is obtained thereafter.months 12 other an- last to expected is site the of period monitoring the and 2008 guaran- tee) that the remediation not efforts are expected to last until June does of (but represents Penske agreement, such In • construction activities ongoing of NYC’s with coordinated coordination are activities monitoring and remediation the whereby agreement an executed NYC and Owner Penske, Lease, NYC the with connection In • has and activities remediation installed monitoringwellsatthelot periodic doing been has GES • ther Action” LettercanbeobtainedfromtheDEC Fur a “No until DEC NYC the to reported and by required as ing tal • Since that time, Penske has engaged Groundwater Environmen- to anyclaimsarisingoutofthespill respect with Owner indemnify and defend to and spill the to due required cleanup expense,environmental and any cost sole its at tion with its vacation of the property, Penske agreed to undertake, • Pursuant to a “General Release” dated April 24, 2002 in connec- tenancy its during spill fuel a caused and lot the on tenant previous a was • Penske Truck Leasing Co., LP, (“Penske”) a national credit tenant, with Penske Cleanup Services,monitor and remediation the Inc.perform to (“GES”) S DEC Indemnificationand Agreements [email protected] 212.334.4666 x12 Jamison Weiner 212.727.9378 egardless, Penske is liable to com- to Regardless,liable is Penske - -