661 Lexington Avenue Midtown, New York for More Information, Please Contact

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661LEXINGTON

OFFERING MEMORANDUM 661 LEXINGTON AVENUE MIDTOWN, NEW YORK FOR MORE INFORMATION, PLEASE CONTACT:

BEN TAPPER CHRIS VARJAN SEAN SLATTERY Senior Managing Director Senior Managing Director Director 646.658.7334 212.776.1272 646.723.4011 [email protected] [email protected] [email protected]

KYLE WILLIAMS JONATHAN BRAUN GEORGE STEFFANI Director Director Director 646.723.4715 212.776.4341 212.776.1207 [email protected] [email protected] [email protected]

SCOTT MULLIGAN Associate 212.776.4340 [email protected] 2

661LEXINGTON

MIDTOWN, NEW YORK

TABLE OF CONTENTS

Property Overview 4

Development & Enlargement Opportunity 5

Executive Summary 6

Property Highlights 7

East Midtown 8-9

Stacking Plan 10

Floor Plans 11-13

Neighborhood Map 14

Preliminary Leasehold Terms 15

Comparables 16-17

Disclaimer 18

3 PROPERTY OVERVIEW

661 LEXINGTON AVENUE (AKA 135 EAST 55TH STREET)

Block/Lot 1310/22 Lot and Building Dimensions 60.42’ X 80’ Lot Size 4,833 Sq. Ft. Building Sq. Ft. 35,426 (Above Grade) Stories 8 Zoning C5-2.5 / MiD FAR Residential 10 Commercial and Community Facility 12 ZFA Residential 48,330 Commercial and Community Facility 57,996 Unused Development Rights Residential 12,904 Commercial and Community Facility 22,570 Property Tax (2021/22 Tentative) $561,258 Year Built 1902 4

DEVELOPMENT & 661LEXINGTON MIDTOWN, NEW YORK ENLARGEMENT OPPORTUNITY 661 Lexington Avenue will offer multiple value-add possibilities, including the opportunity to add additional floors.

CURRENT POTENTIAL

Possible development and renovation ideas include: • Current zoning and development rights allow for additional floors • Ability for a user to “brand” the building • Potential to add building amenities and additional outdoor space

5 EXECUTIVE SUMMARY

661 Lexington Avenue (“the Property”) is a long-term leasehold opportunity for a premier office building located in Midtown East. Built in 1902, the Property sits on the heavily trafficked Northeast corner of Lexington Avenue and East 55th Street.

This nine story building features over 35,000 Sq. Ft. of above grade plus a selling basement, currently used as a restaurant, that encompasses a large majority of the lower level. The floor plates on the 2nd through 7th floors are approximately 4,800 Sq. Ft. each, making it the perfect location for midsize tenants or a single user. The 8th and 9th floors provide the opportunity to create a duplex with multiple outdoors spaces. Zoning in the area also allows for the utilization of the 22,570 Sq. Ft. of unused development rights to increase the overall square footage of the building.

The ground floor features over 140 feet of wraparound frontage with three in-place tenants, all with excellent visibility and exposure. The 55th Street corner is centrally located and surrounded by a mix of office, retail, and residential buildings. Just blocks away from all major subway lines and walking distance to Grand Central, 661 Lexington Avenue offers optionality to investors and users.

661LEXINGTON PROPERTY HIGHLIGHTS MIDTOWN, NEW YORK

ADVANTAGES AND OPPORTUNITIES

661 Lexington Avenue has the advantage of being situated at the Northeast corner of East 55th Street affording it excellent visibility, light, and air. The property’s light and air is further enhanced by being located diagonally across the Historic Central Synagogue, a New York City and National Landmarked building.

The property can be delivered with a clear path to full vacancy at the time of closing, making it available for investors, developers, or users to begin immediate redevelopment. The property being unencumbered by long-term leases or rent regulation allows a new operator to immediately pursue their business plans for the property’s future use.

Additional advantages include:

• Corner property with over 35,000 gross sq. ft. as well as a renovated selling basement

• Ability to increase square footage with existing unused development rights, as well as potential future assemblage linchpin

• Flexible zoning permits residential, retail, commercial, and community facility uses

• Above average ceiling heights and well-located core

• New elevator mechanicals as of August 2019

• Over 140’ of total frontage

• Not Landmarked or in an Historical District

• Full building branding opportunity on a busy Midtown East corner

7 EAST MIDTOWN

Bounded by Park Avenue and the East River between East 59th Street and East 42nd Street, East Midtown is a neighborhood with a unique blend of major employment centers, several different submarkets, and a high concentration of residential uses.

The submarkets that make up East Midtown include the area surrounding the United Nations Headquarters to the Southeast, Turtle Bay neighborhood at the heart of East Midtown, and the Sutton Place neighborhood offering affluent residential living options. The greatest driver of pedestrian and commuter activity in East Midtown is the major employment centers and high concentration of office buildings that East Midtown draws from on Madison Avenue, Park Avenue, Lexington Avenue, and 3rd Avenue. These concentrated office corridors make up roughly ±52 million SF in existing office space with ±905,000 SF of additional office space under construction. Some projects under construction include L&L Holding’s 425 Park Avenue office tower and Boston Properties 159 East 53rd Street ±200,000 SF office building. Hundreds of thousands of employees within East Midtown spurs demand for a range of daytime general service, food/beverage, and retailers year-round.

661LEXINGTON EAST MIDTOWN MIDTOWN, NEW YORK

Coupled with large office inventory on the western side of the neighborhood, the eastern part of the neighborhood is home to a plethora of cooperative and condominium walk-up and elevator buildings. The condo concentration is more evident in Turtle Bay, between 3rd Avenue and 1st Avenue from East 53rd St down to East 45th Street. The cooperative buildings are primarily located between 1st Avenue and Sutton Place between East 59th Street and East 51st Street.The United Nations Headquarters and complex is located between 1st Avenue and The East River and is surrounded by a high concentration of foreign government embassies, consulates, non-governmental organizations, foundations, and nonprofit organizations.

As part of the rezoning for the Special Midtown District (MiD) the New York City Planning and Zoning has created the East Midtown sub-district as a long-term guide to development of office space for the next several decades. This sub-district was established in 2017 and encourages new office development, offers incentives to improvement of pedestrian areas and improvements of transit access when coupled with new office development.

9 STACKING PLAN

Ground

Lower Level

661LEXINGTON FLOOR PLANS MIDTOWN, NEW YORK

LOWER LEVEL

GROUND FLOOR

11 FLOOR PLANS

SECOND FLOOR THIRD FLOOR SINGLE TENANT TWO TENANT

FOURTH FLOOR FIFTH FLOOR SINGLE TENANT TWO TENANT 12

FLOOR PLANS 661LEXINGTON MIDTOWN, NEW YORK

SIXTH FLOOR SEVENTH FLOOR TWO TENANT TWO TENANT

EIGHTH FLOOR NINTH FLOOR TWO TENANT SINGLE TENANT 13 NEIGHBORHOOD MAP

CENTRAL PARK

3 14 10

2 661LEXINGTON 1 13 4

8 9

7 5

12 11 6

1 Central Synagogue 6 Grand Central 11 UN Plaza

2 432 Park Ave Condos 7 Rockefeller Center 12 Dag Hammarskjold Plaza 3 Bloomberg HQ 8 Radio City Music Hall 13 MoMA

885 Third Avenue St. Patrick’s Cathedral NYU Langone 4 The Lipstick Building 9 14 Medical Center

5 Waldorf Astoria 10 The Plaza Hotel 15 Rockefeller University

PRELIMINARY 661LEXINGTON LEASEHOLD TERMS MIDTOWN, NEW YORK

Address 661 Lexington Avenue (aka 135 East 55th street)

Indicate the structure of the proposed lessee entity. Include information about each of the Lessee principals and partners. Indicate sources of funding for the proposed development.

Term 50 to 99 years, starting approximately January 1, 2022

Please indicate the initial rent, any proposed phase in period, as well as percentage in- Rent & Increases creases and rent resets.

The lease shall be an absolute “Triple net lease” Tenant pays all real estate taxes, operating expenses, insurance, maintenance and repairs as well as all development and Net Lease capital expenditures and any other costs related to the development and operation of the Property, all of which are the Tenant’s sole responsibility.

Key Money Please indicate all upfront payments upon lease signing.

Please indicate the form and amount of security to be provided. A “Good Guy” guarantee Security Deposit will be required.

Proposed Uses Please indicate the proposed use of the Property and the anticipated approximate time & Initial Plans frame for completion and occupancy of the new development.

Please indicate proposed combination of the following: project completion Bond, cash Completion Guarantees/ security, letter of credit for completion/development security. Please provide the name and Development Security qualifications of the individuals/entities that will act as guarantor(s).

UN Plaza Insurance Lessee will be required to carry insurance on an ongoing basis satisfactory to Landlord.

Dag Hammarskjold Plaza There will be no transfers, assignments or sublets of the leasehold interest without the MoMA Transfer, Assignment prior written consent of the Landlord. There will be no transfers, assignments or sublets or Sub-Lease of the leasehold interest prior to completion of construction and obtaining approvals and NYU Langone certificate of occupancy. Medical Center Notes: Prospective bidders are advised that this Request for Proposal is intended to solicit interest in the Property and that no rights are intended to be created with respect to the Property unless and until a Rockefeller University formal lease agreement is executed between the parties.

15 COMPARABLES

SALE COMPARABLES

ADDRESS BLDG SF SALE PRICE DATE PPSF NOTES

150 East 45th Street 39,487 $28,250,000 April-20 $715.43

80% leased at time 15 West 47th Street 136,372 $110,000,000 December-20 $806.62 of sale; traded for a 4.25% cap rate

331 Park Avenue South 97,000 $82,470,000 June-20 $850.21 Portfolio Sale & 114 East 25th Street

Single tenant at time of sale to United Nations 305 East 46th Street 187,060 $152,000,000 November-19 $812.57 Foundation; traded for a 5% cap rate

56 West 22nd Street 66,190 $48,500,000 March-20 $732.74

211 East 48th Street 4,483 $3,800,000 March-20 $847.65

207 East 32nd Street 9,000 $7,500,000 October-20 $833.33

35-37 East 62nd Street 19,968 $25,000,000 April-21 $1,252.00 1/2 of $35M Portfolio

TOTAL/AVERAGE 596,609 $469,190,000 $977.66

CURRENTLY ON THE MARKET

To be delivered vacant; 12 East 53rd Street 24,689 $26,000,000 For Sale $1,053.10 previously leased to LIM

576 Fifth Avenue 78,564 $113,000,000 For Sale $1,438.32

21-23 West 26th Street 18,171 $19,000,000 For Sale $1,045.62 Historic portfolio

LEASEHOLD TRANSACTIONS

3 East 44th Street 14,175 $15,300,000 August-19 $1,079.37

661LEXINGTON COMPARABLES MIDTOWN, NEW YORK

OFFICE COMPS

ADDRESS BLDG SF DATE PPSF

570 Lexington Avenue 5,436 March-21 $70.00

133 East 58th Street 1,354 February-21 $72.00

145 East 57th Street 4,285 July-20 $70.00

485 Lexington Avenue 54,199 March-20 $67.00

641 Lexington Avenue 6,691 December-20 $65.00

139 East 57th Street 1,048 January-21 $60.00

770 Lexington Avenue 500 June-21 $66.00

515 Madison Avenue 9,469 December-20 $65.00

641 Lexington Avenue 30,485 December-20 $65.00

570 Lexington Avenue 18,668 September-20 $66.00

TOTAL/AVERAGE 132,135 $66.60

RETAIL COMPS

ADDRESS BLDG SF DATE PPSF

707 Lexington Avenue 6,428 June-20 $160

715 Lexington Avenue 3,000 March-21 $112

136-140 East 55th Street 980 June-19 $200

TOTAL/AVERAGE 10,408 $157.33

17 DISCLAIMER

The information contained in this Investment Offering is confidential and is provided for the sole purpose of allowing persons to evaluate whether there is interest in proceeding with further discussions regarding a possible transaction with respect to the subject property (the “Property”). The information contained herein shall not be photocopied or disclosed to any other party and shall not be used for any other purpose. If the person receiving this Offering Memorandum does not choose to pursue such a transaction, this Offering Memorandum shall be returned to Lee & Associates.

Neither the Owner, nor Lee & Associates, nor any of their officers, directors, employees or agents, assume any responsibility or make any representations or warranties, whether express or implied, by operation of law or otherwise, with respect to the Property or this Offering Memorandum or any information or statements (including financial statements and projections) contained herein or relating hereto, including the accuracy or completeness of such information or statements and the condition, quality or fitness of the Property. Such information and statements have in many circumstances been obtained from outside sources, have not been tested or verified and may be subject to errors or omissions. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given. Potential investors are urged to perform their own examination and inspection of the Property and information relating to same, and shall rely solely on such examination and investigation and not on this Offering Memorandum or any information or materials contained herein or otherwise provided.

Lee & Associates is the exclusive advisor and representative of Owner and no agency agreement, express or implied, shall exist between Lee & Associates and potential purchasers, unless otherwise agreed to in writing by all parties. The only party authorized to represent the Owner of the Property is Lee & Associates, and the Owner shall not be obligated to pay any fees or commissions to any other advisor, broker or representative. Any party entering into a transaction with the Owner shall be obligated to pay any fees or commissions due any advisors, brokers or representatives, other than Lee & Associates, dealing with such party.

This Offering Memorandum is provided subject to prior sale or lease, change of price or terms and other changes to the materials, statements and information contained herein or relating to the Property, and is subject to withdrawal, all without notice or any liability. In no event shall the delivery or receipt of this Offering Memorandum be deemed to create any legal obligation to enter into any transactions with respect to the Property, and only a definitive agreement signed by all parties shall create a binding commitment to enter into a transaction.

661LEXINGTON

MIDTOWN, NEW YORK

FOR MORE INFORMATION, PLEASE CONTACT:

BEN TAPPER CHRIS VARJAN Senior Managing Director Senior Managing Director 646.658.7334 212.776.1272 [email protected] [email protected]

SEAN SLATTERY KYLE WILLIAMS Director Director 646.723.4011 646.723.4715 [email protected] [email protected]

JONATHAN BRAUN GEORGE STEFFANI Director Director 212.776.4341 212.776.1207 [email protected] [email protected]

SCOTT MULLIGAN Associate 212.776.4340 [email protected]