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WEIRFIELD DEVELOPMENT PACKAGE TABLE OF CONTENTS I. EXECUTIVE SUMMARY II. THE NEIGHBORHOOD III. DUE DILIGENCE

FOR MORE INFORMATION, PLEASE CONTACT

DJ JOHNSTON Partner, Senior Managing Director 646 933 2619 [email protected]

WILLIAM CHENG L Director 646 933 2623 [email protected]

MICHAEL MURPHY Senior Associate 646 933 2638 [email protected]

BEN RECHLER Associate 646 933 2657 [email protected] EXECUTIVE SUMMARY THE OPPORTUNITY PROPERTY INFORMATION

B6 Real Estate Advisors is pleased to announce that it has of new restaurants, cafes, bars, art galleries, retail stores 389 391 1438 376 378 380 ADDRESS SUMMARY been retained on an exclusive basis to arrange for the sale of and creative work lofts, Bushwick, Brooklyn has emerged WEIRFIELD WEIRFIELD HANCOCK WEIRFIELD WERFIELD WEIRFIELD this extensive residential development assemblage located on as one of the fastest growing and most sought after real the Halsey L train station in Bushwick, Brooklyn. The portfolio estate markets in all of New York City. From an investment Block / Lot 3400 / 68 3400 / 63 3400 / 35 3407 / 21 3407 / 26 3407 / 27 -- features roughly 78,199 buildable square feet, just steps from perspective, Bushwick presents a rare opportunity to purchase 26.44' x 100' 30.33' x 196' Lot Size 30.54' x 100' 100.4' x 100' 30' x 200.21' 100.37' x 100' -- the L train, with convenient access to Union Square and real estate in a stable yet rapidly appreciating neighborhood at Irreg. Irreg. Williamsburg within 20 minutes. The large scale of this offering, a significant discount as compared to similar neighborhoods Lot SF 3,054 10,040 6,006 10,037 2,153 5,850 37,140 truly uncommon for the Bushwick area, provides developers like Williamsburg and Greenpoint. The most compelling trend with the critical mass necessary to create their own community is the fact that rental rates in Bushwick have outpaced many Zoning R6 R6 R6 R6 R6 R6 / M1-1 -- in what has become one of New York City’s most sought after other Brooklyn neighborhoods, while multifamily values have FAR 2.20 2.20 2.20 2.20 2.20 2.20 / 1.00 -- neighborhoods. remained significantly lower by comparison. Over the course of one year, the average rent for a one bedroom in Bushwick Residential BSF 6,719 22,088 13,214 22,081 4,737 6,435 75,274 As the long history of New York City neighborhoods such as increased by 11.3%, well above the industry average. Despite Commercial BSF ------2,925 2,925 Soho, Chelsea, Williamsburg, DUMBO and Greenpoint would this enormous increase, property values in Bushwick are Total Buildable SF 6,719 22,088 13,214 22,081 4,737 9,360 78,199 suggest, residents being priced out of mature neighborhoods still significantly lower as compared to similar offerings in will always travel along transportation lines to neighboring Greenpoint and Williamsburg. This presents an ideal scenario areas where they can live more comfortably. With an influx for a forward-looking investor.

RESIDENTIAL BSF COMMERCIAL BSF TOTAL BSF L 75,274 2,925 78,199

WYCKOFF AVENUE L BLOCK BLOCK 3400 3407

RESIDENTIAL BSF RESIDENTIAL BSF 42,021 33,253 130’ x 65’ x 5.5 Floors 100’ x 65 x 5.5 Floor 35 27 26 COMMERCIAL BSF 63 2,950 21 30’ x 100’ x 1 Floor

68 HALSEY STREET HANCOCK STREET WEIRFIELD STREET WEIRFIELD

6 B6 REAL ESTATE ADVISORS WEIRFIELD DEVELOPMENT PACKAGE 7

IRVING AVENUE PROPOSED DEVELOPMENT SCHEME TAX MAP

To avoid underground parking and maximize efficiency of building layouts and Total Buildable SF: 78,199 amenities, we are suggesting you mass out all of your residential FAR next to Residential BSF: 75,274 WYCKOFF AVENUE L on grade parking. We suspect this would save you roughly $3M in hard costs. M1-1 BSF: 2,925

RESIDENTIAL BSF – 42,021 COMMERCIAL BSF – 2,950 130’ X 65’ X 5.5 FLOORS 30’ X 100’ X 1 FLOOR

5.5 FLOORS OF RESIDENTIAL 1 FLOOR OF RETAIL OR PARKING

PARKING – 33 SPACES

PARKING – 25 SPACES 200.21’ 30’ 35 196.33’

100’ 27 65’ 30’

130’ 26 96.67’ 63 WEIRFIELD STREET 100’ 156.81’ 169.98’ 130.94’ 65’ 160.94’ 21 393 WEIRFIELD STREET 376 WEIRFIELD STREET BLOCK 3400 / 68,63,35 BLOCK 3407 / 21,26,27 68

100’ 100’ RESIDENTIAL BSF – 33,253 100’ X 65’ X 5.5 FLOORS HALSEY STREET

5.5 FLOORS OF RESIDENTIAL HANCOCK STREET WEIRFIELD STREET WEIRFIELD

8 B6 REAL ESTATE ADVISORS WEIRFIELD DEVELOPMENT PACKAGE 9

IRVING AVENUE PROPERTY PHOTOS

10 B6 REAL ESTATE ADVISORS WEIRFIELD DEVELOPMENT PACKAGE 11 TRANSPORTATION

The subject property is an 18 minute train ride from Manhattan By car, there is easy access to Manhattan via the Williamsburg and less than 25 minutes from Midtown via transfer. Bridge, Brooklyn Bridge, Manhattan Bridge an Queens Midtown Tunnel. The property is ideally situated in close proximity to Weirfield Development Package is conveniently located within the Brooklyn-Queens Expressway (Interstate 278), accessible just steps of the L train’s Halsey Street station. within 3.3 miles of the property, connecting to most major d thoroughfares in Brooklyn and Queens. 42 ST - GRAND CENTRAL 26 Minutes Multiple bus options are also available with the B20, B26, B38, Q39, Q55, and Q58 lines, providing direct connections The three major metropolitan airports, John F. Kennedy (17.5 METRO NORTH throughout Brooklyn and Queens that is conveniently located miles), LaGuardia (8.9 miles), and Newark (19.5 miles) are located 42d ST - TIMES SQUARE within close proximity to the property. in the immediate Metropolitan area. 26 Minutes

34t ST - HERALD SQUARE 25 Minutes 34t ST - PENN STATION 26 Minutes PATH

LIRR, PATH, N TRANSIT AMTRAK

14t ST - UNION SQUARE 21 Minutes

1t AVENUE EAST 14t STREET 18 Minutes

FULTON CENTER STATION 31 Minutes WEIRFIELD DEVELOPMENT PATH PACKAGE BEDFORD AVENUE STATION 13 Minutes

HALSEY STREET STATION

12 B6 REAL ESTATE ADVISORS WEIRFIELD DEVELOPMENT PACKAGE 13 NEIGHBORHOOD BUSHWICK

Bushwick is a neighborhood in northern Brooklyn, bounded which served as homes for the neighborhood’s industrial by Flushing Avenue, Broadway, the borough of Queens, and magnates. In addition to its stately mansions, Bushwick was the Cemetery of the Evergreens. With 142,934 residents (2013) home to many architecturally magnificent churches, including across 1.3 square miles, the neighborhood is undergoing a St. Mark’s Lutheran Church (built in 1892), the South Bushwick dramatic transformation. Over the last decade, the vicinity Reformed Church (constructed in 1853) and Saint Barbara’s – historically home to big breweries – has witnessed a surge Roman Catholic Church (erected in 1910) -- each a testament to of development; emerging from the shadow of neighboring the large German population, and the influx of immigrants from DUMBO and Williamsburg as a world-renowned haven for Russia, Italy, Ireland and Poland. creative types. With the area’s convenient access to mass transit and comparatively low rents, Bushwick is now the edgy locale Due in large part to the efforts of the city, state and federal for millennial hipsters to work and live. To meet this demand, government, as well as private and nonprofit organizations, owners and developers are steadily constructing residential Bushwick is enjoying a major cultural renaissance. Selected as buildings, along with restaurants, bars, and entertainment the “Seventh Coolest” neighborhood in the world by Vogue, options. Once an afterthought, this old industrial neighborhood Bushwick is now a trendy locale. With hundreds of artist is enjoying a diverse revitalization. studios and more than 50 gallery spaces, the neighborhood is an attractive refuge for artistic types and younger people The implementation of a new gravity-fed water system in who are being priced out of areas like Williamsburg and 1859 provided Brooklyn with drinking water from Long Island DUMBO. The Bushwick Collective, which invites the world’s lakes. With its low mineral content, the water was ideal premier street artists to paint murals on neighborhood for brewing. Within 30 years, 14 breweries had opened in walls, is representative of the area’s personality, as it has Bushwick, establishing the community’s position as the center helped change the energy of the neighborhood and spur for American brewing. The success of the breweries also led to the transformation from industrial wasteland into thriving the construction of several mansions along Bushwick Avenue, creative hub.

16 B6 REAL ESTATE ADVISORS WEIRFIELD DEVELOPMENT PACKAGE 17 RETAIL & AMENITIES

CULTURE & ENTERTAINMENT RESTAURANTS & BARS LIFESTYLE

WEIRFIELD DEVELOPMENT PACKAG E

ST. MARTIN OF TOURS GOLDEN THAI INDUSTRY1332 IRVING SQUARE PARK BONUS ROOM THE SOPRANOS

18 B6 REAL ESTATE ADVISORS WEIRFIELD DEVELOPMENT PACKAGE 19 HIGHLIGHTED DEVELOPMENTS

# ADDRESS PROPERTY TYPE GROSS SF STORIES UNITS 10 MONTIETH STREET 333-335 IRVING AVENUE 1 10 Montieth Street Residential 270,000 7 398 2 123 Melrose Street Residential 375,000 8 385 3 338 Evergreen Avenue Mixed Use 304,761 5 180 4 232 Siegel Street Hotel 97,345 10 144 5 25 Stewart Avenue Hotel 79,798 9 140 6 1601 DeKalb Avenue Residential 125,252 9 122 WEIRFIELD 123 MELROSE STREET 801 WYCKOFF AVENUE 7 871 Bushwick Avenue Mixed Used 150,825 6 114 DEVELOPMENT 8 198 St. Nicholas Avenue Residential -- 7 99 PACKAG E 9 8 Palmetto Street Mixed-Use 103,378 7 88 10 405 Evergreen Avenue Mixed Use 47,265 5 68 11 600 Bushwick Avenue Residential 63,000 6 64 12 336 Himrod Street Mixed Use -- 5 63

13 963 Willoughby Avenue Residential 43,000 5 63 338 EVERGREEN AVENUE 342 ELDERT STREET 14 387 Bushwick Ave Mixed Use 49,000 7 60 15 1 DeSales Place Mixed Use 50,215 8 58 16 301 Himrod Street Mixed-Use 50,000 11 55 17 668 Bushwick Avenue Mixed Use 53,887 6 52 18 962-966 Bushwick Avenue Mixed-Use 52,000 7 48 19 885 Bushwick Avenue Residential 37,087 6 46 962-966 BUSHWICK AVENUE 785 KNICKERBOCKER AVENUE 20 889 Bushwick Avenue Residential -- 6 46 21 380 Grove Street Mixed-Use 49,000 7 41 22 1127 Willoughby Avenue Mixed-Use 30,000 9 32 23 1562 DeKalb Avenue Mixed-Use 32,000 6 30 24 144 Bleecker Street Residential 17,512 5 26 25 951 Madison Street Mixed-Use 47,780 7 39 1127 WILLOUGHBY AVENUE 1601 DEKALB AVENUE 26 342 Eldert Street Residential 66,668 4 60 27 345 Eldert Street Mixed-Use 78,000 4 57 28 785 Knickerbocker Avenue Residential 27,000 4 38 29 333-335 Irving Avenue Mixed-Use 70,000 13 71 30 801 Wyckoff Avenue Residential 62,564 5 54

20 B6 REAL ESTATE ADVISORS WEIRFIELD DEVELOPMENT PACKAGE 21 DUE DILIGENCE

22 B6 REAL ESTATE ADVISORS ZONING R6

R6 zoning districts are widely mapped in built-up, medium- Core, or for lots less than 10,000 square feet. Parking can be density areas in Brooklyn, Queens and the Bronx. The character waived if five or fewer spaces are required. of R6 districts can range from neighborhoods with a diverse mix of building types and heights to large-scale “tower in the park” QUALITY HOUSING REGULATIONS developments such as Ravenswood in Queens and Homecrest The optional Quality Housing regulations produce high lot in Brooklyn. Developers can choose between two sets of bulk coverage buildings set at or near the street line. Height limitations regulations. Standard height factor regulations, introduced in ensure that these buildings are often more compatible with older 1961, produce small multi-family buildings on small zoning lots buildings in the neighborhood. As an incentive for developers and, on larger lots, tall buildings that are set back from the street. to choose the Quality Housing option outside the Manhattan Optional Quality Housing regulations produce high lot coverage Core, greater floor area ratio, and therefore, more apartments, buildings within height limits that often reflect the scale of older, is permitted for buildings on or within 100 feet of a wide street pre-1961 apartment buildings in the neighborhood. than would be permitted under height factor regulations. The FAR is 3.0; the maximum base height before setback is 65 feet HEIGHT FACTOR REGULATIONS with a maximum building height of 75 with a qualifying ground Buildings developed pursuant to height factor regulations are floor (70 feet without). On a narrow street (beyond 100 feet of a often tall buildings set back from the street and surrounded by wide street), the maximum FAR is 2.2; the maximum base height open space and on-site parking. The floor area ratio (FAR) in R6 before setback is 45 feet with a maximum building height of 55 districts ranges from 0.78 (for a single-story building) to 2.43 at feet. The area between a building’s street wall and the street line a typical height of 13 stories; the open space ratio (OSR) ranges must be planted and the buildings must have interior amenities from 27.5 to 37.5. Generally, the more open space, the taller the for the residents pursuant to the Quality Housing Program. building. In the diagram, for example, 81% of the zoning lot with the 13-story building is required to be open space (2.43 FAR x Higher maximum FAR and heights are available for buildings 33.5 OSR). Thus, the maximum floor area ratio is achievable only participating in the Inclusionary Housing Program or that where the zoning lot is large enough to accommodate a practical provide certain senior facilities. building footprint as well as the required amount of open space. There are no height limits for height factor buildings although Off-street parking is generally required for 50 percent of a they must be set within a sky exposure plane which begins at a building’s dwelling units, but requirements are lower for income- height of 60 feet above the street line and then slopes inward restricted housing units (IRHU) and are further modified in over the zoning lot. certain areas, such as within the Transit Zone and the Manhattan Core, or for lots less than 10,000 square feet. Parking can be Off-street parking is generally required for 70 percent of a waived if five or fewer spaces are required. building’s dwelling units, but requirements are lower for income- restricted housing units (IRHU) and are further modified in Source: The Department of City Planning website. certain areas, such as within the Transit Zone and the Manhattan www1.nyc.gov. January 2017.

24 B6 REAL ESTATE ADVISORS WEIRFIELD DEVELOPMENT PACKAGE 25 ZONING M1

M1 districts range from the Garment District in Manhattan and Port Floor area ratios in M1 districts range from 1.0 to 10.0, depending Morris in the Bronx with multistory lofts, to parts of Red Hook or on location; building height and setbacks are controlled by a sky College Point with one- or two-story warehouses characterized exposure plane which may be penetrated by a tower in certain by loading bays. M1 districts are often buffers between M2 or districts. Although new industrial buildings are usually­ low-rise M3 districts and adjacent residential or commercial districts. M1 structures that fit within sky exposure plane, commercial districts typically include light industrial uses, such as woodworking and community facility buildings can be constructed as shops, repair shops, and wholesale service and storage facilities. towers in M1-3 through M1-6 districts. In the highest density Nearly all industrial uses are allowed in M1 districts if they meet manufacturing district, M1-6, mapped only in Manhattan, an the stringent M1 performance standards. Offices, hotels and most FAR of 12 can be achieved with a bonus for a public plaza. retail uses are also permitted. Certain community facilities, such Except along district boundaries, no side yards are required. as hospitals, are allowed in M1 districts only by special permit, but Rear yards at least 20 feet deep are usually required, except houses of worship are allowed as-of-right. within 100 feet of a corner.

In M1-5A and M1-5B districts mapped in SoHo/NoHo, artists may Parking and loading requirements vary with district and use. occupy joint living-work quarters as an industrial use. Other M1-1, M1-2 and M1-3 districts are subject to parking requirements than M1 districts paired with residence districts in Special Mixed based on the type of use and size of an establishment. For Use Districts, M1-5M and M1-6M districts (by special permit) example, a warehouse in an M1-1 district requires one off-street and M1-D districts (by authorization or certification) are the parking space per 2,000 square feet of floor area or per every only manufacturing districts in which residences are permitted. three employees, whichever would be less. Parking is not However, in M1-6D districts, residential use may be allowed required in Long Island City or M1-4, M1-5 and M1-6 districts, as-of-right on zoning lots under certain conditions. mapped mainly in Manhattan. Requirements for loading berths of specified dimensions differ according to district, size and In M1-5M and M1-6M districts, mapped in parts of Chelsea, type of use. space in an industrial building may be converted to residential use, provided a specified amount of floor area is preserved for Source: The Department of City Planning website. particular industrial and commercial uses. www1.nyc.gov. January 2017.

26 B6 REAL ESTATE ADVISORS WEIRFIELD DEVELOPMENT PACKAGE 27 AFFORDABLE NEW YORK PROGRAM

Formerly known as the 421-A program, the new Affordable New York Program restored tax exemption benefits for new residential construction. Below is a general outline of the program. This information is subject to change and should only be used for general reference.

The new program is available to rental projects that commenced on or after January 1, 2015 and before June 15, 2022. The project must also be completed on or before June 15, 2026.

Projects that commenced prior to January 2016 and have not received benefits but comply with the provisions of the Affordable Housing New York Program, may receive benefits pursuant to this program.

Below is an outline of three of the seven affordability options that developers may choose from:

OPTION A • 10% of the rental units are offered at no more than 40% AMI • 10% of the rental units are offered at no more than 60% AMI • 5% of the rental units are offered at no more than 130% AMI • Years 1 through 25 receive a 100% exemption; only the “mini tax” (calculated on assessed value prior to construction) must be paid • Years 26 through 35 receive 25% exemption, requiring that 75% of the taxes including the “mini tax” be paid • These projects are also eligible to receive tax exempt bonds and tax credits

OPTION B • 10% of the rental units are offered at no more than 70% AMI • 20% of the rental units are offered at no more than 130% AMI • Years 1 through 25 receive a 100% exemption; only the “mini tax” must be paid • Years 26 through 35 receive a 30% exemption, requiring that 70% of the taxes including the “mini tax” be paid • These projects are eligible for substantial government assistance

OPTION C • 30% of the rental units are offered at no more than 130% AMI • Years 1 through 25 receive a 100% exemption; only the “mini tax” must be paid • Years 26 through 35 receive 30% exemption, requiring that 70% of the taxes including the “mini tax” be paid • This option is not available in Manhattan south of 96th Street

Furthermore, the program established three “enhanced affordability areas”. Among them are Brooklyn’s Community Boards 1 and 2 within one mile of the bulkhead along the East River. In these areas, new residential buildings with 300 or more rental units may qualify for an “enhanced 35-year benefit” as long as they meet additional criteria, not outlined in the general overview.

Source: “Statement and Summary: Affordable New York Housing Program.” REBNY. www.rebny.com. April 12, 2017.

28 B6 REAL ESTATE ADVISORS WEIRFIELD DEVELOPMENT PACKAGE 29 TAX BILLS 376 WEIRFIELD STREET 380 WEIRFIELD STREET

378 WEIRFIELD STREET 389 WEIRFIELD STREET

30 B6 REAL ESTATE ADVISORS WEIRFIELD DEVELOPMENT PACKAGE 31 TAX BILLS CONFIDENTIALITY & CONDITIONS 391 WEIRFIELD STREET The information contained in this offering memorandum (“Offering Memorandum”) is proprietary and strictly confidential. This Offering Memorandum was prepared by and is the property of B6 Real Estate Advisors LLC (“B6”) and has been reviewed by the owner (the “Owner”) of the Property. It is furnished solely for the purpose of review by a prospective purchaser of the Property and is not to be used for any other purposes or made available to any person without the express written consent of the Owner or B6. By accepting this Offering Memorandum, the party in possession hereof agrees to return it to B6 immediately upon request of B6 or Owner. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of B6 and Owner. Each prospective purchaser and/or broker proceeds at his, her or its own risk.

You have the obligation to keep this Offering Memorandum, and any various papers, documents, legal instruments, studies, leases, brochures, computer output, and other materials concerning the Property (all of the aforementioned information is collectively referred to as “Evaluation Material”) confidential. Certain Evaluation Materials, including the leases, are described in summary form. The summaries do not purport to be complete nor accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents.

The information in this Offering Memorandum has been compiled from sources deemed to be reliable and does not purport to be all-inclusive or to contain all of the information which a prospective purchaser may desire. Neither B6 nor the Owner makes any representation or warranty whatsoever regarding the accuracy, veracity, or completeness of the information provided herein and each of Owner and B6 (and their agents, advisors and representatives) expressly disclaim any and all liability for representations or warranties, express or implied, contained in this Offering Memorandum or the Evaluation Material or for omissions therefrom.

Financial projections and information contained herein and in any Evaluation Material, shall not be relied upon, 1438 HANCOCK STREET are provided for general reference purposes only, and are based on assumptions relating to (and subject to) the general economy, market conditions, competition, and other factors beyond control and, therefore, are subject to material change, volatility or variation. A prospective purchaser must make its own independent investigations, projections, and conclusions regarding the acquisition of the Property. This includes legal, tax, environmental, engineering and other as deemed necessary relative to a purchase of the Property. This Offering Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. This Offering Memorandum does not constitute an offer of securities.

The Owner expressly reserves the right, at its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party, at any time, with or without written notice. The Owner and B6 reserve the right to negotiate with one or more prospective purchasers at any time. This Offering Memorandum is subject to errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by B6. Only a fully-executed real estate purchase agreement, approved by the Owner, and executed and delivered to Owner and a prospective purchaser shall bind the property. In no event shall a prospective purchaser have any claims against the Owner or B6 or any of their affiliates, officers, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

The terms and conditions set forth above apply to this Offering Memorandum in its entirety.

32 B6 REAL ESTATE ADVISORS WEIRFIELD DEVELOPMENT PACKAGE 33 B6 REAL ESTATE ADVISORS 1040 Avenue of the Americas, 8th Floor New York, NY 10018

FOR MORE INFORMATION, PLEASE CONTACT ONE THE FOLLOWING INDIVIDUALS

DJ JOHNSTON WILLIAM CHENG MICHAEL MURPHY BEN RECHLER Partner, Senior Managing Director Director Senior Associate Associate 646 933 2619 646 933 2623 646 933 2639 646 933 2657 [email protected] [email protected] [email protected] [email protected]

FOR QUESTIONS ABOUT FINANCING, PLEASE CALL

STEVEN SPERANDIO PETER CABRERA Partner, Sr. Managing Director Associate 646 933 2638 646 933 2643 [email protected] [email protected]