5 Prince Street CONVERSION/DEVELOPMENT OPPORTUNITY

Home , 240 Centre Street, Bowery, Broome Street, Drawing Center, Elizabeth Street Garden, Essex Crossing

CONFIDENTIAL OFFERING MEMORANDUM

REDUCED PRICE: $6,900,000 Offering Memorandum Disclaimer

This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and 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 5 Prince Street (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 Cushman & Wakefield. This Memorandum was prepared by Cushman & 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 information necessary to evaluate the Project. The financial projections contained herein (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. 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 believed to be reliable, neither Cushman & Wakefield nor Managing Member guarantees For more information, please contact its accuracy or completeness. Because of the foregoing and since the investment in the one of the following individuals: Project is being offered on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to facilitate the prospective Robert Burton purchaser’s investigation, must make its independent investigations, projections and +1 212 660 7770 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 Bobby Carrozzo the marketing period proceeds, prospective purchasers should seek advice from their own +1 212 589 5118 attorneys, accountants, engineers and environmental experts. Neither Cushman & Wakefield [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, Vinny Puzio to reject any offer to invest in the Project or to terminate any negotiations with any party at +1 212 841 5928 [email protected] 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 nyinvestmentsales.com Table of Contents Executive Summary...... 4 Pictures...... 6 Sales Comparables...... 8 Due Diligence...... 12 Area Development...... 22 Market Overview...... 28 Submarket Overview...... 34

5 Prince Street, New York, NY 10012 3 Executive Summary

4 nyinvestmentsales.com Executive Summary

Cushman & Wakefield has been exclusively retained to arrange for the sale of 5 Prince Street, a 3-story mixed-use multifamily building centrally located in a prime area of NoLita.

The property is comprised of 2 free-market residential loft units and a convertible ground floor. The entire building will be delivered vacant, therefore providing an investor with a prime value-add opportunity.

5 Prince Street is an ideal conversion/development opportunity for a developer or user buyer. The property has an additional 7,750 square feet of air rights available, thus it is possible to build on top of the existing structure for additional square footage or renovate the property as-is. The building is centrally located near various transportation options.

507 / 49 C6-1 BLOCK LOT ZONING

3,500 20.58’ x 87’ SQUARE FEET EXISTING (APPROX.) BUILDING DIMENSIONS (APPROX.)

1,875 20.58’ x 91.12’ irr. LOT SQUARE FOOTAGE (APPROX.) LOT DIMENSIONS (APPROX.)

$47,156 $448,510 TAXES (2019/2020) ASSESSMENT (2019/2020) 11,250 6.00 COMMERCIAL BUILDABLE SQUARE FOOTAGE COMMERCIAL FAR

5 Prince Street NORTH SIDE OF PRINCE STREET BETWEEN BOWERY AND ELIZABETH STREET

5 Prince Street, New York, NY 10012 5 Pictures

5 PRINCE STREET

GROUND FLOOR Commercial Rendering

Gross SF: 11,063

Lot Dimensions: 20.58’ x 91.12’

Lot Size (SF): 1,875

Commercial FAR: 6.00

Maximum Allowable BSF (Zoning): 11,250

Maximum Allowable BSF (Special District): 11,063

Height Restriction: 85’

Residential Rendering

Gross SF: 8,325

Lot Dimensions: 20.58’ x 91.12’

Lot Size (SF): 1,875

Commercial FAR: 3.44

Maximum Allowable BSF with Retail on Ground Floor (Zoning): 8,325

Maximum Allowable BSF with Retail on Ground Floor (Special District): 8,325

Height Restriction: 85’ Comparable Sales

Conversion Comparable Sales

Address Date Sale Price Lot Type Frontage (SF) SF PPSF

1) 190 PRINCE 12/7/2018 $19,000,000 Corner 60 11,040 $1,721

2) 53 WOOSTER 10/3/2018 $7,200,000 Interior 18 3,276 $2,198

3) 357 WEST BROADWAY 6/27/2018 $6,500,000 Interior 21 3,300 $1,970

4) 378 BROOME 8/18/2017 $7,351,000 Interior 26 6,107 $1,204

5) 368 BROOME 12/15/2016 $44,000,000 Interior 50 32,214 $1,366

8 nyinvestmentsales.com Prince Street

1 Street Sullivan West Broadway West

Bowery Spring Street

Broome Street 4 5 3

2 Grand Street Retail Lease Comparables

Address Tenant Year Quarter Square Footage Annual Rent Price Per Foot

1) 31 Crosby Saturdays NYC 2019 2 900 $132,000.00 $147.00

2) 167 Mott Hemp Garden 2019 1 700 $140,000.00 $200.00

3) 232 Elizabeth Nest 2018 3 880 $198,000.00 $225.00

4) 428 Broome Spaces NYC 2018 3 750 $168,000.00 $224.00

5) 292 Elizabeth Torishiki 2018 2 1200 $282,000.00 $235.00

6) 119 Crosby Stuart & Lau 2018 2 850 $161,500.00 $190.00

7) 195-199 Lafayette Koio 2018 1 900 $234,000.00 $260.00

8) 230 Elizabeth St Claus Porto 2018 1 600 $180,000.00 $300.00

9) 55 E Houston Odd Fellows Ice Cream 2018 1 566 $150,000.00 $265.00

10) 26 Prince The Ordinary 2018 1 600 $199,800.00 $333.00

11) 384 Broome Green Street Super Food 2018 1 700 $161,000.00 $230.00

Top Deals by Size

Property Tenant Size (SF) 50 Prince Street McNally Jackson 5,700 61 Crosby Street Totokaelo 4,833 253 Elizabeth Street Unidentified 1,000

10 nyinvestmentsales.com Bond Street

East Houston Street 9

8 6 Prince Street

10 Forsyth Street Forsyth

Spring Street

11 4 7

2 1 Bowery

Grand Street Due Diligence

Special Little Italy District

Background Buildings of Special The Special Little Italy District was formed in 1977 with the Significance purpose of preserving and strengthening the historical and cultural character of the community. The Special Purpose District’s 113 Baxter Street regulations protect the scale of storefronts of existing retail uses allowing the area to remain a unique regional shopping destination; 124-126 Bowery preserve the vitality of street life; and provide amenities such as 363 Broome Street public open spaces and parks. The section below highlights rules and regulations for buildings within the Special Little Italy District. 375 Broome Street 240 Centre Street General Requirements 209 Elizabeth Street Underlying zoning regulations for the area still apply, except where 260-268 Elizabeth Street specifically noted below: • Sidewalk cafes require approval from the Board of Estimate 174 Grand Street • The Zoning Resolution outlines several buildings that are 190 Grand Street socially or traditionally significant and cannot be demolished or have their external architectural features altered (See Buildings 192 Grand Street of Special Significance List) 128-130 Mott Street • The exterior of the front wall of buildings are to be made predominantly of masonry 256-258 Mott Street • Special Little Italy District is broken into four areas: Area A, 262-272 Mott Street Area A1, Area B and Area C • Modifications of Special Little Italy District provisions may be 277 Mott Street authorized by the City Planning Commission after reviewing a 201-205 Mulberry Street formal application 266 Mulberry Street Area C - Bowery, Canal, Kenmare Street Corridor 11 Spring Street Floor Area Ratio 34-36 Spring Street • Consistent with underlying zoning Maximum Lot Coverage • Residential - 60 Percent • Commercial - 100 Percent for Ground Floor, 70 Percent thereafter Height and Setback • Maximum Height - Cannot exceed the lesser of 85 feet or eight stories above curb level • Street Wall - Should extend along the full length of the front lot line, rising upwards without setback

12 nyinvestmentsales.com B

C C

A1 A

5 Prince Street, New York, NY 10012 13 DueDue Diligence Diligence

Zoning - C6-1

The property at 5 Prince Street lies within the C6-1 zoning district. C6-1 is a general commercial district, typically mapped outside of central business districts and often within special districts.

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 C6-1 is 6.0. The maximum height of a front wall or other portion of a building within the district is 85 feet or 6 stories, whichever is less. The New York City Zoning Resolution outlines several different Use Groups allowed in C6-1. Use Groups play an integral role, when defining different zoning districts.

Due Diligence

C6-1 As-of-Right Use Groups

• 1 – Use Group 1 consists of single-family detached residences

• 2 – Use Group 2 consists of all other types of residences, such as apartment hotels and affordable independent residences for seniors

• 3 – Use Group 3 consists of community facilities that can provide educational and other essential services for the residents, perform activities more effectively in a residential environment, and do not create significant objectionable influences in residential areas. Some of these facilities include: colleges or universities excluding business colleges or trade schools, college dormitories, libraries, museums, and art galleries.

• 4 – Use Group 4 consists of community facilities that provide recreational, religious, health, and other essential services for residents. Examples include: Ambulatory diagnostic or treatment health care facilities, community centers or settlement houses, houses of worship, philanthropic or non-profit institutions without sleeping accommodations, cemeteries, golf courses, public parks or playgrounds, and agricultural uses such as greenhouses or nurseries.

• 5 – Use Group 5 consists of hotels used for transient occupancy.

• 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.

16 nyinvestmentsales.com • 7 – Use Group 7 consists primarily of home maintenance or repair services that have a relatively small service area, and are incompatible in primary retail districts since they break the continuity of retail frontage. Examples include: transient accommodations such as motels and tourist cabins, retail or service establishments such as bicycle rental or repair shops; electrical, heating, roofing, plumbing, ventilating establishments wholesale establishments; and auto service establishments.

• 8 – Use Group 8 consists primarily of amusement or service establishments. Facilities vary, from pool halls, and bowling alleys on one end of the spectrum; with lumber stores, upholstering shops, pawn shops, public parking garages and prisons on the other end.

• 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 C6-1 or contact a zoning attorney.

5 Prince Street, New York, NY 10012 17 Due Diligence

Tax Map E HOUSTON ST

Block 507 BOWERY ELIZABETH ST ELIZABETH

PRINCE ST

Tax Bill

18 nyinvestmentsales.com Certificate of Occupancy

No Certificate of Occupancy Issued

5 Prince Street, New York, NY 10012 19 DueDue Diligence Diligence

Demographics

2000 2010 2015 2020 % Change % Change Population Demographics Census Census Estimates Projection 2010-2015 2015-2020

Total Population 10,767 9,508 10,145 10,039 6.7% -1.0%

Population Density (Pop/Sq. Mi.) 91,991 74,752 86,672 85,771 15.9% -1.0%

Total Households 4,643 4,689 5,032 5,091 7.3% 1.2%

2000 2010 2015 2020 % Change % Change Household Income Census Census Estimates Projection 2010-2015 2015-2020

$0-$15,000 1,178 25.4% 933 19.9% 963 19.1% 837 16.4% 3.2% -13.0%

$15,000-$24,999 689 14.8% 474 10.1% 513 10.2% 499 9.8% 8.2% -2.8%

$25,000-$34,999 360 7.8% 342 7.3% 322 6.4% 305 6.0% -5.7% -5.3%

$35,000-$49,999 618 13.3% 380 8.1% 413 8.2% 389 7.6% 8.6% -5.8%

$50,000-$74,999 630 13.6% 739 15.8% 742 14.7% 642 12.6% 0.3% -13.5%

$75,000-$99,999 356 7.7% 376 8.0% 404 8.0% 430 8.5% 7.4% 6.5%

$100,000-$149,999 466 10.0% 571 12.2% 593 11.8% 701 13.8% 3.8% 18.2%

$150,000+ 288 6.2% 874 18.6% 1,082 21.5% 1,288 25.3% 23.9% 19.0%

Average Income $56,607 $111,726 $117,607 $136,602 5.3% 16.2%

Median Income $36,436 $59,181 $61,522 $70,328 4.0% 14.3%

Income Per Capita $24,408 $55,600 $58,798 $69,746 5.8% 18.6%

2015 Daytime Population Demographics

Total Daytime Population 24,686 Age 16 and Over at the Workplace 21,287

Population Age 16 and under (Children) 664 Age 16 and Over Unemployed 249

Daytime Population Age 16 and Over 24,022 Age 16 and Over Working from Home 535

Students Pre-K to 8th Grade 462

Students 9th Grade to 12th Grade 0

Post-Secondary Students 551

Homemakers Aged 16 and Over 788

Source: Experian Marketing Services Inc.

20 nyinvestmentsales.com Due Diligence

Transportation While the neighborhood has a tremendous amount of amenities and cultural offerings for its residents and visitors, part of the allure of coming to the Bowery is its remarkable accessibility to the entire city. The neighborhood is primarily served by the B, D, F, J and Z subway lines, which serve all corners of Manhattan and the boroughs. The 2nd Avenue F, Bowery J, Z and Grand Street B and D train stops provide access directly into the heart of The Bowery. The cross-town M21 buses provide arguably the bus system’s largest convenience, allowing residents to get to and from the East Side of Manhattan through to the Hudson River. By car, there is easy access to the Brooklyn Bridge, Manhattan Bridge, and Brooklyn-Battery tunnel. The area is equally accessible to John F. Kennedy and LaGuardia airports.

8 Minutes 5 Minutes F B D Houston Street F M

Prince Street Forsyth Street Forsyth

Spring Street 5 Minutes 4 Minutes 6

J Z

Mott Street Mott Bowery

5 Prince Street, New York, NY 10012 21 Area Development

Prince Street

2 Forsyth Street Forsyth

1 Street Chrystie

Kenmare Street 4 Bowery Grand Street Essex Street Essex

8 Area Development

1 185 BOWERY

Dutch hotel group CitizenM will transform the lower Manhattan skyline with a 20-story, 300-room hotel. The group constructed a prefab hotel in Poland and shipped it to New York City in 210 pieces for a streamlined assemblage process. CitizenM will include a trendy eatery and lounge called CanteenM and CloudM, respectively.

2 190 BOWERY

On the northwest corner of Bowery and Spring Street stands 190 Bowery, a historic corner lot built in a Renaissance Revival style by architect Robert Maynicke. Originally constructed in 1898 as the third location for Germania Bank, this New York City Landmark has been redeveloped into office space. The building boasts six-stories, 72-rooms, and 35,000 square feet in the center of a rapidly evolving neighborhood. 24 nyinvestmentsales.com 3 258-260 BOWERY

Premier Equities will contribute to the spectacular transformation of The Bowery with the development of a mixed-use site comprised of 23,500 square feet spread between retail and residential condos. Famed architect Morris Adjmi has been tapped to run design efforts, following his work on 250 Bowery. The site will be constructed in masonry and bring a sleek and vibrant space to one of lower Manhattan’s most desirable streets.

4 75 KENMARE

Located in the heart of NoLita, 75 Kenmare harmonizes the vision of Lenny Kravitz and Kravitz Design, architect Andre Kikoski and developer DHA Capital. A site formerly occupied by a parking garage will now offer 38 luxury apartments with an average asking price of $3.7 million. State-of-the-art amenities will include a high-end fitness facility, an underground private parking garage, a landscaped courtyard, and a 5 Prince Street, New York, NY 10012 25 rooftop terrace. Area Development

5 215 CHRYSTIE

Most prominently known as the location of the luxury hot-spot, Public Hotel, 215 Chrystie is also the site of eleven premium residential condos. A vision of the world-renowned hotelier Ian Schrager, residences at 215 Chrystie include panoramic views and complete access to hotel services and amenities, including a premier rooftop and one-of-a-kind dining establishments.

6 204 FORSYTH

This boutique luxury condominium tucked just below East Houston is a hidden gem in the midst of the Lower East Side. 204 Forsyth offers 11 residences in the form of 2-bedroom half floors and full-floor penthouses. Through thoughtful designs and state-of-the-art finishes, the residences synthesize a classical yet modern style, mimicking the surrounding neighborhood and the fusion of new-age dining, art galleries, and mom-and-pop boutiques. 7 141 EAST HOUSTON

East End Capital and K Property Group will convert the famed Sunshine Cinemas site into a luxury mixed-use space with best-in-class office condos atop a retail base. The developers have enlisted Roger Ferris Architecture to bring cutting-edge design to this prominent Lower East Side address.

8 ESSEX CROSSING

Essex Crossing is poised to transform the Lower East Side by blending the past, present, and future. Essex Crossing will be comprised of 1.9 million square feet and include 1,000 residences, 450,000 square feet of office space, and an underground marketplace known as The Market Line. The community will be connected by a vast network of bike paths, parkways, and green spaces. L+M Development Partners intends to cultivate the rich culture of the neighborhood by welcoming a diverse mix of renters, homeowners, small retailers, and entrepreneurial spirits. DueMarket Diligence Overview

NoLIta

The Manhattan neighborhood which encompasses 5 Prince emigrated out of Manhattan, Little Italy gradually shrunk, opening Street is known as NoLIta. The name derives from “North of Little the door for a new Manhattan neighborhood to form. As the Italy.” Once a part of Little Italy, the area has lost much of its neighborhood changed, many high-end retailers and restaurants Italian character over the years and now serves as an upscale opened their doors to residents and tourists. Given the new feel residential and retail area. NoLIta is bounded by Houston Street of the area, there was a push to include it in nearby SoHo. This to the north, Bowery on the east, south by Broome Street and ultimately failed and by the mid-1990’s the name NoLIta took west by Lafayette Street. hold.

In the second half of the 19th century, NYC’s Italian immigration The area includes landmarks such Old St. Patrick’s Church and reached its peak, with several Italian parishes and an Italian- the Police Building, coupled with many new developments language newspaper. The area held a likely resemblance to The such as shopping boutiques, bars, and trendy residential loft/ Godfather series by Martin Scorsese, where Italian, not English condominiums. was the first language of its natives. As Italian-Americans

28 nyinvestmentsales.com Retail Education

NoLIta has become one of the leading sources New York University’s campus is centered around of creativity for the fashion and retail industries Washington Square Park, a few blocks northwest as well as many other forms of merchandise. of NoLIta. Many teachers and students are Elizabeth Street is home to some of the area’s housed in the surrounding area and the NYU Bus finest tenants. In fashion, ANYA PONOROVSKAYA, can be seen regularly making its way down West Atelier Cologne, Roots, Le Labo and Christian Broadway, across Spring, down Broadway or up Siriano can all be found. Additionally, Jill Stuart, Lafayette. The school has an enormous influence Kenneth Cole, Kate Spade, Armani, Chanel, Louis on New York City and NoLIta/SoHo in particular. Vuitton, the MOMA Design Store, Prada, Stephane Kelian, DKNY, Ferragamo, Dolce and Gabbanna, Burberry, Anna Sui, Agnes B. and countless others can be spotted on a casual walk through nearby SoHo. Arts & Culture

Hotels Art galleries in NoLIta/SoHo include John McEnroe, Louis K. Meisel, Lumas, Peter Lik SoHo, Animazing Many established hotels lie within NoLIta/ Gallery, Aesthetic Realism Foundation, Dutesco SoHo. Firmdale Hotel’s Crosby Street Hotel lies Art, and Brentano’s. Museums or their stores on Crosby Street, between Spring and Prince include, The Drawing Center, the New Museum of Streets. Additionally, Andre Balazs brought us the Contemporary Art, and the MOMA Design Store. exclusive Mercer Hotel at Mercer and Prince. The Theatres include the SoHo Playhouse and the Sterns’ delivered the SoHo Grand Hotel. SIXTY Wooster Group. Hotels owns and operates SIXTY SoHo (formerly 60 Thompson). Additionally, the barriers of Soho are being pushed further west with the recent Restaurants opening of Trump SoHo, a hotel and condominium NoLIta is known for its high-end trendy restaurant on Spring Street. All cater to exclusive clientele establishments serving residents and tourists and enjoy extremely high occupancy rates year alike. As the neighborhood began to lose its Italian round. heritage and culture, renowned chefs flocked to the area looking to diversify the eateries. Restaurants include, Emporio, Seamore’s, Egg Shop, Public, and Estela.

5 Prince Street, New York, NY 10012 29 Points of Interest

5 2

30 nyinvestmentsales.com 1 1 300 Lafayette

A 7-story, glass office and retail building is planned for the southwest corner of Houston Street and Lafayette Street. Related and Porcelli’s LargaVista will co-develop the building in a joint venture. The 83,000 SF building featuring two lower levels will consist of 30,000 SF of retail and 53,000 SF of office space. COOKFOX is designing the building that will aim for a “Gold” rating in the USGBC’s LEED system. In its review process by the Landmarks Preservation Commission, Commissioner Michael Goldblum noted that the “project could have been done for probably one quarter or one half the budget shown here” and applauded the designer’s commitment to bringing a well-designed and energy efficient building to the NoHo-SoHo border.

2 2 New Museum of Contemporary Art

The New Museum of Contemporary Art is located at 235 Bowery and exclusively displays contemporary works of art from around the world. The Museum’s 58,700 square foot facility opened its doors on December 1, 2007. Designed by Sejima + Nishizawa/SANNA and Gensler, the building was named one of the “New Seven Wonders of the World” by Conde Nast Traveler in 2008. The museum plays a large role in the surrounding community as well. This is achieved through a program entitled “G:Class”, which utilizes the exhibits as a means to engage high school students by connecting contemporary art to local, global and cultural issues.

5 Prince Street, New York, NY 10012 31 Points of Interest

3 3 New York University

The most expansive university in Manhattan, New York University is a mainstay in Greenwich Village and has expanded their presence into the East Village. The private university has prominent dormitories at 33 3rd Avenue, 55 East 10th Street, 129 3rd Avenue, 1 East 2nd Street, and most recently a 26-story dorm on East 12th Street. With over 12,500 resident students and thousands of others living in the area, NYU has provided stability and driven retail demand east of Lafayette Street over the last 20 years.

4 4 Elizabeth Street Garden

The Elizabeth Street Garden is a 20,000 square foot lot which runs from Elizabeth Street through to Mott Street between Spring and Prince Streets. After affordable housing was built on the northern portion of the lot, the area which is now the Elizabeth Street Garden became blighted like much of the City throughout the 1980s. In 1990, the lot was leased to the Elizabeth Street Gallery, who has been maintaining it since for the thousands of visitors who enjoy a serene escape from the hustle and bustle of the surrounding areas. The Garden is home to seasonal events as well as free wellness classes, attracting visitors of all sorts during the warm-weather months.

32 nyinvestmentsales.com 5 5 Apple Store

In 2001, Apple founder and visionary, Steve Jobs, introduced the Apple Store to the world. The store was designed not only to sell Apple products, but also as a point for customers to access the Internet, take classes and even have their own products serviced at the Genius Bar. After success in its initial rollout, Apple turned its sights towards SoHo, building not only what they considered the first “high-profile” flagship store, but also the first in New York City. Apple fans lined up overnight eagerly awaiting the SoHo store’s opening. First year sales doubled the initial projections, proving Apple’s retail strategy a success.

6 6 Lombardi’s Pizza

Opening in 1897, Lombardi’s is a Little Italy staple. Lombardi’s began as a grocery store where the Owner’s made pizzas in the bakery as a way to use up the day’s leftover dough. Licensed by the City in 1905, it is arguably Americas first true pizzeria. Now a famous tourist attraction, customer’s enjoy a simple menu of coal-fired, Neapolitan pizza. Lombardi’s holds true to its authenticity by serving whole pies only. Recently, for the Shop’s 100th-year anniversary, pies were sold for five cents, the same price as opening day.

5 Prince Street, New York, NY 10012 33 Retail Submarket

Overview

NoLIta, which stands for “ North of Little Italy”, spans from Lafayette Street to the west, Bowery to the east, and from East Houston Street to the north to Broome Street to the south, and is a small submarket located in Midtown South. With an advantageous location between Soho and Little Italy, NoLita attracts a high volume of tourists each year seeking boutique shopping and trendy restauraunts. Retailers have taken advantage of this and as a result, a number of high-end boutiques have expanded here in recent years, on streets such as Elizabeth, Prince, Spring and Mulberry.

At the close of the first quarter of 2019, NoLita posted an average ground floor asking rent of $232 per square foot (psf), an increase from $201 psf last quarter. Retail leasing activity was more robust last year, and only four new leases were signed during the first quarter.

Overall Availability Rate 10.2%

Average Ground Floor Size 2,156 sf

Average Ground Floor Asking Rent $232 psf

Highest Asking Rent $600 psf

Lowest Asking Rent $60 psf

Demographics

Population 10,033

Average Household Income $124,122

Daytime Employees 28,977

Number of Retail Storefronts 440

34 nyinvestmentsales.com Major Retailers

5 Prince Street, New York, NY 10012 35 New Development Submarket

2Q2019 | DOWNTOWN | MANHATTAN | 17

421 Hudson Street | $4.495M | Web# 5600886

Downtown

• Downtown sales rose 30% year-over-year, the largest increase Sales Market Share of Sales Inventory for any submarket since 2017. New development closings performed best this quarter, rising 185% to over 500 sales. Resales, however, fell for the first time in a year. • Downtown inventory surpassed 2,000 active listings for just the third time in eight years to reach its highest quarterly total 1,228 37% 2,368 since 2010. The majority of supply is below 14th Street. +30% YEAR OVER YEAR +7% YEAR OVER YEAR +12% YEAR OVER YEAR • Downtown price statistics rose year-over-year as the number of sales fell under $1M but grew significantly above $1M. All product types saw median price increase versus last year, Days on Market Median Price Average PPSF pushing the overall median to $1.7M, tied with First Quarter 2016 for a record-high. Average price per square foot, meanwhile, rose just 4%, muted by a 50% drop in sales over $30M. • Resale condo and co-op median price each increased as Greenwich Village, SoHo, Tribeca and the West Village all 132 $1.7M $2,122 experienced improved sales activity versus a year ago. +25% YEAR OVER YEAR +21% YEAR OVER YEAR +4% YEAR OVER YEAR • New development average price per square foot fell 9% year-over- with fewer sales at super-luxury properties averaging more than $3,400 per square foot. Median average price per square foot still grew 5%, however, as the share of sales under $1,800 per square foot dwindled.

The Corcoran Report 2Q 2019 - Manhattan

36 nyinvestmentsales.com 2Q2019 | DOWNTOWN | MANHATTAN | 18

Downtown Prices by Property Type % CHANGE (YEAR-OVER-YEAR)

RESALE CO-OP RESALE CONDO NEW DEVELOPMENT

2Q19 2Q18 2Q19 2Q18 2Q19 2Q18 $850K +3% $827K $2.055M +9% $1.895M $2.590M -17% $3.137M MEDIAN PRICE

$1.201M -9% $1.316M $3.174M +17% $2.718M $3.715M -30% $5.286M AVERAGE PRICE

$1,175 -4% $1,227 $1,632 -4% $1,708 $2,278 +5% $2,178 MEDIAN PPSF

$1,263 -10% $1,399 $1,974 +4% $1,899 $2,524 -9% $2,775 AVERAGE PPSF

Downtown Median Price by Bedroom % CHANGE (YEAR-OVER-YEAR)

RESALE CO-OP RESALE CONDO NEW DEVELOPMENT

2Q19 2Q19 2Q19

STUDIO $520K -4% STUDIO $715K +7% STUDIO $1.385M +17%

1 BEDROOM $805K -3% 1 BEDROOM $1.050M -25% 1 BEDROOM $1.674M +13%

2 BEDROOM $1.310M -11% 2 BEDROOM $2.295M -6% 2 BEDROOM $3.796M +27%

3+ BEDROOM $3.200M -21% 3+ BEDROOM $4.315M -17% 3+ BEDROOM $6.300M -21%

2Q18 2Q18 2Q18

STUDIO $539K STUDIO $667K STUDIO $1.186M

1 BEDROOM $831K 1 BEDROOM $1.400M 1 BEDROOM $1.478M

2 BEDROOM $1.464M 2 BEDROOM $2.435M 2 BEDROOM $2.991M

3+ BEDROOM $4.044M 3+ BEDROOM $5.200M 3+ BEDROOM $7.979M

The Corcoran Report 2Q 2019 - Manhattan

5 Prince Street, New York, NY 10012 37 Office Submarket

Midtown South Bounces Back

• Vacancy decreased 40 bps to 8.5% in July, and is down from a recent high of 9.3% in March, mainly attributed to two blocks leased that were greater than 90,000 sf − Steady new leasing activity pushed Class A vacancy down 110 bps to 8.0% this month − Class B vacancy remained at 9.5%, but is up 150 bps year-over-year

• Approximately 2.2 msf of new leases were executed in July, setting a new record for monthly leasing—driven by Google’s lease at 550 Washington Street and Publicis Groupe’s expansion at 375 Hudson Street − Monthly leasing activity more than doubled the previous historical high of 1.0 msf set in January of 2005 − Leasing activity is up 24.3% year-over-year, with 5.1 msf leased through July

• Overall asking rents increased $0.25 to $82.57 psf in July, the second-highest monthly rent on record − Class A asking rents increased by $1.95 to $100.13 psf as lower-priced space was leased at 375 Hudson Street—and are up 22.4% year-over-year − Class B asking rents decreased slightly by $0.10 to $76.57 psf, but remain up 14.4% year-over-year

Top Space Additions ADDRESS FLOORS SIZE (SF) TYPE SUBMARKET 75 Ninth Avenue Partial 2-5 108,333 Sublease Chelsea Leasing Activity YTD: 2. msf Hudson Square/ 95 Morton Street Entire 7 25,221 Direct Average Asking Rent: $64.25 psf West Village 641 Avenue of the Americas Entire 7 22,047 Sublease Chelsea

Top space additions are contiguous blocks of space that entered Cushman & Wakefield’s statistical sample

Top Leases ADDRESS TENANT SIZE (SF) TYPE SUBMARKET Hudson Square/ 550 Washington Street Google 1,295,800 New Lease West Village Leasing Activity YTD: 5.1 msf Renewal/ Hudson Square/ 375 Hudson Street Publicis Groupe 960,000 Expansion* West Village $82.57 psf Average Asking Rent: Hudson Square/ 75 Varick Street Oscar Health 157,500 New Lease West Village MARKET *Renewal portion not included in leasing statistics Top Investment Sales ADDRESS BUYER SIZE (SF) SALE PRICE $ PSF $10.1 psf 130 Prince Street Madison Capital 88,000 $206.3M $2,344 104-110 Greene Street* SL Green 165,000 $25.7M $1,555 For the first time in history, *Partial interest transfer Class A average asking rents reached triple digits

38 nyinvestmentsales.com

Submarket Snapshot MADISON/UNION SQUARE Total Size: 32.1 msf

32ND STREET Jul-19 Jul-18

30TH STREET Vacancy 9.4% 6.3%

SIXTH AVENUE Asking Rents CHELSEA Overall $80.77 $69.84 Total Size: 17.0 msf 23RD STREET MADISON/ Jul-19 Jul-18 UNION SQUARE Vacancy 7.7% 6.6% Asking Rents CHELSEA Overall $77.25 $65.93 GREENWICH/NOHO Total Size: 4.8 msf

14TH STREET Jul-19 Jul-18 Vacancy 6.6% 2.9% Asking Rents HUDSON SQUARE/ Overall $71.98 $76.66 WEST VILLAGE GREENWICH/NOHO HUDSON SQUARE/ WEST VILLAGE Total Size: 11.3 msf Jul-19 Jul-18 Vacancy 6.4% 12.3% Asking Rents SOHO Overall $101.79 $75.80 SOHO Total Size: 4.1 msf Jul-19 Jul-18 Vacancy 13.1% 8.6% Asking Rents Overall $88.74 $73.85 Vacancy Rate vs. Asking Rents

12.0% $120.00

10.0% $100.13 10.0% $100.00 8.5% Average Asking Rents $/sf 8.0% $80.00 $76.57

6.0% $60.00 Vacancy

4.0% $40.00

2.0% $20.00

0.0% $0.00

Vacancy Class A Asking Rent Class B Asking Rent Robert Burton Senior Managing Director +1 212 660 7770 [email protected]

BobbyRobert Carrozzo Burton AssociateExecutive Director Director +1 +1212 212 589 660 5118 7770 [email protected]@cushwake.com

VinnyKeegan Puzio Mehlhorn AssociateAssociate 1290 Avenue of the Americas +1 +1212 212 841 660 5928 7718 New York, NY, 10104 [email protected]@cushwake.com cushmanwakefield.com