838 FLATBUSH AVENUE FLATBUSH, BROOKLYN TABLE OF CONTENTS
I. EXECUTIVE SUMMARY II. THE NEIGHBORHOOD III. DUE DILIGENCE
FOR MORE INFORMATION, PLEASE CONTACT EXCLUSIVE AGENTS:
JERMAINE PUGH Director 646 933 2633 [email protected]
B6 REAL ESTATE ADVISORS | 838 FLATBUSH AVENUE 2 EXECUTIVE SUMMARY
THE OPPORTUNITY PROPERTY INFORMATION B6 Real Estate Advisors is pleased to announce that is has been retained on an exclusive basis to arrange for the sale Block / Lot 5082 / 23 of 838 Flatbush Avenue, a 4 -story mixed use building, consisting of 12 free market apartments and 2 commercial units located in the Brooklyn neighborhood of Flatbush. Positioned on Flatbush Avenue, one of the most notable and sought- Lot Size 29’ x 105’ after retail corridors in Brooklyn, this recently renovated building presents investors with an opportunity to purchase Lot SF 3,050 a turnkey asset with modern appliances and finishes. The property also benefits from 3,446 BSF of available air rights. Building Dimensions 29’ x 75’ Flatbush Avenue is home to many locally owned and operated businesses, along with national tenants such as Citibank, Building SF 8,760 Capital One, Bank of America, Blink Fitness and Rite Aid. Stories 4
INVESTMENT HIGHLIGHTS Zoning R7A • 12 vacant apartments. The 2 commercial units are leased collecting $123,000 annually. Unused FAR 3,446 SF • 29’ x 75’ building, consisting of 8,760 SF across 4 stories. • Substantial rehabilitation, including apartments, common arears, mechanicals, and roof, offering an easy to manage investment. • 3,446 BSF of available air rights ASKING PRICE: • 100% free market with supporting documentation. OWNER REQUEST • Desirable commercial and residential neighborhood with strong fundamentals • Serviced by the Parkside Avenue and Church Avenue B & Q trains. PROPOSALS
TAX MAP
29’ FLATBUSH AVENUE
23 MARTENSE STREET MARTENSE 105’ CATON AVENUE CATON
EAST 21st STREET
B6 REAL ESTATE ADVISORS | 838 FLATBUSH AVENUE 3 EXECUTIVE SUMMARY
REVENUE AND EXPENSES
REVENUE Potential Gross Income $380,796 Vacancy & Credit Loss 3.0% -$11,424 Effective Gross Income $369,372
PROJECTED EXPENSES Real Estate Taxes (19/20) Taxes $64,000 Insurance $0.75 GSF $6,570 Water & Sewer $0.50 GSF $12,000 Heating Fuel $0.00 Unit Tenants Pay Electric (Common) $0.15 GSF $1,314 Repairs & Maintenance $350 Per Unit $4,900 Superintendent $250 /Month $3,000 Management 3.0% of EGI $11,081 Total Exp. Ratio: 27.01% $102,865
Effective Gross Income $369,372 Less Expenses $102,865 Net Operating Income $266,507
PRO-FORMA RENT ROLL UNIT TYPE MONTHLY RENT ANNUAL RENT Comm 1 Resturant $6,180 $74,160 Comm 2 Retail $4,153 $49,836 1AF 1BR $1,950 $23,400 1BF 1BR $1,950 $23,400 1AR Studio $1,650 $19,800 1BR Studio $1,650 $19,800 2AF 1BR $1,950 $23,400 2BF 1BR $1,950 $23,400 2AR Studio $1,650 $19,800 2BR Studio $1,650 $19,800 3AF 1BR $1,900 $22,800 3BF 1BR $1,900 $22,800 3AF Studio $1,600 $19,200 3AR Studio $1,600 $19,200 Total $31,733 $380,796
*Commercial units are occupied
B6 REAL ESTATE ADVISORS | 838 FLATBUSH AVENUE 4 THE NEIGHBORHOOD
FLATBUSH, DITMAS PARK, MIDWOOD
Flatbush is an emerging Central Brooklyn neighborhood that has become increasingly Isaac Stern and Ray Charles. The core mission is to “introduce young people to the popular among investors, developers and young professionals. Flatbush is located performing art, enhance their creativity and expose them to new cultural ideas”. at the southernmost point of Prospect Park, bounded by Parkside Ave to the north, Avenue H to the south and is between Ocean and New York Avenues. Founded by Brooklyn College: is a City University of New York located on the border the Dutch colonist in 1651, Flatbush consist of two major subsections, Ditmas Park and Flatbush and Midwood neighborhoods. The school currently has 17,803 students Prospect Park South. Flatbush is best known for its deep-rooted multicultural history. with an endowment of $84M. Brooklyn College is a staple in the community offering This Brooklyn neighborhood is a true melting pot of cultural diversity, represented employment opportunities while boosting the local economy. by heavy enclaves of Asian, Central American, Jewish, Pakistani and West Indian populations. Accompanying this diversity is a variety of authentic cuisines from around RECREATIONAL OPTIONS the world. On Flatbush Avenue, the main retail corridor you will find patrons dinning Central Brooklyn is home the borough’s second largest public park. Prospect Park is at a variety of delicious Caribbean, Mexican, and Asian inspired restaurants. Over a 526 acre green space situated between the neighborhoods of Flatbush, Park Slope, the last several years the latest wave of cultural influences to emerge is from young Prospect Lefferts Gardens and Windsor Terrace. Flatbush’s access to Prospect Park media professionals, that are now calling Flatbush home. With affordable rents and offers residents with a wide variety of educational and recreational activities. 12-acres convenient transportation options to NYC, many people are relocating to Flatbush of the park is dedicated to a zoo that houses 630 animals representing 101 species. when they are priced out of Manhattan or other Brooklyn neighborhoods like Cobble Other attractions and activities include seven baseball fields, Prospect Park Track Hill and Williamsburg. Flatbush is one of Brooklyn’s most architecturally diverse Club, Prospect Park Women’s Softball League and pedal boating. The park is also neighborhoods, prewar walkup to elevator apartment buildings to historic Victorian host to a number of concerts series, most renowned is The Bandshell’ s Celebrate and Colonial homes nestled on tree lined blocks, Flatbush has a home for everyone. Brooklyn Performing Arts Series that showcases artists from around the world.
CULTURAL & NOTABLE ATTRACTIONS TRANSPORTATION Kings Theatre: After undergoing a two -yearlong $95M renovation, the Kings Theatre An appeal to many Flatbush residents is the abundance of public transportation reopened its doors on February 3, 2015. The famed theatre has been restored to its options. Flatbush is conveniently serviced by the New York City Subway B, Q, 2, and original 1929 design, complete with vintage paint schemes, original carpet patterns 5 trains. and historic lighting fixtures. The transformation of this historic venue is a precursor of what is in store for Flatbush. RETAIL The three-way intersection of Flatbush, Nostrand and Avenue H known as “The Brooklyn Center for the Performing Arts: is a world class performance venue located Junction” has been developed into a large shopping center / mall. The retail corridors on the campus of Brooklyn College. This space has been the focal point of Flatbush’s surrounding the Junctions are lined with restaurants, discount stores, shops, churches, emerging culture since opening in 1954. The center welcomes over 70,000 people clothing stores and hair salons. This shopping district also has national retail tenants annually and has hosted world renowned performers such as Luciano Pavarotti, such as Target, Nike, Men’s Warehouse and David’s Bridal.
KINGS THEATER BROOKLYN CENTER FOR THE PERFORMING ARTS BROOKLYN COLLEGE
B6 REAL ESTATE ADVISORS | 838 FLATBUSH AVENUE 5 THE NEIGHBORHOOD
TRANSPORTATION MAP
The property is conveniently located within walking distance to the Parkside Avenue Station Q train and the Church Avenue Station B & Q trains, providing tenants with access to Manhattan and other sections of Brooklyn.
PARKSIDE AVENUE Q 838 FLATBUSH AVENUE
CHURCH AVENUE 2 5
CHURCH AVENUE B Q
BEVERLEY ROAD 2 5 BEVERLEY ROAD Q
CORTELYOU ROAD Q
B6 REAL ESTATE ADVISORS | 838 FLATBUSH AVENUE 6 THE NEIGHBORHOOD
RETAIL MAP RESTAURANTS 1 La Cabaña Rodríguez
2 Zen Vegetarian House
3 Gino's Pizzeria
4 De Bamboo Express
5 KFC
6 Flatbush Soul Food
7 MangoSeed
8 Burger King
9 McDonald's 838 FLATBUSH 10 Dunkin' AVENUE RETAIL 1 Key Food Supermarkets
2 Corner Farm Market
3 Modell's Sporting Goods
4 Stop & Shop
5 Dollar Tree
6 Gap Factory
7 Dr. Jay's
8 Dr Jays Ladies
9 Carter's
10 AT&T Store
AMENITIES 1 Capital One Bank
2 Chase Bank
3 Citibank
4 Santander Bank
5 Brooklyn Swim Center
6 Blink Fitness
7 Planet Fitness
8 Bank of America
9 Crunch Fitness - Flatbush
10 Rite Aid
B6 REAL ESTATE ADVISORS | 838 FLATBUSH AVENUE 7 THE NEIGHBORHOOD
FLATBUSH NOTABLE NEW DEVELOPMENTS
1 800 Flatbush Ave
2 123 Linden Blvd
3 271 Lenox Rd
4 2100 Bedford Ave
5 2119 Caton Ave
6 1580 Nostrand Ave 123 LINDEN BOULEVARD is a 20-story residential tower, spanning 376,500 SF, 7 2155 Caton Ave with 261,070 SF dedicated to residential 8 680 E 21st St use, and 115,430 SF of community facility space, including a medical 9 1694 Church Ave practice and a daycare center, 467 10 100 Lenox Rd apartments, averaging 558 SF apiece.
11 2808 Clarendon Rd
12 485 E 28th St 838 FLATBUSH 13 1644 New York Ave AVENUE 14 142 Lenox Rd
15 146 Linden Blvd
16 154 Lenox Rd
17 1702 Newkirk Ave
18 1499 Nostrand Ave 800 FLATBUSH AVENUE is a 255- 19 2717 Snyder Ave unit apartment building. The mixed- use project will include space for the 20 88 Linden Blvd market, a commercial kitchen for 21 2251 Nostrand Ave vendors, and offices and classrooms for the Caribbean American Chamber of Commerce and Industry.
271 LENOX ROAD is a 56-unit luxury building, with 32 parking spaces, in unit laundry and expansive private terraces. The building features private elevators that open directly into each unit.
B6 REAL ESTATE ADVISORS | 838 FLATBUSH AVENUE 8 DUE DILIGENCE
R7 ZONING
R7 districts are medium-density apartment house districts mapped in much of the Off-street parking is generally required for 60 percent of a building’s dwelling units Bronx as well as the Upper West Side in Manhattan and Brighton Beach in Brooklyn. in an R7-1 district and 50 percent in an R7-2 district, but requirements are lower for The height factor regulations for R7 districts encourage lower apartment buildings income-restricted housing units (IRHU) and are further modified in certain areas, on smaller zoning lots and, on larger lots, taller buildings with less lot coverage. As an such as within the Transit Zone and the Manhattan Core, or for lots less than 15,000 alternative, developers may choose the optional Quality Housing regulations to build square feet in R7-1 districts. Off-street parking requirements can be waived if 5 or lower buildings with greater lot coverage. fewer parking spaces are required in R7-1 districts, or if 15 or fewer parking spaces are required or if the zoning lot is 10,000 square feet or less in R7-2 districts. Regulations for residential development in R7-1 and R7-2 districts are essentially the same except that R7-2 districts, which are mapped primarily in upper Manhattan, lower parking requirements. Source: The Department of City Planning website. www1.nyc.gov. January 2017.
Height factor buildings are often set back from the street and surrounded by open space and on-site parking. The floor area ratio (FAR) in R7 districts ranges from 0.87 to a high of 3.44; the open space ratio (OSR) (OSR) ranges from 15.5 to 25.5. As in other non-contextual districts, a taller building may be obtained by providing more open space. For example, 76% of the zoning lot with a 14-story building must be open space (3.44 FAR × 22.0 OSR). The maximum FAR is achievable only where the zoning lot is large enough to accommodate a practical building footprint as well as the required amount of open space. The building must be set within a sky exposure plane which, in R7 districts, begins at a height of 60 feet above the street line and then slopes inward over the zoning lot.
Off-street parking is generally required for 60 percent of a building’s dwelling units in an R7-1 district and 50 percent in an R7-2 district, but requirements are lower for income-restricted housing units (IRHU) and are further modified in certain areas, such as within the Transit Zone and the Manhattan Core, or for lots less than 15,000 square feet in R7-1 districts. Off-street parking requirements can be waived if 5 or fewer parking spaces are required in R7-1 districts, or if 15 or fewer parking spaces are required or if the zoning lot is 10,000 square feet or less in R7-2 districts.
Height factor buildings are often set back from the street and surrounded by open space and on-site parking. The floor area ratio (FAR) in R7 districts ranges from 0.87 to a high of 3.44; the open space ratio (OSR) (OSR) ranges from 15.5 to 25.5. As in other non-contextual districts, a taller building may be obtained by providing more open space. For example, 76% of the zoning lot with a 14-story building must be open space (3.44 FAR x 22.0 OSR). The maximum FAR is achievable only where the zoning lot is large enough to accommodate a practical building footprint as well as the required amount of open space. The building must be set within a sky exposure plane which, in R7 districts, begins at a height of 60 feet above the street line and then slopes inward over the zoning lot.
B6 REAL ESTATE ADVISORS | 838 FLATBUSH AVENUE 9 DUE DILIGENCE
TAX ASSESSMENT & TAX BILL
TAX ASSESSMENT TAX BILL
B6 REAL ESTATE ADVISORS | 838 FLATBUSH AVENUE 10 DUE DILIGENCE
CONFIDENTIALITY & CONDITIONS
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 any 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, 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.
B6 REAL ESTATE ADVISORS | 838 FLATBUSH AVENUE 11 B6 REAL ESTATE ADVISORS 1040 Avenue of the Americas, 8th Floor New York, NY 10018 B6REALESTATEADVISORS.COM
FOR MORE INFORMATION, PLEASE CONTACT EXCLUSIVE AGENT
JERMAINE PUGH Director 646 933 2633 [email protected]