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Home , 34th Street (Manhattan), 55th Street (Manhattan), 59th Street (Manhattan), Fifth Avenue, Madison Avenue, Midtown Manhattan

MARKETING TEAM

Peter Von Der Ahe 260 Madison Avenue, 5th Floor New York, NY Tel: (212) 430-5114 Fax: (646) 349-3308 [email protected]

Joe Koicim 260 Madison Avenue, 5th Floor New York, NY 10016 Tel: (212) 430-5147 Cell: (516) 425-2785 [email protected]

David Lloyd 260 Madison Avenue, 5th Floor New York, NY 10016 Tel: (212) 430-5185 Cell: (347) 552-2293 [email protected]

Logan Markley 260 Madison Avenue, 5th Floor New York, NY 10016 Tel: (212) 430-5194 Cell: (917) 454-8733 [email protected]

Andrew Dansker | Financing Inquiries 260 Madison Avenue, 5th Floor New York, NY Tel: (212) 430-5168 Fax: (212) 500-5110 [email protected]

48 West 55th Street TABLE OF CONTENTS

INVESTMENT OVERVIEW Section I

PRICING & FINANCIAL ANALYSIS Section II

PROPERTY DESCRIPTION Section III

MARKET OVERVIEW Section IV

48 West 55th Street 48 West 55th Street INVESTMENT OVERVIEW 48 West 55th Street | $11,750,000 Is being offered at THE OFFERING Strategic location. Located between the iconic luxury retail corridor of Fifth Avenue and the bustling thoroughfare of Sixth Marcus & Millichap is pleased to offer 48 West 55th Street, a five- Avenue, this location offers terrific access to high-end retail, world- story, mixed-use, walk-up building located between Fifth Avenue renowned cuisine, and convenient transportation. With several of and Sixth Avenue in Midtown. The building contains a gross the world’s most luxurious apartment buildings blocks away, square footage of 5,964. It is built 20 ft x 84 ft and sits on a 20 ft Central Park located just North, Rockefeller Center just South, and x 100.42 ft lot (Block: 1270 Lot: 160). The property is zoned C5-P, over 200,000,000 square feet of Midtown office space, there will MID. always be a strong demand for this location. 48 West 55th Street also sits in close walking distance to the 1, N, Q, R, W, 4, 5, 6, B, D, THE OPPORTUNITY F, M subway lines. Rare Offering. This mixed-use asset presents investors with the rare opportunity to acquire a building in the heart of Midtown that has been owned and managed by the same family for 40+ LISTING METRICS years. Assets of this nature rarely trade hands, giving any potential buyer the chance to purchase a building in one of the world’s most desirable locations. 7 5,958 Flexibility. The building will be delivered vacant and is TOTAL UNITS TOTAL SQUARE FEET predominately free market, providing investors with a full array of options when repositioning the property. Currently, the property is comprised of six apartments above two floors of commercial space. All the residential units are 1-bedroom $730 $102,922 apartments, while the two floors of commercial space are PRICE /BSF PROJECTED TAXES configured as one, 2,400 square foot high-end restaurant space.

Tax Class 2B: This property falls into the highly desirable tax class 2B. As a tax class 2B property, the property’s tax increases 20' 10,042 are capped at 8% per year and no more than 30% over any given FRONTAGE TOTAL AIR RIGHTS 5-year period. This hedges significant tax exposure risk.

Development Potential. With a maximum buildable square footage of 16,064 square feet, the building contains roughly 10,100 square feet of unused air-rights. The property creates the opportunity to develop high-end rentals or even luxury condos, which often sell in this exclusive submarket for over $3,000 per square foot.

OFFERING MEMORANDUM

PRICING & FINANCIAL ANALYSIS PRICING & FINANCIAL ANALYSIS

FINANCIAL OVERVIEW

INCOME CURRENT PRO FORMA $11,750,000 Gross Potential Residential Rent $252,000 $252,000 OFFERING PRICE Gross Potential Commercial Rent $300,000 $300,000 Gross Income $552,000 $552,000 PRICE PER B/SF $731 Vacancy/Collection Loss ($2,520) ($2,520) TOTAL SQUARE FEET 5,958 Other Income $0 $0 TOTAL UNITS 7 Effective Gross Income $549,480 $549,480 PRO FORMA CASH ON CASH RETURN 2.23% Average Residential Rent/Month/Unit $3,500 $3,500

EXPENSES Property Taxes Tax Class: 2B $109,664 $109,664 UPSIDE ANALYSIS Fuel - Gas $6,500 $5,500 Insurance $5,000 $6,500 $4,500 Water and Sewer $6,500 $10,000 $4,000 Repairs and Maintenance $4,500 $4,500 $3,500 Common Electric (PPSF) $1,750 $2,700 $3,000

$2,500 Super Salary $5,000 $4,000

$2,000 Management Fee $16,484 $16,484 $1,500 Total Expenses $155,398 $159,348 $1,000 Net Operating Income $394,082 $390,132 $500

$0 Studio 1 2 3 4 5 6 SRO Bedroom Bedroom Bedroom Bedroom Bedroom Bedroom

Current Avg RS Units Market Rents Current Avg FM Rents

SCHEDULE OF INCOME UNIT BREAKDOWN TOTAL % OF TOTAL RENT Studio 0 0% $0 1 Bedroom 6 100% $3,500

5,958 $731 SQUARE FEET

GROSS TOTAL SF $/BSF

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.Any projections, 48 West 55th Street opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property.Marcus & MillichapReal EstateInvestmentServicesis aservicemarkof Marcus&MillichapReal EstateInvestmentServices,Inc.©2018 Marcus&Millichap PRICING & FINANCIAL ANALYSIS

RENT ROLL

COMMERCIAL RENT UNIT TENANT NAME NOTES LEASE START SF PRO FORMA $/PSF

Ground Floor La Bonne Soupe Delivered Vacant 1,500 $20,000 $160 2nd Floor La Bonne Soupe Delivered Vacant 900 $5,000 $67 MONTHLY COMMERCIAL REVENUE 2,400 $25,000

RESIDENTIAL RENT UNIT# LEASE STATUS NOTES BEDROOMS ROOMS PRO FORMA

3A FM Delivered Vacant 1 Bedroom 3 $3,500 3B RS Delivered Vacant 1 Bedroom 3 $3,500 4A FM Delivered Vacant 1 Bedroom 3 $3,500 4B FM Delivered Vacant 1 Bedroom 3 $3,500 5A FM Delivered Vacant 1 Bedroom 3 $3,500 5B FM Delivered Vacant 1 Bedroom 3 $3,500 MONTHLY RESIDENTIAL REVENUE 6 18 $21,000

ANNUAL RESIDENTIAL REVENUE $252,000 ANNUAL COMMERCIAL REVENUE $300,000

PRO FORMA TOTAL ANNUAL REVENUE $552,000 There are currently 7 vacant units in the building.

INCOME AND EXPENSE ANALYSIS

GROSS POTENTIAL INCOME ACTUAL PRO FORMA AVERAGE PRO FORMA %EGI $/UNIT %EGI $/UNIT RENT PER MONTH Gross Potential Residential Rent $252,000 46% $36,000 $252,000 46% $36,000 Gross Potential Commercial Rent $300,000 54% $42,857 $300,000 54% $42,857 Gross Income $552,000 $78,857 $552,000 $78,857 $3,500 Vacancy/Collection Loss ($2,520) 1% ($360) ($2,520) 1% ($360) Other Income $0 $0 $0 $0 PERCENT Effective Gross Income $549,480 $78,497 $549,480 $78,497 FAIR MARKET Average Residential Rent/Month/Unit $3,500 $3,500

EXPENSES Property Taxes Tax Class: 2B $109,664 20% $15,666 $109,664 20% $15,666 Fuel - Gas $6,500 1% $929 $5,500 1% $786 71% Insurance $5,000 1% $714 $6,500 1% $929 Water and Sewer $6,500 1% $929 $10,000 2% $1,429 Repairs and Maintenance $4,500 1% $643 $4,500 1% $643 Common Electric (PPSF) $1,750 0.3% $0.29 $2,700 0.5% $0.45 Super Salary $5,000 1% $714 $4,000 1% $571 Management Fee $16,484 3% $2,355 $16,484 3% $2,355 Total Expenses $155,398 28% $22,200 $159,348 29% $22,764 Net Operating Income $394,082 $390,132

LEASE STATUS MIX UNIT BREAKDOWN % OF TOTAL RENT TOTAL AVG. RENT Total Units -- $46,000 7 $6,571 Total RS Units 14% $3,500 1 $3,500 Total RC Units 0% $0 0 $0 Total FM Units 71% $17,500 5 $3,500 Total Commercial -- $25,000 1 $25,000

RENTAL ANALYSIS BY UNIT TYPE TYPE % OF TOTAL RENT TOTAL AVG. RENT Studio 0% $0 0 $0 1 Bedroom 100% $21,000 6 $3,500 2 Bedroom 0% $0 0 $0 3 Bedroom 0% $0 0 $0 4 Bedroom 0% $0 0 $0 5 Bedroom 0% $0 0 $0 6 Bedroom 0% $0 0 $0 SRO 0% $0 0 $0

CITY: New Yorki

STATE: NYi

BLOCK & LOT: 1270 / 160i

LOT DIMENSIONS: 20 ft X 100.42 fti

LOT SF: 2,000i

BUILDING DIMENSIONS: 20 ft X 84 fti

BUILDING SF: 5,958i

ZONING: C5-Pi

MAX FAR: 8.00i

AVAILABLE AIR RIGHTS: 10,042i

LANDMARK DISTRICT: Nonei

HISTORIC DISTRICT: Nonei

ANNUAL TAX BILL: __$102,922i

TAX CLASS: 2Bi

48 West 55th Street BOROUGH

Manhattan is a significant part of a much larger population system; the New York City metropolitan area is the largest in the United States, with more than 19 million inhabitants in three states.

CONFIDENTIAL

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap

PROPERTY DESCRIPTION | PROPERTY PHOTOS

48 West 55th Street PROPERTY DESCRIPTION | PROPERTY PHOTOS

48 West 55th Street MARKET OVERVIEW MANHATTAN

The island of Manhattan is one of New York City's five boroughs, New York Harbor contains docks for freight and approximately 13 miles long and two miles wide. Solid bedrock passenger ships and provides ferry service to New provides a firm foundation for the high-rise buildings that dominate Jersey and around the city. the skyline.

Manhattan's deep-water port and proximity to the nation's interior bolster its position as a global economic powerhouse. Manhattan MARKET HIGHLIGHTS also contains Central Park, which encompasses 843 acres in the center of the island and is considered one of the nation's premier public spaces. Large population: New York City is the United States’ largest BOROUGH city, with upwards of 8 million residents.

Manhattan is home to over 1.6 million residents who are part of a Top address for corporate headquarters: much larger population system. The New York City metropolitan 40+ Fortune 500 companies call New York area is the largest in the United States, with more than 19 million City home. inhabitants in three states. New York City consists of five boroughs with about 8.4 million people. High barriers to development: few parcels of developable Manhattan is well placed, situated 100 miles from Philadelphia, 210 land + high costs = limits to new construction. miles from Boston, 230 miles from Washington, D.C., and 790 miles from Chicago.

INFRASTRUCTURE GROWTH PATTERNS

New York City has an extensive mass-transportation network. Subway and bus systems serve virtually every area in the five boroughs. There are 468 stations in the New York City Transit subway system, including 147 stations in Manhattan. Grand Central Station and Penn Station, both in Midtown Manhattan, provide rail service to the suburbs and long-distance connections, while three international airports offer flights to most global destinations.

The island of Manhattan is linked to the other boroughs and New Jersey by 11 bridges and four tunnels for vehicular traffic, with numerous additional tunnels for subway and rail lines. Highways along the borough's eastern and western edges connect to freeways throughout the five boroughs.

48 West 55th Street MANHATTAN

ECONOMY Manhattan is also an important location for many retailers, both national and local. Retail sales in the borough typically New York City is home to around 40 Fortune 500 grew faster than the U.S. rate over the past decade. companies, more than any other MSA in the country, and most are located in Manhattan. The city serves as the LABOR epicenter for a wide variety of industries, making the performance of its local economy integral to the nation. The Job growth in Manhattan slowed over the past five years as Port of New York is also a vital component of New York’s the economic downturn weighed on the local centrality to American and regional trade. manufacturing, information, trade, transportation and utilities, and financial activities sectors. As one of the leading financial centers in the world, New York City boasts many international banks and financial Professional and business services is the largest firms maintaining offices in the city. employment sector, accounting for over 470,000 positions, or 20 percent of the labor force. The government sector Wall Street is a major driver of the local economy, as a follows closely, with 19 percent of jobs in Manhattan. These significant number of people are employed directly in the sectors will post average annual gains of 2.3 percent and 1.2 securities industry. The city is also a hub for the media, percent, respectively, over the next five years. communications and publishing industries. The major television networks have substantial operations in The leisure and hospitality and education and health Manhattan, while hundreds of newspapers, magazines and services sectors will record the largest growth through 2015, several music recording companies are headquartered in increasing at average annual rates of 3.1 percent and 2.9 the city. In addition, New York City is the advertising capital percent, respectively. An annual gain of 2.9 percent is also of the United States and has a growing presence in the expected in the other services sector. Internet/new media field. The entertainment and tourism industries are crucial to the Manhattan economy, with numerous theaters and attractions drawing billions of dollars each year.

CONFIDENTIAL

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap MANHATTAN

EMPLOYERS DEMOGRAPHICS

Over half of Manhattan’s labor market is involved in New York City is the largest city in the United States, with financial activities and the services sectors. This is due to over 8 million residents. An estimated 19 million people live New York City being the headquarters of some of the within the tristate metro area. Among the five boroughs, largest U.S.-based consulting businesses, accounting Manhattan is third largest behind Brooklyn and Queens, offices, insurance companies and legal firms, as well as the with a population of over 1.6 million. Manhattan grew 0.7 United Nations. In addition, Manhattan is the financial percent annually during the past decade, a rate expected to center of the country and home to the New York Stock continue through 2015. Exchange, being one of the only two Alpha++ cities in the world, sharing the title with London. Many of the world's The share of Manhattan residents with a Bachelor’s degree top securities firms and banks are located here. Major is more than 34 percent, far above the national average of employers in the finance industry based in Manhattan almost 28 percent. Additionally, more than 14 percent of include Goldman Sachs, JPMorgan Chase and Morgan the borough residents over age 25 have a graduate degree, Stanley Smith Barney. compared to just over 10 percent nationally. There are significant and noteworthy differences between Media conglomerate Time Warner is the largest company in Manhattan’s demographic profile and the profile of the the information sector, employing thousands of people in nation. Manhattan from its headquarters at the Time Warner Center in Midtown. Other large media employers in the In particular, residents under age 20 make up only 20 borough are Viacom and Verizon. The education and health percent of Manhattan's population, compared to 27 percent services sector accounts for 13 percent of jobs in at the U.S. level. Additionally, residents ages 25 to 44 Manhattan. Large employers include New York University, comprise 37 percent of the local population, up from 27 Columbia University, New York-Presbyterian Healthcare, percent nationally, as this vital job market attracts many in Mount Sinai Hospital and Continuum Health Partners Inc. their prime working years.

48 West 55th Street MANHATTAN

Although Manhattan’s median household income stands at There are two MLB teams, two NFL teams, two NHL teams a healthy $68,100 annually, the borough also has one of the and two NBA teams within the metro area. New York City highest housing costs in the country, with the median home has an extensive public park system, the jewel of which is price resting at nearly $1.2 million. Central Park in Manhattan offering natural areas, lawns, playing fields, running trails, biking paths, boating facilities QUALITY OF LIFE and a zoo.

Manhattan offers a quality of life unique even within the Manhattan also boasts world class art museums including nation’s largest cities. Although housing costs are among the Metropolitan Museum of Art, the Guggenheim and the the most expensive in the country, the borough provides a Museum of Modern Art. The city's international flavor is variety of cultural, entertainment and employment always on display in the island's many restaurants, featuring opportunities. The area is one of the few places in the recipes from around the world. United States where a person can live without a car and rely completely upon mass transit. You can get anywhere New York’s island of Manhattan continues to rise in culture, easily by taking the subway, buses or taxicabs, and rail quality of life, and wealth. As a global gateway city, New terminals and airports make long-distance travel accessible. York will continue to deliver promising opportunities and A variety of entertainment options are available to investment potential. Manhattanites, including Broadway shows, first-run films and famous nightlife venues.

CONFIDENTIAL

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap MIDTOWN WEST

GEOGRAPHY CENTRAL BUSINESS CENTER

Midtown West extends from 34th Street to 59th Street The “Plaza District,” a term frequently used to specify the between Fifth Avenue and the Hudson River. Within these most expensive region of Midtown from a commercial real boundaries lie renowned districts and streets that are estate standpoint, lies between 42nd and 59th Streets, from home to some of the most notable commercial buildings Third Avenue to Seventh Avenue. and attractions that Manhattan has to offer, which include: As New York’s largest central business district, Midtown • Hell’s Kitchen meets Central Park to the north at Manhattan serves as the busiest single commercial district Columbus Circle, located at 59th Street and 8th Avenue in the United States and is home to the most diverse group • Time Square and the Theatre District stretch from 42nd of real estate in the country. The majority of Manhattan’s Street to West 53rd Street tallest skyscrapers, hotels, and apartment establishments • Diamond District on West 47th Street between 6th and lie in the central business district of Midtown Manhattan. 5th Avenues • Garment District from West 42nd Street and West 34th Daily, more than 700,000 commuters travel to work to Street between 9th and 5th Avenues Midtown’s offices, hotels, and retail establishments, as wells • Herald Square at the intersection of Broadway, between as host thousands of tourists and visiting residents. 6th Avenue and West 34th Street Midtown West’s Times Square and Fifth Avenue hold the predominant number of retail shops, while Sixth Avenue is AMENITIES the home to three of the four major television networks. Midtown West is also growing as a financial epicenter, only Due to the close proximity to Midtown West’s commercial second in importance in the United States to Manhattan’s haven, residents have the luxury of walking to work – Financial District. Lastly, Midtown West is perhaps most whether that is to a Broadway audition in the Theatre notably known as a center of entertainment and American District or to an executive board meeting at Rockefeller theater. Developers have seen the amenities of this Center. commercial corridor as an opportunity to also incorporate residential development. Additional residential towers have When not at work, residents have no shortage of risen along Broadway and Eighth Avenue, incorporating entertainment with attractions such as Times Square, both rental and sales opportunities. Madison Square Garden, Rockefeller Center, Bryant Park, the Garment District, and the Diamond District. Activities SUBWAY ACCESS range from ice skating in Rockefeller Center, to free movies and concerts in Bryant Park, or to simply reading a book in 7,Q,R,S,N,W to Times Square | 1,2,3 to Times Square | A,C,E the New York Public Library. The neighborhood is also to Times Square-Port Authority | B,D,F,V to 42nd St.-Bryant home to several core cultural institutions, such as Carnegie Park | B,D,F,N,Q,R,W,V to Herald Sq. | 1,2,3 to 34th St.-Penn Hall, Alvin Ailey, and Radio City Music Hall. Midtown West Station | A,C,E to 34th St.-Penn Station| E,V to Fifth Ave.- encompasses a wide array of fine and casual dining, along 53rd St. | B,D,F,V to Rockefeller Center | N,R,W to 49th St. | its Ninth Avenue restaurant strip and its 42nd street 1 to 50th St. | C,E to 50th St. | B,D,E to Seventh Ave. | F to restaurant row. 57th St. | N,Q,R,W to 57th St. | 1,A,B,C,D to Columbus Circle

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212 430 5114