250 Utica Avenue, Brooklyn NY
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Investment Opportunity Crown Heights | Brooklyn, NY 250 UTICA AVENUE NEWLY RESTRUCTURED 99-YEAR LEASEHOLD INTEREST—91 YEARS REMAINING ±61,230-SF COMMERCIAL BUILDING WITH ON-SITE PARKING TENANTS: FOR MORE INFORMATION Barry Fishbach Gary Meese Vice Chairman Managing Director, 212.331.0115 Investment Sales & [email protected] Capital Markets 212.916.2933 Brian Segall [email protected] Senior Managing Director, Investment Sales & Capital Markets 212.351.9346 [email protected] Executive Summary We have been retained by ownership as the exclusive agent to offer for the leasehold sale 250 Utica Avenue, Brooklyn (the “Property”), a four-story ±61,230-SF retail building located in Crown Heights on the northwest corner of Utica Avenue and Lincoln Place. The Blink Fitness anchored building is also tenanted by CityMD, Dollar Tree and Brooklyn Kids Academy. The building is 95% leased with a Ground Floor corner space that is currently vacant. The earliest lease expiration is in January 2025 with subsequent lease rolls occurring in 2028 and 2029. All tenants have lease extension options beyond their base terms. The building is subject to a 99-year ground lease which expires in 2111 (±91 years remaining). The Property is located one block from the Eastern Parkway and Crown Heights-Utica Avenue subway station servicing the 3 and 4 express trains. The transit hub experiences heavy foot-traffic with annual ridership of approximately nine million passengers. According to 2017 MTA data, the station is the 6th busiest in Brooklyn and 34th busiest in all of New York City (out of 425 stations). Additionally, Utica Avenue is impressively the busiest bus route in Brooklyn (third busiest in all of New York City) and there is a B46 bus stop on the block steps from the building. The offering presents investors with the opportunity to acquire well-positioned retail asset in Crown Heights, a densely populated and established neighborhood, which is also experiencing strong growth. Numerous new development projects and convenient express train and bus accessibility to Downtown and Central Brooklyn employment centers and education institutions, Manhattan and Prospect Park continue to fuel investment throughout the neighborhood. Investment Highlights INHERENT FUTURE UPSIDE POTENTIAL 250 Utica Avenue maintains strong in-place income from credit tenancy, near term upside potential with the lease-up of a vacant ±2,077 SF corner and further future upside potential as the neighborhood continues to grow and commercial rents appreciate in the central Brooklyn submarket. Additionally, there are two spaces included in the sale that currently do not generate income: a ±7,000-SF community facility currently occupied by St. Matthew’s Roman Catholic Church and a ±16,173-SF, 81-space parking garage currently managed by an operator on a month-to-month basis. 250 UTICA AVENUE LINCOLN PLACE BROOKLYN KIDS ACADEMY ST. MATTHEWS ROMAN CATHOLIC CHURCH UTICA AVENUE UTICA DELI GOURMET UTICA ELECTRONICS CROWN HEIGHTS - UTICA AVENUE STATION Property Details INCOME + EXPENSES Property Address 250 Utica Avenue (AKA 250-258 Utica Avenue) Location Northwest corner of Utica Avenue and Lincoln Place, Crown Heights, Brooklyn Total Income (2021) $1,476,201 Block/Lot 1384/51 Ground Rent $100,000 Zoning C4-3 Expenses $ 247,181 Frontage ±100 FT on Utica Avenue | ±150 FT on Lincoln Place Total Expenses $347,181 Stories 4 Net Operating Income $1,119,033 Square Feet ±61,230 SF (Total) | ±45,057 SF (Ground - Fourth Floor) | ±16,173 SF (Garage - Cellar/Sub-cellar) Subway – one block from the Crown Heights-Utica Avenue subway station [3, 4 express train] Transportation Bus – Steps from Utica Avenue MTA bus service on the block [B46] Asking Price $16,500,000 Tenants Blink Fitness, CityMD, Dollar Tree, Brooklyn Kids Academy Cap Rate 6.8% RE Taxes (2019-2020) $172,005 $ PSF $270 RE Tax Abatement The property benefits from a 25-year ICAP tax abatement that began in 2015. Total Income (2021) $1,476,201 Ground Rent $100,000 Utica Avenue, Park Place-Carrol Street Brooklyn, NY May 2019 Area Map PARK PLACE Rising Star Beauty Salon Crown Heights Cell Games and Beyond P&C Blink Boutique Lakou Cafe Vibez Palate Adonijah Health Food Tuba's Hair Braiding Sally Vip Salon UTICA AVENUE UTICA Hardee Diamond Kouture Hair Studio Top Shelf Ink Tatto Studio Love Express Deli ROCHESTER AVENUE SCHENECTADY AVENUE SCHENECTADY Utica Best Buy Wine and Liquor STERLING PLACE Restaurant Los Mercedes B46 + B46 (SBS) Crown Heights Deli and Tobacco Shop Aicha African Hair Braiding Best Deal Deli & Grocery - THE FIRST BUSIEST ROUTE IN BROOKLYN - THE THIRD BUSIEST ROUTE IN NEW YORK CITY Ideal Accountax Services Stratosphere Studios - 44,000 DAILY RIDERSHIP Gnaga African Hair Braiding Brooklyn Hostel - A VITAL LINK OF NORTH_SOUTH TRANSIT Tip Top Discount Store - CONNECT TO EASTERN PARKWAY & Yulaine Spa Superior Market FULTON STREET SUBWAYLINES Utica Golden Nails Zou's ST JOHN'S PLACE New Ronson Drugs Texas Fried Chicken Pretty Girl Tota's Bakery & Rest Naomis Total Fashion Utica Fish Trax 250 UTICA AVENUE Allegiance BROOKLYN, NY AVENUE UTICA Utica Electronics Brooklyn Kids Academy ROCHESTER AVENUE SCHENECTADY AVENUE SCHENECTADY LINCOLN PLACE Feel Beauty Supply 99¢ Store and Up FOR MORE INFORMATION Barry Fishbach Gary Meese Utica Deli Gourmet Cell & Game Etc. Utica Sports Vice Chairman Managing Director, CROWN HEIGHTS - UTICA AVENUE SUBWAY STATION Jackson Hewitt Guyana Gold 212.331.0115 Investment Sales & - TOP 10 SUBWAY RIDERSHIP STATION IN BROOKLYN - 9 MILLION ANNUAL RIDERSHIP IN 2017 [email protected] Capital Markets 212.916.2933 EASTERN PARKWAY [email protected] Brian Segall EASTERN PARKWAY Senior Managing Director, Investment Sales & EASTERN PARKWAY Capital Markets 212.351.9346 Washington Mutual New Utica Produce [email protected] ATM Network Inc. P.F. Jewelry Utica Pharmacy Pitkins Fish & Chicken Porta Bella Menswear Alumni Conrads Bakery NGKF.COM UNION STREET © 2019 NEWMARK KNIGHT FRANK RETAIL The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. United Deli & Grill SMoke Shop Desiree Fashions B&H Jewelry Exchange Vinnies Men's Wear N&K Deli & Grocery Sherry's Salon Tony's Pizza Organic Love Italfari Vegetarian Juce Bar Utica Trading Discount & Variety Jiang Asian Express UTICA AVENUE UTICA I&S Jewelry House Of Electronics SL Tax Center Podiatrist ROCHESTER AVENUE SCHENECTADY AVENUE SCHENECTADY PRESIDENT STREET One Hour Photo Hong Fish Market Zoomdrugs Pharmacy Royal Cuisine Caribbean Restaurant Amy Fashion Nail Q Home 99 Cents Store Brooklyn Hair Salon Sam's Hair and Beauty Supply Tally Young Cosmetics C&S Meats Inc. Lovely Nails Utica Top Farm Ami African Hair Braiding CARROLL STREET FORD STREET Miles 0 0.00750.015 0.03 All information supplied is from sources deemed reliable and is furnished subject to errors, omission, modifications, removal of the listing from sale, and to any listing conditions, including the rates and manner of payment of commissions for particular offerings imposed by principals or agreed to by this Company, the terms of which are available to principals or duty licensed brokers. Any square footage dimensions set forth are approximate. µ Confidentiality Agreement You (the “Customer”) have advised us, our affiliates, successors and assigns (collectively “Broker”) that the Customer wishes to register as a potential purchaser of the fee interest located at 500 West 43rd Street (the “Property”). Broker has been retained by the owner of the Property (the “Owner”) as the exclusive broker to offer the Property for sale. The Owner has indicated that all inquiries and communications with respect to the contemplated sale of the Property be directed to Broker. All fees due to Broker in connection with the sale of the Property shall be paid by the Owner. Broker has available for review certain information concerning the Property, including but not limited to brochures, offering memorandum, financial information, and other materials (collectively “Confidential Information”). As a condition to Broker’s furnishing the Confidential Information to the Customer, whether such information is furnished by Broker, Broker’s employees, agents or representatives (including attorneys and financial advisors) (collectively, the “Broker’s Representatives”), or by Owner or any of Owner’s employees, agents or representatives, the Customer and its affiliates, subsidiaries, lenders and investors (whether existing or potential), partners, consultants, directors, officers, employees, agents and advisors (collectively, “Customer’s Representatives”), Customer agrees to treat the Confidential Information, regardless of who prepared it, in accordance with the provisions of this Agreement and to take or refrain from taking certain actions herein set forth. Notwithstanding the foregoing, Confidential Information shall not include, and this agreement shall have no effect with respect to : (i) information which is or becomes publicly known other than as a result of a violation by Customer or a Customer Representative, (ii) information which is already in the possession of Customer or Customer’s Representatives or becomes known to such parties from a source other than Broker or Owner, and which person or entity providing such information was not, to Customer’s knowledge after due inquiry, bound by a confidentiality agreement with Broker or Owner relating to the Property, or (iii) is independently developed by Customer or Customer’s Representatives without use of or reference to “Confidential Information”. 1. All Confidential Information relating to the Property which may be furnished to the Customer by Broker shall continue to be the Property of the Owner and Broker. The Confidential Information will: (i) be kept confidential by the Customer and Customer’s Representatives; (ii) be used solely by the Customer for the purpose of evaluating a potential purchase of the Property; and (iii) not be copied or duplicated without Broker’s prior written consent other than in connection with the review of same.