Investment Opportunity Crown Heights | , 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 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 City (out of 425 stations). Additionally, Utica Avenue is impressively the busiest bus route in Brooklyn (third busiest in all of ) and there is a 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 -

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 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. Upon written request by Broker, Customer hereby agrees to return to Broker or at Customer’s option destroy any and all Confidential Information, provided that Customer shall be entitled to retain such of the Confidential Information as is required by internal document retention policies. 2. The Customer will not disclose the Confidential Information to any person unless Broker has approved in writing such disclosure, provided, however, that the Confidential Information may be disclosed to Customer’s Representatives, for the sole purpose of evaluating the potential purchase of the Property; it being understood that: (a) such Customer’s Representatives shall be informed by Customer of the confidential nature of such information and Customer’s responsibilities under this Confidentiality Agreement with respect thereto; and, (b) Customer shall direct and cause such Customer’s Representatives to treat such information confidentially. The Customer hereby acknowledges the confidential nature of the Confidential Information. 3. In addition, the Customer agrees that, without Broker’s prior written consent, the Customer will not, and will direct Customer’s Representatives not to, disclose to any person either the fact that investigations or discussions are taking place concerning the Property, or any of the terms, conditions or other facts with respect to the Property, or any potential transaction in connection therewith, including the status thereof. 4. The Customer understands and acknowledges that neither Broker nor the Owner make any representation or warranty as to the accuracy or completeness of the Confidential Information and that the information used in the preparation of the Confidential Information was furnished to Broker by others and has not been independently verified by Owner or Broker and is not guaranteed as to completeness or accuracy. The Customer agrees that neither Broker nor the Owner shall have any liability for any reason to Customer or Customer’s Representatives resulting from the use of the Confidential Information by Customer or Customer’s Representatives, or for any other information (whether oral or written) provided or alleged to have been provided to Customer or Customer’s Representatives. 5. It is understood and agreed that money damages may not be a sufficient remedy for any breach of this Agreement by Customer and that Broker and Owner shall be entitled to seek specific performance or other equitable relief as a remedy for any such breach. Such remedy shall not be deemed to be the exclusive remedy for Customer’s breach of this Agreement but shall be in addition to all other remedies available at law or in equity to Broker and the Owner, provided that neither party to this Agreement shall be liable for indirect, consequential, or punitive damages. Customer agrees that the provisions of this Agreement shall be deemed to apply, with equal force and effect, to Customer’s Representatives, affiliates, or associates, as if such persons were a signatory hereto and that Customer shall be responsible for any breach of the provisions of this Agreement by Customer’s Representatives, affiliates or associates unless such parties are themselves party to a confidentiality agreement in favor of Broker or the Owner relating to the Property in which case the Customer shall have no responsibility for the compliance of such parties with this or any other agreement. 6. In the event that Customer or Customer’s Representatives receive a request or demand to disclose all or any part of the information contained in the Confidential Information under the terms of a subpoena or order issued by a court of competent jurisdiction or otherwise or if a request for disclosure is made by a governmental or regulatory authority, Customer agrees at no cost to themselves to (i) promptly notify Broker and Owner (to the extent legally permissible to do so) of the existence, terms and circumstances surrounding such a request so that Broker and the Owner may seek a protective order or other appropriate relief or remedy or waive compliance with the terms of this agreement, (ii) consult with Broker and Owner and their respective counsel on the advisability of taking steps to resist or narrow such request provided that Customer shall not be subjected to any liability or undue expense or burdens, and (iii) if disclosure of such information is required, disclose such information only to the extent so required. 7. All notices, consents, requests, approvals and other communications provided for herein shall be made in writing and shall be delivered personally, by facsimile transmission, or by first class mail, postage prepaid. Notices delivered personally or by facsimile transmission shall be effective upon receipt. Notices sent by first class mail shall be effective three days subsequent to the date any such notice is deposited in the mail. Notices to Broker must be sent to Broker, 521 Fifth Avenue, 7th Floor, New York, NY 10175, Attn: Legal. Notices to Customer shall be sent to the address provided by Customer in the signature block to the attention of the signatory. 8. With respect to the matters contemplated herein, this Agreement constitutes the entire understanding between Customer and Broker and it supersedes all prior oral and written communications, negotiations, understandings and agreements. The agreement set forth in this Agreement may be modified or waived only by a separate writing by Customer and Broker expressly so modifying or waiving such agreement. No failure or delay in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise of any right, power or privilege. This agreement shall expire upon the earlier of one year from the date hereof and the date a transaction is entered into by the Customer or the Customer’s affiliates with respect to the Property. 9. The rights, obligations and benefits hereunder shall inure to the benefit of the respective parties hereto, their successors and assigns. 10. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without regard to principles of conflict or choice of laws. The Customer hereby irrevocably and unconditionally submits to the jurisdiction of any court of the State of New York or any federal court sitting in the State of New York for purposes of any suit, action or other proceeding arising out of this Agreement (and Customer agrees not to commence any action, suit or proceedings relating thereto except in such courts) and agrees that service of any process, summons, notice or document by U.S. registered mail actually received by Customer at Customer’s address set forth herein shall be effective service of process for any action, suit or proceeding brought against Customer in any such court. Customer hereby irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this agreement, which is brought by or against Broker or Owner, in the State of New York, City of New York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. Confidentiality Agreement

11. The Customer acknowledges that the Property offered for sale is subject to withdrawal from the market, change in offering price, prior sale or rejection of any offer because of the terms thereof, lack of satisfactory credit references of any prospective purchaser, or for any other reason whatsoever, without notice. The Customer acknowledges that the Property is being offered without regard to race, creed, sex, religion or national origin. 12. The Customer stipulates that it is acting as a principal only, and is not acting as a broker, or being represented by any broker in the transaction. If Customer wishes to be represented by a broker, then Customer’s broker shall be paid by the Customer solely. Neither Broker nor the Owner will be responsible for any fees paid to the Customer’s broker. Customer hereby agrees to indemnify, defend and hold Broker, and its members, managers, officers, directors, owners, shareholders, employees, agents and independent contractors, harmless, from and against any and all damages, losses, liabilities, commissions, claims, lawsuits, judgments, costs and expenses, including reasonable attorneys’ fees, disbursements, court or arbitration costs which Broker or any of the aforesaid parties may incur as a result of any breach of this Agreement, or any claim for a commission by any broker related to the dealings with Customer for the Property, including but not limited to any executed transaction, or any negotiations.

If in agreement with the foregoing, please return an original signed copy of this Agreement. In Witness Whereof, the undersigned has caused this Agreement to be executed and delivered on the day of , 20

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Please return all pages to Gary Meese by fax (212.599.3744) or email ([email protected])

FOR MORE INFORMATION Barry Fishbach Gary Meese Brian Segall Vice Chairman Managing Director, Senior Managing Director, 212.331.0115 Investment Sales & Investment Sales & [email protected] Capital Markets Capital Markets 212.916.2933 212.351.9346 [email protected] [email protected]

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© 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. Terms of sale or lease and availability are subject to change or withdrawal without notice.