51 East Houston Street 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]

Noah Kossoff 260 Madison Avenue, 5th Floor New York, NY 10016 Tel: (646) 805-1426 Cell: (917) 880-1475 [email protected]

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

51 East Houston Street TABLE OF CONTENTS

INVESTMENT OVERVIEW Section I

PRICING & FINANCIAL ANALYSIS Section II

PROPERTY DESCRIPTION Section III

MARKET OVERVIEW Section IV

51 East Houston Street INVESTMENT OVERVIEW 51 East Houston Street | $9,995,000 Is being offered at

THE OFFERING LISTING METRICS

New York Multifamily is pleased to offer the following opportunity located in the booming 10 8,845 NoLiTa neighborhood. 51 East Houston Street is TOTAL UNITS APPROXIMATE SQUARE FEET located between Mott and Mulberry Streets, and contains an approximate gross square footage of 8,845. The building is built 25 ft X 71 ft feet on a 25 $1,130 $34,820 ft X 82 ft lot (Block: 509 Lot: 23). The property is PRICE /SF PROJECTED TAXES zoned C6-3. THE OPPORTUNITY 4.8% 17.3 CAP RATE GRM • 25’ 10-Unit Mixed-Use on East Houston Street between Mott & Mulberry Streets • Protected Tax Class 2B: Taxes Are 6% of Gross 25 ' Income FRONTAGE • Over $1M spent in recent building upgrades. The property features newly renovated free-market apartments along with new/upgraded building systems (boiler, gas lines, electrical, roof, etc.) • Prime NoLIta location: Seamless Access to B, D, F, J, M, N, R, W, Z & 6 Trains

OFFERING MEMORANDUM

PRICING & FINANCIAL ANALYSIS PRICING & FINANCIAL ANALYSIS

FINANCIAL OVERVIEW

OFFERING PRICE $/SF $1,130 INCOME CURRENT PRO FORMA $/UNIT $999,500 Gross Potential Residential Rent $269,875 $289,217 $9,995,000 TOTAL SF 8,845 Gross Potential Commercial Rent $305,124 $305,124 TOTAL UNITS 10 Gross Income $574,999 $594,341 Vacancy/Collection Loss ($8,096) ($8,676) RATIO OF CURRENT METRICS Other Income $4,350 $4,350 50% FAIR MARKET UNITS CAP RATE 4.8% Effective Gross Income $571,253 $590,015

PROPERTY TAXES GRM 17.3 Average Residential Rent/Month/Unit $2,811 $3,013 RATIO 6% PRO FORMA METRICS

PRO FORMA CAP RATE 5.0% EXPENSES $3,013 AVERAGE MONTHLY GRM 16.7 Property Taxes Tax Class: 2B $34,820 $34,820 RENT Fuel $10,400 $10,400 Insurance $4,500 $4,500 Water and Sewer $8,700 $8,700 EXPENSE RATIO UPSIDE ANALYSIS Repairs and Maintenance $7,500 $7,500

$6,000 Common Electric (PPSF) $2,211 $2,211

$5,000 Super Salary $5,000 $5,000

$4,000 Management Fee $17,138 $17,700

$3,000 Total Expenses $90,269 $90,832

$2,000 Net Operating Income $480,984 $499,183 16% $1,000 $0 LEASE STATUS ANALYSIS UNIT BREAKDOWN % OF TOTAL TOTAL AVG. RENT Total Units -- 8 $5,990

Current Avg RS Units Total RS Units 50% 4 $1,222 Market Rents Total RC Units 0% 0 $0 Current Avg FM Rents Total FM Units 50% 4 $4,400 PROPOSED DEBT Total Commercial -- 2 $12,714 Debt Service ($397,471) Debt Coverage Ratio 1.21 UNIT TYPE ANALYSIS Net Debt Cash Flow After Debt Service $101,712 TYPE % OF TOTAL TOTAL AVG. RENT Loan Amount $7,000,000 Studio 0% 0 $0 Interest Rate 3.85% 1 Bedroom 50% 4 $1,222 Amortization 30 2 Bedroom 50% 4 $4,400 3 Bedroom 0% 0 $0 4 Bedroom 0% 0 $0 5 Bedroom 0% 0 $0 6 Bedroom 0% 0 $0 8,845 $1,130 SRO 0% 0 $0 GROSS TOTAL SF $/SF

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, 51 East Houston 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.©2019 Marcus&Millichap PRICING & FINANCIAL ANALYSIS

RENT ROLL

COMMERCIAL RENT UNIT TENANT NAME NOTES SF EXPIRATION ACTUAL PRO FORMA $/PSF

51E 51 Good Foods Inc 750 Aug-20 $11,014 $11,014 $176 51W Preserve Milano's LLC Tenant Pays Portion of RE Tax 750 Dec-21 $14,413 $14,413 $231 MONTHLY COMMERCIAL REVENUE 1,500 $25,427 $25,427

RESIDENTIAL RENT UNIT# LEASE STATUS BEDROOMS ROOMS EXPIRATION ACTUAL PRO FORMA

1A FM 2 Bedroom 4 Oct-19 $4,400 $4,800 2 RS 1 Bedroom 3 Dec-20 $1,851 $1,851 2A FM 2 Bedroom 4 Oct-19 $4,750 $4,800 3A FM 2 Bedroom 4 Mar-21 $4,250 $4,800 4 RS 1 Bedroom 3 Dec-19 $944 $956 4B FM 2 Bedroom 4 May-20 $4,200 $4,800 6 RS 1 Bedroom 3 Apr-19 $384 $384 7 RS 1 Bedroom 3 Sep-19 $1,710 $1,710 MONTHLY RESIDENTIAL REVENUE 28 $22,490 $24,101

ANNUAL RESIDENTIAL REVENUE $269,875 $289,217 ANNUAL COMMERCIAL REVENUE $305,124 $305,124

ACTUAL PRO FORMA TOTAL ANNUAL REVENUE $574,999 $594,341 There are currently 0 vacant units in the building. The super lives off site.

INCOME AND EXPENSE ANALYSIS

GROSS POTENTIAL INCOME ACTUAL PRO FORMA %EGI $/UNIT %EGI $/UNIT AVERAGE RENT Gross Potential Residential Rent $269,875 47% $26,987 $289,217 49% $28,922 PER MONTH Gross Potential Commercial Rent $305,124 53% $30,512 $305,124 51% $30,512 Gross Income $574,999 $57,500 $594,341 $59,434 $2,811 Vacancy/Collection Loss ($8,096) 3% ($810) ($8,676) 3% ($868) Other Income $4,350 $435 $4,350 $435 PERCENT Effective Gross Income $571,253 $57,125 $590,015 $59,001 FAIR MARKET Average Residential Rent/Month/Unit $2,811 $3,013

EXPENSES Property Taxes Tax Class: 2B $34,820 6% $3,482 $34,820 6% $3,482 Fuel $10,400 2% $1,040 $10,400 2% $1,040 50% Insurance $4,500 1% $450 $4,500 1% $450 Water and Sewer $8,700 2% $870 $8,700 1% $870 Repairs and Maintenance $7,500 1% $750 $7,500 1% $750 Common Electric (PPSF) $2,211 0.4% $0.25 $2,211 0.4% $0.25 Super Salary $5,000 1% $500 $5,000 1% $500 Management Fee $17,138 3% $1,714 $17,700 3% $1,770 Total Expenses $90,269 16% $9,027 $90,832 15% $9,083 TAXES AS Net Operating Income $480,984 $499,183 PERCENT OF EGI

LEASE STATUS MIX UNIT BREAKDOWN % OF TOTAL RENT TOTAL AVG. RENT Total Units -- $47,917 8 $5,990 Total RS Units 50% $4,890 4 $1,222 6% Total RC Units 0% $0 0 $0 Total FM Units 50% $17,600 4 $4,400 Total Commercial -- $25,427 2 $12,714

RENTAL ANALYSIS BY UNIT TYPE TYPE % OF TOTAL RENT TOTAL AVG. RENT Studio 0% $0 0 $0 EXPENSE RATIO 1 Bedroom 50% $4,890 4 $1,222 2 Bedroom 50% $17,600 4 $4,400 3 Bedroom 0% $0 0 $0 4 Bedroom 0% $0 0 $0 5 Bedroom 0% $0 0 $0 16% 6 Bedroom 0% $0 0 $0 SRO 0% $0 0 $0

UPSIDE ANALYSIS $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom 6 Bedroom SRO

Current Avg RS Units Market Rents Current Avg FM Rents

CITY: New Yorki

STATE: NYi

BLOCK & LOT: 509 / 23i

LOT DIMENSIONS: 25 ft X 82 fti

LOT SF: 1,968i

BUILDING DIMENSIONS: 25 ft X 71 fti

APPROXIMATE BUILDING SF: 8,845i

ZONING: C6-3, LIi

MAX FAR: 10i

AVAILABLE AIR RIGHTS: 0i

LANDMARK DISTRICT: Nonei

HISTORIC DISTRICT: Nonei

ANNUAL TAX BILL: __$34,820

TAX CLASS: 2Bi

51 East Houston 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. © 2019 Marcus & Millichap

PROPERTY DESCRIPTION | PROPERTY PHOTOS

51 East Houston Street PROPERTY DESCRIPTION | PROPERTY PHOTOS

51 East Houston 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.

51 East Houston 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.

51 East Houston 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 NOLITA

NEIGHBORHOOD SEASONAL ATTRACTIONS

NoLita, which stands for “North of Little Italy,” is a popular • San Gennaro Festival enclave filled with notable restaurants, tourist attractions • Chinese New Year and boutique shops. Historically considered part of Little • The Church of Transfiguration Italy, NoLita has recently seen an influx of young • Most Precious Blood Church professionals, high end stores and trendy restaurants and • Old St. Patrick’s Church bars, giving it a lively, unique character. Affordable rents, a charming, tree-lined atmosphere, and easy access to surrounding neighborhoods make NoLita an attractive TRANSPORTATION location for prospective residents. Popular events such as the annual 11-day Feast of San Gennaro takes place in Easy access to the Manhattan, Williamsburg and Brooklyn NoLita, drawing more than 2,000 people to the area to Bridges and close proximity to FDR Drive savor rich Italian delicacies and participate in various cultural traditions. Subway: B,D,F,V to Broadway-Lafayette | 6 to Spring St. | J,M to Bowery | 6 to Canal St. | J,M,Z to Canal St. | J,M,Z to LOCATION Canal St. | N,Q,R,W to Canal St.

NoLita borders SoHo, NoHo, the Lower East Side, Little Italy, and Chinatown. It is bound by Houston Street to the north, Bowery to the east, Broome Street to the south, and Lafayette Street to the west.

51 East Houston Street www.newyorkmultifamily.com

212 430 5114