128 Mulberry Street (180 Hester Street)

NEW YORK, NY Offering Memorandum Disclaimer

This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and For more information, please contact constitutes part of the Confidential Information (as defined in the Confidentiality Agreement). one of the following individuals: It is being given to you for the sole purpose of evaluating the possible investment in 128 Mulberry Street (the “Property”), and is not to be used for any other purpose or made available to any Robert Burton other party without the prior written consent of the owner, or its exclusive broker, Cushman +1 212 660 7770 & Wakefield. This Memorandum was prepared by Cushman & Wakefield based primarily on [email protected] information supplied by Managing Member. It contains select information about the Project and the real estate market but does not contain all the information necessary to evaluate the Project. The financial projections contained herein (or in any other Confidential Information) Maurice Suede are for general reference only. They are based on assumptions relating to the overall economy +1 212 589 5131 and local competition, among other factors. Accordingly, actual results may vary materially [email protected] from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. While the information contained in this Memorandum and Bobby Carrozzo any other Confidential Information is believed to be reliable, neither Cushman & Wakefield nor +1 212 589 5118 [email protected] Managing Member guarantees its accuracy or completeness. Because of the foregoing and since the investment in the Project is being offered on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to Daniel Soyak facilitate the prospective purchaser’s investigation, must make its independent investigations, +1 212 698 5552 projections and conclusions regarding the investment in the Project without reliance on [email protected] this Memorandum or any other Confidential Information. Although additional Confidential Information, which may include engineering, environmental or other reports, may be provided to qualified parties as the marketing period proceeds, prospective purchasers should seek Olivia Faria advice from their own attorneys, accountants, engineers and environmental experts. Neither +1 212 698 2590 Cushman & Wakefield nor Managing Member guarantees the accuracy or completeness of the [email protected] information contained in this Memorandum or any other Confidential Information provided by Cushman & Wakefield and Managing Member. Managing Member expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at any time with or without written notice. Managing Member shall have no legal commitment or obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Managing Member and any conditions to Managing Member’s obligations thereunder have been satisfied or waived. Managing Member has retained Cushman & Wakefield as its exclusive broker and will be responsible for any commission due to Cushman & Wakefield in connection with a transaction relating to the Project pursuant to a separate agreement. Cushman & Wakefield is not authorized to make any representation or agreement on behalf of Managing Member. Each prospective investor will be responsible for any claims for commissions by any other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or its broker. This Memorandum is the property of Managing Member and all parties approved by Managing Member and may be used only by parties approved by Managing Member. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement.

2 cushmanwakefield.com Table of Contents Executive Summary...... 4 Pictures...... 6 Rent Roll and Expenses...... 9 Retail Lease Comparables...... 10 Market Overview...... 12 Due Diligence ...... 16 Financing Options...... 38

128 Mulberry Street 3 ExecutiveExecutive SummarySummary

205 / 1101-1105 BLOCK LOT

25’ x 50’ LOT DIMENSIONS (APPROX.)

1,254 LOT SQUARE FOOTAGE (APPROX.) 6,193 SQUARE FOOTAGE WITH BASEMENTS (APPROX.)

C6-2G 5.1 4.1 ZONING COMMERCIAL FAR RESIDENTIAL FAR

2C TAX CLASS

$327,515 $41,307 ASSESSMENT (2018/2019) TAXES (2018/2019)

Little Italy - Area A1 SPECIAL DISTRICT

Asking Price: $11,000,000

Robert Burton Maurice Suede +1 212 660 7770 +1 212 589 5131 [email protected] [email protected]

Bobby Carrozzo Olivia Faria Daniel Soyak +1 212 589 5118 +1 212 689 2590 +1 212 698 5552 [email protected] [email protected] [email protected]

Opportunity

• 100% Occupied

• Approximately 1,700 SF of unused air rights

• 2nd Floor zoned use group 6 retail - opportunity to put in restaurant use over two floors and boost revenue

• Space is already fully vented

• Tax Class 2C - limits on how much the assessed value can increase per year

Highlight

Cushman & Wakefield has been exclusively retained to arrange for the sale of 128 Mulberry Street, a 7-story mixed-use multifamily building located on the southeast corner of Mulberry and Hester Streets.

The building is 100% occupied and is comprised of 5 free market residential units and 1 retail unit. The retail is occupied by Little Italy Famous Gift Shops and is leased until May, 2024. The residential portion of the building is comprised of three 1-bed/1-bath units, one 2-bed/1-bath unit and a penthouse duplex which is a 2-bed/2-bath unit.

The property has an additional 1,686 square feet of air rights available and is centrally located near various transportation options. Property Photos

Unit 4 Bedroom

Unit 4 Living Room

6 nyinvestmentsales.com Unit 4 Bathroom In-Unit Elevator Access 1

Unit 4 Kitchen

128 Mulberry Street 7 Rent Roll & Expenses

Revenue & Expenses Monthly Units Tenant Status Lease Expires GSF Beds Bath P.P.S.F Rent Annual Total Sub-Basement Storage 909 Included Included Included Cellar Retail Storage 909 Included Included Included Little Italy Famous Gifts Retail 5/31/2024 909 $155 $23,475 $281,704 2 FM 6/6/2020 909 2 1 $59 $4,500 $54,000 3 FM 8/31/2019 684 1 1 $64 $3,650 $43,800 4 FM 4/30/2020 684 1 1 $70 $3,995 $47,940 5 FM 5/31/2019 684 1 1 $70 $3,995 $47,940 PH (Duplex, 6th Floor) FM 9/30/2019 653 2 2 $80 $6,250 $75,000 PH (Duplex, 7th Floor) FM 9/30/2019 285 TOTAL 6,193 $45,865 $550,384

Expense Expense Amount Real Estate Taxes (18/19) Actual (Tax Class 2C*) $41,307 Insurance Actual $9,043 Utilities (Water & Sewer / Electric) Actual $6,467 Elevator Maintenance Actual $2,156 Management Projected $15,988 Total: $74,960 * Tax Class 2C is protected from large increases. The assessed value of the property cannot increase by more than 8% in one year, and cannot increase by more than 30% over 5 years.

Net Operating Income

Gross Monthly Income $45,865 Gross Annual Income $550,384 Less Expenses -$74,960 NET OPERATING INCOME $475,424

8 nyinvestmentsales.com Rent Roll

Lease Abstract

Tenant Lease Abstract

Tenant: Little Italy Famous Gift Shop

Premise: Ground Floor of 128 Mulberry Street (aka 180 Hester Street)

Use of Premise: NYC gift shop retail store

Lease Commencement Date: June 1, 2014

Lease Expiration: May 31, 2024

Rent Increase: 3%

Remaining Term: Starting June 2019 June 2020 June 2021 June 2022 June 2023

Monthly Rent: $23,475 $24,179 $24,904 $25,652 26,421

Annual Rent: $281,703 $290,154 $298,859 $307,825 317,059

Option to Renew: One 5-year option at fair market fixed rent

Water: Tenant Pays

Utilities: Tenant Pays

HVAC & Electrical/Plumbing Install/maintain at tenants cost

Tenant required to have “all risk” insurance, rental insuance,+ $250,000 single limit for Insurance: personal injury, workers compensation insurance

Real Estate Taxes: Tenant pays any increase of taxes over the Base Tax Year (2014/2015)

Assignment & Subletting: Tenant cannot assign

Signage/Alterations Subject to landlords reasonable consent

128 Mulberry Street 9 Retail Lease Comparables

Qtr. Year Address Tenant Business Type GF SF Aggregate Starting Rent GF Rent PSF

1.) 3 2018 11 Howard Street Cotton Citizen apparel 1,152 $252,438 $219

2.) 2 2018 166 Mott Street Polusud food user 445 $67,800 $152

3.) 1 2018 406 Broome Street Gran Tivoli food user 2,000 $550,000 $250

4.) 1 2018 152 Elizabeth Street Issey Miyake apparel 2,224 $375,000 $168

195-199 Lafayette 5.) 1 2018 Koio shoes 900 $234,000 $260 Street

Source: Cushman & Wakefield Research

10 nyinvestmentsales.com 4 5 3

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TO INSERT FOOTER TEXT, GO TO: Type>Text Variables>Define>MASTER Footer Text 11 Market Overview

Little Italy

The Manhattan neighborhood which encompasses 128 Mulberry The cobblestone streets are reminiscent of the old days of New Street is known as Little Italy. Today Little Italy is a vibrant York. Numerous restaurants on both sides of the street have international destination. The heart of Little Italy is world outside seating, making people watching an ideal pastime on a renowned and extends along Mulberry Street from Canal to sunny day. These restaurants and shops help Little Italy maintain Houston Streets. an authentic Italian atmosphere. Filmmakers and photographers alike have found these streets an inspiration to their crafts. In the second half of the 19th century, NYC’s Italian immigration reached its peak, with several Italian parishes and an Italian- New developments around the area such as shopping boutiques, language newspaper. The area held a likely resemblance to The bars, and trendy residential lofts/condominiums ensure that this Godfather series by Martin Scorsese where Italian, not English area will be long lived in the future by not only its deep rooted was the first language of its natives. Today, there are fewer than cultural past but also by its ability to adapt with the times. 5,000 Italians living in Little Italy, but the heavenly aromas of the Italian bakeries and restaurants still waft throughout Mulberry Landmarks include Old St. Patrick’s Church and the Police and Grand Streets. At its height of influence, Little Italy extended Building. It is a popular neighborhood, filled with Old World as far south as Bayard Street, as far north as Bleecker, as far west atmosphere and many excellent eateries, among them Umberto’s as Lafayette, and as far east as the Bowery. As Italian-Americans Clam House, Da Nico, Casa Bella, and Original Vincent’s. left Manhattan for other boroughs, neighborhoods and suburbs in the middle of the twentieth century, the neighborhood recognizable as Little Italy gradually shrank.

As such, the northern reaches of Little Italy, near Houston Street, ceased to be recognizably Italian, eventually becoming the neighborhood known today as NoLIta, an abbreviation for North of Little Italy. Retail Education

Although Little Italy is known for its small New York University’s campus is centered around boutiques featuring authentic wares and foods, Washington Square Park, a few blocks northwest it is neighbors with one of the largest shopping of Little Italy. Many teachers and students are districts in New York. SoHo has become one of housed in the surrounding area and the NYU the leading sources of creativity for the fashion Bus can be seen regularly making its way down and retail industries as well as many other forms West Broadway, across Spring, down Broadway of merchandise. In fashion, Jill Stuart, Kenneth or up Lafayette. The school has an enormous Cole, Kate Spade, Armani, Chanel, Louis Vuitton, influence on New York City and Little Italy/SoHo the MOMA Design Store, Prada, Stephane Kelian, in particular. DKNY, Ferragamo, Dolce and Gabbanna, Burberry, Arts & Culture Anna Sui, Agnes B. and countless others can be spotted on a casual walk through SoHo. Art galleries in Little Italy/SoHo include John McEnroe, Louis K. Meisel, Lumas, Peter Lik SoHo, Apple recently opened its first Apple Store in Animazing Gallery, Aesthetic Realism Foundation, the old Post Office Building on Prince Street and Dutesco Art, and Brentano’s. Museums or their dedicated techies formed a line all night long stores include, The Drawing Center, the New awaiting its first opening. Museum of Contemporary Art, and the MOMA Design Store. Theatres include the SoHo Hotels Playhouse and the Wooster Group.

Many established hotels lie directly west of Little Italy, in the core of SoHo. Andre Balazs brought us Restaurants the exclusive Mercer Hotel at Mercer and Prince. The Sterns’ delivered the SoHo Grand Hotel. SIXTY Little Italy is known for an abundance of Hotels owns and operates SIXTY SoHo (formerly restaurants on both sides of the street, with 60 Thompson). Additionally, the barriers of Soho many boasting outdoor seating. These authentic are being pushed further west with the opening of Italian restaurants attract tourists and foodies Trump SoHo-a hotel and condominium on Spring from across the world. Some famous restaurants Street. All cater to exclusive clientele and enjoy include Sal’s Little Italy, Lombardi’s Pizza, extremely high occupancy rates year round. Pellegrino’s, Umberto’s Clam House, Da Nico, Casa Bella, Original Vincent’s and many others. Little Italy Demographics

14 nyinvestmentsales.com 2000 2010 2015 2020 % Change % Change Population Demographics Census Census Estimates Projection 2010-2015 2015-2020

Total Population 10,767 9,508 10,145 10,039 6.7% -1.0%

Population Density (Pop/Sq. Mi.) 91,991 74,752 86,672 85,771 15.9% -1.0%

Total Households 4,643 4,689 5,032 5,091 7.3% 1.2%

2000 2010 2015 2020 % Change % Change Household Income Census Census Estimates Projection 2010-2015 2015-2020

$0-$15,000 1,178 25.4% 933 19.9% 963 19.1% 837 16.4% 3.2% -13.0%

$15,000-$24,999 689 14.8% 474 10.1% 513 10.2% 499 9.8% 8.2% -2.8%

$25,000-$34,999 360 7.8% 342 7.3% 322 6.4% 305 6.0% -5.7% -5.3%

$35,000-$49,999 618 13.3% 380 8.1% 413 8.2% 389 7.6% 8.6% -5.8%

$50,000-$74,999 630 13.6% 739 15.8% 742 14.7% 642 12.6% 0.3% -13.5%

$75,000-$99,999 356 7.7% 376 8.0% 404 8.0% 430 8.5% 7.4% 6.5%

$100,000-$149,999 466 10.0% 571 12.2% 593 11.8% 701 13.8% 3.8% 18.2%

$150,000+ 288 6.2% 874 18.6% 1,082 21.5% 1,288 25.3% 23.9% 19.0%

Average Income $56,607 $111,726 $117,607 $136,602 5.3% 16.2%

Median Income $36,436 $59,181 $61,522 $70,328 4.0% 14.3%

Income Per Capita $24,408 $55,600 $58,798 $69,746 5.8% 18.6%

2015 Daytime Population Demographics

Total Daytime Population 24,686 Age 16 and Over at the Workplace 21,287

Population Age 16 and under (Children) 664 Age 16 and Over Unemployed 249

Daytime Population Age 16 and Over 24,022 Age 16 and Over Working from Home 535

Students Pre-K to 8th Grade 462

Students 9th Grade to 12th Grade 0

Post-Secondary Students 551

Homemakers Aged 16 and Over 788

Source: Experian Marketing Services Inc.

128 Mulberry Street 15 Points of Interest

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16 nyinvestmentsales.com 1 1 Lombardi’s Pizza

Opening in 1897, Lombardi’s is a Little Italy staple. Lombardi’s began as a grocery store where the Owner’s made pizzas in the bakery as a way to use up the day’s leftover dough. Licensed by the City in 1905, it is arguably America’s first true pizzeria. Now a famous tourist attraction, customer’s enjoy a simple menu of coal-fired, Neapolitan pizza. Lombardi’s holds true to its authenticity by serving whole pies only. Recently, for the Shop’s 100th-year anniversary, pies were sold for five cents, the same price as opening day.

2 2 San Gennaro Feast

The annual feast of San Gennaro takes place on the streets of Little Italy for 11 days each September. Attracting over one-million people each year, Italian heritiage remains alive and well in what is an annual salute to the Patron Saint of Naples. The feast consists of parades, religious ceremonies, musical entertainment and more. Those with a competitive side are encouraged to participate in the annual, world-famous, cannoli-eating contest. According to Figli di San Gennaro, Inc, the group that organizes this annual tradition , “The Feast brings the world to Little Italy and Little Italy to the world.”

128 Mulberry Street 17 Points of Interest

3 3 New York University

The most expansive university in Manhattan, New York University is a mainstay in Greenwich Village and has expanded their presence into the East Village. The private university has prominent dormitories at 33 3rd Avenue, 55 East 10th Street, 129 3rd Avenue, 1 East 2nd Street, and most recently a 26-story dorm on East 12th Street. With over 12,500 resident students and thousands of others living in the area, NYU has provided stability and driven retail demand east of Lafayette Street over the last 20 years.

4 4 Italian American Museum

At 155 Mulberry Street the Italian American Museum is located within the historic “Banca Stabile” which dates back to 1885. The museum, established in 2001, aims to highlight both the struggles and achievements of Italian Americans and their contributions to American society. Additionally, the museum teaches Italian- American culture through lectures, films, festivals, and art exhibits.

18 nyinvestmentsales.com 5 5 Alleva Dairy

The oldest Italian cheese shop in America, Alleva dairy has been providing the residents of Little Italy with fresh ricotta and mozzarella for over one-hundred years. The shop’s original wall tiles and tin ceilings make for an old school atmosphere like no other. A family owned business for four generations, Alleva Dairy is a unique staple of the neighborhood located on the corner of Grand and Mulberry Streets.

6 6 Di Palo’s Fine Foods

A family owned, Italian grocery store, located on the corner of Mott and Grand Streets, Di Palo’s offers delicious Italian cheeses, cured meats, pasta, olive oil, and sauces. Its stocked pantry, filled with the freshest ingredients, imported directly from Italy have made Di Palo’s a neighborhood favorite since 1925.

128 Mulberry Street 19 DueDue DiligenceDiligence

Zoning - C6-2G

The property at 128 Mulberry Street lies within the C6-2G zoning district. C6-2G is a general commercial district, typically mapped outside of central business districts.

C6-2G zoning is often found in special districts such as the Special Little Italy Historic District. The zoning district has specific guidelines for the conversion of non-residential space to residential uses.

C6 Districts typically permit the use of corporate headquarters, large hotels, department stores and entertainment facilities in high-rise mixed buildings.

C6 districts are well served by mass transportation, and off-street parking is generally not required.

The Floor Area Ratio or “FAR” for C6-2G is 6.0. Within C6-2 districts, a setback is required when the building height exceeds 85 feet or six stories. On a narrow street the required setback is 20’ whereas on a wide street the required setback is 15’.

The New York City Zoning Resolution outlines several different Use Groups allowed in C6-2G. Use Groups play an integral part in defining the different zoning districts.

Due Diligence

C6-2G As-of-Right Use Groups

• 1 – Use Group 1 consists of single-family detached residences.

• 2 – Use Group 2 consists of all other types of residences, such as apartment hotels and affordable independent residences for seniors.

• 3 – Use Group 3 consists of community facilities that can provide educational and other essential services for the residents, perform activities more effectively in a residential environment, and do not create significant objectionable influences in residential areas. Some of these facilities include: colleges or universities excluding business colleges or trade schools, college dormitories, libraries, museums, and art galleries.

• 4 – Use Group 4 consists of community facilities that provide recreational, religious, health, and other essential services for residents. Examples include: Ambulatory diagnostic or treatment health care facilities, community centers or settlement houses, houses of worship, philanthropic or non-profit institutions without sleeping accommodations, cemeteries, golf courses, public parks or playgrounds, and agricultural uses such as greenhouses or nurseries.

• 5 – Use Group 5 consists of hotels used for transient occupancy.

• 6 – Use Group 6 and its subsections consist primarily of retail and personal service establishments which provide a wide variety of local consumer needs and have a small service area making them distributed widely throughout the City. Establishments include: bakeries, drug stores, laundry establishments, restaurants*, food stores fire or police stations, court houses and non-commercial clubs. Use Group 6 also allows office, business and other professional or medical uses as of right.

22 nyinvestmentsales.com • 7 – Use Group 7 consists primarily of home maintenance or repair services that have a relatively small service area, and are incompatible in primary retail districts since they break the continuity of retail frontage. Examples include: transient accommodations such as motels and tourist cabins, retail or service establishments such as bicycle rental or repair shops; electrical, heating, roofing, plumbing, ventilating establishments wholesale establishments; and auto service establishments.

• 8 – Use Group 8 consists primarily of amusement or service establishments. Facilities vary, from pool halls, and bowling alleys on one end of the spectrum; with lumber stores, upholstering shops, pawn shops, public parking garages and prisons on the other end.

• 9 – Use Group 9 consists primarily of business and other services serving a large area. Examples of such include: banquet or catering halls, business schools or colleges, studios or medical/dental laboratories designed for research or testing.

• 10 – Use Group 10 consists primarily of large retail establishments such as department stores. Examples include: carpet stores, clothing stores with no limitation on floor area, department stores, eating or drinking places*, furniture stores, office or business machine stores, and radio and television studios. Also included are large wholesale establishments serving wide areas.

• 11 – Use Group 11 consists primarily of custom manufacturing activities that benefit from a central location and are appropriate in the central business district. They generally do not create any significant objectionable influences, and involve products characterized by a high ratio of value to bulk so traffic is kept to a minimum. Examples include: manufacturing establishments and wholesalers

• 12 – Use Group 12 is characterized by large uses that have a wide service area and generate significant pedestrian or automotive traffic. Examples include: amusement and entrainment facilities, such as arenas and auditoriums; as well as toy stores, drug stores, police stations, water or sewage pumping stations, and public parking lots

*Refer to The City of New York Zoning Resolution for detailed regulations regarding eating and drinking establishments

Cushman & Wakefield deems the information above to be accurate, however, buyers are advised to consult The City of New York Zoning Resolution for a complete list of permitted uses in C6-2G or contact a zoning attorney.

128 Mulberry Street 23 TransportationSpecial Little Italy District

Background

The Special Little Italy District was formed in 1977 with the purpose of preserving and strengthening the historical and cultural character of the community. The Special Purpose District’s regulations protect the scale of storefronts of existing retail uses Buildings of Special allowing the area to remain a unique regional shopping destination; preserve the Significance vitality of street life; and provide amenities such as public open spaces and parks. The 113 Baxter Street section below highlights rules and regulations for buildings within the Special Little Italy District. 363 Broome Street

375 Broome Street

124-126 Bowery General Requirements 240 Centre Street Underlying zoning regulations for the area still apply, except where specifically noted below: 209 Elizabeth Street

• Sidewalk cafes require approval from the Board of Estimate 260-268 Elizabeth Street

• The Zoning Resolution outlines several buildings that are socially or traditionally 174 Grand Street significant and cannot be demolished or have their external architectural features 190 Grand Street altered (See Buildings of Special Significance List) 192 Grand Street • The exterior of the front wall of buildings are to be made predominantly of masonry 128-130 Mott Street

• Special Little Italy District is broken into four areas: Area A, Area A1, Area B and 256-258 Mott Street Area C 262-272 Mott Street

• Modifications of Special Little Italy District provisions may be authorized by the 277 Mott Street City Planning Commission after reviewing a formal application 201-205 Mulberry Street

266 Mulberry Street

11 Spring Street

34-36 Spring Street

24 nyinvestmentsales.com Transportation

While the Little Italy has a tremendous amount of amenities and cultural offerings for its residents and visitors, part of the allure of coming to Little Italy is its remarkable accessibility to the entire city. The neighborhood is primarily served by the 6, B, D, F, M, N, Q, R, J and Z subway lines, which serve all corners of Manhattan and the boroughs. The Canal Street J, N, Q, R, Z and 6 train stop provides access directly into the heart of Little Italy. The cross-town M21 buses provide arguably the bus system’s largest convenience, allowing residents to get to and from the East Side of Manhattan through to the Hudson River. By car, there is easy access to the Brooklyn Bridge, Manhattan Bridge, and Brooklyn-Battery tunnel. The area is equally accessible to John F. Kennedy and LaGuardia airports.

B D F M A C E

6

B D F M 1

R W

C E 6

J Z

B D

1 A C E N Q R W 6

J Z

128 Mulberry Street 25 Special Little Italy District

Area A - Preservation Area Floor Area Ratio • Corner Lots - FAR may not exceed 4.8 • Interior Lots - FAR may not exceed 4.1

Maximum Lot Coverage • Corner Lots - 70 Percent • Interior Lots - 60 Percent • If a lot is improved with more than one building, maximum coverage increases from 60 to 70 percent

Building Height and Setbacks • Maximum Height - 75 feet or seven stories above curb level, whichever is less • Requirement does not apply to enlargements made prior to February 2, 2011 with legally issued permit • Rear Yard - At least a 30 foot deep rear yard is required for all buildings developed after February 3, 1977 • Front Wall - Must extend full length of front lot line so long as there are no obstructions • Setback- Facade can rise lesser of 65 feet or six stories without a setback • 10 foot setbacks required for buildings taller than aforementioned height

Open Recreation Space and Landscaping Requirements • Requirement - 20 percent of lot area must be landscaped (all buildings developed/enlarged after February 3, 1977) • If the landscaped area is on the building roof, all mechanical equipment must be enclosed • Seating - One linear foot for every 50 square feet of open space

Rehabilitation or Conversion of Existing Buildings • Underlying district density regulations do not apply when commercial, residential or residential portions of mixed-use buildings are rehabilitated or converted for residential use • The District requires no more than one room per 230 square feet of gross floor area

26 nyinvestmentsales.com Area A1 - Mulberry Street Regional Spine Rules and regulations of Area A remain applicable with the following exceptions:

Floor Area Ratio • FAR varies by block location as well as use • Commercial uses, Corner lots - 5.1 FAR • Commercial uses, Interior or through lots - 4.5 FAR • Community facility or residential uses, Corner lots - 4.1 FAR • Community facility or residential uses, Interior or through lots - 3.5 FAR • Mixed-use buildings - FAR based off whichever use permits the greatest floor area

Maximum Lot Coverage • Commercial spaces up to 23 feet in height - Maximum lot coverage is 100 percent

Storefronts in New Buildings and Alterations of Existing Storefronts • Street frontage supporting a use other than retail (i.e. residential lobby) cannot exceed 25 feet in width • Show Windows - Must be between 8 and 10 feet tall with a sill height of 2 feet 6 inches, or less • Transparent Areas - Should be less than 10 feet in width • Entrances can be setback two feet beyond the show windows

Area B - Houston Street Corridor All underlying district rules and regulations apply except uses listed in Use Groups 6D, 8C and 12D

Floor Area Ratio • Residential - FAR may not exceed 7.52 • Commercial - FAR may not exceed 6.0 • Community Facility - FAR may not exceed 7.5 • Floor area cannot exceed 7.52 under any circumstances

Maximum Lot Coverage • Corner Lots - 80 Percent • Interior or Through Lots - 70 Percent

128 Mulberry Street 27 DueSpecial Diligence Little Italy District

Height and Setback • Street Wall - To be located directly on street lot for entire length of lot for the greater of the first 23 feet or two stories • Wide Streets - Height requirement increases from 23 to 60 feet Special Little Italy • For heights greater than the threshold mentioned above a setback up to 10 feet is District Map permissible Open Recreation Space and Landscaping Requirements • Ground Floor Walls - Ground floor building walls 20 feet or more in length are to be covered in vines or similar plantings so as to mask large area of blank walls • Plantings can include shrubs, ivy or creepers B and the soil depth must be at least 2 feet, 6 inches deep and 24 inches wide • Additionally, 20 percent of the lot area shall be usable, landscaped space for building A occupants or the public Area C - Bowery, Canal, Kenmare Street Corridor

Floor Area Ratio • Consistent with underlying zoning

Maximum Lot Coverage • Residential - 60 Percent • Commercial - 100 Percent for Ground Floor, 70 Percent thereafter C C Height and Setback • Maximum Height - Cannot exceed the lesser of 85 feet or eight stories above curb level A1 A • Street Wall - Should extend along the full length of the front lot line, rising upwards without setback

Uses • Zoning lots within 100 feet of Area A1 fall under Use Group LI (See next page) A

C

28 nyinvestmentsales.com Use Group LI

Convenience Retail Establishments Retail or Service Establishments • Interior decorating establishments, limited to 750 • Bakeries • Antique stores square feet of floor area per establishment on the ground floor • Barber shops • Appliance stores, limited to 5,000 square feet of floor area per • Jewelry or art metal craft shops • Beauty parlors establishment on the ground floor • Leather goods, crafts or luggage • Drug stores • Art galleries stores • Dry cleaning or clothes pressing • Artist supply stores • Locksmiths shops establishments, limited to 2,500 square feet of floor area per • Bicycle sales and rental • Meeting halls, limited to 25 foot establishment on the ground floor establishments frontage

• Eating or drinking establishments, • Book stores • Millinery shops including those which provide outdoor table service or have • Candy or ice cream stores • Music stores music for which there is no cover • Carpet or rug stores, limited to charge and no specified show • Newsstands, open or enclosed 5,000 square feet of floor area time per establishment on the ground • Optician or optometrist • Eating or drinking establishments, floor • Paint stores with entertainment but not • Cigar or tobacco stores dancing, with a capacity of 200 • Pet shops persons or less; Eating or drinking • Clothing or clothing accessory establishments, with musical stores, limited to 5,000 • Photographic equipment or entertainment but not dancing, square feet of floor area per supply stores with a capacity of 200 persons establishment or less • Photographic studios • Clothing rental • Food stores, including • Picture framing shops supermarkets, grocery stores, • Clubs, non-commercial, without • Record stores meat markets, delicatessen stores, restrictions on activities or limited to 5,000 square feet of facilities, limited to 2,500 • Shoe stores floor area per establishment on square feet of floor area per the ground floor establishment on the ground floor • Stamp or coin stores

• Hardware stores • Dry goods or fabric stores, limited • Telegraph off ices to 5,000 square feet on the • Package liquor stores ground floor • Theaters, limited to 25 foot frontage • Post offices • Florist shops • Toy stores • Stationery stores • Furniture stores, limited to 5,000 square feet of floor area per • Travel bureaus • Tailor or dressmaking shops, establishment on the ground floor custom • Watch or clock stores or repair • Furrier shops, custom shops • Variety stores, limited to 5,000 square feet of floor area per • Gift shops establishment on the ground floor

128 Mulberry Street 29 Due Diligence

Tax Map

30 nyinvestmentsales.com Certificate of Occupancy

Page 2 of 2 Certificate of Occupancy C umber 105T01

Permissible se and ccupancy All Building Code occupancy group designations are 1 designations ecept RES C or PB hich are 1 Building Code occupancy group designations. Building aimum Live load Code Delling or Floor persons lbs per occupancy Rooming oning From To permitted s. t. group nits use group Description o use CEL D-2 6 KITCHEN

CEL OG D-2 MECHANICAL ROOMS

001 J-2 2 RESIDENTIAL LOBBY

001 45 100 F-4 6 EATING AND DRINKING ESTABLISHMENT

002 65 100 F-4 6 EATING AND DRINKING ESTABLISHMENT

003 005 40 J-2 1 2 ONE (1) APARTMENT PER FLOOR

006 40 J-2 0.50 2 ONE-HALF (1/2) APARTMENT

PEN 40 J-2 0.50 2 ONE-HALF (1/2) APARTMENT

ED F SECTI

Borough Commissioner Commissioner

END OF DOCUMENT 103764945/016 2/13/2013 11:10:18 AM

128 Mulberry Street 31 Due Diligence

Tax Bill - 1101

Tax Bill - 1102

Tax Bill - 1103

32 nyinvestmentsales.com Tax Bill - 1104

Tax Bill - 1105

128 Mulberry Street 33 Financing

Financing for 128 Mulberry Street, Investor Perspective

Investor LTV 65-70% Term 5, 7 and 10 year Amortization 30 Years and some interest only Recourse Non-Recourse Rate 4.0-4.5%

For more information, please contact one of the following individuals:

Enoch Lawrence +1 212 660 7748 [email protected]

34 nyinvestmentsales.com

Robert Burton Maurice Suede +1 212 660 7770 +1 212 589 5131 [email protected] [email protected]

Bobby Carrozzo Daniel Soyak +1 Robert212 660 Burton777 +1 212 698 5552 [email protected] Director [email protected] +1 212 660 7770 [email protected] Olivia Faria 1290 Avenue of the Americas, 8th Floor +1 212 589 2590 Keegan Mehlhorn New York, NY, 10104 [email protected] Associate cushmanwakefield.com +1 212 660 7718 [email protected]