REQUEST FOR PROPOSAL FOR 99-YEAR LEASEHOLD INTEREST 1183 , NY TABLE OF CONTENTS

DEAL HIGHLIGHTS

EXECUTIVE SUMMARY 4-5

ZONING ANALYSIS

PRELIMINARY LEASEHOLD TERMS 6-7

COMPARABLES

CONFIDENTIAL OFFERING 8-13

3 1183 FLATBUSH AVENUE

DEAL HIGHLIGHTS EXECUTIVE SUMMARY

On behalf of ownership, Lee & Associates is seeking proposals from well established, well qualified developers and end users for a 99-year triple net leasehold of the properties located at 1183-1189 Flatbush Avenue in Brooklyn, New York (“the properties.”)

The properties are located in an R7A, R5B, C2-4 zoning district. There is currently a one-story building on the lot totaling approximately 7,000 SF of retail space. The properties offer developers and users the opportunity to build over 52,000 SF as-of-right.

The R7A, R5B, C2-4 zoning offers unique flexibility in permitted uses including residential, commercial, and community facility. The zoning flexibility, coupled with the superior location and large lot size, offers developers the opportunity to capitalize on the high demand in Flatbush.

FLATBUSH AVENUE 1183 ADDRESS 1183-1189 Flatbush Avenue, Brooklyn, NY

99 Year Leasehold Interest • 52,320 buildable square feet as-of-right OPPORTUNITY

• Flexible “R7A, R5B, C2-4” zoning, ideal for residential or commercial use SITE DESCRIPTION • Large, efficient floorplates with 96 feet of frontage on Flatbush Avenue Brooklyn / 5188 / 13 & 14 • Surrounded by Q B 2 5 train stops BOROUGH / BLOCK / LOTS

COMBINED LOT SIZE 13,053 SF

1183-1187 Flatbush Ave: 79.42’ x 147.83’ LOT DIMENSIONS 1189 Flatbush Ave: 16.08’ x 86.83’

FRONTAGE 96’ on Flatbush Avenue

ZONING R7A, R5B, C2-4

MTA ADJACENCY Q B 2 5 Newkirk Avenue Subway Station

TAX CLASS 4

2020/2021 TAXES $145,444 1183 Notes: FLATBUSH - The maximum community facility FAR is the same as the residential FAR for the site. As such, there is no ‘community facility bonus’. AVENUE - 2020/2021 taxes are based on the projectionfrom the NYC Department of Finance

4 5 1183 FLATBUSH AVENUE

ZONING ANALYSIS PRELIMINARY LEASEHOLD TERMS

ZONING SUMMARY Address 1183 Flatbush Avenue Use Zoning Max FAR As-of-Right Buildable Indicate the structure of the proposed lessee entity. Include information about Commercial C1-3 2.0 26,160 Lessee each of the principals and partners. Indicate sources of funding for the proposed Residential R7A / R7B 4.0 / 3.0 52,320 development. Community Facility R7A / R7B 4.0 / 3.0 52,320 Term January 1, 2021 to December 31, 2120 Max Zoning Floor Area 52,320

Please indicate the initial rent, any proposed phase in period, as well as Rent & Increases Notes: percentage increases and rent resets. - The maximum community facility FAR is the same as the residential FAR for the site. As such, there is no ‘community facility bonus’. - 2020/2021 taxes are based on the projection from the NYC Department of Finance.

The lease shall be an absolute “Triple net lease”. Tenant pays all real estate taxes, operating expenses, insurance, maintenance and repairs as well as all Net Lease development and capital expenditures and any other costs related to the development and operation of the Properties, all of which are the Tenant’s sole responsibility.

Key Money Please indicate all upfront payments upon lease signing and upon TCO.

Please indicate the form and amount of security to be provided. A “Good Guy” Security Deposit guarantee will be required.

Please indicate the proposed use of the Properties and the anticipated Proposed Uses & Initial Plans approximate time frame for completion and occupancy of the new development.

Please indicate proposed combination of the following: project completion Bond, Completion Guarantees/Develop- cash security, letter of credit for completion/development security. Please provide ment Security the name and qualifications of the individuals/entities that will act as guarantor(s).

Lessee will be required to carry insurance on an ongoing basis satisfactory to Insurance Landlord.

There will be no transfers, assignments or sublets of the leasehold interest without the prior written consent of the Landlord. There will be no transfers, assignments Transfer, Assignment or Sub-Lease or sublets of the leasehold interest prior to completion of construction and obtaining approvals and certificate of occupancy.

Notes: Prospective bidders are advised that this Request for Proposal is intended to solicit interest in the Property and that no rights are intended to be created with respect to the Property unless and until a formal lease agreement is executed between the parties.

6 7 1183 FLATBUSH AVENUE

RETAIL LEASE COMPARABLES RESIDENTIAL RENTAL COMPARABLES

Lease Monthly Annual Address Unit SF Beds Baths Monthly Rent Asking $/Bed Asking $ PSF Notes Location Tenant SF Date Rent PSF Source Type Rent Rent One Bedrooms

1625 Church Avenue N/A 900 Jun-20 MG $60.00 $4,500 $54,000 CoStar 1380 Flatbush Avenue 1F 550 1 1 $1,595 $1,595 $34.80

235 Martense Street 2B 875 1 1 $2,400 $2,400 $32.91

1086 Flatbush Avenue N/A 1,600 May-20 MG $45.00 $6,000 $72,000 CoStar 515 Ocean Avenue 4AG 700 1 1 $2,490 $2,490 $42.69 Elevator, Gym

345 Lenox Road 4B 670 1 1 $2,285 $2,285 $40.93 Elevator, Gym

1335-1339 Flatbush Avenue N/A 1,600 Feb-20 $48.70 $6,493 $77,920 CoStar 2212 Ditmas Avenue 3E 1 1 $1,750 $1,750 Elevator

2211 Ditmas Avenue 4J 1 1 $1,924 $1,924 Live-in Super Seven 2837 Church Avenue Daggers 1,200 Dec-19 $65.00 $6,500 $78,000 CoStar Min 550 $1,595 $1,595 $32.91 Tattoos Max 875 $2,490 $2,490 $42.69 Average 699 $2,074 $2,074 $37.83 1127 Flatbush Avenue N/A 2,300 Sep-19 MG $44.17 $8,466 $101,591 CoStar

Two Bedrooms 959-965 Flatbush Avenue Sean Davis 1,600 Sep-19 MG $45.00 $6,000 $72,000 CoStar 2225 Ditmas Avenue 1D 2 1 $2,074 $1,037 Elevator

Doorman, 625 East 18th Street 3B 950 2 2 $2,999 $1,500 $37.88 1214 Cortelyou Road N/A 1,000 Jun-19 NNN $49.50 $4,125 $49,500 CoStar Elevator

2501 Newkirk Avenue D16 2 1 $1,995 $998 1233 Flatbush Avenue N/A 1,700 Jul-19 $43.76 $6,199 $74,392 CoStar 173 Martense Street 4R 700 2 1 $2,100 $1,050 $36.00 Balcony

2417 Albemarle Road 4D 760 2 1 $3,075 $1,538 $48.55 Roof Deck 1384-1386 Flatbush Avenue N/A 10,400 Mar-19 MG $50.40 $43,680 $524,160 CoStar 62 East 21st Street 2C 800 2 1 $2,600 $1,300 $39.00 Elevator, Gym

Doorman, 799 Ocean Avenue 3F 725 2 1 $2,775 $1,388 $45.93 1353-1357 Flatbush Avenue WOODstack 7,500 Mar-19 $0 $0 CoStar Roof Deck

625 East 18th Street 6A 900 2 2 $3,050 $1,525 $40.67 No Fee Min 900 $43.76 $0 $0 Min 700 $1,995 $998 $36.00 Max 10,400 $65.00 $43,680 $524,160 Max 950 $3,075 $1,538 $48.55 Average 2,980 $50.17 $9,196 $110,356 Average 806 $2,584 $1,292 $41.34

8 9 1183 FLATBUSH AVENUE

RESIDENTIAL RENTAL COMPARABLES RESIDENTIAL RENTAL COMPARABLES

Asking Asking Monthly Address Unit SF Beds Baths Monthly Rent Notes Address Unit SF Beds Baths Asking $/Bed Asking $ PSF Date Notes $/Bed $ PSF Rent Three Bedrooms Two Bedrooms 2584 2B 3 1 $2,400 $800 Washer/Dryer 8 Fairview Place 402 1,000 2 1 $3,140 $1,570 $37.68 6/9/20 Elevator, Gym 2318 Avenue D 2 4 2 $3,475 $869 Washer/Dryer Doorman, 123 14A 2 1 $3,495 $1,748 7/3/20 1233 Flatbush Avenue 2 1,200 4 1 $2,700 $675 $27.00 Elevator 370 East 23rd Street 4T 3 1 $2,399 $800 Elevator, 130 Martense Street 2C 870 2 1 $2,400 $1,200 $33.10 6/25/20 445 East 22nd Street 2C 3 1 $2,099 $700 Washer/Dryer 2311 Newkirk Avenue 2 4 2 $3,400 $850 2807 Snyder Avenue 3B 650 2 1 $2,352 $1,176 $43.42 5/31/20 Gym, Roof Deck 2317 Newkirk Avenue 1C 900 3 1 $2,383 $794 $31.77 Private Backyard 2102 Regent Place 3D 700 2 1 $2,099 $1,050 $35.98 4/8/20 Dishwasher 360 Westminster Road 2C 1,200 4 2 $3,599 $900 $35.99 Elevator Min 650 $2,099 $1,050 $33.10 531 East 22nd Street 5AA 1,100 4 2 $3,250 $813 $35.45 Elevator, Courtyard Max 1,000 $3,495 $1,748 $43.42 1091 Rogers Avenue 3 3 1 $2,300 $767 Average 805 $2,697 $1,349 $37.55 Min 900 $2,099 $675 $27.00 Max 1,200 $3,599 $900 $35.99 Three Bedrooms Average 1,100 $2,801 $797 $32.55 370 East 23rd Street 4Q 1,100 3 1 $2,450 $817 $26.73 6/23/20 Washer/Dryer CLOSED DEALS 1109 Ditmas Avenue 1 1,150 3 1 $2,900 $967 $30.26 6/18/20 Garden Monthly Address Unit SF Beds Baths Asking $/Bed Asking $ PSF Date Notes Rent 2100 Bedford Avenue 6D 1,251 3 2 $3,700 $1,233 $35.49 6/17/20 Elevator, Gym One Bedrooms 2409 Albemarle Road 2 1,050 3 2 $2,498 $833 $28.55 5/19/20 Washer/Dryer Elevator, 212 Linden Boulevard 6D 500 1 1 $1,995 $1,995 $47.88 7/8/20 Virtual Doorman Min 1,050 $2,450 $817 $26.73 1380 Flatbush Avenue 1F 550 1 1 $1,595 $1,595 $34.80 7/6/20 Max 1,251 $3,700 $1,233 $35.49

Elevator, Virtual Average 1,138 $2,887 $962 $30.26 212 Linden Boulevard 5D 500 1 1 $2,050 $2,050 $49.20 7/5/20 Doorman

345 Lenox Road 4B 670 1 1 $2,285 $2,285 $40.93 7/5/20 Elevator, Gym

1191 Ocean Avenue 3A 650 1 1 $2,199 $2,199 $40.60 7/1/20 48 Linden Boulevard 5D 631 1 1 $2,100 $2,100 $39.94 6/10/20 Elevator 95 Linden Boulevard 55A 673 1 1 $2,031 $2,031 $36.21 6/1/20 Elevator

Elevator, 309 East 19th Street 5 900 1 1 $2,250 $2,250 $30.00 5/25/20 Washer/Dryer

Min 500 $1,595 $1,595 $30.00 Max 900 $2,285 $2,285 $49.20 Average 634 $2,063 $2,063 $39.94

10 11 1183 FLATBUSH AVENUE

LAND SALES COMPARABLES CONFIDENTIAL OFFERING

Address Lot Size (SF) Date Resi FAR Max ZFA Sale Price $ / ZFA This Request For Proposals (“RFP”) has been prepared The Owners and Lee & Associates each expressly reserve exclusively by Lee & Associates on behalf of Ownership, the right, in their sole discretion, to reject any and all the (“Owner”), regarding the 99-year triple net lease of expressions of interest or offers regarding the Properties 2671 Bedford Avenue 7,300 Feb-20 0.50 3,650 $760,000 $208 the properties described herein at 1183 Flatbush Avenue, and/or terminate discussions with any entity at any time Flatbush, New York (the “Properties”). The materials with or without notice. The Owners shall have no legal and information contained in this RFP do not purport to commitment or obligation to any entity reviewing the RFP 1640 Flatbush Avenue 17,985 Dec-19 6.02 108,270 $16,150,000 $149 be all-inclusive or to contain all of the information which or making an offer to lease the Properties unless and until prospective lessees may need or desire. All materials have a written agreement for the net lease of the Properties has been developed by Lee & Associates, the Owners and other been fully executed, delivered, and approved by the Owners 19 East 31st Street 4,000 Oct-19 2.43 9,720 $1,290,000 $133 sources and are subject to variation. and its legal counsel and any conditions to the Owners’ obligations thereunder have been satisfied or waived. Lee No representation is made by Lee & Associates or & Associates is not authorized to make any representations 1105 Cotelyou Road 5,000 Jul-19 3.00 15,000 $3,600,000 $240 the Owners as to the accuracy or completeness of the or agreements on behalf of the Owners. information contained herein and nothing contained herein is or shall be relied on as a promise or representation as This RFP and its contents, except such information which is 1183 New York Avenue 2,000 Jun-19 2.43 4,860 $1,130,000 $233 to the future performance of the Property. Although the a matter of public record or is provided in sources available information contained herein is believed to be correct, Lee to the public (such contents as so limited herein called & Associates and the Owners and their employees disclaim the “Contents”) are of a confidential nature. By accepting 2901 Snyder Avenue 3,069 May-19 2.43 7,458 $960,000 $129 any responsibility for inaccuracies and expect prospective the RFP, you agree (i) to hold and treat it in the strictest lessees to exercise independent due diligence in verifying confidence, (ii) not to photocopy or duplicate it, (iii) not to all such information. disclose the RFP or any of its contents to any other entity 458 East 25th Street 4,000 Apr-19 2.43 9,720 $1,275,000 $131 (except to outside advisors retained by you, if necessary, for Further, Lee & Associates, the Owners and their employees your determination of whether or not to make a proposal disclaim any and all liability for representations and and from whom you have obtained an agreement of 3421 Glenwood Road 4,400 Feb-19 2.43 10,692 $1,480,000 $138 warranties, expressed and implied, contained in or omitted confidentiality) without the prior written authorization of the from the RFP or any other written or oral communication Owners or Lee & Associates , (iv) not to use the RFP or any transmitted or made available to the recipient. The RFP of its contents in any fashion or manner detrimental to the 466 East 25th Street 4,800 Jan-19 2.43 11,664 $1,375,000 $118 does not constitute a representation that there has been interest of the Owners or Lee & Associates , and (v) to return no change in the business or zoning of the Properties or the it to Lee & Associates immediately upon request of Lee & Owners since the date of preparation of the RFP. Analysis Associates or the Owners. If you have no further interest in 142 Lenox Road 4,225 Jan-19 3.44 14,534 $2,100,000 $144 and verification of the information contained in the RFP is the Property, please return the RFP forthwith. No inspections solely the responsibility of the prospective lessee. Additional of the Properties are permitted unless accompanied by the information and an opportunity to inspect the Properties will Owners or a representative from Lee & Associates. 45 Lenox Road 8,567 Jan-19 4.00 34,268 $3,825,000 $112 be made available upon request to interested and qualified lessees.

815 Flatbush Avenue 11,816 Nov-18 4.00 47,264 $10,000,000 $212

885 Rogers Avenue 28,560 Oct-18 2.43 69,401 $11,750,000 $169

Min 2,000 3,650 $760,000 $112 Max 28,560 108,270 $16,150,000 $240 Average 8,132 26,654 $4,284,231 $163

12 13 FOR MORE INFORMATION, PLEASE CONTACT:

MARKET ADVISORS

CHRIS VARJAN BEN TAPPER Senior Managing Director Senior Managing Director 212.776.1272 646.658.7334 [email protected] [email protected]

VICKRAM JAMBU SEAN SLATTERY Senior Managing Director Associate Director 212.776.1255 646.723.4011 [email protected] [email protected]

JONATHAN BRAUN Director 212.776.4341 [email protected]

GEORGE STEFFANI STEPHEN RAMKELAWAN Director Associate 212.776.1207 646.723.4716 [email protected] [email protected]

WILLIAM ISLES KELLY TOMAS Associate Transaction Manager 212.776.1228 212.776.1223 [email protected] [email protected]