56 West 11Th Street TABLE of CONTENTS

56W MARKETING TEAM

Peter Von Der Ahe 260 Madison Avenue, 5th Floor New York, NY 10016 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 Fax: (212) 500-7565 [email protected]

David Lloyd 260 Madison Avenue, 5th Floor New York, NY 10016 Tel: (212) 430-5185 Fax: (212) 430-5110 [email protected]

Noah Kossoff 260 Madison Avenue, 5th Floor New York, NY 10016 Tel: (646) 805-1426 Fax: (212) 430-5110 [email protected]

Andrew Dansker, Financing Inquiries 260 Madison Avenue, 5th Floor New York, NY Tel: (212) 430-5168 Fax: (212) 500-5110 [email protected] 56 West 11th Street TABLE OF CONTENTS

Section I INVESTMENT OVERVIEW

Section II PRICING & FINANCIAL ANALYSIS

Section III PROPERTY DESCRIPTION

Section IV MARKET OVERVIEW INVESTMENT OVERVIEW 56 West 11th Street INVESTMENT OVERVIEW

56 West 11th Street is being offered for $42,500,000

THE OFFERING PROPERTY HIGHLIGHTS

Marcus & Millichap is pleased to • Nine Story Elevator Trophy exclusively offer 56 West 11th Building on “Gold Coast Block” Street, located in the heart of • Excellent In-Place Cash Flow: the city’s most desirable $1,653,163 neighborhood, Greenwich • All Fair Market Units Have Been Village. Located on 11th Street Renovated to Condo Quality between 5th and 6th Avenue, • The 18 rent-stabilized this 36 unit elevator building is apartments contain an approximately 27,184 square average rent of $1,574, which is feet. The 44’ x 78’ building is more than 225% below the free situated on a 44’ x 94’ lot. market rent (Block: 574 and Lot: 15). The • Steps from Washington Square property is zoned R6 and is & Union Square: Located near located in Tax Class 2. B, D, F, M, N, R, L, 6 Subway lines • Condos at Greenwich Lane (145 West 11th) Selling between $3,500-$6,000 Per Square Foot 56 West 11th Street INVESTMENT OVERVIEW

56 West 11th is being offered for The 16 free-market apartments $42,500,000. This sale offers have been renovated to investors the opportunity to condominium level finishes with acquire a cash-flowing, elevator bleached-plank hardwood floors, building with condominium level recessed lighting, granite finishes and tremendous upside countertops, stainless steel on 11th Street. Of the 36 units, 17 appliances, cherry wood are free-market, 18 are rent- cabinets, crown and baseboard stabilized, and one is rent moldings, and marble controlled. bathrooms. The building has 20 one-bedroom This a rare opportunity to acquire units and 16 two-bedroom an income-producing property apartments. The 19 rent- on a Gold Coast Block in stabilized units contain an Greenwich Village, one of the average rent of $1,574 per hottest markets in Manhattan. month, which is more than 225% The property is located within below free-market rents, close proximity to Washington providing an investor with Square and Union Square, promising future upside. providing easy access to multiple subway lines, trains and buses. PRICING & FINANCIAL ANALYSIS 56 West 11th Street PRICING & FINANCIAL ANALYSIS

FINANCIAL OVERVIEW INCOME CURRENT PRICING METRICS Gross Potential Residential Rent $1,683,840 OFFERING PRICE $42,500,000 Vacancy / Collection Loss ($33,677) Number of Units 36 Laundry Income $3,000 Price/Unit $1,180,556 Effective Gross Income $1,653,163 Gross Square Feet 27,184 Price / SF $1,563 Current Cap Rate 3.0% EXPENSES Current GRM 25.7 Property Taxes $198,821 Fuel $44,639 SCHEDULE OF INCOME Insurance $13,254 Unit Breakdown Total % Rent Water and Sewer $27,655 Total RS Units 18 50% $28,329 Repairs and Maintenance $16,200 Total RC Units 1 3% $641 Common Electric (PSF) $5,858 Total FM Units 17 47% $111,350 Super Salary $12,400 Total Commercial 0 0% $0 Management Fee $56,367 Total Units 36 100% $140,320 Elevator Contract $10,000 Total Expenses $385,194 Net Operating Income $1,267,969

PROPOSED DEBT ANALYSIS Debt Service Debt Coverage Ratio Net Cash Flow After Debt Service Cash on Cash Return

EXPENSES BY TYPE GROSS POTENTIAL INCOME BY TYPE

Property Taxes

Fuel 3% 15% Insurance Water and Sewer 3% 1% 4% Repairs and 52% Maintenance 7% Common Electric (PSF) 3% Super Salary

12% Management Fee Resi. Elevator Contract 100%

CONFIDENTIAL OFFERING MEMORANDUM 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. © 2015 Marcus & Millichap 56 West 11th Street PRICING & FINANCIAL ANALYSIS

RENT ROLL RESIDENTIAL

UNIT# LEASE STATUS NOTES BEDROOMS ROOMS EXPIRATION ACTUAL PRO FORMA 1FE RS 1 Bedroom 3 Aug-18 $995 $995 1FW FM 1 Bedroom 3 Jan-18 $4,500 $4,500 1RE FM 1 Bedroom 3 Feb-17 $6,500 $6,500 1RW FM Vacant Projected 1 Bedroom 3 $6,500 $6,500 2FE RS 2 Bedroom 4 Mar-17 $1,732 $1,732 2FW RS 2 Bedroom 4 Aug-17 $1,658 $1,658 2RE RS 1 Bedroom 3 Dec-17 $1,247 $1,247 2RW FM Vacant Projected 1 Bedroom 3 $5,900 $5,900 3FE RS 2 Bedroom 4 Aug-17 $1,695 $1,695 3FW RS 2 Bedroom 4 Jul-17 $1,030 $1,030 3RE FM 1 Bedroom 3 Mar-17 $6,000 $6,000 3RW RC 1 Bedroom 3 $641 $641 4FE RS 2 Bedroom 4 Jul-17 $2,069 $2,069 4FW RS Lease Expired - Please discuss with listing 2 Bedroom 4 May-14 agent $2,051 $2,051 4RE RS 1 Bedroom 3 Jul-17 $1,074 $6,500 4RW FM 1 Bedroom 3 Oct-17 $5,500 $5,500 5FE FM Vacant Projected 2 Bedroom 4 $7,500 $7,500 5FW RS 2 Bedroom 4 Jun-17 $1,444 $1,444 5RE FM Vacant Projected 1 Bedroom 3 $6,500 $6,500 5RW RS Lease Expired - Please discuss with listing 1 Bedroom 3 Oct-14 agent $1,871 $1,871 6FE RS 2 Bedroom 4 Jan-18 $1,559 $1,559 6FW FM 2 Bedroom 4 Sep-17 $7,600 $7,600 6RE RS 1 Bedroom 3 Apr-18 $2,094 $2,094 6RW RS 1 Bedroom 3 Sep-17 $1,405 $1,405 7FE FM 2 Bedroom 4 Sep-17 $7,500 $7,500 7FW RS 2 Bedroom 4 Jun-18 $1,711 $1,711 7RE RS 1 Bedroom 3 Jul-17 $1,092 $1,092 7RW FM 1 Bedroom 3 Sep-18 $6,150 $6,150 8FE FM 2 Bedroom 4 Mar-17 $7,600 $7,600 8FW RS 2 Bedroom 4 Aug-17 $2,033 $2,033 8RE RS 1 Bedroom 3 Jul-18 $1,569 $1,569 8RW FM 1 Bedroom 3 Mar-17 $6,000 $6,000 9FE FM 2 Bedroom 4 Oct-17 $7,500 $7,500 9FW FM Vacant Projected 2 Bedroom 4 $7,500 $7,500 9RE FM 1 Bedroom 3 Aug-17 $6,600 $6,600 9RW FM Vacant Projected 1 Bedroom 3 $6,000 $6,000 Monthly Residential Revenue 52 124 $140,320 $145,746

Total Annual Revenue $1,683,840 $1,748,952 There are 6 Vacant units currently in the building The super lives off site

CASH FLOW

Building Size (SF) 27,184 Number of Units 36 Commercial Units 0 Residential Units 36

INCOME ACTUAL Gross Potential Income %EGI $/Unit / $/SF Gross Potential Residential Rent $1,683,840 $46,773 Vacancy / Collection Loss ($33,677) 2% ($935) Laundry Income $3,000 $83 Effective Gross Income $1,653,163 $45,921 Average Residential Rent/Month/Unit $3,898

EXPENSES Property Taxes $198,821 12% $5,523 Fuel $44,639 3% $1,240 Insurance $13,254 1% $368 Water and Sewer $27,655 2% $768 Repairs and Maintenance $16,200 1% $450 Common Electric (PSF) $5,858 0% $0.22 Super Salary $12,400 1% $344 Management Fee $56,367 3% $1,566 Elevator Contract $10,000 1% $278

Total Expenses $385,194 23% $10,700 Net Operating Income $1,267,969

RENT ROLL ANALYSIS

LEASE STATUS MIX MARKET RENTAL ANALYSIS BY UNIT TYPE

Unit Breakdown Total % of Total Avg Rent Total Rent Type Total % of Total Avg Rent. Total Rent Market Rent % Below Market

Total Units 36 100% $3,898 $140,320 Studio 0 0% $0 $0 N/A N/A

Total RS Units 18 50% $1,574 $28,329 1 Bedroom 20 56% $3,907 $78,138 N/A N/A

Total RC Units 1 3% $641 $641 2 Bedroom 16 44% $3,886 $62,182 N/A N/A

Total FM Units 17 47% $6,550 $111,350 3 Bedroom 0 0% $0 $0 N/A N/A

Total Commercial 0 0% $0 $0 4 Bedroom 0 0% $0 $0 N/A N/A

RENT UPSIDE INCOME BY LEASE TYPE INCOME BY UNIT TYPE

$4,500 $4,000 $3,500 $3,000

Total FM $2,500 Total RS Units Units $2,000 47% 50% 2 Bedroom $1,500 44% $1,000 1 Bedroom Total RC 56% $500 Units 3% $0 Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom

Current Avg Rents

Market Rents

56 West 11th Streeti

City: New Yorki

State: NYi

Block & Lot: 574 / 15i

Lot Dimensions: 44 x 94i

Lot SF: 4,136i

Building Dimensions: 44 x 78i

Building SF: 27,184i

Zoning: R6i

Max FAR: 2.43i

Available Air Rights: None

Landmark District: Nonei

Historic District: Greenwich Villagei

Annual Tax Bill: $198,821

Tax Class: 2i

TAX MAP | BOROUGH MAP SUBJECT PROPERTY 56 West 11th Street 56 West 11th Street PROPERTY DESCRIPTION | INTERIOR PHOTOS 56 West 11th Street PROPERTY DESCRIPTION | INTERIOR PHOTOS 56 West 11th Street PROPERTY DESCRIPTION | INTERIOR PHOTOS 56 West 11th Street PROPERTY DESCRIPTION | INTERIOR PHOTOS 56 West 11th Street PROPERTY DESCRIPTION | INTERIOR PHOTOS 56 West 11th Street PROPERTY DESCRIPTION | INTERIOR PHOTOS 56 West 11th Street PROPERTY DESCRIPTION | ROOFTOP PHOTOS 56 West 11th Street PROPERTY DESCRIPTION | PROPERTY PHOTOS 56 West 11th Street PROPERTY DESCRIPTION | PROPERTY PHOTOS 56 West 11th Street PROPERTY DESCRIPTION | NEIGHBORHOOD PHOTOS 56 West 11th Street PROPERTY DESCRIPTION | NEIGHBORHOOD PHOTOS 56 West 11th Street PROPERTY DESCRIPTION | INTERIOR PHOTOS MARKET OVERVIEW 56 West 11th Street MARKET OVERVIEW | THE NEW YORK TIMES 56 West 11th Street MARKET OVERVIEW | WASHINGTON SQUARE PARK

HISTORY TRANSIT

Washington Square Park is named after Commander-in-Chief of the Lexington Avenue subway (No. 6 train) to Astor Place Station. Go west on Continental Army, George Washington, and is one of the city’s most well- Astor Place to Broadway. Walk south on Broadway to Waverly Place. Walk known parks. Washington Square Park is operated by the New York City westward on Waverly Place until you reach Washington Square. Department of Parks and Recreation as a landmark in the neighborhood of Greenwich Village. Broadway subway (R or W train) to Eighth Street Station. At Broadway walk south to Waverly Place. Walk westward on Waverly Place until you reach Built in 1892, the Washington Square Arch dominates the park’s open Washington Square. Sixth Avenue subway to West Fourth Street- space as well as the fountain area, which remains a popular destination for Washington Square Station (A, C, E, B, D, F, or V train). Walk east on West residents and tourists alike. Many of the park’s surrounding buildings now Fourth Street until you reach Washington Square. Seventh Avenue subway belong to New York University and were converted into their academic to Christopher Street-Sheridan Square Station (1). Walk east on Christopher and residential buildings. Street towards Waverly Place. Turn right on Waverly Place, street becomes Washington Square North. In 2007, the city decided to begin a $16 million dollar construction project to redesign and refurbish Washington Square Park.

LOCATION

Washington Square Park is located at the foot of Fifth Avenue and bordered by Washington Square North, East, South and West. 56 West 11th Street MARKET OVERVIEW | WASHINGTON SQUARE PARK

HISTORY

Washington Square Park is named after Commander-in-Chief of the Continental Army, George Washington, and is one of the city’s most well-known parks. Washington Square Park is operated by the New York City Department of Parks and Recreation as a landmark in the neighborhood of Greenwich Village.

Built in 1892, the Washington Square Arch dominates the park’s open space as well as the fountain area, which remains a popular destination for residents and tourists alike. Many of the park’s surrounding buildings now belong to New York University and were converted into their academic and residential buildings.

In 2007, the city decided to begin a $16 million dollar construction project to redesign and refurbish Washington Square Park. 56 West 11th Street MARKET OVERVIEW | WASHINGTON SQUARE PARK 56 West 11th Street MARKET OVERVIEW | THE GREENWICH LANE CONDOMINIUMS 56 West 11th Street MARKET OVERVIEW | THE GREENWICH LANE CONDOMINIUMS 56 West 11th Street MARKET OVERVIEW | THE GREENWICH LANE CONDOMINIUMS 56 West 11th Street MARKET OVERVIEW | THE GREENWICH LANE CONDOMINIUMS 56 West 11th Street MARKET OVERVIEW | NEW YORK UNIVERSITY 56 West 11th Street MARKET OVERVIEW | NEW YORK UNIVERSITY 56 West 11th Street MARKET OVERVIEW | NYU: PROPOSED EXPANSION 56 West 11th Street MARKET OVERVIEW | THE MARLTON HOTEL 56 West 11th Street MARKET OVERVIEW | THE MARLTON HOTEL 56 West 11th Street MARKET OVERVIEW | STUMPTOWN COFFEE: EIGHTH STREET 56 West 11th Street MARKET OVERVIEW | STUMPTOWN COFFEE: EIGHTH STREET 56 West 11th Street MARKET OVERVIEW | MANHATTAN

SUBMARKET HIGHLIGHTS

Large population: Manhattan Manhattan, one of New York City's five boroughs, is an island approximately 13 New York City is the United States’ largest city, miles long and two miles wide. Solid bedrock provides a firm foundation for the with upwards of 8.5 million residents. high-rise buildings that dominate the skyline. Manhattan's deep-water port and proximity to the nation's interior bolster its Top address for corporate headquarters: position as a global economic powerhouse. Manhattan also contains Central Park, which encompasses 843 acres in the center of the island and is considered 50+ Fortune 500 companies one of the nation's premier public spaces. call New York City home.

High barriers to development: BOROUGH few parcels of developable Manhattan is home to over 1.6 million residents who are part of a much larger land + high costs = population system; the New York City metropolitan area is the largest in the United States, with more than 20 million inhabitants in three states. New York limits to new construction. City consists of five boroughs with about 8.5 million people.

GROWTH PATTERNS Manhattan is well placed, being 100 miles from Philadelphia, 210 miles from Boston, 230 miles from Washington, D.C., and 790 miles from Chicago.

INFRASTRUCTURE

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. New York has the seventh highest annual subway ridership, and the highest in the U.S., serving over 1.75 billion people each year. 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.

New York Harbor contains docks for freight and passenger ships and provides ferry service to New Jersey, Staten Island, and around the city. 56 West 11th Street MARKET OVERVIEW | MANHATTAN

ECONOMY Manhattan is also an important location for many retailers, both national and local. Retail sales in the borough typically grew faster than the U.S. rate over the past decade; however, in 2011, sales will lag the national average due to a slow New York City is home to more than 50 Fortune 500 companies, more than any rebound in employment. other MSA in the country, and most are located in Manhattan. The city serves as the epicenter for a wide variety of industries, making the performance of its LABOR local economy integral to the nation. The Port of New York is as well a vital component of New York’s centrality to the American and regional trade. Job growth in Manhattan has increased in recent years. Private sector employment in New York City rose 2.7% to 3.6 million in the year ending April As one of the leading financial centers in the world, New York City boasts many 2015. Ever sector, besides manufacturing, added jobs, and New York had the international banks and financial firms maintaining offices in the city. highest share of working-age employees, at 57.3%.

Wall Street is a major driver of the local economy, as a significant number of Professional and business services is the largest employment sector, accounting people are employed directly in the securities industry. The city is a hub for the for over 470,000 positions, or 20 percent of the labor force. The government media, communications and publishing industries. The major television sector follows closely, with 19 percent of jobs in Manhattan. These sectors will networks have substantial operations in Manhattan, while hundreds of post average annual gains of 2.3 percent and 1.2 percent, respectively, over the newspapers and magazines and several music recording companies are next five years. headquartered in the city. In addition, New York City is the advertising capital of the United States and has a growing presence in the Internet/new media field. The leisure and hospitality and education and health services sectors will record The entertainment and tourism industries are crucial to the Manhattan the largest growth through 2015, increasing at average annual rates of 3.1 economy, with numerous theaters and attractions drawing billions of dollars percent and 2.9 percent, respectively. An annual gain of 2.9 percent is also each year. expected in the other services sector. 56 West 11th Street MARKET OVERVIEW | MANHATTAN

EMPLOYERS MAJOR EMPLOYERS

A partial list of Manhattan’s most major employers is: Over half of Manhattan’s labor market is involved in financial activities and City of New York, New York City Department of Education, Metropolitan the services sectors. This is due to New York City being the headquarters of Transportation Authority, JP Morgan Chase & Co., Citigroup Inc., and Mount some of the largest U.S.-based consulting businesses, accounting offices, Sinai Medical Center. insurance companies and legal firms, as well as the United Nations. In addition, Manhattan is the financial center of the country and home to the DEMOGRAPHICS New York Stock Exchange, being one of the only two Alpha++ cities in the world, sharing the title with London. Many of the world's top securities New York City is the largest city in the United States, with over 8.5 million firms and banks are located here. Major employers in the finance industry residents. An estimated 19 million people live within the tri-state metro based in Manhattan include Goldman Sachs, JPMorgan Chase and Morgan area. Among the five boroughs, Manhattan is third largest behind Brooklyn Stanley. and Queens, with a population of over 1.6 million. Manhattan grew 0.7 percent annually during the past decade, a rate expected to continue Media conglomerate Time Warner is the largest company in the through 2015. information sector, employing thousands of people in Manhattan from its headquarters at the Time Warner Center in Midtown. Other large media Since 2014, Manhattan’s population has grown rapidly, reaching up to employers in the borough are Viacom and Verizon. The education and speed with the United State’s population growth. New York’s population health services sector accounts for 13 percent of jobs in Manhattan. Large has increased 2.8% since April 2010, and has a fairly equal gender employers include New York University, Columbia University, New York- distribution, with 51.6% of residents being female. Additionally, 85% of Presbyterian Healthcare, Mount Sinai Hospital and Continuum Health Manhattan’s residents are high school gradates, and 33.2% have received a Partners Inc. Bachelor’s Degree or higher. 56 West 11th Street MARKET OVERVIEW | MANHATTAN

(demographics, cont.) In particular, residents under age 20 make up only 20 A variety of entertainment options are available to Manhattanites, including percent of Manhattan's population, compared to 27 percent at the U.S. level. Broadway shows, first-run films and famous nightlife venues. There are two Additionally, residents ages 25 to 44 comprise 37 percent of the local MLB teams, two NFL teams, two NHL teams and two NBA teams within the population, up from 27 percent nationally, as this vital job market attracts metro. New York City has an extensive public park system, the jewel of which many in their prime working years. is Central Park in Manhattan.

Manhattan’s median household income stands at a healthy $72,190 annually, Central Park offers natural areas, lawns, playing fields, running trails, biking compared to New York state’s $57,369 median income. 18% of Manhattan’s paths, boating facilities and a zoo. Manhattan's world class art museums households receive an annual income of over $200,000. The borough also include the Metropolitan Museum of Art, the Guggenheim and the Museum has one of the highest housing costs in the country, with the median home of Modern Art. The city's international flavor is on display in the island's many price resting at nearly $1.2 million. restaurants, featuring recipes from around the world.

QUALITY OF LIFE New York’s island of Manhattan Manhattan offers a quality of life unique even within the nation’s largest in culture, quality of life, and cities. Although housing costs are among the most expensive in the country, continues to rise the borough provides a variety of cultural, entertainment and employment wealth. As a global gateway city, New York will continue opportunities. The area is one of the few places in the United States where a to deliver promising opportunities and investment person can live without a car and rely completely upon mass transit. You can get anywhere easily by taking the subway, buses or taxicabs, and rail potential. terminals and airports make long-distance travel accessible.

MARKETING TEAM

Peter Von Der Ahe 260 Madison Avenue, 5th Floor New York, NY 10016 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 Fax: (212) 500-7565 [email protected]

David Lloyd 260 Madison Avenue, 5th Floor New York, NY 10016 Tel: (212) 430-5185 Fax: (212) 430-5110 [email protected]

Noah Kossoff 260 Madison Avenue, 5th Floor New York, NY 10016 Tel: (646) 805-1426 Fax: (212) 430-5110 [email protected]

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