48 Clinton Street Lower East Side | New York

REDEVELOPMENT OPPORTUNITY 48 CLINTON STREET LOWER EAST SIDE | NEW YORK

RKF INVESTMENT SALES & ADVISORY SERVICES 3/10/2017 Digital Tax Map - New York City Department of Finance

map - Digital Tax Map - New York City Dept. of Finance (3/10/2017)

48 CLINTON STREET | INVESTMENT OPPORTUNITY 2

RKF Investment Sales & Advisory Services (“RKF”) STANTON STREET has been retained as the exclusive agent for the sale of 48 Clinton Street, New York, NY (the “Property”), NORFOLK STREET a four-story building currently used as a professional music ATTORNEY STREET recording studio.

SUFFOLK STREET CLINTON 48 STREET ELDRIDGE STREET The Property is situated mid-block with 25 FT of frontage along the east side of Clinton Street between Stanton and CLINTON STREET Rivington Streets in Manhattan’s historic Lower East Side. The property can be redeveloped up to 10,000 SF for a mixed-use development as per R7A zoning. RIVINGTON STREET

The Lower East Side neighborhood is currently undergoing transformation into an upscale, dynamic center of 0 100 200 residential, nightlife and commerce with a host of new feet residential developments, hotels, retail boutiques, restaurants, bars and nightclubs that will continue to shape Copyright 2017 The City of New York the urban landscape. PROPERTY SNAPSHOT Borough Boundary Condo Flag/Condo Nunber PROPERTY ADDRESS 48 Clinton Street, New York, NY 10002 Tax Block Boundary Air Right Flag/Lot Number New residential projects include the adjacent 50 Clinton LOCATION Clinton Street (between Stanton and Rivington Streets) Tax Block Number Subterranean Right Flag/Lot Number and The Ludlow, which have introduced 280 high-end LOT SF 2,500 SF residential apartments, bringing many young, affluent LOT TaxSIZE Lot Boundary REUC Flag 25 FT x 100 FT New Yorkers to the neighborhood. Hotels, such as The FRONTAGETax Lot Number (ON CLINTON STREET) Under Water Tax Lot Boundary 25 FT Ludlow Hotel, The Hotel on Rivington and Hotel Indigo, and EXISTINGCondo FKASF Tax Lot Number Other Boundary 5,073 SF EXISTING SF (LOWER LEVEL) 1,452 SF restaurants, including Beauty & Essex, Serafina and many Tax Lot Dimension Possession Hook FAR 4 others, have contributed to the increasing popularity of Approximate Tax Lot Dimension Miscelaneous Text TOTAL BUILDABLE AREA 10,000 SF tourism and nightlife in the neighborhood. Served by seven ZONINGCondo Units Range Label Small Tax Lot Dimension R7A/C1-5 subway lines and six bus routes, the Lower East Side is REALBuilding ESTATE Footprint TAXES (2016/2017) Surface Water $49,325 bustling with people in a true seven-day-a-week market.

RKF INVESTMENT SALES & ADVISORY SERVICES FOR MORE INFORMATION PLEASE CONTACT 521 Fifth Avenue, Floor 7, New York, NY 10175 BRIAN SEGALL Vice President 212.351.9346 [email protected] T 212.599.3700 | F 212.599.3744 | [email protected] | www.rkf.com http://gis.nyc.gov/doitt/webmap/print.htm?z=9&p=988557,201639&a=DTM&c=dtm&f=CONDO_RANGE,LOT_FACE_SMALL&s=l:MANHATTAN,344,145,EVE… 1/1 GEORGE MARTINECZ Associate 212.916.3381 [email protected]

© 2017 ROBERT K. FUTTERMAN & ASSOCIATES, LLC All information is from sources believed reliable, not independently verified, and thus subject to errors, omissions, and modifications such as price, listing, square footage, rates and commissions. All information, estimates and projections subject to change, market assumptions, unknown facts and conditions, and future potentialities. RKF makes no express or implied representations or warranties, as facts and results may vary materially from all information, estimates and projections. All renderings presented are conceptual. 48 CLINTON STREET | INVESTMENT OPPORTUNITY 3

INVESTMENT HIGHLIGHTS

DYNAMIC LOCATION Located in the Lower East Side, the property benefits from a market that is currently undergoing a dramatic makeover. There is a steady increase in pricing in both the residential and retail rents year-over-year in the Lower East Side, indicative of the market demand and robust market conditions. The neighborhood is “hip” for millennials and has also seen rising interest from families creating an eclectic mix of nightlife, music, art, high-end boutiques, hotels and high-end residential developments. Situated in close proximity to two subway stations with access to the B, D, F, M, J and Z subway lines make it ideal for the surrounding residential and retail developments.

NEW DEVELOPMENT Driving the transformation is the $1.1 billion mixed-use Essex Crossing mega project, which is set to deliver 1,000 residential units along with 250,000 SF of office space and 600,000 SF of retail across ten buildings. Other developments in the neighborhood include members’ club Ludlow House and luxury condominiums at 196 Orchard, the base of which will soon house an Equinox Fitness Club. One Manhattan Square, a luxury condo building, has a projected sell-out of $2.1 billion.

OWNER-USER The fully functioning recording studio presents a unique opportunity for a potential buyer to use the space in its current capacity. Additional uses, such as boutique fitness or medical office, position the property as a live- work space. 48 CLINTON STREET | INVESTMENT OPPORTUNITY 4

PROPERTY OVERVIEW PROPERTY PHOTOS 48 CLINTON STREET | INVESTMENT OPPORTUNITY 5

PROPERTY OVERVIEW PROPERTY PHOTOS 48 CLINTON STREET | INVESTMENT OPPORTUNITY 6

PROPERTY OVERVIEW FLOOR PLANS

GROUND FLOOR LOWER LEVEL FIRST MEZZANINE THIRD FLOOR SECOND MEZZANINE

ROOF ROOF BELOW SKYLIGHT SKYLIGHT SKYLIGHT SKYLIGHT SKYLIGHT

ROOF BELOW SKYLIGHT SKYLIGHT

2,500 SF 1,452 SF 1,583 SF 491 SF

499 SF

THIRD BALCONY DECK FLOOR BALCONY

25 FT CLINTON STREET 48 CLINTON STREET | INVESTMENT OPPORTUNITY 7

PROPERTY OVERVIEW ZONING

48 Clinton Street is a 25 FT X 100 FT in-line lot located between ZONING ANALYSIS Stanton and Rivington Streets. Currently, the property is improved with The property resides in C1-5 zoning with the residential a 6,525-SF building with retail and residential use. Zoned with higher equivalent district of R7-7A. FAR, the highest and best use is for either buyers that are driven by TOTAL LOT SIZE 2,500 SF the valuation of the property as a development site for mixed-use or FAR 4 as a redevelopment site. TOTAL BUILDABLE AREA 10,000 SF

C1-5 R7-A

Building cannot penetrate sky exposure plane, which begins Higher parking requirement at 30’ above street line in auto-dependent areas Above the maximum base height, building must be set back at least 10’ from the street wall when facing a wide street or 15’ when facing a narrow street Base height: 80’ maximum building height 40’ minimum 65’ maximum

Parking lots with 18 or more spaces must be planted C1-2 mapped within R3-2

Building cannot penetrate sky exposure plane, which begins at All open areas between the street wall In a mixed building, residential 85’ above the street line and the street line must be planted uses must always be above commercial uses Street line Off-street parking permitted only within, or to the side or rear of a building, never between the street wall and the street line

C1-7 residential district equivalent: R8

C1 & C2 COMMERCIAL OVERLAY DISTRICTS R7A GENERAL RESIDENCE DISTRICT

C1-1 C1-2 C1-3 C1-4 C1-5 C2-1 C2-2 C2-3 C2-4 C2-5 FAR LOT COVERAGE (max) BASE HEIGHT BUILDING HEIGHT REQUIRED PARKING2 COMMERCIAL FAR WITHIN R1-R5 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 R7A (max) Corner Lot Interior/Through Lot (min/max) (max) (min) COMMERCIAL FAR WITHIN R6-R10 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 4.01 80% 65% 40-65 FT 80 FT 50% of dwelling units

DEPTH OF OVERLAY DISTRICT (IN FEET) 200 150 150 100 100 150 150 150 100 100 1 4.6 FAR with Inclusionary Housing designated area bonus 2 30% if zoning lot is 10,000 SF or less; waived if 15 or fewer spaces required Lower East Side- New Development New York, NY September 2016 L

E 12 ST ASHER LEVY EAST SIDE ^_ 330 Grand Street SCHOOL COMMUNITY HIGH SCH 4 AV E 11 ST E 11 ST Residential Units

FDR DR SZOLD PL SZOLD Less than 10

1 AV 1 E 10 ST

AV C AV 10 - 30

3 AV 3 30 - 60 STUYVESANT ST E 9 ST WANAMAKER PL E 9 ST FDR DR TOMPKINS EAST 60 - 100 SQUARE E 8 ST ST MARK'S PL E 8 ST RIVER PARK Greater than 100

AV A AV ASTOR PL B AV U W E 7 ST 1. 189 Avenue C - 70 Units

MERCER ST EAST 2. 215 Chrystie Street - 11 Units

COOPER SQ WAVER VILLAGE LY PL S T 3. 196 Orchard Street - 94 Units E 6 NEW YORK E 6 ST 4. 287 East Houston Street - 28 Units UNIVERSITY 5. 50 Clinton Street - 37 Units TARAS SHEVCHENKO PL TARAS FDR DR NB EN E HOUSTON ST 6. 242 Broome Street - 55 Units GREENWICH VILLAGE E 5 ST E 5 ST E 5 ST E 5 WALK 7. 175 Delancey Street - 100 Units NOHO 48 CLINTON STREET | INVESTMENT OPPORTUNITY 8 8. 141 Clinton Street - 211 Units

W 4 ST 2 AV E 4 ST CONNELLY CTR E 4 WALK ED HOLY CHILD MS

W 3 ST LAFAYETTE ST GREAT JONES ST EAST E 3 ST RIVER

MARKET OVERVIEW PARK AV D AV F BOND ST MANGIN ST D R E 2 ST BARUCH PL

SHINBONE AL BARUCH DR EXTRA PL D R JONES AL N NEW DEVELOPMENTS O R

SHERIFF ST BLEECKER ST T H ATTORNEY ST PITT ST E 1 ST 1 HAMILTON B O COLUMBIA ST

U The Lower East Side is a neighborhood in lower SUFFOLK ST CLINTON ST FISH N

NORFOLK ST D

PARK E

I ELIZABETH ST Manhattan, bounded by Canal Street, Houston Street, 11 T

F D R DR Bowery and the East River. Like other neighborhoods STANTON ST in the city, it has undergone successive RIDGE ST JERSEY ST CLINTON STREET BOWERY RIVINGTON ST transformations — from a colonial-era farm into STANTON ST

S STREET VIA

D ATTORNEY ST a working-class district where immigrants lived in FREEMAN AL PRINCE ST RIVINGTON ST R

S BROADWAY O WILLIAMSURG RIDGE

ELDRIDGE ST tenement buildings, and from a hub of nightlife, music ESSE CROSSING T

O ALLEN ST 1.9 MILLION SF OF DELANCEY ST

N and art into an enclave for wealthy New Yorkers. LOWER LUDLOW ST MIXED-USE SPACE CANNON ST

D FORSYTH ST

EAST (REFER TO THE NEXT PAGE) WILLIAMSURG RIDGE E X

I SIDE DELANCEY ST T BIALYSTOKER PL 4

Positioned as a mixed-use development site in a growing SPRING ST ABRAHAM KAZAN ST ESSEX ST

MULBERRY ST 7 LEWIS ST CHRYSTIE ST CLEVELAND PL BROOME ST market with an increased demand andSOHO constrained NOLITA ORCHARD ST BROOME ST KENMARE ST ATTORNEY ST supply, 48 Clinton Street has an upside for buyers to 1 deliver high-end residential and mixed use space with MOTT ST

CENTRE MARKET PL

SAMUEL DICKSTEIN PLZ BROOME ST L a retail component. I JACKSON ST N

HENRY ST S

CROSBY ST GRAND ST CHERRY ST G O U MADISON ST V CENTRE ST E µ R N E E BROADWAY U R Miles S HESTER ST TOTAL # OF T 0 0.0475 0.095 0.19 PROPERTY ADDRESS DEVELOPER TOTAL SF RESIDENTIAL UNITS

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 1 242 BROOME STREET rates and mannerTaconic of payment Investment of commissions Partners for particular offerings imposed by principals or agreed to by this139,205 Company, theSF terms of which are available to 55principals or duty licensed brokers. Any square foot age dimensions set forth are approximate. 2 165 CHRYSTIE STREET Nexus Property Group 17,225 SF 9 3 173 CHRYSTIE STREET Nexus Property Group 25,265 SF 13 4 215 CHRYSTIE STREET Witkoff Group 341,040 SF 11 5 50 CLINTON STREET DHA Capital 50,000 SF 37 6 141 CLINTON STREET Taconic Investment Partners 222,750 SF 211 7 175 DELANCEY STREET Taconic Investment Partners 138,705 SF 100 8 328 GRAND STREET Henry Lou 6,711 SF 6 9 287 EAST HOUSTON STREET Hogg Holdings 30,000 SF 28 10 331 EAST HOUSTON STREET Halpern Real Estate Ventures 57,560 SF 78 11 196 ORCHARD STREET Magnum Realty and Real Estate Equities Corporation 178,376 SF 94 48 CLINTON STREET | INVESTMENT OPPORTUNITY 9

MARKET OVERVIEW ESSEX CROSSING

Essex Crossing is a planned mixed-use development in the Lower East Side, specifically at the intersection of Delancey Street and Essex Street just north of Seward Park, in part of an existing area known as the Seward Park Urban Renewal Area (SPURA). The $1.1 billion mega- project will sit on a total of nine city blocks. Construction began in mid-2015 and is expected to conclude by 2024. Upon its completion, Essex Crossing will host a new and expanded Essex Street Market, restaurants, office space, a movie theater and a park. Retail tenants, such as Trader Joes, Planet Fitness and Regal Cinemas have signed on to be part of the project. The development is also set to include 1,000 residential units, half of which will be permanently affordable housing. The first phase of Essex Crossing, which includes four new buildings and Market Line, a 150,000-SF marketplace connecting the buildings to the Essex Street Market, is slated to open next year with phase two breaking ground in June 2017.

ESSEX CROSSING HIGHLIGHTS PROJECT SIZE 2,000,000 SF COMMERCIAL SPACE 600,000 SF OFFICE SPACE 250,000 SF RESIDENTIAL SPACE 1,000 UNITS PUBLIC SPACE 15,000 SF LOT SIZE 6 AC ESTIMATED COST $1.1 BILLION ANTICIPATED DATE OF COMPLETION 2024 All renderings are conceptual. 48 CLINTON STREET | INVESTMENT OPPORTUNITY 10

MARKET OVERVIEW

MARKET TRENDS

RESIDENTIAL CONDOMINIUMS Robust demand and a new development pipeline has led to growth and apprecation of rental and sales prices over the last few years.

PROPERTY ADDRESS TYPE ASKING PRICE SIZE (IN SF) $/SF

199 BOWERY 1 BR $799,000 432 $1,850 112 RIVINGTON STREET 1 BR $829,000 560 $1,480 150 RIVINGTON STREET 1 BR $1,030,000 543 $1,897 302 BROOME STREET 1 BR $1,100,000 673 $1,634 242 BROOME STREET 1 BR $1,100,000 773 $1,423 105 NORFOLK STREET 1 BR $1,295,000 782 $1,656 196 ORCHARD STREET 1 BR $1,455,000 708 $2,055 100 NORFOLK STREET 1 BR $1,450,000 745 $1,946 287 EAST HOUSTON STREET 2 BR $2,765,000 1,386 $1,995 204 FORSYTH STREET 2 BR $2,850,000 1,549 $1,840 38 DELANCEY STREET 2 BR $1,538,000 841 $1,829 20 CLINTON STREET 2.5 BR $1,575,000 985 $1,599 50 ORCHARD STREET 2 BR $1,995,000 1,205 $1,656 150 RIVINGTON STREET 2 BR $2,120,000 1,066 $1,989 150 RIVINGTON STREET 2 BR $2,275,000 1,215 $1,872 50 CLINTON STREET 1 BR $2,650,000 1,734 $1,528 150 RIVINGTON STREET 3 BR $2,750,000 1,378 $1,996

RESIDENTIAL RENTALS

PROPERTY ADDRESS TYPE MONTHLY RENT SIZE (IN SF) $/SF

229 CHRYSTIE STREET 1 BR $5,288 936 $67.79 144 SUFFOLK STREET 2 BR $4,800 802 $71.82 143 LUDLOW STREET 3 BR $4,995 800 $74.93 48 CLINTON STREET | INVESTMENT OPPORTUNITY 11

MARKET OVERVIEW MARKET TRENDS

RETAIL ASKING RENTS Continued residential growth is spurring continued transformation for retail tenants in the Lower East Side.

PROPERTY ADDRESS MONTHLY RENT ANNUAL RENT SIZE (IN SF) $/SF

50 CLINTON STREET $25,958 $311,500 1,780 $175.00 20 CLINTON STREET $13,416 $161,000 1,400 $115.00 131 NORFOLK STREET $28,000 $336,000 2,200 $153.00 153 RIVINGTON STREET $13,875 $166,500 1,500 $111.00

MARKET VALUATION

SALES COMPARABLES Property comps of existing buildings and development sites.

ADDRESS GROSS BUILDABLE SF SALE PRICE SALE PRICE PER BUILDABLE SF

69 CLINTON STREET 6,705 SF $8,800,000 $1,312.45

160 RIVINGTON STREET 15,475 SF $16,100,000 $1,040.38

154 STANTON STREET 6,700 SF $4,900,000 $731.34

166 SUFFOLK STREET 7,425 SF $7,600,000 $1,023.57

330 GRAND STREET* 11,900 SF $6,000,000 $504.20

*In contract