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Home , 54th Street (Manhattan), Graybar Building

EAST 54TH CONDO CONVERSION OPPORTUNITY

CONFIDENTIAL OFFERING MEMORANDUM EAST

CONDO CONVERSION ASKING: $9,950,000

TABLE OF CONTENTS

01 Executive Summary 03 Financial Overview 1 1 The Neighborhood 1 7 Due Diligence EAST 54TH STREET

EXECUTIVE SUMMARY

The Opportunity:

Cushman & Wakefield has been exclusively retained to offer 336 East 54th Street (the “Property”), a six-story, multifamily elevator building in Midtown for condo conversion. The 10,500 square foot property is currently comprised of 11 free-market, residential units.

Originally designed for ultra-luxury condominiums, the layout of these stunning apartments consist of 1 bedroom/1 bathroom & 1 bedroom/1.5 bathrooms with home offices. The boutique apartments feature high-end finishes and appliances with generous outdoor space. All units are Free Market, allowing the condo conversion to be executed soon after closing.

Located between First & Second Avenues, the property is conveniently serviced by a robust public transportation network including the 4, 5, 6, E & M trains just blocks away.

1 336 EAST 54TH STREET EXECUTIVE SUMMARY 2 EAST 54TH STREET

FINANCIAL OVERVIEW

EFFECTIVE GROSS INCOME: $613,859

NET OPERATING INCOME: $331,736

PRICE PER SF: $947

3 336 EAST 54TH STREET FINANCIAL OVERVIEW 4 PROPERTY FEATURES

Address: 336 East 54th Street, New York, NY 10022 Location: On the south side of 54th Street between & Second Avenue Block / Lot: 1346 / 37 Lot Dimensions: 25' x 100.42' Lot Size: 2,511 SF (approx.) Stories: 6 + basement Above Grade SF: 10,500 Building Dimensions: 25’ x 70’ : R8B Residential FAR: 4.0 Total SF (including below grade): 12,250 SF (approx.) Additional : Overbuilt Assessment (20/21): $2,008,800

Annual Taxes (20/21): $208,539

EAST 54TH STREET

BLOCK: 1346

37 FIRST AVENUE SECOND AVENUE SECOND

EAST

FINANCIAL SUMMARY:

ACTUAL EGI: $613,859

ACTUAL NOI: $331,736

PRICE PER SF: $947

5 336 EAST 54TH STREET FINANCIAL OVERVIEW 6

5 FINANCIAL OVERVIEW CONDO CONVERSION Residential Condo Conversion Value 336 East 54th Street COMPARABLE SELLOUTS FROM BUILDINGS BY SAME DEVELOPER CONDO CONVERSION

Gross Average Residential Residential Space Loss Factor Total Units Net Saleable PPSF Value Address Unit Date SF Price Price per SF Square Feet Unit Size Sales Value 10,500 9.5% 864 11 9,502 $1,600 $ 15,203,200 225 East 81st Street Unit 4 6/12/2019 1,800 $2,925,000 $1,625 Residential Condominium Value: $ 15,203,200 Total Sellout Revenue: $ 15,203,200 225 East 81st Street Unit 3 11/1/2016 1,766 $3,175,000 $1,798 Cost Calculation 225 East 81st Street Penthouse 7/ 7/2 0 1 6 1,766 $4,295,000 $2,432 Hard Costs Above Grade 10,500 x $0 $ - 225 East 81st Street Unit 1 11/9/2015 3,882 $5,995,000 $1,544 Total Hard Costs $ -

225 East 81st Street Unit 2 11/6/2015 1,766 $3,500,000 $1,982 Soft Costs During Conversion Basis Years Rate Real Estate Taxes $208,903 1.00 $ 208,903 225 East 81st Street Unit 4 11/4/2015 1,800 $3,563,875 $1,980 Contingencies $0 1.00% $ - Residential Brokerage Commission $15,203,200 4.00% $ 608,128 Legal Fees $15,203,200 0.50% $ 76,016 225 East 81st Street Unit 3 12/2/2014 1,776 $3,500,000 $1,971 Closing Costs $13,825,000 2.00% $ 276,500 Total Soft Costs $ 1,169,547 225 East 81st Street Masionette 12/2/2014 3,882 $5,995,000 $1,544 Debt Service $6,467,500 1.00 3.50% $ 226,363 230 East 63rd Street Masionette 4/21/2015 2,343 $3,150,000 $1,344

230 East 63rd Street Penthouse 11/4/2014 1,743 $4,008,900 $2,300 Total Costs During Conversion: $ 1,395,910 Costs per Gross SF: $ 133 230 East 63rd Street Unit 3 10/16/2014 1,743 $3,309,312 $1,899 Residual Property Value (Sellout Less Total Costs): $ 13,807,290 230 East 63rd Street Unit 5 10/15/2014 1,743 $3,660,300 $2,100 Say: $ 13,825,000 Price per Buildable Square Foot: $ 1,317 230 East 63rd Street Unit 2 10/10/2014 1,743 $3,137,400 $1,800

AVERAGE: $1,809

7 336 EAST 54TH STREET FINANCIAL OVERVIEW 8 INCOME & EXPENSES

RESIDENTIAL REVENUE: RESIDENTIAL REVENUE:

GSF: 10,500 Actual Tenant Actual Actual Unit Status Layout SF Rent/ SF Monthly Rent Gross Monthly Income $52,737

1B FM 1BR/1BA + Garden 859 $61 $4,800 Potential Gross Income $632,844

2A FM 1BR/1BA 773 $70 $4,450 Vacancy & Credit Loss 3% ($18,985)

2B FM 1BR/1.5BA 945 $65 $5,150 Effective Gross Income $613,859

3A FM 1BR/1BA 773 $76 $4,800

3B FM 1BR/1.5BA 945 $63 $5,000 EXPENSES (ACTUAL): 4A FM 1BR/1BA 773 $68 $4,300 Real Estate Taxes (20/21) Annual Taxes $208,903

4B FM 1BR/1.5BA 945 $72 $5,687 Water/Sewer Actual $6,743

5A FM 1BR/1BA 773 $76 $4,800 Insurance Actual $9,675

5B FM 1BR/1.5BA 945 $66 $5,250 Alarm Monitoring Actual $1,437

6A FM 1BR/1BA 773 $63 $4,000 Electric Actual $8,890

6B FM 1BR/1.5BA 945 $57 $4,500 Elevator Actual $10,060

Repairs and Maintenace Actual $12,000 TOTAL MONTHLY INCOME: $52,737 Superintendent Projected $6,000 TOTAL ANNUAL INCOME: $632,844 Management Company Projected $18,416

Total Expenses: $282,123

EFFECTIVE GROSS INCOME: $613,859

LESS EXPENSES: ($282,123)

NET OPERATING INCOME: $331,736

9 336 EAST 54TH STREET FINANCIAL OVERVIEW 10 EAST 54TH STREET

THE NEIGHBORHOOD

11 336 EAST 54TH STREET THE NEIGHBORHOOD 12 THE NEIGHBORHOOD

MIDTOWN EAST:

Midtown East, stretching from 42nd to 63rd and flock to the area for its proximity to the UN on First to the East River is characterized by energized Avenue and East 43rd Street. and diverse street life, both day and night, prominent office towers, and easy access to transportation. From the In addition, two of the city’s most sought after prestigious flagship stores on Fifth and Madison Avenues residential enclaves – Sutton Place and to the Midtown office core on Park and Lexington, the – are located within Midtown East. This mix of office western side of this neighborhood is all about business, towers, retail flagships, foreign consulates, and desirable tourism, shopping, and recreation. Moving eastward, residential locations draw a diverse group of shoppers, Third, Second, and First Avenues are predominantly lined commuting businessmen and women, tourists, foreign with post-war residential towers, with mid-rise elevator dignitaries, and young residents to visit, work, and live and walk-up apartment buildings filling in the side streets. in Midtown East. United Nations employees, ambassadors, and visitors

A MAJOR EMPLOYMENT CENTER:

The Greater Midtown business district is one of the the economic engine of the city and perhaps even largest job centers in and one of the the United States, drawing in more workers than any most high-profile business addresses in the world. other American central business district. The area’s The area spanning Fifth and Second Avenues between tenants have historically included prestigious financial East 39th and East 57th Streets contains more than 70 institutions, law offices, hedge funds and private million square feet of office space, more than a quarter equity firms, largely because the proximity to Grand million jobs, and innumerable Fortune 500 Companies. Central Station makes for an easy commute from Many of the world’s most iconic office buildings are Westchester and Fairfield Counties, from which many located in Midtown East, including the Chrysler high-powered executives hail. Building, the , the , the , , the Empire State Area tenants serve as a who’s who of industry leaders Building, and the MetLife Building. including: NBC Universal, McGraw-Hill, , Colgate-Palmolive, JPMorgan Chase, Bank continues to be one of the of America, PricewaterhouseCoopers, and Cleary most sought-after office addresses in the New York Gottlieb Steen & Hamilton. metropolitan region. The neighborhood serves as

LOCAL ATTRACTIONS:

Within just a few blocks are several landmarks of performances by the world’s most famous artists on national and world renown such as Grand Central a near nightly basis. Midtown East is also home to the Terminal, the New York Public Library, and the Empire United Nations at East 43rd Street and First Avenue, State Building. Bryant Park, just a stone’s throw and many of the U.N.’s employees and dignitaries call away, serves as an urban oasis to Midtown workers the neighborhood home. Additionally, some of New and tourists alike from morning to night throughout York’s oldest and most prestigious private clubs are all seasons. To the west, Madison Square Garden, the located in Midtown East, including the Yale Club and “world’s most famous arena” and home of the New the University Club. York Rangers and New York Knicks, plays host to

13 336 EAST 54TH STREET THE NEIGHBORHOOD 14 THE NEIGHBORHOOD UNITED NATIONS MAP

UNITED NATIONS DAG HAMMARSKJOLD CONSULATES, MISSIONS, AND EMBASSIES: HEADQUARTERS: PLAZA:

Midtown East is home to the United Nations The 1.5 acre park is named after Dag Hammarskjold, Headquarters, located off First Avenue between East a luminary who served as Secretary-General of 42nd and 45th Streets. The complex has served as the United Nations in 1953 and who spent his term -Missions, Consulates & Embassies the official headquarters of the United Nations since suppressing and preventing war across the world, 3 opening in 1952. The United Nations was created to ultimately earning the Nobel Peace Prize in 1961. A 5 promote co-operation among nations after WWII. The garden sits within the Plaza, dedicated to the life of 6 37 intergovernmental organization is dedicated to five core Katherine Hepburn, a renowned actress who worked 8 pillars: Peace and Security, Development, Human Rights, hard to conserve the neighborhood, preserving 7 9 EAST 54TH STREET Humanitarian Affairs, and International Law. Embassies, trees and the charming character of Turtle Bay. Now non-profits and missions have chosen the nearby area adorned with a symmetrical layout, steel pavilions, and 16 as their home and utilize the Plaza spanning six blocks fountains, the Plaza is frequently used as a popular 10 11 around the Headquarters. place for gathering and public demonstrations. 13 14 49 12 17 Located within a one-mile radius are many of the foreign 15 embassies, missions and consulates serving United 4 36 20 Nations member states. Many nations choose to be 50 22 21 18 within walking distance of the U.N. Headquarters for 23 19 46 47 33 34 24 ease of transportation and convenience. 44 45 38 39 32

50 1 2 48 42 40 41 43 35 UNITED NATIONS

27

26

25 28 31 49

29 30

1. Consulate General of Kazakhstan 14. Permanent Mission of Zambia 27. Consulate General of Gabon 39. Permanent Mission of Poland 2. United Arab Emirates Consulate 15. Norwegian Consulate General 28. Consulate of the Mexico 40. Costa Rican Permanent Mission 3. Consulate General of Egypt 16. Permanent Mission of Tanzania 29. Consulate General of Poland 41. Permanent Mission of India 4. Consulate General of Panama 17. Embassy of Tonga 30. Permanent Mission of Cuba 42. Permanent Mission of Syria 5. Consulate General of Spain 18. Consulate General of Germany 31. Permanent Mission of Rwanda 43. Permanent Mission of Malaysia 6. Consulate General of the Republic of Korea 19. Embassy of the Republic of Kenya 32. Consulate General of Jordan 44. Consulate General of Colombia 7. Consulate General of Argentina 20. Consulate General of Ukraine 33. Consulate General of Algeria 45. Consulate General of Monaco 8. Consulate General of Slovenia 21. Consulate General of Nepal 34. Consulate General of Ghana 46. Consulate General of Algeria 9. Permanent Mission of Zimbabwe 22. Consulate General of Japan 35. Permanent Mission of Pakistan 47. Permanent Mission of Ghana 10. Consulate General of Ireland 23. Consulate General of Sweden 36. Consulate General of Uruguay 48. Consulate General of Qatar 11. Permanent Mission of Ireland 24. Permanent Mission of Denmark 37. Colombian Permanent Mission 49. Permanent Mission of Guinea 12. British Consulate General 25. Consulate General of Morocco 38. Permanent Mission of Brazil 50. Consulate General of Serbia 13. Consulate General of Hungary 26. Consulate General of New Zealand 15 336 EAST 54TH STREET THE NEIGHBORHOOD 16

SUFFOLK ST

T EAST 54TH STREET

DUE DILIGENCE

17 336 EAST 54TH STREET DUE DILIGENCE 18 ZONING

ZONING:

336 EAST 54TH STREET IS LOCATED WITHIN A R8B ZONING DISTRICT. R8B: FAR (RESIDENTIAL) 4.00

R8B: R8B contextual districts usuually present the same unified blocks of “brownstone” rowhouses as R5B and R6B districts but the higher floor area ratio of 4.0 creates a taller building that is commonly found on the narrow side streets of the and the in Manhattan. The mandatory Quality Housing bulk regulations encourage new six-story apartment buildings, with a setback at the top story, that fit in well with the rows of 19th century houses.

The base height of a new building before a setback is 55-65 feet. The maximum building height is 75 feet. many buildings are set back from the street with stoops in shallow front yards. To maintain the traditional streetscape, curb cuts are prohibited for zoning lot frontages less than 40 feet. The street wall of ane wbuilding, on any lot up to 50 feet wide, must be as deep as one adjacent street wall but no deeper than the other. On lots with at least 50 feet of frontage, the street wall must be no closer to the street line than the street wall of an adjacent building. Street walls need not be set back beyond 10 feet. Buildings must have interior amenities for residents pursuant to the Quality Housing Program

MIDTOWN EAST REZONING: In 2017, the Department of City Planning passed a rezoning of East Midtown, a 73-block area surrounding . The purpose of the rezoning is to ensure the area’s future as a world-class business district and major job generator for New York City. The plan provides zoning incentives to promote the development of a handful of new, state-of-the-art commercial buildings. 3 East 44th Street is on the edge of the new Midtown East Rezoning district, where maximum FAR can reach 21.6 if certain requirements are met such as frontage based on a wide street and a minimum property width.

EAST 54TH STREET

19 336 EAST 54TH STREET DUE DILIGENCE 20 ZONING DOB OVERVIEW / VIOLATIONS:

21 336 EAST 54TH STREET DUE DILIGENCE 22 CERTIFICATE OF OCCUPANCY:

23 336 EAST 54TH STREET DUE DILIGENCE 24 PROPERTY TAX BILL:

February 27, 2021 Statement Details 336 East 54th Street Associates LLC 336 E. 54th St. 1-01346-0037 Page 2

Previous Charges Amount Total previous charges including interest and payments $0.00

Overpayments/Credits Activity Date Due Date Amount Refund Available 07/01/2019 $-33,545.76 Credit Applied 12/24/2020 $33,545.76 Refund Available 07/01/2020 $-18,940.26 Credit Applied 12/24/2020 $18,940.26 Credit Balance 01/01/2021 $-18,940.26 Total credit applied $52,486.02 Total overpayments/credits remaining on account $18,940.26

You must apply for a refund or a transfer of credits resulting from overpayments within six years of the date of the overpayment or credit. Please note that overpayments and credits are automatically applied to unpaid taxes.

Annual Property Tax Detail Overall Tax class 2 - Residential More Than 10 Units Tax Rate Current tax rate 12.2670% Estimated Market Value $4,464,000 Taxes Billable Assessed Value $2,008,800 Tax Commission Reduction -308,800.00 Taxable Value $1,700,000 x 12.2670% Tax Before Abatements and STAR $208,539.00 $208,539.00 Annual property tax $208,539.00

NEW LAW: To learn about Local Law 147, which requires residential buildings with three or more units to create a policy on smoking and share it with current and prospective tenants, visit www.nyc.gov/health/tobaccocontrol.

Please call 311 to speak to a representative to make a property tax payment by telephone.

Home banking payment instructions:

1. Log into your bank or online bill pay website. 2. Add the new payee: NYC DOF Property Tax. Enter your account number, which is your boro, block and lot, as it appears here: 1-01346-0037 . You may also need to enter the address for the Department of Finance. The address is P.O. Box 680, Newark NJ 07101-0680. 3. Schedule your online payment using your checking or savings account.

Did Your Mailing Address Change? If so, please visit us at nyc.gov/changemailingaddress or call 311.

When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction.

25 336 EAST 54TH STREET DUE DILIGENCE 26 FLOOR PLAN FLOOR PLAN

1 BEDROOM / 1 BATHROOM 1 BEDROOM / 1.5 BATHROOMS

27 336 EAST 54TH STREET DUE DILIGENCE 28

FOR MORE INFORMATION CONTACT:

WILL CONRAD (212) 660-7740 [email protected]

DAMANI STRASNER (212) 589-5145 [email protected]

Cushman & Wakefield Copyright 2021. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.