32-31 Greenpoint Avenue , NY 11101

A 7-Unit 5,413 Sq.Ft. Income Producing Mixed-Use Property Located in a Qualified Opportunity Zone

PETER CARILLO JAMES STAVRAKIS HKS REAL ESTATE ADVISORS, LLC

Principal, Senior Managing Director Associate Broker, Investment Sales 38 West 21st Street, 8th Floor Office: 212-254-1600 x118 Office: 212-254-1600 x112 , New York 10010 [email protected] [email protected] Office: 212-254-1600 INVESTMENT HIGHLIGHTS

Owner User + Opportunity Zone Below Replacement Value The 1,500 SF retail space is vented and would be great for a food-related, Comparable land sales in the area range from $200 to $250 per square grocery, or delivery business. Within a 15-minute drive you can reach the foot. Construction costs in NYC are the biggest variable when it comes to growing neighborhoods of Long Island City, Greenpoint, Astoria, Williamsburg, construction of affordable housing as labor wages continue to increase. Sunnyside and Woodside. This provides access to an estimated population of 32-31 Greenpoint Avenue represents the opportunity to purchase a 473,000 people who median household income of $62,810. Starting a business property below replacement value. in this property using capital gains will allow an investor to qualify for the tax benefits of the opportunity zone program. Long Term Assemblage – Last Mile Logistics The M1-1 zoning for the area gives rise to the opportunity to assemble the Long Term Tenancy adjacent lots over time and develop a last-mile logistics distribution center. The tenancy in the property has been around for decades providing the buyer with opportunity to turn over units, create new spaces, and set new rents Transportation for the property. Access to I-278 and I-495 interstate highway. The B24 bus runs along Greenpoint Avenue and takes straphangers from Greenpoint , up to Development in the Area BLVD and then back south over the Kosciusko Bridge to Williamsburg. Approximately 21,300 residential units have been delivered to Long Island The 7 and G Subways lines are accessible via the B24. Five (5) of the MTA’s LIRR City since 2003 with another 18,700 in the planning or construction phase. branches stop at the Hunsterspoint Avenue stop. Total commercial (non-residential) development completed in that time frame exceeds 10.5 million square feet with another 9.5 million in the planning or construction phase. More specifically, south of the LIRR tracks, the completed development activity is over 3 million square feet with another 1.1 million square feet in the planning or construction pipeline.

Live + Work Opportunity The potential buyer, could walk out the back door of their business after closing and into their duplex apartment to relax. They can self-manage the building to reduce expenses further.

2 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com EXECUTIVE SUMMARY

32-31 Greenpoint Avenue is located in Long Island City (LIC) and features two buildings on one tax lot. The front building is a 3-story mixed use property. The rear “carriage house” is a two-story residential building.

The property is located in a Qualified Opportunity Zone which presents unprecedented long term tax benefits for substantial improvements to the property or for starting a business in the ground floor retail space.

The asset enjoys Tax Class 2A status which protects the buyer from sharp increases in property taxes. The nearby 7 Subway line, along with (13) bus lines and the Long Island Expressway (I-495), provide a multitude of travel options to and other popular areas throughout Brooklyn and Queens.

This presents an array of investment opportunities. An entrepreneur-user would benefit from the ground floor retail, supplemental income and potential Qualified Opportunity Zone tax benefits. An owner looking to break into the LIC market or expand their holdings, could acquire this property for below replacement cost, when you take the price of land in the vicinity, into consideration. Additionally, an investor looking to combine or split apartments, could set new rents and unlock the cash-flow potential of the building.

1.00 25’ X 101.83’ Maximum FAR Lot Size

M1-1 ±5,413 SQ. FT. Zoning Gross Sq. Ft.

3 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com 35th Street Starr Avenue Bradley Avenue 0304 / 15

Greenpoint Avenue

4 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com PROPERTY OVERVIEW

Address 32-31 Greenpoint Avenue, Long Island City, NY 11101 32-31 (REAR) Greenpoint Avenue

Location Greenpoint Avenue b/t Bradley Avenue and Starr Avenue

Borough Queens Block / Lot 0304 / 15

Lot Size 25' x 101.83' Building Size 25’ x 40’ / 25’ x 28’

Gross Sq. Ft. ± 5,413 Sq. Ft. Building Class S4

Zoning M1-1 Maximum FAR 1.00

FAR As Built 2.13 Unused FAR -

Year Built 1931 RE Taxes (20/21) $11,888

5 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com FINANCIAL SUMMARY

Income

Residential Rental Income $99,441

Commercial (Projected) $30,000

Total Rental Income $129,441

Operating Expenses

Real Estate Taxes (2020/2021) $11,888

Water & Sewer $3,600

Heat $3,900

Utilities $600

Insurance $1,800

Repairs/Maintenance/Supplies/Paint $3,000

Management 3% $3,883

Payroll $2,400

Total Operating Expenses $31,072

Net Operating Income $98,369

6 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com RENT ROLL

Building Unit Layout Monthly Rent Yearly Rent

Rear Bldg 1RR 2 Bedroom $2,142 $25,704

Rear Bldg 2RR 1 Bedroom $1,133 $13,599

Front Bldg 2F 1 Bedroom $1,637 $19,644

Front Bldg 2R 1 Bedroom $859 $10,302

Front Bldg 3F 1 Bedroom $916 $10,992

Front Bldg 3R 1 Bedroom $1,600 $19,200

Front Bldg Ground Floor Store (Vacant) $2,500 Projected $30,000

Total $10,787 $129,441

7 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com SALES COMPARABLES AND APARTMENT RENTAL COMPS

Address Sale date Sale price Gross Sq. Ft. Total units PPSF PPU

152 Norman Ave 07/31/2020 $3,100,000 5,500 7 $564 $442,857

243 Kingsland Ave 02/12/2020 $1,620,000 4,875 6 $332 $270,000

4728 45th St 04/17/2020 $1,425,000 3,975 6 $358 $237,500

105 Newel St 05/07/2020 $1,300,000 4,500 6 $289 $216,667

204 Nassau Ave 01/21/2020 $2,300,000 3,900 5 $590 $460,000

512 51st Ave 12/23/2019 $4,875,000 6,961 5 $700 $975,000

3424 44th St 11/25/2019 $2,100,000 3,930 6 $534 $350,000

3428 44th St 11/25/2019 $2,100,000 3,930 6 $534 $350,000

3411 43rd St 11/4/2019 $1,412,500 3,930 6 $359 $235,417

1022 47th Rd 9/18/2019 $2,655,000 4,923 6 $539 $442,500

3451 41st St 9/12/2019 $1,660,000 5,200 6 $319 $276,667

Average 4,693 5.91 $476 $377,654

Apartment Rental Comps Average Asking Price Average Rented Last 90 Days

1 Bedroom $1,955 $1,885

2 Bedroom $2,365 $2,365

3 Bedroom $2,715 $2,715

8 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com RETAIL MAP

32-31 Greenpoint Avenue

9 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com LOCATION OVERVIEW: GREENPOINT AVENUE

LOCATED WITHIN OPPORTUNITY ZONE

MAJOR BUSINESSES IN THE AREA FOOD AND ATTRACTIONS IN THE AREA • East • Doughnut Plant • Bobby Spot Nuvo Café • Nestle Waters • Cypriana • Juice Press • FedEx Distribution Center • Bantry Bay Public House • Manhattan Fruitier • The Factory • Brooklyn Dumpling • American Folk Art Museam • Otter House Studios • City Ice Pavillion • CityView Raquet Club • Cinema World Studios • Cambodia Now • Broadway Stages • York Studios • United Refrigeration • AMAF Supply • ABCO HVACR Supply • There are fourteen (14) Self-Storage Facilities in the area

10 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com LOCATION OVERVIEW: LONG ISLAND CITY

View Of Manhattan From Long Island City Located directly across the East River from Manhattan, Long Island City is a mere 5 to 10 minute subway ride to Grand Central Terminal and the heart of Midtown. Long known as an industrial area, residential and commercial growth has transformed Long Island City into one of the most desirable and dynamic neighborhoods in .

Residential Development Over the past 10 years, growth in the neighborhood has exploded. Per the Long Island City Partnership, approximately 8,274 residential units have been completed since 2006. Even more astounding is the fact that there are an additional 18,088 additional residential units in planning and construction phases.

TF Cornerstone is often credited with spurring residential development in the neighborhood. In 2003, they purchased a tract of land from PepsiCo along the • LINC LIC - 2013 completion of Rockrose Development’s 709 unit apartment waterfront in the western portion of the neighborhood for the construction of a building at 43-10 Crescent Street (now fully leased) residential building at 47-20 Center Boulevard. $1.4 billion and a decade-later, TF • 42-12 28th Street - Heatherwood’s future 477 unit, 58-story residential Cornerstone reached 100% occupancy in their final building of the 2,615 rental tower recently began foundation work and 184 condos that they ultimately developed along this stretch of waterfront. • Tishman Speyer/H&R REIT - $875 Million projected cost for future 1.2 million square foot, 1,600 rental unit project along Jackson Avenue, Waterfront development has now shifted south in Long Island City to an area between West and Orchard Streets known as Hunter’s Point South. This 30 acre site will be improved with up to 5,000 • 43-25 Hunter Street - Rockrose Development recently broke ground on a housing units, five acres of parkland, a new school, new retail space and parking. future 767,000 square foot, 50-story residential building Phase I (925 units) is anticipated to be completed in early 2015 by a joint venture • Eagle Electric Lofts - Rockrose Development’s conversion of an existing between Related Companies and Phipps Houses. Phase II will be developed by warehouse and new tower construction at 43-22 Queen Street to 783 rental

OVO OSTAVI TF Cornerstone and Selfhelp Community Services which will bring an additional units 1,193 units to the site. • 5Pointz - Development at the former artistic landmark will result in 1,116 apartments, commercial space and parking garage between two towers Residential construction is thriving inland in Long Island City as well. The totaling 1.2 million square feet along Jackson Avenue between Crane and following are notable recently completed, under construction and planned/ Davis Streets proposed projects. Please note that this list is not all encompassing. There are a • The Pearson Court Square Apartments - 45-56 Pearson Street - A 197 unit substantial number of other projects which can be found on pages 04, 06 and 07 luxury apartment building of the offering memorandum. • 22-25 Jackson Avenue - Under construction 182 unit luxury apartment building

11 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com LOCATION OVERVIEW: LONG ISLAND CITY

Commercial Development Cornell Tech Roosevelt Island Campus In addition to the roughly 21,000 residential units delivered since 2003 and the 13,700 In late 2011, a historic partnership was announced to build a $2 billion, two- planned or under construction, commercial and hotel development is also exploding: million-square-foot applied science and engineering campus on the southern portion of Roosevelt Island-equidistant between Manhattan and Long Island City. • Commercial Office Development: Over 2 Million SF of Class A space The campus is to opened in 2017 and will double the City’s number of full-time, created since 2003 graduate and engineering students. Given the short distance from Long Island • Hotel Development: 15 hotels opened since 2008 with an additional eight City, the campus is anticipated to be a significant economic driver of business hotels in planning and construction phases. and research to the neighborhood, as well as increase demand for housing. • A total of 10 million square feet of commercial development since 2003 Transportation Long Island City Business Long Island City is centrally located in New York City. In addition to the No. 7 Per the Long Island City Partnership, Long Island City is home to Fortune 500 subway line that provides access to Manhattan and Grand Central Terminal in companies, over 7,000 businesses and 90,000 employees. Major businesses and 5-10 minutes, there are seven other subway lines providing access to/from the institutional tenants include: neighborhood and other boroughs. The following 2013 average weekday subway ridership figures were provided by the Long Island City Partnership: • Citibank: 5,000 employees • NYC Dept. of Health (moved to LIC in 2011): 4,000 employees • Station (E, M, R) – 9,696 riders • MetLife, Barclaycard, WorldNow: 4,000 employees • (7, N, Q) – 11,132 riders • JetBlue Headquarters (moved to LIC in 2012): 1,200 employees • Court Square Station (E, G, M, 7) – 20,446 riders • CUNY Law (moved to LIC in 2012): 600+ staff/students • 21st Street Queensbridge (F) – 8,749 riders • Publicis/Re:Sources (moved to LIC in 2013): 450 employees • Silvercup Studios In addition to the eight subway lines, the Long Island Rail Road also had multiple • stops in the neighborhood. The East River Ferry also provides access to/from Manhattan and Brooklyn. OVO OSTAVI Art Community Long Island City has the largest cluster of museums outside of Manhattan. In With respect to vehicular traffic, the Ed Koch and the Queens fact, it is home to eight world-renowned institutions such as MoMA PS1, the Midtown Tunnel are located on either end of the neighborhood. Museum of Moving Image, , the and the Sculpture Center.

Restaurants Long Island City is home to a burgeoning restaurant scene to serve the rapidly growing residential base. The 2015 Michelin Guide recognized two exceptional Long Island City restaurants: M. Wells Steakhouse and Casa Enrique. Other notable restaurants include Manducatis Rustica, Alobar, John Brown Smokehouse and Blend on the Water.

12 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com LOCATION OVERVIEW: SUNNYSIDE YARDS

The Sunnyside Yard Master Plan proposes bold action on the most pressing issues of our time. Across the country, Amtrak is partnering with local governments to envision how its assets in growing cities can serve multiple public needs while also furthering its core mission of intercity rail transportation.

In 2014, Amtrak approached the City of New York seeking to plan collaboratively for one of its key assets on the Northeast Corridor, Sunnyside Yard. Sunnyside Yard is critically important to Western Queens and the Greater New York City region. Its central location, sheer scale, public ownership, and the strong, diverse neighborhoods surrounding the Yard make it an unparalleled place to plan responsibly for the next generation.

The Sunnyside Yard Master Plan is the product of a proactive, community- driven planning process that sought to take the qualities that make these neighborhoods great – their affordability, walkability, and diversity – and add to them with efficient public transit, beautiful parks, affordable homes, and access to education and high-quality jobs. The city’s challenges are compounded by the reality of climate change and economic inequality. Fortunately, the neighborhoods surrounding Sunnyside Yard are full of engaged residents who want to be part of a larger conversation around planning for a more sustainable, affordable, and fair city.

The Master Plan: • 12,000 new affordable homes – half affordable rentals and half providing home ownership opportunities • A new regional rail hub, “Sunnyside Station”, connecting Western Queens to the Greater New York City region and Northeast Corridor • 60 acres of new public open space, alongside new schools, libraries, and other social infrastructure • An infrastructure-first approach that includes meeting urban needs like resiliency, drainage, open space, and transportation

13 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com TRANSPORTATION

4 D

1 ST NOTN BLD 3 ST E M SUNNYSID BANTT A YAD QUNS BLD 45 D

TOMSON A SILLMAN A 45 ST

QUNS MIDTON TUNNL G 4 ST

35 ST 5 ST 5 ST 37 ST 5 ST on Bl V 3 ST LIRR on Av JASON A A NON BLD 7 43 ST WOODSIDE 7 7 5 ST 7 OOSLT A JAC 47 A Q67 4 A 5 ST

AN DAM ST QUNS BLD

7 ST D 4 A Newtown reek Q67 32-31 Greenpoint NPOINT A

UNTS POINT A 4 ST T BO ST AvenueBODN A N ALAY 5 A

MANATTAN A 4 ST MTY McUINNSS BLD Q67

FMAN ST B24 47 ST

BOOLYN QUNS PY UON ST

LON ISLAND PY NPOINT A ALAY 5 ST MTY

NT ST

54 A FANLIN ST FANLIN 4 ST MSOL A

at Long Island City Station 1.2 miles 7 at Vernon Blvd - Jackson Av Station 0.9 mile

at Hunterspoint Avenue 0.6 mile E M at Court Square-23 St Station Station 0.9 mile

G at Court Square Station 1.1 miles Q67 at Court Square Station 0.2 mile

7 at Hunters Point Av Station 0.4 mile Q67 B24 at Greenpoint Av/Borden Av Station 0.8 mile

14 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com LOCATION MAP

One Mile Away Queens Midtown One Mile Away Tunnel Long LaGuardia Island Airport Expy 278 495 6 Miles Away

32-31 495 Greenpoint 495 Avenue 278

Brooklyn Queens Expy One Mile Away

12 Miles Away

JFK Airport

15 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com OPPORTUNITY ZONES

Qualified Opportunity Zones (“QO Zones”) are a community development tool benefitting low-income areas by bringing significant financial incentives for real estate developers and business owners who invest, or open a business, in economically distressed communities. This new incentive is designed to draw long-term investments to low-income communities across the nation that may not have seen such efforts any other way.

You may be able to defer and reduce capital gains tax if you invest capital gains in a Qualified Opportunity Fund. Aside from that, the gains realized by the QOF may become completely tax-free.

Qualified Opportunity Funds invest in Opportunity Zones. There are over 8,700 Opportunity zones across the 50 states, the District of Columbia, and five U.S. territories. The Opportunity Zones benefit is valid from December 23, 2017 until 32-31 Greenpoint Avenue December 31, 2026, unless the Congress decides to renew the program.

What is the benefit of an Opportunity Zone? An Opportunity Zone can receive funds from Opportunity Funds. Opportunity Funds provide investors the chance to put that money to work rebuilding the low to moderate income communities. The fund model will enable a broad array of investors to pool their resources in Opportunity Zones, increasing the scale of investments going to underserved areas.

What are the New York State tax implications of the recently enacted federal tax benefits for investment in the Opportunity Zone Program? Investor must invest in a qualified opportunity fund which holds at least 90% of its assets in qualified opportunity zone property. A qualified opportunity fund is an investment vehicle organized as a corporation or a partnership for the purpose of investing in qualified opportunity zone property. There are two main incentives to encourage investment in qualified opportunity funds. First, taxpayers can temporarily defer the inclusion in gross income of capital gains that are reinvested in a qualified opportunity fund. Taxpayers can also permanently exclude capital gains from the sale or exchange of an investment in a qualified opportunity fund held for more than 10 years. Generally, both the deferral and exclusion of the capital gains from federal income will flow through to New York State. This means those gains will also be deferred and excluded from New York taxable income.

Source: NYS-Empire State Development Website

16 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com CONFIDENTIALITY & DISCLAIMER

This Confidential Offering Memorandum has been prepared exclusively by HKS The Owners and HKS each expressly reserve the right, in their sole discretion, Real Estate Advisors (“HKS”) on behalf of Ownership, the (“Owners”), regarding to reject any and all expressions of interest or offers regarding the Property and/ the purchase of the property described herein at 32-31 Greenpoint Avenue, or terminate discussions with any entity at any time with or without notice. The Long Island City, New York 11101 (the “Property”). The materials and information Owners shall have no legal commitment or obligation to any entity reviewing the contained in this Confidential Offering Memorandum do not purport to be all- Confidential Offering Memorandum or making an offer to purchase the Property inclusive or to contain all of the information which prospective investors may unless and until a written agreement for the purchase of the Property has been need or desire. All materials have been developed by HKS, the Owners and other fully executed, delivered and approved by the Owners and its legal counsel and sources and are subject to variation. any conditions to the Owners’ obligations thereunder have been satisfied or waived. HKS is not authorized to make any representations or agreements on No representation is made by HKS or the Owners as to the accuracy or behalf of the Owners. completeness of the information contained herein and nothing contained herein is or shall be relied on as a promise or representation as to the future performance This Confidential Offering Memorandum and its contents, except such information of the Property. Although the information contained herein is believed to be which is a matter of public record or is provided in sources available to the public correct, HKS and the Owners and their employees disclaim any responsibility for (such contents as so limited herein called the “Contents”) are of a confidential inaccuracies and expect prospective purchasers to exercise independent due nature. By accepting the Offering Memorandum, you agree (i) to hold and treat it diligence in verifying all such information. in the strictest confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the Confidential Offering Memorandum or any of its contents to any other entity Further, HKS, the Owners and their employees disclaim any and all liability for (except to outside advisors retained by you, if necessary, for your determination representations and warranties, expressed and implied, contained in or omitted of whether or not to make a proposal and from whom you have obtained an from the Confidential Offering Memorandum or any other written or oral agreement of confidentiality) without the prior written authorization of the Owners communication transmitted or made available to the recipient. The Confidential or HKS, (iv) not to use the Confidential Offering Memorandum or any of its contents Offering Memorandum does not constitute a representation that there has been in any fashion or manner detrimental to the interest of the Owners or HKS, and (v) no change in the business or affairs of the Property or the Owners since the to return it to HKS immediately upon request of HKS or the Owners. date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Confidential Offering Memorandum is solely If you have no further interest in the Property, please return the Confidential the responsibility of the prospective purchaser. Additional information and an Offering Memorandum forthwith. No inspections of the Property are permitted opportunity to inspect the Property will be made available upon request to unless accompanied by the Owners or a representative from HKS. interested and qualified investors.

17 / 32-31 Greenpoint Avenue, Long Island City, NY 11101 / HKS Real Estate Advisors www.hks.com For Additional Information Please Contact: For Information Regarding Financing Please Contact:

INVESTMENT SALES CAPITAL MARKETS

PETER CARILLO AYUSH KAPAHI

Principal, Senior Managing Director Principal and Founding Partner Office: 212-254-1600 x118 Office: 212-254-1600 [email protected] [email protected]

JAMES STAVRAKIS MICHAEL LEE

Associate Broker, Investment Sales Partner Office: 212-254-1600 x112 Office: 212-254-1600 x1101 [email protected] [email protected]

FRANCISCO TEJADA

Real Estate Financial Analyst Office: 212-254-1600 x112 [email protected]

HKS REAL ESTATE ADVISORS, LLC

38 West 21st Street, 8th Floor New York, New York 10010 Office: 212-254-1600

Information contained herein is from sources deemed reliable but is subject to errors, omissions, change of price or terms, and withdrawal without prior notice at any time. www.hks.com