32 Avenue B, New York, Ny Table of Contents
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32 AVENUE B, NEW YORK, NY TABLE OF CONTENTS I. EXECUTIVE SUMMARY II. THE NEIGHBORHOOD III. DUE DILIGENCE FOR MORE INFORMATION, CONTACT JAMES RYAN Director 646 933 2608 [email protected] FOR FINANCING INQUIRIES, CONTACT STEVEN SPERANDIO Partner, Senior Managing Director 646 933 2638 [email protected] 2 B6 REAL ESTATE ADVISORS 32 AVENUE B 3 EXECUTIVE SUMMARY 4 B6 REAL ESTATE ADVISORS 32 AVENUE B 5 THE OPPORTUNITY AREA MAP B6 Real Estate Advisors has been retained on an exclusive basis to arrange for the sale of 32 Avenue B, a 5-story mixed-use building located in the vibrant East Village, between East 2nd & 3rd Street. PROPERTY INFORMATION Address 32 Avenue B, New York, NY 10009 Location West side of Avenue B between East 2nd & 3rd Street Block & Lot 398/ 31 32 AVENUE B Lot Dimensions 24.33’ x 80.00' Lot Square Feet 1,945 Stories 5 + Basement Building Dimensions 24.33’ x 70.00’ Building Square Feet 8,516 Approx Total Units 17 Commercial 16 Residential 1 Zoning C1-5/ R7A FAR 2.00/4.00 Building Assessment $567,540 RE Taxes $63,555 TRANSPORTATION TAX MAP TRAIN LINE STATION WALKING DISTANCE F 2nd Avenue 8 minutes F M J Z Delancey/Essex 9 minutes BUS WALKING DISTANCE M8/M9/M21/M14A Within 5 minutes CITI BIKE WALKING DISTANCE 12 bike stations Within 5 minutes DESTINATION RIDE SHARING (UBER/LYFT/VIA LOGO) Fidi 16 minute via FDR Midtown ( Bryant Park) 18 minute drive via FDR Williamsburg 7 minute drive via Williamsburg Bridge Travel times estimated by Google Maps 6 B6 REAL ESTATE ADVISORS 32 AVENUE B 7 INVESTMENT HIGHLIGHTS ■ Composition: The building consists of seven 1-bedroom apartments and nine studios. Units have been well maintained. ■ Prime Location: The East Village is quickly becoming one of the hottest neighborhoods in Manhattan. The site is within close proximity to Tompkins Square Park, and numerous new restaurants and bars. ■ Income Producing: The commercial space is leased and 15/16 apartments are occupied. ■ Huge Upside Potential: The residential units on average are 42% below market and the commercial space is 57% below market. ■ Multiple Transportation Options: The property is ideally located in close proximity to the F , M , J , Z Subway stops in addition to numerous MTA Bus stops and Citi Bike stations. ■ Long Term Reputable Owner: The property has been held by the same owner for 40 years. 8 B6 REAL ESTATE ADVISORS 32 AVENUE B 9 REVENUE ESTIMATED EXPENSES UNIT TENANT SF P.S.F RENT/ MO. ANNUAL RENT EXPENSES B6 METRICS TOTAL Retail Bens Deli Grocery $1,703 $25 $3,609 $43,305 Real Estate Taxes (19/20) (15% RE tax Passthrough from retail tenant) $54,107 Insurance Provided By Owner $18,840 TOTAL $25 $3,609 $43,305 Water & Sewer Provided By Owner $3,106 Heating Fuel Tenants Pay -- UNIT TENANT STATUS UNIT LEASE EXP. RENT/ MO. ANNUAL RENT Electric (Common) Provided By Owner $2,355 Repairs & Maintenance 2% of EGI $6,060 APT 1. RS 1 Bedroom 03.31.20 $955 $11,460 Superintendent $400 / Month $4,800 APT 2. RS Studio 11.30.20 $1,144 $13,723 Management 3% of EGI $9,089 APT 3 RS 1 Bedroom 06.30.19 $1,392 $16,703 TOTAL EXP RATIO: 32% $98,357 APT 4 RS Studio 07.16.19 $1,470 $17,638 Effective Gross Income $302,976 APT 5 RC 1 Bedroom 12.31.20 $1,132 $13,579 Less Total Expenses $98,357 APT 6 RS Studio 12.25.19 $874 $10,493 APT 7 RS 1 Bedroom 04.30.20 $1,836 $22,032 PROJECTED NET OPERATING INCOME $204,618 APT 8 SCRIE Studio 01.08.19 $468 $5,619 APT 9 RS Studio 06.30.20 $1,415 $16,978 APT 10 Vacant 1 Bedroom Vacant $2,400 $28,800 APT 11 RS 1 Bedroom 01.31.20 $2,070 $24,840 APT 12 RS 1 Bedroom 04.30.19 $2,100 $25,200 APT 13 RS Studio 04.30.21 $862 $10,348 APT 14 RS Studio 03.31.20 $1,632 $19,584 APT 15 RS Studio 08.31.19 $857 $10,287 APT 16 RS Studio 01.31.20 $1,547 $18,570 TOTAL $22,155 $265,854 GRAND TOTAL $25,763 $309,159 10 B6 REAL ESTATE ADVISORS 32 AVENUE B 11 NEIGHBORHOOD 12 B6 REAL ESTATE ADVISORS 32 AVENUE B 13 TRANSPORTATION THE NEIGHBORHOOD The East Village boasts the second most accessible The East Village boundaries are often disputed, but are subway station in the city, Union Square, which services most often considered to stem from 14th Street south to seven trains; L , N , Q , R , 4 , 5 , 6 . The neighborhood East Houston and from Bowery/3rd Avenue all the way is also fortunate to have the L train which is a rare east to the river. crosstown train running along 14th street, accessible at both 1st Avenue & 3rd Avenue. The N & R trains run 32 AVENUE B The neighborhood has long been the center of Bohe- along Broadway bringing NYU students right to the door mian lifestyle, rich with history synonymous with artists, of the University. The F train is accessible from Second poets, dive bars sidewalks cafés and hipsters. Across the Avenue. For those who prefer to not take the train the street from 217 East 3rd Street is the famous Nuyorican MTA also services the East Village with 4 separate bus Poets Café, which still to this day has long ques feeding routes M8, M14, M14A and M14D. outside its walls down 3rd street, also referred to as Rev- erend Pedro Pietri Way. The East Village is without a doubt best traveled by bike. The neighborhood has one of the highest density of Citi The East Village comprises of several smaller vibrant com- Bike stations in the city, with plans to introduce more munities, each with their own unique history and charac- stations as well as expanding existing stations. teristics, Alphabet City, Bowery and The Ukrainian Village. RIDE SHARING Alphabet City: received its name from its Avenues A, B, Historically sections of Alphabet City reported lower SUBWAY AND BUS MAP C & D. To this day Avenue C is still commonly referred to levels of development and rental prices compared as Loisaida, which stems from the Spanish pronunciation to nearby neighborhoods due to less accessibility to of ‘Lower East Side’. Subway stations. Between technological advances, low costs and ease of service, ride sharing services such as Bowery: has become a boulevard of redevelopment, Uber, Lyft & Via, are taking the dependency away from whilst still holding onto its reputation as a place for artistic the Subway. A growing number of developers are now pursuit, thanks to locations such as Bowery Poetry Club. pouring money into new constructions deeper into Alphabet City such as The Niko. This 82 unit apartment The Ukrainian Village: unsurprisingly earned its name building was completed in 2018 and is located on Avenue from its historically large population of Ukrainian resi- D, with studios beginning at $2,800/ month. Each tenant dents, the area still houses a 3rd of New York City’s receives a free Citi Bike membership for the duration of Ukrainian population. their tenancy, as well as a $500 transit card, to be used on Uber, Lyft etc. New developments also include 127 Avenue D and 399NYC. 32 AVENUE B CITIBIKE MAP 14 B6 REAL ESTATE ADVISORS 32 AVENUE B 15 RETAIL & AMENITIES The East Village has a more diverse and plentiful abundance of nightlife/ restaurants than almost any other neighborhood in the city. The neighborhood is home to many speakeasies such as: Please Don’t Tell, Angels Share and the Blind Barber to name but a few. Arguably New York’s most famous bar, McSorley’s Old Ale House, was founded by Irish Immigrant John McSorley in 1854 and almost two centuries later, it’s taps are as busy as ever. People can enjoy a day walking the streets, stopping into hipster café’s, unique vintage shops, poetry slams or even just to take in the unique energy on St. Marks Place, often dubbed as the ‘coolest street in the country’. The neighborhood has no shortage of outdoor areas, Tompkins Square Park is filled with children’s playgrounds, dog runs, music festivals and in the summer outdoor movie screenings. By the water residents have access to East River Park, which has numerous athletic facilities for baseball, football, soccer, basketball, tennis and athletics throughout its 57 acres. RETAIL & AMENITIES GROCERIES & SPECIALTY 1 The Wayland 1 Keyfood Supermarkets 2 d.b.a 2 Union Market 32 AVENUE B 3 Boilermaker 3 Native Bean 4 The Immigrant 4 The Lazy Lama Coffee Bar 5 Lois 5 Coffee Project NYC 6 Alphabet City Beer Co. 6 Big Gay Ice Cream 7 Rosie’s 8 Oda House LIFESTYLE 9 Root & Bone 1 10 Ace Bar Tompkins Square park 2 11 Emmy Squared – NYC Russian & Turkish Baths 3 12 Edi & The Wolf2 Anthology Film Archives 4 13 McSorely’s Old Ale House Nuyorican Poets Café 5 14 The Copper Still East River Park 15 Wafels & Dingers 16 B6 REAL ESTATE ADVISORS 32 AVENUE B 17 DUE DILIGENCE 18 B6 REAL ESTATE ADVISORS 32 AVENUE B 19 R7A ZONING C1-5 ZONING The contextual Quality Housing regu- floor. In order to preserve the traditional C1-1 through C1-5 and C2-1 through C2-5 is 2.0. Commercial buildings are subject lations, which are mandatory in R7A streetscape, the street wall of a new districts are commercial overlays mapped to commercial bulk rules.