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 //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 . The site is within close proximity to , 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 / 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 south to seven trains; L , N , Q , R , 4 , 5 , 6 . The neighborhood East Houston and from /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 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, , 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 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 ‘’. 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 ’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 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 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. districts, typically produce high lot cov- building can be no closer to the street line, within residence districts. Mapped along erage, seven- to nine- -story apartment than any adjacent street wall, but need streets that serve local retail needs, Overlay districts differ from other buildings, blending with existing buildings not be farther than 10 feet. Buildings must they are found extensively throughout commercial districts in that residential in many established neighborhoods. R7A have interior amenities for the residents the city’s lower- and medium-density bulk is governed by the residence district districts are mapped along Prospect Park pursuant to the Quality Housing Program. areas and occasionally in higher-density within which the overlay is mapped. All South and Ocean Parkway in Brooklyn, Off-street parking is not allowed in front districts. other commercial districts that permit Jackson Heights in Queens, and in of a building. residential use are assigned a specific and along the avenues in the East Village Typical retail uses include neighborhood residential district equivalent. Unless in Manhattan. Off-street parking is generally required grocery stores, restaurants and beauty otherwise indicated on the zoning maps, for 50 percent of a building’s dwelling parlors. C2 districts permit a slightly the depth of overlay districts ranges from The floor area ratio (FAR) in R7A districts units, but requirements are lower wider range of uses, such as funeral 100 to 200 feet. is 4.0. Above a base height of 40 to 65 for income-restricted housing units homes and repair services. In mixed feet, or 75 feet if providing a qualifying (IRHU) and are further modified in buildings, commercial uses are limited Generally, the lower the numerical suffix, ground floor, the building must set back certain areas, such as within the Transit to one or two floors and must always be the more off-street parking is required. to a depth of 10 feet on a wide street and Zone and the Manhattan Core or for lots located below the residential use. For example, in C1-1 districts, typically 15 feet on a narrow street before rising 10,000 square feet or less. Off-street mapped in outlying areas of the city, to a maximum height of 80 feet, or 85 parking requirements can be waived if 15 When commercial overlays are mapped a large food store would require one feet if providing a qualifying ground or fewer parking spaces are required. in R1 through R5 districts, the maximum parking space for every 100 square commercial floor area ratio (FAR) is feet of floor area, whereas no parking is 1.0; when mapped in R6 through R10 required in C1-5 districts, which are well districts, the maximum commercial FAR served by mass transit.

20 B6 REAL ESTATE ADVISORS 32 AVENUE B 21 TAX BILL CONFIDENTIALITY & CONDITIONS

The information contained in this offering memorandum (“Offering Memorandum”) is proprietary and strictly confidential. This Offering Memorandum was prepared by and is the property of B6 Real Estate Advisors LLC (“B6”) and has been reviewed by the owner (the “Owner”) of the Property. It is furnished solely for the purpose of review by a prospective purchaser of the Property and is not to be used for any other purposes or made available to any person without the express written consent of the Owner or B6. By accepting this Offering Memorandum, the party in possession hereof agrees to return it to B6 immediately upon request of B6 or Owner. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of B6 and Owner. Each prospective purchaser and/or broker proceeds at his, her or its own risk.

You have the obligation to keep this Offering Memorandum, and any various papers, documents, legal instruments, studies, leases, brochures, computer output, and other materials concerning the Property (all of the aforementioned information is collectively referred to as “Evaluation Material”) confidential. Certain Evaluation Materials, including the leases, are described in summary form. The summaries do not purport to be complete nor accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents.

The information in this Offering Memorandum has been compiled from sources deemed to be reliable and does not purport to be all-inclusive or to contain all of the information which a prospective purchaser may desire. Neither B6 nor the Owner makes any representation or warranty whatsoever regarding the accuracy, veracity, or completeness of the information provided herein and each of Owner and B6 (and their agents, advisors and representatives) expressly disclaim any and all liability for representations or warranties, express or implied, contained in this Offering Memorandum or the Evaluation Material or for omissions therefrom.

Financial projections and information contained herein and in any Evaluation Material, shall not be relied upon, are provided for general reference purposes only, and are based on assumptions relating to (and subject to) the general economy, market conditions, competition, and other factors beyond control and, therefore, are subject to material change, volatility or variation. A prospective purchaser must make its own independent investigations, projections, and conclusions regarding the acquisition of the Property. This includes legal, tax, environmental, engineering and other as deemed necessary relative to a purchase of the Property. This Offering Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment CERTIFICATE OF OCCUPANCY described herein. This Offering Memorandum does not constitute an offer of securities. The Owner expressly reserves the right, at its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party, at any time, with or without written notice. The Owner and B6 reserve the right to negotiate with one or more prospective purchasers at any time. This Offering Memorandum is subject to errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by B6. Only a fully-executed real estate purchase agreement, approved by the Owner, and executed and delivered to Owner and a prospective purchaser shall bind the property. In no event shall a prospective purchaser have any claims against the Owner or B6 or any of their affiliates, officers, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

The terms and conditions set forth above apply to this Offering Memorandum in its entirety.

22 B6 REAL ESTATE ADVISORS 32 AVENUE B 23 B6 REAL ESTATE ADVISORS 1040 Avenue of the Americas, 8th Floor New York, NY 10018

FOR MORE INFORMATION, CONTACT FOR FINANCING INQUIRIES, CONTACT

JAMES RYAN STEVEN SPERANDIO Director Partner, Senior Managing Director 646 933 2608 646 933 2638 [email protected] [email protected]