359-361 WEST 52nd STREET TABLE OF CONTENTS

I. EXECUTIVE SUMMARY

II. THE NEIGHBORHOOD

III. DUE DILIGENCE

CHRIS BRODHEAD Partner, Managing Director 646 933 2616 [email protected]

2 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 3 EXECUTIVE SUMMARY

4 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 5 THE OPPORTUNITY PROPERTY INFORMATION For the first time in nearly 40 years, the properties at 359 and 361 West 52nd Street are Location North side of West 52nd Street between 8th and 9th Avenues for sale and represent a compelling acquisition opportunity for investors, developers, Address 361 West 52nd Street 359 West 52nd Street Total business owner-users and live-plus-income buyers alike. Block / Lot 1043 / 108 1043 / 9 1043 / 108 & 9 Lot Dimensions (Approx.) 18.75' x 100.42' Irr. 18.75' x 100.42' 37.5' x 100.42' Irr. INVESTMENT OPPORTUNITY Lot SF (Approx.) 1,456 1,883 3,339 Proximity to midtown, Central Park, the Hudson Yards and Times Square make this Description 359 & 361 West 52nd Street are two adjacent 18.75’ wide four-story, mixed- use buildings located on the north side of West 52nd Street between 8th and location a stellar residential rental location. The commercial space appeals to a variety 9th Avenue. Both buildings have development rights allowing for an additional of retail, office, educational, showroom and gallery uses. A door from 52nd Street leads 5,800 sf of residential space to be built. #359 has a four 2BR residential units directly to the spacious basement under 359 West 52nd Street. Natural light filters in (one per floor) as well as a one-story carriage house at the rear that is used by the ground floor commercial space of 361 West 52nd Street. There is also a from windows onto the street and the rear courtyard. Regarding the residential income basement space with direct Street access. #361 has a ground floor commercial stream, upgrades can easily be made to the 7 apartments in order to drive rents to space that is built full on the lot and floor-through three 2BR apartments on the market levels. 2nd, 3rd and 4th Floors. There is also a great cellar. 361 West 52nd Street will be delivered vacant. The fourth floor of 359 West 52nd Street is owner-occupied, while the remaining 3 floor-through units are on month-to-month leases. DEVELOPMENT OPPORTUNITY Combined, the two lots share 37.5’ of frontage along West 52nd Street and total 3,340 BUILDING INFORMATION 361 WEST 52nd STREET 359 WEST 52nd STREET SF approximately. The zoning is R-8 in the Special Clinton District with a Floor-Area-Ratio 1st Floor (Approx.) 18.75' x 100.42' Irr. 18.9' x 54' 37.5' x 100.42' Irr. (FAR) of 4.2. An estimated 14,000 SF of residential space could be constructed on the 359 West 52nd - Carriage House 18.9' x 30' site. The current structures contain approximately 8,688 SF of floor area, leaving 5,335 2nd-4th Floor (Approx.) 18.75' x 54' Irr. 18.9' x 54' 37.5' x 60' Irr. SF (approximately) of air rights that can also be used.

Gross SF (Approx.) 4,071 4,617 8,688 OWNER-USER / LIVE WORK OPPORTUNITY (Includes rear building) (Includes carriage house) Certain business owners prefer to own the premises where their business is located. 359 and 361 West 52nd Street will appeal to owner-occupants of this profile. At present, over Stories 4 4 4 1,700 SF of ground floor space is used for commercial purposes and an additional 861 SF might be added as well (ground floor front unit at 359 West 52nd Street). The properties’ Commercial Units 1 1 2 commercial space is primed for a variety of professional, technological, educational, Residential Units 3 3 6 institutional and/or religious uses. Total Units 4 4 8 Additionally, the fact that 4 of 7 residential units are delivered vacant will allow a buyer to create a spacious home within the premises, possibly with dramatic rooftop space and Zoning R8 - Sp. Clinton District R8 - Sp. Clinton District the 630 sf carriage house at the rear of 359 West 52nd Street used as a private office, FAR (Residential) 4.20 4.20 4.20 work-out or mediation space. Existing SF (Approx.) 4,071 4,617 8,688 In conclusion, 359 and 361 West 52nd Street present a compelling acquisition opportunity Air Rights (Approx.) 2,044 3,291 5,335 for a variety of buyer profiles and is a rare asset in a stellar midtown Manhattan location. Total Buildable SF (Approx.) 6,115 7,908 14,023

Historic District: None None None

RE Tax Assessment (19/20) $285,745 $541,082 $826,827 Actual RE Taxes (18/19) $36,038 $68,241 $104,279 Tax Class 2A 2A 2A Building Class S3 (Primarily 3 Family with 1 store or office)

6 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 7 359 WEST 52ND STREET 361 WEST 52ND STREET

359 West 52nd Street is a 18.9’ wide, four- provides heat and hot water for this building. 361 West 52nd Street is a 18.9’ wide, four- The upper 3 floors are built 54’ deep story building which is classified as “S3 or story building which is also classified as “S3 and feature 3 spacious floor-through primarily 3-family with store or office”. The There are 4 spacious floor-through or primarily 3-family with store or office”. apartments (1 per floor, 12’ ceilings). There lot is 18.9’ x 100’ and is approximately 1,880 apartments (1 per floor, 12’ ceilings) that The lot is 100’ deep and is irregularly shaped, are two 2BR/2BA units and one 2BR/1.5 sf. All four floors are built 54’ deep. On the have 2 bedrooms and 1 bath. The apartments narrowing from 18.9’ at the front to 10.25’ bath units. Each of these units have been ground floor, a courtyard leads to a 1-story on the first, second and third floors are at the rear. Ground floor commercial space renovated and can command market “carriage house” style building (12’+ ceilings) leased on a month-to-month basis, while (12’ ceilings) is built 100’ deep and features rents. The top floor unit is owner-occupied that is built approximately 30’ deep. This the top floor is owner-occupied and will a office space at the front and a recording and has been extensively renovated in a space connects with the commercial unit of be delivered vacant. All of these units can studio at the rear which connects to the beautiful Italianesque style. All 3 units will 361 West 52nd Street and has been used as be easily upgraded in order to command “carriage house” space at #359. A cellar be delivered vacant. The roof commands a recording studio for several decades. The significantly higher rents than those (7’ ceilings) containing the ample storage stellar views and could become wonderful basement (7.6’ ceilings) has direct street obtained at present. The roof commands space, a bathroom and mechanical systems amenity space as well. Heat is provided by access and windows looking onto it as well stellar views and could become wonderful is accessed directly from the commercial electric baseboard radiators and paid for as the rear courtyard. A new gas-fired boiler amenity space as well. space and provides additional storage area. by the tenants.

8 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 9 PHOTO OF BUILDINGS VIEW FROM ROOF “CARRIAGE HOUSE” - 359 WEST 52ND STREET

APARTMENT 4 - 359 WEST 52ND STREET COMMERCIAL SPACE - 361 WEST 52ND STREET

10 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 11 APARTMENT 2 - 361 WEST 52ND STREET APARTMENT 4 - 361 WEST 52ND STREET

APARTMENT 3 - 361 WEST 52ND STREET

12 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 13 TRANSPORTATION AREA MAP SUBWAY MAP The area benefits from outstanding access to all major forms of transportation due to its proximity to subway hubs at Columbus 359-361 WEST 52nd STREET Circle and Times Square which provide a direct link to the ACE, BDFQ, NR & 1/2/3 subway lines. These lines afford nd quick access to both the east and west 359-361 WEST 52 STREET sides of Downtown Manhattan, the Bronx, Brooklyn, and Queens.

In addition, the area is served by bus routes running north and south on Tenth Madison (#2/3), Fifth (#2/3), Sixth (#5) and Seventh (#10) Avenues, as well as east and west along 50th, and 57th Streets.

By car, there is easy access to the Westside Highway and cross-town via 57th and 42nd Streets. All major bridges and tunnels are easily accessible from the site. The three local airports are within easy reach: LaGuardia Airport (35 minutes), John F. Kennedy Airport (50 minutes), and Newark Airport (35 minutes).

TAX MAP BUS MAP Block: 1043 Lot: 9 & 108 The subject property is located on the north side of West 52nd Street between Eighth and Ninth Avenue. 359-361 WEST 52ND STREET

14 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 15 REVENUE 359 WEST 52nd STREET UNIT TYPE STATUS EXPIRATION SF $/SF MONTHLY ANNUAL Owner - Delivered "Carriage House" Unit at rear 586 $55 $2,686 $32,230 Projected Vacant First Floor* 2BR/1BA Occupied Mth-Mth 767 $44 $2,800 $33,600 Second Floor* 2BR/1BA Occupied Mth-Mth 779 $48 $3,100 $37,200 Third Floor* 2BR/1BA Occupied Mth-Mth 779 $39 $2,500 $30,000 Owner - Delivered Fourth Floor* 2BR/1BA 779 $54 $3,500 $42,000 Projected Vacant Total Monthly $14,586 Total Annual $175,030

361 WEST 52nd STREET UNIT TYPE STATUS EXPIRATION SF $/SF MONTHLY ANNUAL Owner - Delivered Ground Floor Commercial Unit 1,165 $75 $7,280 $87,360 Projected Vacant Delivered Second Floor* 2BR/1.5BA Vacant 647 $67 $3,600 $43,200 Vacant Delivered Third Floor* 2BR/2BA Vacant 647 $67 $3,600 $43,200 Vacant Owner - Delivered Fourth Floor* 2BR/2BA 647 $70 $3,750 $45,000 Projected Vacant Total Monthly $18,230 Total Annual $218,760 *Residential unit SF projected at 85% of gross SF of each floor.

Total Monthly (Both Buildings) $32,816 Total Annual (Both Buildings) $393,790

EXPENSE & INVESTMENT VALUE Projected Residential & Commercial Gross Income $393,790 Vacancy & Credit Loss 3.00% $11,814 Effective Gross Income $381,976

EXPENSES (ESTIMATED) $/SF Amount Real Estate Taxes ('19/'20) $16.99 $104,279 Insurance @ $1.00 / SF $1.00 $8,688 Water & Sewer 2018 Actual + 3% $0.36 $3,131 Gas & Electric 2018 Actual + 3% $0.85 $7,373 Repairs & Maintenance $600 /Unit $0.81 $4,800 Super $700 /Month $0.08 $8,400 Misc. Projected @1% $0.45 $3,938 Management 3% $1.36 $11,814 Total Exp. Ratio 38.71% $25.37 $152,423

Effective Gross Income $381,976 Less Expenses $152,423 Net Operating Income $229,553

16 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 17 NEIGHBORHOOD

18 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 19 NEIGHBORHOOD Sandwiched between the Hudson Yards Although the Hell’s Kitchen moniker has The cuisine is as diverse as the clientele. Just grossing $1,700,000,000! Nothing is more and the Upper Westside, the area is a lived long past the rough-and-tumble days as tourists arrive from all corners of the globe, synonymous with New York City than the hot destination for those looking for of the neighborhood, many of the aspects the options on Restaurant Row are just as beloved musicals and plays that shine convenience to Midtown as well as proximity have changed completely. Today, luxury varied. From famed Italian restaurants such bright on Broadway -- just a stones’ throw to Central Park, the Theatre District and an condo buildings attract young professionals as Barbetta, to an array of Thai and Japanese away from the property! endless supply of restaurants and nightlife. and families. Restaurants dot the map with culinary options, Restaurant Row’s diversity Located to the west of Eighth Avenue cuisines from all over the world, and bars pleases all restaurant-goers. CORPORATIONS between 34th and 59th Street, the area has and pubs attract customers at all hours. Broadway, Seventh, and Eighth Avenues in evolved into an epicenter for restaurants, Ninth Avenue between 57th and 42nd the mid-Fifties have become an international nightlife, luxury condos and turn-of-the- NIGHTLIFE Streets is also a known hotbed of restaurants, hub for numerous top-tier media companies century renovated townhouses. No neighborhood in Manhattan offers a bars and gathering places that appeal to including Time Warner, Random House, denser collection of restaurants than Hell’s locals and tourists alike. Innovative cuisine Viacom, and the Hearst Corporation. To the Throughout much of the last century, Kitchen. Lining both the avenues and many and fun-filled nightspots make this strip a south, other media conglomerates such as Hell’s Kitchen was a melting pot. Home of the side streets are wide assortment of staple of New York after dark. Conde Nast and Bertlesmann rub elbows to immigrants of many nationalities, the cuisines from all over the world. One particular with tech, legal, financial, and accounting neighborhood was known for its organized street has become known as an epicenter for However, the undeniable star of the show giants such as Reuters, Microsoft, Morgan crime and violence. Although multiple dining in Hell’s Kitchen. For over 100 years is the Theatre District, affectionately known Stanley, Lehman Brothers, Skadden Arps, theories exist on how the name came to be, the block of West 46th Street between Eighth as Broadway. There are 41 professional and Ernst & Young. Each of these companies the most predominant recounts the story and Ninth Avenue has been home to some theatres in the District, each with 500 or has taken up residence in newly-minted of a rookie cop telling his veteran partner, of the city’s finest dining establishments. more seats. Broadway is the lifeblood of office towers in the area. These new high- “This place is Hell itself,” to which the The street, dubbed “Restaurant Row” and Times Square and Midtown; attendance rise developments and their high-powered veteran police officer replied, “Hell’s a mild officially dedicated by Mayor John Lindsey in reached nearly 14 million during the 2017/ tenants have transformed the area into a climate. This is Hell’s Kitchen.” 1973, is currently the home to 34 restaurants. 2018 Broadway season with revenues premier business location.

20 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 21 NEIGHBORHOOD HIGH FOOT TRAFFIC AND RETAIL OFFERINGS ON THE BLOCK Additionally, 52nd Street between Eighth and Ninth Avenues is one of the strongest retail side streets in Hell’ Kitchen. A Post Office, NYU Langone’s Ambulatory Care West Side Medical Center, and office buildings are found on 52nd Street to the East of the property. Busy restaurants on the Street also drive foot traffic during the day and evening. These include Michelin-starred Danji at 346 West 52nd Street, Totto Ramen at 366 West 52nd Street, Cha Pa’s at 314 West 52nd Street, Lucky’s Famous Burgers at 370 West 52nd Street, Mont Blanc at 344 West 52nd Street and bars Therapy at 348 West 52nd Street and Industry Bar at 355 West 52nd Street.

Two innovative condominiums have been developed of recent on the block to the East of the property as well. The Link at 310 West 52nd Street rises 44 stories and has 215 luxurious units. Built atop of the Post Office at 318 West 52nd Street, the Sorting House was recently completed and is 100% sold out. This building has 30 units and features large, private outdoor spaces and flexible unit layouts. To the west, the former St. Vincent’s Hospital has been converted into two luxury condominium properties as well. Nine 52, located at 416 West 52nd Street, is a 156-unit conversion, while 432 West 52nd Street has 55-units. The Lumiere at 350 West 53rd Street, the Dillon at 425 West 53rd Street, the Hit Factory at 421 West 54th Street and the Griffin Court at 454 West 54th Street are some of the other new construction condominium buildings built recently in the area surrounding the property.

22 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 23 DUE DILIGENCE

24 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 25 ZONING R8

New York City’s zoning regulates permitted uses of the property; the size of the building allowed in relation to the size of the lot (“floor to area ratio”); required open space on the lot, the number of dwelling units permitted; the distance between the building and the street; the distance between the building and the lot line; and the amount of parking required. The commercial district has eight different classifications. The manufacturing district has three different classifications. The 359-361 WEST 52nd STREET residential district has ten different 359-361 WEST 52ND STREET classifications.

359 & 361 West 52nd Street are zoned R8 in the Special Clinton District. FAR: 4.2 (Residential)

26 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 27 ZONING R8

28 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 29 RESIDENTIAL FLOOR PLANS RESIDENTIAL FLOOR PLANS 359 WEST 52nd STREET 361 WEST 52nd STREET

KIT. 1 BR. 1BA. t KIT. Ceil. ht. 12'-0" Approx. 779 SF 1BA. 1 BR. LVRM. BR. W 52nd Street APP. 647 SF 52nd Stree BA. 361 W 52 APT 4

359 W 52 APT 4 LVR. 1 BR. DIN. KIT. Ceil. ht. 12'-0" Ceil. ht. 12'-0" 1 BR. 1BA.

1BA. 1/2 KIT. 1 BR. 1BA. BA. W 52nd Street W 52nd Street

tW Approx. 647 SF Approx. 647 SF 2 BR. / 1BA. 361 W 52 APT 2 361 W 52 APT 3 Approx. 779 SF 52nd Stree Commercial Space Approx. 1124 SF Ceil. ht. 12'-0"

359 W 52 APT 3 W 52nd Street

361 W 52 APT 1 tW 1 Building approximate layout. 2 BR. / 1BA. A2 Approx. 779 SF Scale 1/16"=1'-0" 52nd Stree COMMERCIAL FLOOR PLANS 359 W 52 APT 2

Commercial Space Approx. 1124 SF tW Ceil. ht. 12'-0" W 52nd Street 2BR. / 1BA. Unbuilt CARRIAGE Approx. 767 SF Court HOUSE 359W 52nd St. Yard Approx. 586 SF 2BR. / 1BA. Unbuilt CARRIAGE 187 SF Approx. 767 SF Court HOUSE 359W 52nd St. W 52nd Stree Yard Approx. 586 SF 187 SF W 52nd Street 359 W 52 APT 1 359 West 52nd Street Building approximate layout. 1 1 361 & 359 West 52nd Street approximate 1st floor layout. A1 Scale 1/16"=1'-0" A3 Scale 1/16"=1'-0"

30 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 31 TAX ASSESSMENT TAX ASSESSMENT 359 WEST 52nd STREET 361 WEST 52nd STREET

32 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 33 NOTICE OF PROPERTY VALUE 359 WEST 52nd STREET

34 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 35 NOTICE OF PROPERTY VALUE 361 WEST 52nd STREET

36 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 37 CERTIFICATE OF OCCUPANCY CONFIDENTIALITY & CONDITIONS 359 WEST 52nd STREET 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 361 WEST 52nd STREET 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 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.

38 B6 REAL ESTATE ADVISORS 359-361 WEST 52ND STREET 39 B6 REAL ESTATE ADVISORS 1040 Avenue of the Americas, 8th Floor New York, NY 10018

FOR MORE INFORMATION, PLEASE CONTACT EXCLUSIVE AGENT

CHRIS BRODHEAD Partner, Managing Director 646 933 2616 [email protected]