FIRST AMENDMENT
TO
CONDOMINIUM OFFERING PLAN
111 WEST 57TH STREET (:ONDOMINIUM
111 WEST 57TH STREET NEW YORK, NEW YORK 10019
SPONSOR: SELLING AGENT:
111 West Sib Property Corcoran Sunshine Marketing Group OwnerLLC 888 Seventh A venue 111 Fifth Avenue, 6th Floor New York, New York 10106 New York, New York 10003 and 104 Fifth A venue, 9th Floor New York, New York 10011
DATED: December 7, 2015 TABLE OF CONTENTS
Section
IN"TRODUCTION ...... 1
1. CONTROL BY SPONSOR ...... ~ ...... 1
I 2. SCHEDULE A-PURCHASE PRICES AND RELATED INFORMATION ...... 1 3. SCHEDULE B- BUDGET FOR FIRST FULL YEM OF CONDOMIN"IUM OPERATION2 4. MASTER FLOOR PLAN- FLOOR 17 ...... 2
5. UNIT UPGRADE OPTIONS ...... 2 6. IN"CORPORATION OF PLAN ...... 3
7. DEFIN"ITIONS ...... 3
8. NO MATERIAL CHANGES ...... 3
EXHIBIT A-SCHEDULE A-PURCHASE PRICES AND RELATED INFORMATION EXHIBIT B- SCHEDULE B-BUDGET FOR FIRST FULL YEAR OF CONDOMINIUM OPERATION EXHIBIT C - MASTER FLOOR PLAN - FLOOR 17 EXHIBIT D - UPGRADE RIDER AND SELECTION FORM
FIRST AMENDMENT
TO
CONDOMINIUM OFFERING PLAN
INTRODUCTION
This First Amendment modifies and supplements the terms of the Condominium Offering Plan for the premises known as 111 West 57th Street Condominium (“Condominium”) located at 111 West 57th Street, New York, New York 10019 (“Building”), dated October 15, 2015 (“Plan”), and should be read in conjunction with the Plan. The terms of this Amendment are as follows:
1. CONTROL BY SPONSOR The Sections of the Plan entitled “Special Risks- Sponsor Control of the Condominium Board” and “Control By Sponsor” are hereby amended to disclose that Michael Stern and Kevin Maloney will serve together as Co-Presidents on the initial Board. There will be no Vice President serving during this period. During the Initial Control Period, Sponsor shall designate 3 of the 5 Residential Members to the Condominium Board. After the Initial Control Period, Sponsor always shall have the right to designate 2 (rather than 1) Residential Members to the Condominium Board so long as it owns at least 1 Unsold Residential Unit. Further, notwithstanding the relinquishment of control by Sponsor, the Condominium Board cannot take any action whatsoever which would interfere to any degree with Sponsor’s rights under the Plan or Sponsor’s ability to meet its obligations under the Plan, including, without limitation, Sponsor’s obligation to procure a Permanent Certificate of Occupancy for the Building. Conforming changes will be incorporated in the Condominium By-Laws contained in Part II of the Plan which is an exhibit to the Declaration of Condominium.
2. SCHEDULE A-PURCHASE PRICES AND RELATED INFORMATION Annexed hereto as Exhibit A is a new Schedule “A” which indicates that, at the present time, Sponsor is not offering Residential Units 61, PH80, and PH82 for sale. Accordingly, the front cover of the Plan is amended to indicate that 57 Residential Units are being offered: 57 Residential Units…………………………$1,291,750,000 33 Storage Lockers…………………………..$ 1,510,000 Total Offering Amount………………………$1,293,260,000
00041101.DOC The Condominium will also include 3 additional Residential Units (Residential Unit 61, PH80, and PH82), and 2 Non-Residential Units which are not being offered for sale at this time.
References throughout the Plan to the offer of Residential Units are deemed changed to reflect the reservation of these 3 Residential Units and the offer of 57 Residential Units (rather than 60 Residential Units). Sponsor, by amendment to the Plan, may elect to extend the offering under the Plan to any or all of the aforementioned reserved Residential Units.
3. SCHEDULE B- BUDGET FOR FIRST FULL YEAR OF CONDOMINIUM OPERATION Annexed hereto as Exhibit B is a corrected Schedule "B" which reflects a typographical correction to the Residential Unit Common Charges so that they now conform to those Common Charges reflected in Schedule "A".
4. MASTERFLOORPLAN-FLOOR17 Annexed hereto as Exhibit C is the Master Floor Plan for Floor 17 which was inadvertently omitted from the printed Offering Plan.
5. UNIT UPGRADE OPTIONS Sponsor is offering Purchasers the option to upgrade their Units as follows and in accordance with the terms and conditions hereof:
i. Kitchen Upgrade
• Purchaser may elect to have Sponsor provide and install additional cabinetry over the island in the kitchen. The cabinetry shall be of the same design as the balance of the kitchen. The additional hanging cabinetry will have wood framing surrounding scalloped glass doors with three glass interior shelves. The finish will be Chateau Gray Oak. The upgrade cost is $80,000.
ii. Stairs Upgrade
• The interior stairs in the duplex Units, at Purchaser's election, may be delivered finished in white Macauba stone. The upgrade cost is $450,000.
iii. Kitchen Cabinet Finish
• Purchaser has the option of selecting among the following kitchen cabinetry finishes, at no additional cost:
o Black hand-rubbed plaster
o White hand-rubbed plaster o Chateau Gray Oak All selections and upgrades must be indicated on the Rider to the Purchase Agreement, a copy of which is annexed hereto as Exhibit D, at the time it is executed. If Purchaser fails to select a kitchen cabinet finish, the Unit will be delivered with kitchen cabinets finished in Chateau Gray Oak.
00041101.DOC All Upgrade Funds must be delivered along with the Initial Deposit. Upgrade Funds will to be released to Sponsor pursuant to the terms of the Offering Plan as further described in the Section entitled "Escrow and Trust Fund Requirements". Further changes, modifications and upgrades are subject to arrangement between Sponsor and Purchaser. Configurations, sample colors, and sample materials are available for inspection at the Sales Center. Sponsor represents that Units will be delivered with finishes that are substantially similar but may not be identical to those selected subject to dye lot, wear and tear, and availability ofmatching materials at the time the Unit is delivered. Sponsor bears no liability in the event colors or finishes ofthe final installed materials selected are not identical to any colors or materials provided as samples in the Sales Center.
6. INCORPORATION OF PLAN The Plan, as modified and supplemented by this and prior Amendments, is incorporated herein by reference with the same effect as if set forth at length.
7. DEFINITIONS Any term used in this Amendment not otherwise defmed herein shall have the same meaning ascribed to it in the Plan.
8. NO MATERIAL CHANGES Except as set forth in this Amendment, there have been no material changes of facts or circumstances affecting the Property or the offering.
SPONSOR:
111 WEST 57TH PROPERTY OWNER LLC
00041101.DOC EXHIBIT A
SCHEDULE "A" PURCHASE PRICES AND RELATED INFORMATION
00041101.DOC SCHEDULE A 111West57th Street Condominium 111West57th Street New York, NY
PURCHASE PRICES AND RELATED INFORMATION
PROJECTED COMMON CHARGES AND REAL ESTATE TAXES ARE FOR THE FIRST YEAR OF CONDOMINIUM OPERATION MAY 1, 2018-APRIL 30, 2019
(3) (3) (6) (6) (8) APPROX APPROX (5) (5) PROJECTED PROJECTED (7) (7) PROJECTED (1) UNIT EXTERIOR (4) RESIDENTIAL GENERAL MONTHLY ANNUAL PROJECTED PROJECTED TOTAL MONTHLY (1) NO BEDROOMS/ SQUARE SQUARE PURCHASE COMMON COMMON COMMON COMMON MONTHLY ANNUAL CARRYING
UNIT BATHROOMS FOOTAGE FOOTAGE PRICE INTEREST INTEREST CHARGES CHARGES- RE- TAXES------RE TAXES----- CHARGES------··- Steinway llA 3/4.5 3,596 $9,890,000 1.2460% 1.0337% $5,783.11 $69,397.34 $6,790.80 $81,489.56 $12,573.91 llB 111 823 $2,057,500 0.2852% 0.2366% $1,323.55 $15,882.65 $1,554.18 $18,650.14 $2,877.73 llC 0/1 564 $1,410,000 0.1954% 0.1621% $907.03 $10,884.34 $1,065.07 $12,780.90 $1,972.10 llD 1/1 1,083 $2,707,500 0.3753% 0.3113% $1,741.69 $20,900.26 $2,045.17 $24,542.04 $3,786.86 llE 111 1,112 $2,780,000 0.3853% 0.3197% $1,788.33 $21,459.91 $2,099.93 $25,199.22 $3,888.26 12S 3/4.5 3,596 $9,500,000 1.2522% 1.0388% $5,811.60 $69,739.20 $6,824.25 $81,890.98 $12,635.85 12N 3/3.5 3,671 785 $9,900,000 1.3466% 1.1172% $6,249.98 $74,999.70 $7,339.01 $88,068.11 $13,588.98 14S 3/4.5 4,047 $10,120,000 1.4161% 1.1748% $6,572.54 $78,870.43 $7,717.77 $92,613.29 $14,290.31 14N 3/3.5 3,954 $9,885,000 1.3836% 1.1478% $6,421.50 $77,057.98 $7,540.42 $90,485.04 $13,961.92 16S 2/3.5 2,779 810 $8,600,000 1.0484% 0.8698% $4,865.73 $58,388.75 $5,713.56 $68,562.76 $10,579.29 16N 2/2.5 2,732 958 $7,250,000 1.0448% 0.8668% $4,849.41 $58,192.91 $5,694.40 $68,332.80 $10,543.81 17S 2/3.5 2,691 $7,500,000 0.9508% 0.7888% $4,412.96 $52,955.51 $5,181.90 $62,182.80 $9,594.86 17N 2/2.5 2,689 $7,000,000 0.9501% 0.7882% $4,409.68 $52,916.15 $5,178.05 $62,136.59 $9,587.73 *PH20 3/4 5,053 3,813 $19,000,000 2.1427% 1.7776% $9,944.79 $119,337.47 $11,677.63 $140,131.55 $21,622.42
Tower 25 3/3.5 4,491 $15,500,000 1.6098% 1.3355% $7,471.51 $89,658.09 $8,773.39 $105,280.66 $16,244.90 26 3/3.5 4,491 $15,750,000 1.6175% 1.3419% $7,507.09 $90,085.03 $8,815.17 $105,781.99 $16,322.25 27 3/3.5 4,491 $16,000,000 1.6251% 1.3483% $7,542.66 $90,511.97 $8,856.94 $106,283.33 $16,399.61 28 3/3.5 4,491 $16,250,000 1.6328% 1.3546% $7,578.24 $90,938.92 $8,898.72 $106,784.67 $16,476.97 29 3/3.5 4,491 $16,500,000 1.6405% 1.3610% $7,613.82 $91,365.86 $8,940.50 $107,286.00 $16,554.32 30 3/3.5 4,491 $16,750,000 1.6481% 1.3673% $7,649.40 $91,792.80 $8,982.28 $107,787.34 $16,631.68 31 3/3.5 4,491 $17,000,000 1.6558% 1.3737% $7,684.98 $92,219.75 $9,024.06 $108,288.68 $16,709.04 32 3/3.5 4,491 $18,000,000 1.6635% 1.3801% $7,720.56 $92,646.69 $9,065.83 $108,790.01 $16,786.39 33 3/3.5 4,491 $18,750,000 1.6711% 1.3864% $7,756.14 $93,073.63 $9,107.61 $109,291.35 $16,863.75 34 3/3.5 4,491 $19,500,000 1.6788% 1.3928% $7,791.71 $93,500.58 $9,149.39 $109,792.69 $16,941.11 35 3/3.5 4,491 $20,250,000 1.6865% 1.3991% $7,827.29 $93,927.52 $9,191.17 $110,294.02 $17,018.46 36 3/3.5 4,491 $21,250,000 1.6941% 1.4055% $7,862.87 $94,354.46 $9,232.95 $110,795.36 $17,095.82 37 3/3.5 4,491 $22,000,000 1.7018% 1.4119% $7,898.45 $94,781.41 $9,274.72 $111,296.70 $17,173.18 38 3/3.5 4,491 $22,750,000 1.7095% 1.4182% $7,934.03 $95,208.35 $9,316.50 $111,798.03 $17,250.53 39 3/3.5 4,491 $23,750,000 1.7171% 1.4246% $7,969.61 $95,635.29 $9,358.28 $112,299.37 $17,327.89 42 3/3.5 4,491 $27,500,000 1.7248% 1.4309% $8,005.19 $96,062.24 $9,400.06 $112,800. 71 $17,405.25 43 3/3.5 4,491 $27,750,000 1.7324% 1.4373% $8,040.76 $96,489.18 $9,441.84 $113,302.04 $17,482.60 44 3/3.5 4,491 $28,000,000 1.7401% 1.4437% $8,076.34 $96,916.12 $9,483.61 $113,803.38 $17,559.96 45 3/3.5 4,491 $28,250,000 1.7478% 1.4500% $8,111.92 $97,343.07 $9,525.39 $114,304.71 $17,637.32 46 3/3.5 4,491 $28,500,000 1.7554% 1.4564% $8,147.50 $97,770.01 $9,567.17 $114,806.05 $17,714.67 47 3/3.5 4,491 $28,750,000 1.7631% 1.4627% $8,183.08 $98,196.95 $9,608.95 $115,307.39 $17,792.03 48 3/3.5 4,491 $29,000,000 1.7708% 1.4691% $8,218.66 $98,623.90 $9,650.73 $115,808.72 $17,869.38 49 3/3.5 4,491 $29,250,000 1.7784% 1.4755% $8,254.24 $99,050.84 $9,692.51 $116,310.06 $17,946.74 50 3/3.5 4,491 $29,500,000 1.7861% 1.4818% $8,289.82 $99,477.78 $9,734.28 $116,811.40 $18,024.10 52 3/3.5 4,182 $26,250,000 1.6704% 1.3858% $7,752.57 $93,030.85 $9,103.43 $109,241.12 $16,856.00 53 3/3.5 4,182 $26,500,000 1.6775% 1.3917% $7,785.70 $93,428.42 $9,142.33 $109,707.96 $16,928.03 54 3/3.5 4,182 $26,750,000 1.6846% 1.3976% $7,818.83 $93,825.99 $9,181.23 $110,174.80 $17,000.07 55 3/3.5 4,182 $27,000,000 1.6918% 1.4035% $7,851.96 $94,223.56 $9,220.14 $110,641.64 $17,072.10 56 3/3.5 4,182 $27,250,000 1.6989% 1.4095% $7,885.09 $94,621.12 $9,259.04 $111,108.49 $17,144.13 SCHEDULE A 111 West 57th Street Condominium 111West57th Street New York, NY
PURCHASE PRICES AND RELATED INFORMATION
PROJECTED COMMON CHARGES AND REAL ESTATE TAXES ARE FOR THE FIRST YEAR OF CONDOMINIUM OPERATION MAY 1, 2018-APRIL 30, 2019
(3) (3) (6) (6) (8) APPROX APPROX (5) (5) PROJECTED PROJECTED (7) (7) PROJECTED (1) UNIT EXTERIOR (4) RESIDENTIAL GENERAL MONTHLY ANNUAL PROJECTED PROJECTED TOTAL MONTHLY (1) NO BEDROOMS/ SQUARE SQUARE PURCHASE COMMON COMMON COMMON COMMON MONTHLY ANNUAL CARRYING
UNIT------BATHROOMS... FOOTAGE FOOTAGE PRICE INTEREST INTEREST CHARGES CHARGES RE TAXES RE TAXES CHARGES 57 3/3.5 4,182 $27,500,000 1.7060% 1.4154% $7,918.22 $95,018.69 $9,297.94 $lll,575.33 $17,216.17 58 3/3.5 4,182 $27,750,000 1.7132% 1.4213% $7,951.35 $95,416.26 $9,336.85 $ll2,042.l 7 $17,288.20 59 3/3.5 4,182 $28,000,000 1.7203% 1.4272% $7,984.49 $95,813.83 $9,375.75 $ll2,509.0l $17,360.24 *61 3/4.5 7,091 2.9412% 2.4401% $13,650.85 $163,810.18 $16,029.45 $192,353.46 $29,680.30 64 3/3.5 3,873 309 $30,000,000 1.6452% 1.3649% $7,635.90 $91,630.81 $8,966.43 $107,597.12 $16,602.33 65 3/3.5 3,873 $29,250,000 1.6263% 1.3492% $7,547.94 $90,575.29 $8,863.14 $106,357.68 $16,411.08 66 3/3.5 3,873 $29,500,000 1.6329% 1.3547% $7,578.62 $90,943.48 $8,899.17 $106,790.03 $16,477.79 67 3/3.5 3,873 $29,750,000 1.6395% 1.3602% $7,609.31 $91,311.67 $8,935.20 $107,222.37 $16,544.50 68 3/3.5 3,873 $30,000,000 1.6461% 1.3657% $7,639.99 $91,679.86 $8,971.23 $107,654.72 $16,611.22 69 3/3.5 3,873 $30,250,000 1.6527% 1.3711% $7,670.67 $92,048.06 $9,007.26 $108,087.07 $16,677.93 70 3/3.5 3,873 $30,500,000 1.6659% 1.3821% $7,732.04 $92,784.44 $9,079.31 $108,951.77 $16,811.35 *PH72 415.5 7,128 $56,000,000 3.0904% 2.5639% $14,343.24 $172,118.89 $16,842.49 $202,109.93 $31,185.73 *PH74 415.5 7,128 $57,000,000 3.1147% 2.5841% $14,456.18 $173,474.15 $16,975.ll $203,701.35 $31,431.29 *PH76 4/4.5 6,510 309 $54,600,000 2.9009% 2.4067% $13,463.86 $161,566.37 $15,809.89 $189,718.68 $29,273.75 *PH78 414.5 6,510 $53,800,000 2.8891% 2.3969% $13,409.12 $160,909.41 $15,745.60 $188,947.25 $29,154.72 *PH80 313.5 5,892 309 2.6695% 2.2147% $12,389.88 $148,678.50 $14,548.76 $174,585.15 $26,938.64 *PH82 212.5 5,581 309 2.5497% 2.1153% $ll,834.0l $142,008.12 $13,896.04 $166,752.48 $25,730.05 RESIDENTIAL TOTAL 252,581 7,602 $1,291, 750,000 100.0000% 82.9632% $464,127.58 $5,569,531.00 $545,000.00 $6,540,000.00 $1,009,127.58 NON-RESIDENTIAL UNIT 1 40,610 15.1265% $ll,571.50 $138,858.00 NON-RESIDENTIAL UNIT 2 5,870 1.9103% $1,461.25 $17,535.00 NON-RESIDENTIAL TOTAL 46,480 17.0368% $13,032.75 $156,393.00 $0.00 $0.00 $0.00 GRAND TOTAL 15,204 $1,291, 750,000 100.0000% 100.0000% $475,699.08 $5,725,924.00 $545,000.00 $6,540,000.00 $1,009,127.58 *Duplex SCHEDULE A 111West57th Street Condominium New York, NY
Storage Approx. Purchase Unit Dimensions Price 1 4'x4' $40,000 2 4'x4' $40,000 3 4'x4' $40,000 4 4'x4' $40,000 5 4'x4' $40,000 6 4'x4' $40,000 7 4'x4' $41,000 8 4'x4' $41,000 9 4'x4' $41,000 10 4'x4' $41,000 11 4'x4' $41,000 12 4'x4' $41,000 13 4'x4' $41,000 14 3'-9"x4' $41,000 15 6'11"x4' $70,000 16 4'x4' $40,000 17 4'x4' $40,000 18 4'x4' $40,000 19 4'11 "x4' $50,000 20 4'x4' $40,000 21 5'2"x4' $55,000 22 6'1"x4' $55,000 23 5'9"x4' $60,000 24 4'x4' $40,000 25 4'x4' $40,000 26 4'x4' $40,000 27 4'x4' $40,000 28 6'x3'-9" $60,000 29 6'x3'-9" $60,000 30 6'x3'-9" $60,000 31 6'x3'-9" $60,000 32 4'x4' $46,000 33 4'x4' $46,000
Storage Total $1,510,000 EXHIBITB
SCHEDULE "B"
PROJECTED BUDGET FOR FIRST FULL YEAR OF CONDOMINIUM OPERATION
{v.6}00041101.DOC SCHEDULE''B'' 111 West 57th Street Condominium Projected Budget for First Full Year of Condominium Operation May 1, 2018 - April 30, 2019
PROJECTED INCOME Common Charges ...... Residential Unit Common Charges ...... $ 5,569,531 Non-Residential Unit 1 Common Charges ...... $ 138,858 Non-Residential Unit 2 Common Charges ...... $ 17,535 TOTAL PROJECTED INCOME ...... $ 5,725,924
PROJECTED EXPENSES Salary, Wages, Payroll Taxes (2) ...... $ 2,309,809 Heat, & Hot Water (3) ...... $ 1,100,000 Cooking Gas (4) ...... $ 8,250 Electricity (5) ...... $ 809,600 Water & Sewer (6) ...... $ 62,026 Repairs & Maintenance (7) ...... $ 60,000 Services & Supplies (8) ...... $ 433,000 Amenity Facility (9) ...... $ 250,000 Insurance (10) ...... $ 329,239 Management Fee (11) ...... $ 220,000 Legal & Auditing Fees (12) ...... $ 14,000 Administration (14) ...... $ 30,000 Contingency ( 16) ...... $ 1002000 TOTAL PROJECTED FIRST YEAR EXPENSES ...... $ 5,725,924 The accompanying notes are an integral part of this Schedule B and should be read in conjunction herewith Notes to Schedule B
(1) COMMON CHARGES - (Budget - $5,725,924)
The estimated Common Charges to be collected from Unit Owners during the first year of Condominium operation are based upon the assumption that the first year of Condominium operation will be the twelve months commencing May 1, 2018. The actual first year of operation may be earlier or later.
The allocation for the General Common Expenses to be borne by the Non-Residential Unit 1 and Non Residential Unit 2 has been allocated on the basis of each Non-Residential Unit's Percentage of Common Interest, Non-Residential Unit 1 15.1265% and Non-Residential Unit 2 1.9103% and in certain cases based on each unit's usage of a particular expense line item.
Residential Non- Non- Units Residential Residential Retail Unit Retail Unit 1 2 82.9632% 15.1265% 1.9103% Proiected Income Common Charges Residential Unit Common Charqes 5,569,531 5,569,531 Non-Residential Retail Unit 1 Common Charges 138,858 138,858 Non-Residential Retail Unit 2 Common Charges 17,535 17,535 Total Projected Income 5,725,924 5,569,531 138,858 17,535
Proiected Expenses Salary, Wages, Payroll Taxes 2,309,809 2,304,651 4,580 578 Heat, & Hot Water 1, 100,000 1, 100,000 0 0 Cooking Gas 8,250 8,250 0 0 Electricity 809,600 795,807 12,246 1,547 Water & Sewer 62,026 62,026 0 0 Repairs & Maintenance 60,000 49,778 9,076 1,146 Services & Supplies 433,000 423,885 8,093 1,022 Amenity Facility 250,000 250,000 0 0 Insurance 329,239 273, 148 49,802 6,289 Management Fee 220,000 182,519 33,278 4,203 Leqal & Auditinq Fees 14,000 11,615 2,118 267 Administration 30,000 24,889 4,538 573 Continqency 100,000 82,963 15,127 1,910
Total Projected First Year Expenses 5,725,924 5,569,531 138,858 17,535
In the event the projected commencement date of the first year of Condominium operation is to be delayed more than six (6) months from the anticipated date of the First Closing, the Plan will be amended to include a revised budget disclosing the then current budget projections. Sponsor will not declare the plan effective if any material changes to the budget are not yet disclosed in an amendment to the plan. If the Common Charges in the revised budget projections exceed the earlier budget projections by twenty five percent (25%) or more, the Sponsor will offer all purchasers the right to rescind their Purchase Agreements and have their Deposits refunded to them and a reasonable period of time that is not less than fifteen (15) days after the date of presentation to exercise the right, whether or not the Sponsor offers to guarantee the earlier budget projections.
If the First Closing does not occur within 12 months after the date set forth herein for the First Year of Condominium Operation in effect on the date a Purchaser and Sponsor entered into a Purchase Agreement, Sponsor will offer those affected Purchasers only a right to rescind their Purchase Agreements for 15 days from the Presentation Date of the amendment disclosing Sponsor's failure to close within such time frame. Any Purchasers electing rescission will have their Deposits returned together with any interest earned thereon, except for any Unit Upgrade Funds to the extent already applied or actually used.
(2) SALARIES, WAGES, PAYROLL TAXES & BENEFITS - (Budget - $2,309,809)
The budgeted amount includes base wages, worker's compensation and disability insurance, welfare and pension costs, payroll taxes and the cost of sick days, holidays and vacation pay for a projected building staff of 1 Non-Resident Manager, 1 Assistant Superintendent, 1 Chief Engineer, 2 handyman, 8.4 doormen, 4.2 concierges and 9 porters. The full staff may not be employed until certain Building occupancy levels are achieved. The projected level of staffing for the Building complies with all applicable housing and labor laws. It is anticipated that such employees will be non-union members.
Position Base Wage Rate
(l)Non- Resident Manager $ 175,000 per annum
(1) Assistant Superintendent $ 100,000 per annum
( 1) Chief Engineer $ 100,000 per annum
(2) Handyman/Porter $ 1,047 per week
(22) 8.4 Doormen, 4.2 Concierge, $ 950 per week 9 Porters
The projections allow for 28 sick days, holidays and vacation pay and miscellaneous payroll expenses.
Total Base Wages $ 1,691,550
FICA @ 7.65% of Base Wages $ 129,404 Worker's Compensation@ 5.5% of total wages $ 93,035 FUI and FUTA-NYS Unemployment,@ $600 per employee $ 16,200 NYS Disability @ $60 per employee $ 1,620 Health benefits @ $14,000 per employee $ 378,000
Total Benefit $618,259
TOTAL WAGES, TAXES & BENEFITS $2,309,809 The employees will be devoting a substantial portion of their time and effort to service the Residential Units and the Residential Common Elements, except that a small portion of the Manager and porter's time (estimated at ten percent (10%) or four (4) hours per week per man) will be devoted to the General Common Elements. Accordingly, salaries and related expenses have been primarily allocated to the Residential Unit, except for the time charged to the General Common Elements ($30,276) that has been apportioned to all of the Units within the Condominium based upon each Unit's Common Interest Percentage.
(3) HEAT & HOT WATER - (Budget - $1,100,000)
The budgeted amount is based upon a letter from Jaros, Baum and Bolles, located at 80 Pine Street, New York, NY, Sponsor's Consulting Engineers, dated February 24, 2015. It is anticipated that the annual consumption of steam for heat and hot water for the Residential Units will be approximately 25,000 m/lbs at $40.00 perm/lb for a total cost of $1,000,000. The Non-Residential Units will be separately metered or sub metered for heat and hot water, if necessary. A 10% inflation factor has been added.
It is not possible to predict how closely the budgeted figure will reflect the actual cost of steam for heat and hot water during the first year of Condominium operation, because such cost will vary with the level of consumption and the price of steam. Consumption will be affected by the severity of the weather and by any conservation measures adopted by the Condominium Board or individual unit owners.
(4) COOKING GAS (Budget - $8,250)
The Residential Units will not be separately metered for gas to be used for cooking. Based on a letter from Jaros, Baum and Bolles dated February 24, 2015, it is estimated that the gas cost for apartment cooking for the Residential Units based on 5,000 therms of gas/year at an average rate of $1.50 per therm will be $7 ,500. A 10% inflation factor has been added.
(5) ELECTRICITY - (Budget- $809,600)
The electricity consumption for the first year of Condominium operation for the common areas was estimated by Jaros, Baum and Bolles, in a letter dated February 24, 2015, at 3,200,000 kilowatt hours of electricity, at a rate of$ .23 per kilowatt hour of electricity including applicable sales tax, resulting in an annual cost of $ 736,000. This is based on common area loads being supplied through a single house meter at Con Edison SC9-1 and the rates are based on the currently effective rates.
This estimate includes costs for the common area air conditioning units, amenity facilities, distribution pumps, miscellaneous floor loads, elevators and lighting. Electricity costs can vary depending upon consumption and demand factors. A 10% inflation factor has been added.
These costs are only the estimated electricity costs for the Common Elements within the building and have been allocated 90 percent to the Residential Common Elements and charged to the Residential Units, with the remaining 10 percent allocated to the General Common Elements within the Condominium and allocated to all units based upon each Unit's Common Interest Percentage.
Each unit will be individually metered or submetered for consumption of electricity within their own units. See Schedule B-1 for the projected individual unit energy costs. (6) WATER & SEWER - (Budget - $62,026)
The building will have a single main water meter, which will measure actual water usage. Based upon a letter Jaros, Baum and Bolles from dated February 24, 2015, water and sewer charges for the Residential Units are based upon a combined charge of$ 9.58 per 100 Cu. Ft. and an estimated usage of 5,630 C.C.F. for a total cost of $53,935. A 15% inflation factor has been added.
The Non-Residential Units will be separately sub-metered or metered for water and sewer usage and will pay the costs of water and sewer usage directly to the Condominium or taxing authority.
(7) REPAIRS & MAINTENANCE - (Budget - $60,000)
Since the Building will be newly constructed it has no operating history upon which to project future costs of repairs and maintenance. No major capital repairs are included in the First Year's Budget since all major construction and mechanical systems will be new. Future major capital repairs to the Common Elements will be borne by all Unit Owners. The budgeted figure for this item includes the cost of normal maintenance and repairs to the Common Elements of the Building that are the responsibility of the Condominium. Each Unit Owner will be responsible for the cost of the interior maintenance, repairs, decoration and painting of their respective units, including the appliances, incremental heating/air conditioning units and any Limited Residential Common Elements appurtenant thereto. Repairs and Maintenance have been allocated to all Units based upon each Unit's Common Interest Percentage.
(8) SERVICE & SUPPLIES - (Budget- $433,000)
The budgeted amount includes the cost of cleaning equipment and miscellaneous supplies for the Common Elements, as well as the anticipated cost of service contracts during the first year of Condominium operation.
All of the mechanical systems within the Building will be new, and some will be under a full service maintenance contract for the first year of Condominium operation from the contractor who will install the system. No maintenance or service contracts have been entered into as of the date of the Plan. The budgeted amounts are based upon the experience of the Sponsor's budget expert in operating similar buildings. While this Schedule B includes a reasonable allowance for possible increases in cost that may occur prior to and during the first year of Condominium operations, no warranty is made that the actual cost for these or other services will be in accordance with this projection.
It is projected that the Condominium will enter into maintenance agreements for the following services:
Generator $ 10,000 Heating and Cooling System $ 50,000 Elevator Maintenance $ 50,000 Sprinkler System/Fire Protective Alarm System $ 20,000 Metal, Wood, and Marble Maintenance $ 30,000 Exterminator $ 8,000 Uniform Cleaning & Maintenance $ 25,000 Water Treatment $ 15,000 Miscellaneous Supplies $ 50,000 Building Link $ 5,000 Landscaping/Flowers $ 20,000 Window Washing $150,000 The cost for services relating to the sprinkler system/fire protection alarm system, exterminator, service elevator ($5,500), water treatment and $5,000 of the $50,000 of supplies for a total of $53,500 have been allocated to all units within the Condominium based upon each unit's Common Interest Percentage.
(9) AMENITY FACILITY - (Budget - $250,000)
The Condominium will engage a third party operator to manage the amenity facility. The third party manager will staff the fitness center, provide lifeguards and other pool equipment and coordinate programs and other events. It is anticipated that the cost to operate the amenity facility during the first year of condominium operation will be approximately $250,000
(10) INSURANCE - (Budget - $329,239)
Based upon the proposal dated June 12, 2015, from Willis of New York, Inc., having an office address at One World Financial Center, 200 Liberty Street, New York, NY 10287. The following insurance coverage will be obtained for the Building for the first year of Condominium operation:
A Comprehensive Condominium Package Policy, including Boiler & Machinery and Water Damage, with the following General Coverage and Limits:
Property Policy
$230,000,000 Building No Co-insurance, Replacement Cost, "Special" Perils including Terrorism to the extent provided by TRIPR-$10,000 Deductible.
Included Business Income
$25,000,000 Demolition and Increased Cost of Construction
Included Boiler & Machinery
$25,000,000 Flood- deductible 5% of Total Insurable Value
$250,000,000 Earthquake- deductible $25,000
General Liability Policy
$1,000,000 Per Occurrence
$2,000,000 General Aggregate
$ 1,000,000 Personal & Advertising Injury
$ 300,000 Fire Damage Legal Liability
$ 10,000 Medical Payments
$ 1,000,000 Directors & Officers Liability- per occurrence/ aggregate limit $2,500 deductible $ 500,000 Employee Dishonesty-Computer Fraud & Wire Fraud $2,500 deductible
$ 25,000 Forgery/Alteration, Theft, Disappearance and Destruction $2,500 deductible
Umbrella Liability
$100,000,000 - Per Occurrence/Aggregate-$10,000 Self Retained Limit
The annual premium for the above mentioned insurance policy is estimated to be $329,239.
The insurance costs are for the entire Condominium and have been allocated to all units within the Condominium based upon each unit's Common Interest Percentage.
This budgeted amount represents current insurance premium at current rates. Because conditions in the insurance marketplace are volatile, it is not possible to predict what the premiums and/or deductibles will be for the budget year. Purchasers should be aware of the possible rate and deductible increases.
The fire, casualty and general liability insurance carried by the Condominium will provide that each unit owner is an additional insured party; that there will be no cancellation without notice to the Condominium Board and Permitted Mortgagees; a waiver of subrogation; a waiver of invalidity because of the acts of the insured and Unit Owners; and a waiver of pro-rata reduction if Unit Owners obtain additional coverage.
All Unit Owners are required to obtain casualty insurance with respect to the Unit, including, without limitation, the flooring, fixtures, furniture, furnishings and personal property located within the Unit, any Residential Limited Common Elements appurtenant thereto, and any Storage Locker licensed by the Unit Owner and liability insurance with respect to occurrences in or about the Unit, any Residential Limited Common Elements appurtenant thereto, and any Storage Locker licensed by the Unit Owner. All such certificates of insurance shall name the Condominium Board, the Condominium and Sponsor as additional insureds and shall be delivered to the Condominium at the Closing of Title to the Unit. All such policies shall contain waivers of subrogation, if available, and the liability of the carriers issuing insurance obtained by the Condominium Board shall not be affected or diminished by reason of such additional insurance carried by any Unit Owner.
Each individual Unit must obtain additional insurance at his own cost for the following coverage, which is not included in the above coverage:
• fire or casualty losses to the contents of his unit and any replacements, additions, upgraded fixtures and improvements therein; and
• liability for personal injury or property damage as a result of occurrences in his Unit, including water damage legal liability to cover damage arising from leaks or other conditions within the Unit. (10) MANAGEMENT FEE - (Budget - $220,000)
At or prior to the First Closing, the Condominium will enter into a management agreement with Halstead Management, LLC having an office address at 770 Lexington Ave., New York, NY, a real estate management firm. The agreement will be for an initial term of 2 years. Thereafter, the agreement will be automatically renewed from month to month, but may be cancelled by either party without cause, upon not less than sixty (60) days' prior written notice.
The Managing Agent will receive an annual fee of $220,000 payable in equal monthly installment of $18,33333. The Managing Agent's fee for the first year of Condominium operation is comparable to the "going rate" for similar services in comparable buildings.
The Management Fee has been allocated to each Unit based on each Unit's Percentage of Common Interest Percentage.
See the section of the plan entitled "Management Agreement" for further details.
(11) LEGAL & AUDIT FEES - The Condominium will engage a law firm to act as the attorney for the Condominium for minor miscellaneous legal matters. The estimated cost for these services for the Condominium's first year is $6,500. Based upon a proposal from Bass & Lerner, LLP, located at 836 Hempstead Ave., West Hempstead, NY 11552 to provide audited tax returns and financial statement preparation for the Condominium, it is estimated that the first year cost for these services will be approximately $7,500. These professional fees are for the entire Condominium and have been allocated to all units within the Condominium based upon each Unit's Common Interest Percentage. (12) ADMINISTRATION - (Budget- $30,000) The budgeted amount includes anticipated expenses for telephone, cell phones, internet, postage, printing, miscellaneous office supplies, payroll processing costs, cable television in amenity areas, permits and fees. These costs for administration have been allocated to each unit within the Condominium based upon each Unit's Common Interest Percentage. (13) CONTINGENCY - (Budget- $100,000) This expense item is included in the budget to provide funds for unforeseen increases in Residential Common expense and General Common expense. Contingency will be allocated to all Unit Owners based on their respective Common Interest Percentage. (14) TOTAL PROJECTED EXPENSES - (Budget- $5,725,924) The projections set forth in this budget assume that the first year of Condominium operation will cover the period from May 1, 2018 through April 30, 2019. IN THE OPINION OF PENMARK PROPERTY ADVISORS, LLC, HAVING AN OFFICE AT 828 HEMPSTEAD TURNPIKE, FRANKLIN SQUARE, NEW YORK 11010. THE PROJECTED INCOME IS ADEQUATE TO MEET THE ESTIMATED EXPENSES FOR THE FIRST YEAR OF CONDOMINIUM OPERATION. THE BUDGET, HOWEVER, IS NOT INTENDED AND SHOULD NOT BE TAKEN AS A GUARANTEE OR WARRANTY BY ANYONE THAT THE ANNUAL COMMON CHARGES OR COMMON EXPENSES FOR THE FIRST OR ANY SUBSEQUENT YEAR OF OPERATION OF THE PROPERTY BY THE BOARD WILL BE AS SET FORTH IN THE BUDGET. IN FACT, IT IS LIKELY THAT THE ACTUAL INCOME AND EXPENSES FOR THE FIRST YEAR OF CONDOMINIUM OPERATION WILL VARY FROM THE AMOUNTS SHOWN IN THE BUDGET. UNIT17N UNIT 17S GENERAL COMMON ELEMENT D RESIDENTIAL UNIT RESIDENTIAL COMMON ELEMENT MASTER FLOOR PLAN - FLOOR 17 NOTE: Areas and dimensions listed are approximate and may exceed the usable area of the 111 WEST 57TH STREET shp premises. The Sponsor. Sales 111 WEST 57TH STREET Agent and Architect make no NEW YORK, NY 10019 representation as to the dimensions and actual square SHoP ARCHITECTS, P.C. footage of the premises, which are subject to variations in the building 0 5 10 20 233BROADWAY1111-1 FLOOR and its construction. n______r-\ NEW YORK. NY 10279 DATEI 07/01/15 1/32" = 1' tel 212.889.9005 ® REVISION 1 EXHIBITD SELECTION RIDER {v.6}00041101.DOC 111 WEST 57TH STREET CONDOMINIUM RJDERTOPURCHASEAGREEMENT UPGRADE RJDER AND SELECTION FORM KITCHEN UPGRADES Purchasers [Purchaser to check, if desired] Initials Island Cabinetry Upgrade Cost $ _____ STAIR UPGRADE (Duplex Units Only) [Purchaser to check, if desired] Macauba Stone Upgrade Cost $ _____ Total Upgrade Cost$ _____ KITCHEN CABINET FINISH [Purchaser to select one. Default selection is Chateau Gray Oak] Black hand-rubbed plaster White hand-rubbed plaster Chateau Gray Oak Purchaser Name Purchaser Name Purchaser Signature Purchaser Signature Unit Number Date: ~------ Signatures should be exactly the same as the names appear on the Purchase Agreement. {v.6}00041101.DOC