353-Broadway-OM.Pdf

RETAIL CONDOMINIUM

353 BROADWAYOFFERING MEMORANDUM

VICKRAM JAMBU Senior Managing Director | Investment Sales 212.776.1255 [email protected]

CHRIS VARJAN Senior Managing Director | Investment Sales 212.776.1272 [email protected]

GEORGE STEFFANI Director [email protected] 212.776.1207

JONATHAN BRAUN Director [email protected] 212.776.4341

2 TABLE OF CONTENTS 4 – 5 EXECUTIVE SUMMARY PROPERTY SUMMARY 6 – 7 GROUND FLOOR PLAN CELLAR FLOOR PLAN 9 – 10 INVESTMENT HIGHLIGHTS & FINANCIALS RENT ROLL INCOME & EXPENSE SUMMARY 12 – 16 MARKET OVERVIEW COMPARABLES TRIBECA POINTS OF INTEREST MAP ZONING SUMMARY RESIDENCES AT 91 LEONARD CONDO DECLARATION EXHIBIT 17 CONFIDENTIAL OFFERING

3 353 BROADWAY

EXECUTIVE SUMMARY

Lee & Associates NYC is pleased to exclusively present for sale the retail condominium located at 353 Broadway a.k.a. 91 Leonard Street (“The Property”). The retail condominium sits at the base of a newly constructed, 19 story condominium complex with 98 condos and almost ±193,000 SF in new mixed-use space. The ±89 feet of highly desirable frontage on Broadway in Tribeca offers the opportunity for an investor to own a well-located trophy retail asset.

The Property is divisible between ±7,954 SF of above grade space as well as ±4,145 SF of below grade space. The space allows for the creation of up to three spaces for various uses, allowing an investor to capitalize on a more diverse tenant mix while optimizing the available frontage. The 14 FT high ceilings complement the large Broadway frontage to allow for maximization of storefront windows, displays, and tenant branding. The Property is located equal walking distances to the Franklin Street subway station, servicing the N Q R W trains, and the Canal Street subway station, servicing the 1 2 trains. The Property will be delivered vacant.

4 PROPERTY SUMMARY DEAL HIGHLIGHTS SITE LOCATION • Beautifully stacked at the base of an elegant newly built ±98 unit residential ADDRESS 353 Broadway condominium complex

Frontage on Broadway between Leonard Street • Ideal location on major retail corridor between optimal mix of residential and LOCATION and Franklin Street in Tribeca Neighborhood of office land use Manhattan, NY 10013 • Opportunity to grow retail tenant mix with underutilized surrounding blocks

OPPORTUNITY TYPE Retail Condominium • Unit ideally divisible up to three spaces • Opportunity to attract a diverse tenant mix, by offering unique size options

• Close proximity to Canal Street station, servicing the N Q R W trains, and BLOCK / LOT 174 / 36 (Condo lot number pending) the Franklin St Station, servicing the 1 2 trains LOT SIZE ±15,362 SF

YEAR BUILT 2018/2019

N Q R W ABOVE GRADE SPACE ±7,954 SF PETRARCA LOWER LEVEL SPACE ±4,145 SF TOTAL UNIT SPACE ±12,099 SF Da Mikele FRONTAGE ±89 FT on Broadway Split Zone: C6-4A/R10A Equivalent & C6-2A/R8A ZONING Equivalent CEILING HEIGHTS 14 FT (Above) & 16 FT (Below)

353

Lafayette USE RESTRICTIONS Inquire for full list Cafe

TAX CLASS 4 TOTAL COMMON AREA INTEREST 8.9772%

ASKING PRICE

CIVIC DELI ASKING PRICE $15,000,000

PRICE PSF $1,240 CAP RATE 5.80%

5 353 BROADWAY

GROUND FLOOR PLAN 3 TENANT SCENARIO

S A BROADWAY C B

6 CELLAR FLOOR PLAN 2 TENANT SCENARIO

S BROADWAY

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INVESTMENT HIGHLIGHTS & FINANCIALS

8 FINANCIALS

RENT ROLL

ABOVE GRADE – PROJECTED TENANT TYPE LOCATION UNIT ABOVE GRADE SF RENT PSF MONTHLY RENT ANNUAL RENT Small Space Front - North A 1,350 $160 $18,000 $216,000 Small Space Front - South B 2,676 $150 $33,450 $401,400 Large Space Rear C 3,928 $100 $32,733 $392,800

Total 7,954 $127 $84,183 $1,010,200

BELOW GRADE - PROJECTED TENANT TYPE UNIT LOWER LEVEL SF RENT PSF MONTHLY RENT ANNUAL RENT Small Space Basement A - Basement 328 $50 $1,367 $16,400 Large Space Basement B - Basement 3,817 $50 $15,904 $190,850

Total 4,145 $50 $17,271 $207,250

EXPENSE SUMMARY

PROJECTED OPERATING EXPENSES % OF INCOME $ PSF TOTAL

Real Estate Taxes (1) 22% $22.37 $270,643

Insurance (2) 1% $1.00 $12,099

Common Charges (3) 5% $5.35 $64,702

Total 29% $28.72 $347,444

Net Operating Income $71.91 $870,006

Notes: (1) Real Estate Taxes are an estimate per information provided from exhibit A of the condo declaration. Reference exhibits in rear of offering memorandum. (2) Insurance is an estimate at $1.00/SF of above and below rentable space. (3) Common Charges are an estimate per information provided from exhibit A of the condo declaration. Reference exhibits in rear of offering memorandum.

ESTIMATED LEASE UP COST

Free Rent $304,363 3 Months

Leasing Commissions $304,363 3 Months

Total $608,725

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MARKET OVERVIEW

10 TRIBECA

Encompassing 73 blocks of downtown New York City, the Tribeca neighborhood in Manhattan is home to some of the most valuable commercial and residential real estate in the world. The name Tribeca refers to the area as the “Triangle Below Canal Street,” although it is actually trapezoidal-shaped. The majority of Tribeca is included in a historical district that is protected by the Landmark’s Preservation Commission of New York City consisting of approximately 200 acres.

Containing one of the greatest collections of cast-iron buildings in the world, the neighborhood has now transformed from highly unique artist lofts and eclectic art galleries to one of Manhattan’s most fashionable and desirable neighborhoods well known for celebrity sightings. In addition to Forbes ranking its 10013 zip code as Manhattan’s most expensive neighborhood, it was also ranked the safest in New York City. Its boundaries are defined by Canal Street to the north, Broadway to the east, West Street to the west and either Chambers or Vesey Streets to the South.

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COMPARABLES

RETAIL LEASE COMPARABLES - UNDER 2,000 SF # ON MAP ADDRESS SF DATE MONTHLY & PSF RENT TENANT & TERM

G: 1,100 $15,583 Max’s Restaurant 1 138 W Broadway Sep-18 1 B: ‘- - $170 12 Yrs 2 S N

G: 1,183 $14,984 2 138 W Broadway Feb-18 - - B: ‘- - $152

G: 1,225 $15,313 Evette Boutique 3 321-323 Broadway Aug-17 B: ‘- - $150 10 Yrs

G: 1,000 $12,000 - - 4 4 297 Church St Sep-18 B: 1,000 $144 5 Yrs M G: 1,200 T 1 $15,000 Allied Market 5 81-83 Franklin St B: 1,200 Jun-17 $133 10 Yrs MZ: 150 5 G: 900 $9,975 Cote A Coast 7 6 350 Broadway Jan-17 B: ‘- - $133 - - T 4 8 G: 1,653 $17,219 INCOLOUR Paint & Design 7 104 Lafayette St Apr-17 2 B: ‘- - $125 10 Yrs 3 G: 600 $5,000 - - 8 87-93 Worth St Jul-17 B: ‘- - $100 1 Yr 5 3

RETAIL LEASE COMPARABLES - OVER 2,000 SF ROW

# ON MAP ADDRESS SF DATE MONTHLY & PSF RENT TENANT & TERM 6

G: 4,203 $59,543 - - 1 285 W Broadway Sep-18 6 B: ‘- - $170 12 Yrs

G: 2,500 $34,375 SLT NYC 2 87-93 Worth Street Oct-17 B: ‘- - $165 10 Yrs

G: 2,016 $25,000 Church St School of the Arts 3 41 White Street Dec-17 B: 2,222 $148 15 Yrs G: 2,500 $30,000 Jason Scott 4 102 Franklin Street Oct-17 B: 2,500 $144 5 Yrs G: 2,325 $20,000 - - 5 57 Leonard Street May-17 B: 2,500 $103 10 Yrs 7

G: 2,150 $18,000 - - 6 61 Walker Street Mar-18 B: 2,000 $100 5-15 Yrs G: 3,400 $26,000 - - M M 7 9-11 White Street Nov-17 B: ‘- - $91 5 Yrs G: 2,832 $20,060 Paul Ruggeri Gym 8 356 Broadway Apr-18 B: ‘- - $85 - -

12 COMPARABLES

RETAIL SALES COMPARABLES

ADDRESS UNIT # YEAR BUILT BLDG SQFT UNIT SQFT ZONING CLASS SALE DATE SALE PRICE PRICE PSF 271 Church St A & B 1915 86,640 8,025 C6-2A RM 7/13/18 $15,550,000 $1,938

424 Broadway COM 1915 26,000 7,570 M1-5B RK 4/12/18 $11,000,000 $1,453

19-21 Greene St - - 1888 19,500 6,470 M1-5B R8 12/12/17 $6,600,000 $1,020

124 Hudson St COM 2000 81,306 12,912 C6-2A RK 10/3/17 $15,275,000 $1,183

7 Hubert St COM 2004 109,382 2,928 C6-2A RK 9/14/17 $3,200,000 $1,093

65-67 Leonard St COM 1915 10,000 2,745 C6-2A R8 5/25/17 $6,000,000 $2,186

210 Canal St STORE 1 1920 43,326 7,580 C6-1G RK 5/11/17 $23,550,000 $3,107

339-343 Greenwich St 1 1915 42,860 6,959 C6-2A R8 4/27/17 $11,718,500 $1,684

Min 980 $2,265,000 $662

Max 12,912 $23,550,000 $3,107

Average 5,929 $8,556,905 $1,470

Weighted Average $1,443

271 Church Street 424 Broadway 124 Hudson Street

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SURROUNDING RETAIL & POINTS OF INTEREST

N Q R W PETRARCA

Da Mikele

353

Lafayette Cafe

CIVIC DELI

14 TRIBECA RETAILER ENVIRONMENT

Over the past 5 years, the Tribeca environment. From the start of 2018 submarket has developed into a to September, there have been 12 hybrid retailer environment featuring recorded transactions with an average a mix of both short-term pop-up and rent of $128 PSF, which is at a slight long-term credit/anchor tenants along premium in comparison to the 5 year the major retail corridors. A majority average of $124 PSF. The adaptability of the retailers throughout Tribeca of the retailers in the submarket is have historically gravitated toward most evident in the drop in average top pedestrian thoroughfares such as lease duration to 5.67 years. Leases Broadway, Church Street, Canal Street signed over the past 9 months include a and West Broadway. More prominent handful the 10-12 year range with most cross streets that capitalize on avenue landing in the 1-5 year range. to avenue pedestrian traffic include Worth Street, Franklin Street & Duane The aforementioned data trends Street. indicate that retailers are still ready, willing, and able to move into spaces Over the same timeframe, there has that are in-line with submarket’s been ±310,000 SF of signed leasing historical rent expectations. Tenants and activity throughout the Tribeca owners are both continuously adapting submarket. A majority of the tenancy in relation to changes in consumer profile fall into the Food & Beverage, demands in a highly technology-de- Clothing, and Fitness-Wellness pendent environment, evident in the categories. Notable tenants include decreases to average lease term. High Wichcraft, Chipotle, Pearl River Mart quality spaces that can be nimble in and Xfinity CrossFit. Broadway alone regards to usage and space allocation has logged 16 signed leases during this continue to be in high demand across time, with Church Street following just prominent New York retail corridors. behind at roughly 11 signed leases.

Presently, the market has adapted due to softening demand for space by retailers and a slightly weaker consumer

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ZONING SUMMARY

ZONING MAP ZONING LOT MAP

FRANKLIN STREET Zoning CHURCH STREET Lot Line

32.83’ 182.83’ 66.8’

LEONARD STREET 150’

56.19’ 27.19’

11.58’

131.81’

89.54’’ BROADWAY

353 BROADWAY C6-2A C6-4A Zone Zone

16 RESIDENCES AT 91 LEONARD Around the corner from 353 Broadway, is the entrance to the luxury condominium residences located at 91 Leonard Street. With elegancy in mind, each residence was designed to pay homage to the traditional Tribeca Loft style apartment-condo. The loft-style look includes whitewashed oak floor planks and generous room heights with nearly floor-to-ceiling windows that bring in an abundance natural light and air.

The residences offer the best of both worlds – brand-new construction in a legendary landmarked neighborhood. 91 Leonard Street conveys a feeling of refined luxury infused with an industrial spirit. Inside, an excellent range of amenities that elevates full-service living to new heights in Tribeca. This project, and others like it, continue to add to the surrounding retail corridor by bringing increased foot traffic and consumer demand to the immediate area.

AMENITIES INCLUDE: • Fitness Center • Grand rooftop terrace with lounge seating, grills, outdoor fireplace and beautiful views of lower Manhattan • Children’s Playroom • Bicycle storage • Private Indoor 60 FT lap pool with separate steam room and sauna

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CONFIDENTIAL OFFERING

This Offering Memorandum was prepared by Lee & Associates (“Broker”) solely for the use of prospective purchases of the retail condominium located at 353 Broadway (“The Property”). Neither the Broker nor the owner of the Property (“Owner”) makes any representation or warranty, expressed or implied, as to the completeness of the accuracy of the material contained in the Offering Memorandum.

Prospective purchasers of the Property are advised that changes may have occurred in the physical or financial condition of the Property since the time this Offering Memorandum or the financial statements therein were made by Broker and not by Owner and are based upon assumptions or events beyond the control of Broker and Owner, and therefore may be subject to variation. Other than historical revenue and operating expense figures for the Property, Owner has not, and will not, provide Broker or a prospective purchaser with any income or expense figures, budgets, or projections regarding the Property. Prospective purchasers of the Property are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

The Offering memorandum is a solicitation of interest only and is not an offer to sell the Property. The Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest to offers to purchase the Property and expressly reserve the right, at their sole discretion, to terminate discussions with any entity at the time with or without notice. The owner shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property unless and until such offer for the Property is approved by the owner pursuant to its Finance Committee authorities and the signature of a Vice President or Owner is affixed to a Real Estate Purchase Agreement prepared by Owner. This Offering Memorandum is confidential. By accepting the Offering Memorandum, you agree (i) that you will hold and treat the Offering Memorandum and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Offering Memorandum, (iii) that you will not disclose the Offering Memorandum or any of its contents to any other entity without the prior written authorization of the Owner, and (iv) that you will not use the Offering Memorandum in any fashion or manner detrimental to the Owner or Broker.

18 VICKRAM JAMBU Senior Managing Director | Investment Sales 212.776.1255 [email protected]

CHRIS VARJAN Senior Managing Director | Investment Sales 212.776.1272 [email protected]

GEORGE STEFFANI Director [email protected] 212.776.1207

JONATHAN BRAUN Director [email protected] 212.776.4341