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9 3 ASKING PRICE $12,150,000

The Opportunity: Cushman & Wakefield has been exclusively retained to arrange for the sale of 963 1st Avenue, a 5-story mixed-use residential building located on the southwest corner lot of East 53rd Street and First Avenue. The 11,607 SF building consists of 15 residential units and one ground-floor retail space. As an additional source of income, the building’s roof contains a cell tower.

The ground floor retail unit is 2,000 SF and currently leased to Parnell’s Pub & Restaurant until May 31, 2023. The building has 125’ of wraparound frontage and heavy foot traffic, making it a great space for a retail tenant. The building also includes a cellar for food prep and storage space.

The residential breakdown of the property consists of 15 units- 12 free market and 3 rent-stabilized- configured as a mix of studio, 1 bedroom, 2 bedroom, and 3 bedroom apartments. The property is a outstanding opportunity for an investor to capitalize both short and long-term, as many of the existing residential units have undergone renovations.

The ideal and central location in Midtown East makes the building easily accessible to multiple forms of transportation; a 5-minute walk to the E, M & 6 lines and a 12-minute walk to the N, R,4,5 & W lines.

Please contact our sales team for additional information or for a tour of the site.

ROBERT BURTON WILL CONRAD (212) 660-7770 (212) 660-7740 [email protected] [email protected]

BOBBY CARROZZO JONATHAN GARFINKEL (212) 589-5118 (212) 660-7713 [email protected] [email protected] 963 FIRST AVENUE 3 PROPERTY FEATURES

LOCATION: Located on the southwest corner of East 53rd Street and First Avenue

BLOCK & LOT: 1345 / 30

LOT DIMENSIONS: 25.42' x 100'

LOT SQUARE FOOTAGE: 2,542 SF (approx.)

BUILDING DIMENSIONS: 25' x 100'

TOTAL SF: 11,607 SF (approx.)

STORIES: 5 + basement

RESIDENTIAL FAR: 10.0

ZONING: R10

ADDITIONAL AIR RIGHTS: SOLD

ASSESSMENT (19/20): $1,777,010

TAXES (19/20): $224,117

ASSET HIGHLIGHTS

BELOW MARKET RENTS ALLOW FOR UPSIDE IN CASH FLOW

80% FREE MARKET UNITS

QUICK ACCESS TO 6, E & M SUBWAY TRAINS

4 CUSHMAN & WAKEFIELD TAX MAP:

EAST 53RD STREET 30 SECOND AVENUE FIRST AVENUE

BLOCK 1345

EAST 52ND STREET

LOCATED IN CLOSE PROXIMITY TO AN ABUNDANCE OF BARS AND RESTAURANTS

ONE BLOCK FROM FDR RUNNING TRAILS AND PARKS ALONG THE EAST RIVER

NEAR NUMEROUS PREMIER OFFICE BUILDINGS SUCH AS THE SEAGRAM BUILDING AND LEVER HOUSE

963 FIRST AVENUE 5 INCOME & EXPENSES

PROJECTED MONTHLY FLOOR/UNIT TENANT/LAYOUT STATUS LXP ACTUAL RENT

Ground Parnell's Tavern - 5/31/2023 $24,205 $24,205

1A 3BR FM 7/30/2019 $4,700 $4,700

1C 2BR FM 7/31/2020 $2,700 $3,300

1D 3BR FM 5/31/2020 $3,750 $4,500

2A 2BR FM 11/30/2019 $3,200 $3,300

2B Studio FM 2/28/2021 $1,250 $2,300

2C 1BR FM 11/30/2019 $2,150 $2,250

2D 3BR FM 4/30/2020 $3,865 $4,500

3A 1BR RS 7/31/2019 $1,151 $1,151

3B 1BR FM 7/31/2019 $2,295 $2,295

3C 1BR FM 6/30/2020 $2,250 $2,250

3D 3BR FM 6/14/2020 $3,900 $4,500

4A 2BR FM 2/29/2020 $3,100 $3,300

4B 1BR FM 10/31/2018 $2,175 $2,250

4C Studio RS 3/31/2020 $1,790 $1,790

4D 1BR RS 12/31/2019 $1,083 $1,083

Roof Verizon Cell Tower - 7/31/2020 $3,825 $3,825

MONTHLY INCOME: $67,388 $71,498

ANNUAL INCOME: $808,654 $857,974

6 CUSHMAN & WAKEFIELD REVENUE

GSF: 11,607 Actual Projected

Gross Monthly Income $67,388 $71,498

Potential Gross Income $808,654 $857,974

Vacancy & Credit Loss 3% ($24,260) ($25,739)

Effective Gross Income $784,395 $832,235

EXPENSES (ESTIMATED)

Real Estate Taxes (19/20) Actual Taxes $224,117 $224,117

Water/Sewer $0.75/SF $8,705 $8,705

Insurance $0.75/SF $8,705 $8,705

Fuel (Gas) $1.00/SF $11,607 $11,607

Electric $0.35/SF $4,062 $4,062

Repairs & Maintenance $0.50/SF $5,804 $5,804

Super $500/Month $6,000 $6,000

Management Fee 3% of EGI $23,532 $24,967

Total Expenses: $292,532 $293,967

EFFECTIVE GROSS INCOME: $784,395 $832,235

LESS EXPENSES: ($292,532) ($293,967)

NET OPERATING INCOME: $491,863 $538,268 PROPERTY PHOTOS

8 CUSHMAN & WAKEFIELD 963963 FIRSTFIRST AVENUEAVENUE 9 AMENITIES MAP

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10 CUSHMAN & WAKEFIELD TRANSPORTATION MAP

ANNUAL SUBWAY RIDERSHIP BY STATION

LEXINGTON AVENUE / 63RD STREET 6,389,408

LEXINGTON AVENUE / 59TH STREET W 17,888,188

LEXINGTON AVENUE - 53RD STREET / 51ST STREET 18,940,774

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963 FIRST AVENUE 11 THE NEIGHBORHOOD

MIDTOWN EAST:

Midtown East, stretching from 42nd to 63rd Streets and flock to the area for its proximity to the UN on First Fifth Avenue to the East River is characterized by energized Avenue and East 43rd Street. and diverse street life, both day and night, prominent office towers, and easy access to transportation. From the In addition, two of the city’s most sought after prestigious flagship stores on Fifth and Madison Avenues residential enclaves – Sutton Place and Beekman Place to the Midtown office core on Park and Lexington, the – are located within Midtown East. This mix of office western side of this neighborhood is all about business, towers, retail flagships, foreign consulates, and desirable tourism, shopping, and recreation. Moving eastward, residential locations draw a diverse group of shoppers, Third, Second, and First Avenues are predominantly lined commuting businessmen and women, tourists, foreign with post-war residential towers, with mid-rise elevator dignitaries, and young residents to visit, work, and live and walk-up apartment buildings filling in the side streets. in Midtown East. United Nations employees, ambassadors, and visitors

A MAJOR EMPLOYMENT CENTER:

The Greater Midtown business district is one of the the economic engine of the city and perhaps even largest job centers in New York City and one of the the United States, drawing in more workers than any most high-profile business addresses in the world. other American central business district. The area’s The area spanning Fifth and Second Avenues between tenants have historically included prestigious financial East 39th and East 57th Streets contains more than 70 institutions, law offices, hedge funds and private million square feet of office space, more than a quarter equity firms, largely because the proximity to Grand million jobs, and innumerable Fortune 500 Companies. Central Station makes for an easy commute from Many of the world’s most iconic office buildings are Westchester and Fairfield Counties, from which many located in Midtown East, including the Chrysler high-powered executives hail. Building, the Graybar Building, the Helmsley Building, the Seagram Building, Lever House, the Empire State Area tenants serve as a who’s who of industry leaders Building, and the MetLife Building. including: NBC Universal, McGraw-Hill, The New York Times, Colgate-Palmolive, JPMorgan Chase, Bank Midtown Manhattan continues to be one of the of America, PricewaterhouseCoopers, and Cleary most sought-after office addresses in the New York Gottlieb Steen & Hamilton. metropolitan region. The neighborhood serves as

LOCAL ATTRACTIONS:

Within just a few blocks are several landmarks of performances by the world’s most famous artists on national and world renown such as Grand Central a near nightly basis. Midtown East is also home to the Terminal, the New York Public Library, and the Empire United Nations at East 43rd Street and First Avenue, State Building. Bryant Park, just a stone’s throw and many of the U.N.’s employees and dignitaries call away, serves as an urban oasis to Midtown workers the neighborhood home. Additionally, some of New and tourists alike from morning to night throughout York’s oldest and most prestigious private clubs are all seasons. To the west, Madison Square Garden, the located in Midtown East, including the Yale Club and “world’s most famous arena” and home of the New the University Club. York Rangers and New York Knicks, plays host to

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THE NEIGHBORHOOD

UNITED NATIONS HEADQUARTERS:

Midtown East is home to the United Nations Headquarters, located off First Avenue between East 42nd and 45th Streets. The complex has served as the official headquarters of the United Nations since opening in 1952. The United Nations was created to promote co-operation among nations after WWII. The intergovernmental organization is dedicated to five core pillars: Peace and Security, Development, Human Rights, Humanitarian Affairs, and International Law. Embassies, non-profits and missions have chosen the nearby area as their home and utilize the Plaza spanning six blocks around the Headquarters.

Located within a one-mile radius are many of the foreign embassies, missions and consulates serving United Nations member states. Many nations choose to be within walking distance of the U.N. Headquarters for ease of transportation and convenience.

DAG HAMMARSKJOLD PLAZA:

The 1.5 acre park is named after Dag Hammarskjold, a luminary who served as Secretary-General of the United Nations in 1953 and who spent his term suppressing and preventing war across the world, ultimately earning the Nobel Peace Prize in 1961. A garden sits within the Plaza, dedicated to the life of Katherine Hepburn, a renowned actress who worked hard to conserve the neighborhood, preserving trees and the charming character of Turtle Bay. Now adorned with a symmetrical layout, steel pavilions, and fountains, the Plaza is frequently used as a popular place for gathering and public demonstrations.

14 CUSHMAN & WAKEFIELD SHOPPING:

Midtown East is a submarket with no equal in regards Bergdorf Goodman, Barneys, Bloomingdale’s, Louis to shopping. Recognized as one of only a handful Vuitton, Prada, Giorgio Armani, Tiffany & Co., Cartier, of truly first-class shopping locations in the world, Versace, and Jimmy Choo. Additionally, a wide array Fifth and Madison Avenues offer a staggeringly of middle-market retailers have appeared in recent impressive display of elite retailers. Among the world- years, including J. Crew, Zara, H&M, Banana Republic, class luxury brands and department stores that and Urban Outfitters. The plentiful shopping options line Midtown East’s streets are Saks Fifth Avenue, in the submarket continue to grow.

DINING:

The area’s dining options are as plentiful as they are Nearly every one of the area’s restaurants serves as a diverse, offering something for every palate from hyper- nice spot for after-work drinks, yet there are a number trendy spots to oak bar classics. La Grenouille, Jean of great bars and lounges to discover. Area hotels such Georges, and Cipriani all offer traditional, white tablecloth as The Bryant Park Hotel (Cellar Bar), The Setai (Bar experiences, while relative newcomers STK Midtown and on Fifth), and The Gansevoort all offer chic locations Tao present more modern, high-end options. A variety of to enjoy cocktails with coworkers, clients, or other steakhouses, including The Palm, Capital Grille, and Smith Midtown workers that complement local watering & Wollensky, offer red-blooded slices of Americana and holes like Park Avenue Tavern. traditional corporate dining.

TRANSPORTATION:

Midtown East is one of the most transit-rich locations The N, Q, R, F and M lines also drop residents from in the city. This area centers on Grand Central Terminal, Queens, Brooklyn, the Upper West Side, Northern one of the city’s major transportation hubs and Manhattan, and the Bronx into the heart of Midtown, famous civic spaces. Nearly 1,500,000 people pass and almost every other train passes through nearby through Grand Central Terminal each day on their way Times Square, just a shuttle ride away. Midtown East is to Midtown’s offices, retailers, hotels, and restaurants. also easily accessible by numerous bus lines. Individuals come via the 4,5,6 subways that serve the entire east side of Manhattan, from Queens that runs Midtown Manhattan is the most connected west all the way to the Hudson Yards, or Metro-North neighborhood in the city. Getting to Midtown East trains that arrive from Westchester and Connecticut. from all corners of the five boroughs and the greater Soon, that ridership figure will grow as the Long New York metro area is both simple and easy. Island Rail Road adds a Grand Central stop on its way towards Penn Station.

963 FIRST AVENUE 15 ZONING

963 FIRST AVENUE IS LOCATED WITHIN A R10 ZONING DISTRICT. R10: FAR (RESIDENTIAL) 10.00 R10:

R10 districts permit the highest residential density in the city. In Manhattan, much of midtown and downtown, as well as major crosstown streets and avenues, permit R10 density. In these areas, and in sections of Downtown Brooklyn and Long Island City, this high density can also be achieved in commercial distficts that permit an R10 residential district equivalent. Almost all districts that permit R10 density allow a residential FAR of 10.0 that can be increased to 12.0 pursuant to the Inclusionary Housing Program. In R10 and commercial districts with an R10 residential equivalent, height factor regulations do not apply. Developers of residential buildlings may choose between Quality Housing regulations (the same as R10A regulations) or tower rules which permit a building to penetrate the sky exposure plane. Depending on the district and location, the tower may be required to have a contextual building base.

Tower regulations require a tower-on-a-base building form for most residential developments in R10 districts (and in C1-9 and C2-8 distrcits which permit residential use at R10 density above one or two floors of commercial use). In these districts, a residential building fronting on a wide street must have a contextual base between 60 and 85 feet high which extends continuously along the street line. The tower portion is permitted a lot converage maximum of 40%. Its height is controlled by a lot coverage minimum of 30% and a rule tha tat least 55% of the floor area on the zoning lot be located below a height of 150 feet. For buildings with only narrow street frontage, no contextual base is required, and towers are permitted provided they are set back from the street line at least 15 feet.

MIDTOWN EAST REZONING:

In 2017, the Department of City Planning passed a rezoning of East Midtown, a 73-block area surrounding Grand Central Terminal. The purpose of the rezoning is to ensure the area’s future as a world-class business district and major job generator for New York City. The plan provides zoning incentives to promote the development of a handful of new, state-of-the-art commercial buildings. 323 East 53rd Street is on the edge of the new Midtown East Rezoning district, where maximum FAR can reach 21.6 if certain requirements are met such as frontage based on a wide street and a minimum property width.

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16 CUSHMAN & WAKEFIELD R10 ZONING OVERVIEW

963 FIRST AVENUE 17 PROPERTY TAX BILL

18 CUSHMAN & WAKEFIELD CERTIFICATE OF OCCUPANCY

963 FIRST AVENUE 19 FOR MORE INFORMATION CONTACT:

ROBERT BURTON WILL CONRAD (212) 660-7770 (212) 660-7740 [email protected] [email protected]

BOBBY CARROZZO JONATHAN GARFINKEL (212) 589-5118 (212) 660-7713 [email protected] [email protected]

Cushman & Wakefield Copyright 2019. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.