6 EAST 2Nd STREET EAST VILLAGE, NEW YORK TABLE of CONTENTS
6 EAST 2nd STREET EAST VILLAGE, NEW YORK TABLE OF CONTENTS
I. EXECUTIVE SUMMARY 4
II. THE NEIGHBORHOOD 12
III. DUE DILIGENCE 22
FOR MORE INFORMATION, PLEASE CONTACT EXCLUSIVE AGENTS
PAUL J. MASSEY JR. ZACH REDDING Chief Executive Officer Director 646 933 2601 646 933 2646 [email protected] [email protected]
DANNY O’MAHONY Senior Associate 646 933 2607 [email protected]
FOR FINANCING INQUIRIES, PLEASE CONTACT
STEVEN SPERANDIO DYLAN KANE Partner, Senior Managing Director Managing Director 646 933 2638 646 933 2671 [email protected] [email protected]
2 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 3 EXECUTIVE SUMMARY
4 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 5 THE OPPORTUNITY INVESTMENT HIGHLIGHTS B6 Real Estate Advisors as the exclusive broker is proud to present 6 East 2nd Street located in OWNER-USER OPPORTUNITY Manhattans’ East Village. The four (4) story property consists of one (1) retail store, along with three (3) residential units. The current residential units consist of three (3) full floor loft apartments. All three The property allows for a unique opportunity for an owner-user to utilize 6 East 2nd Street retail (3) of the loft apartments are fair market. space, office and/or retail space on the second, while living in a luxurious loft above. All the while, the owner-user can enhance their investment by collecting already in-place cashflow from The property has 26 feet of frontage on East 2nd Street and has a depth of 63 feet. Additionally, the other units in the property. property is comprised of approximately 6,408 square feet broken down as follows: 4,806 SF residential and 1,602 SF retail. PROTECTED TAX CLASS The property currently operates as a walk-up rental property with ground floor retail. The property is located in the highly desirable East Village area and is steps away from Bowery, Sara D. Roosevelt Park, 6 East 2nd Street is classified as a Tax Class 2A property. State law limits how much the Assessed high end retail stores, restaurants and much more. Value of a Class 2A property in New York City can go up each year. It cannot go up more than 8% from the year before or 30% over five years. This presents a significant upside to future Given the envious location and significant upside potential in the residential rents this property presents ownership. a terrific opportunity for an investor.
FAIR MARKET LOFT UNITS
The three (3) loft apartments in 6 East 2nd Street are all fair market units which allows for major upside in the current rents. With recent changes to rent regulation laws this allows for future ownership to own an entire fair market property without any limitation on future rents.
SIGNIFICANT UPSIDE IN CURRENT RENTS
B6 believes that the current average residential rents can be increased from $19/SF to approximately $65/SF with renovation. In addition, we believe that there is a significant opportunity to increase retail rents, therefore substantially increasing the value associated with the building.
CONDOMINIUM CONVERSION OPPORTUNITY
6 East 2nd Street presents an opportunity for an investor to a convert the property to a condominium property. With all three (3) loft apartments as “fair market” status, investors have the opportunity day one to begin the process or continue to run the building as-is, with a potential conversion exit down the road.
6 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 7 PROPERTY INFORMATION TAX MAP
rd Block 458 EAST 3 STREET Lot 46 Lot Size 26' x 63' (approx.) 2
BUILDING INFORMATION nd AVENUE Stories 4 stories Gross Square Footage 6,420 Units 4 Zoning R8B, C6-1
Max FAR 4.00 STREET BOWERY Lot Size 1,602 Max Buildable Square Footage 6,408 EAST 2nd STREET Minus Existing Structure 6,420 Available Air Rights Overbuilt Assessment: (20/21) $191,379 Taxes: (20/21) $23,870 26’
PROPERTY UNIT BREAKDOWN
BLOCK: 458
3 Fair Market Units 63’ LOT: 46 UNIT MIX 1 Retail
8 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 9 FINANCIAL SUMMARY
RESIDENTIAL REVENUE ACTUAL PROJECTED REVENUE MONTHLY (PROJ.) ANNUAL (PROJ.) MONTHLY ANNUAL MONTHLY ANNUAL UNIT STATUS UNIT SIZE Commercial $13,350 $160,200 RENT RENT RENT RENT
1 FM 1,602 $3,325 $39,900 $8,678 $104,136 Residential $26,034 $312,408
2 FM 1,602 $1,675 $20,100 $8,678 $104,136 GROSS ANNUAL INCOME $39,384 $472,608
3 FM 1,602 $2,700 $32,400 $8,678 $104,136
TOTAL $7,700 $92,400 $26,034 $312,408 EXPENSES (ESTIMATED) TOTAL $/SF COMMERCIAL REVENUE Real Estate Taxes (20/21) $23,870 $3.72 MONTHLY ANNUAL MONTHLY ANNUAL UNIT STATUS UNIT SIZE Electric $1,587 $0.25 RENT RENT RENT RENT Gas $9,612 $1.50 John Derian Company Commercial 1,602 $4,600 $55,200 $13,350 $160,200 Water & Sewer $6,408 $1.00 TOTAL $4,600 $55,200 $13,350 $160,200 Insurance $2,800 $700 /Unit
Repairs & Maintenance $2,000 $500 /Unit TOTAL REVENUE $12,300 $147,600 $39,384 $472,608 Management - 3% $14,178 $2.21
TOTAL $60,455 $9.42
NET OPERATING INCOME $412,153
10 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 11 THE NEIGHBORHOOD
12 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 13 NEIGHBORHOOD DESCRIPTION TRANSPORTATION MAP
The East Village became known as a working class neighborhood after an influx of immigrants from Eastern Europe and Germany arrived. The low price of East Village apartment rentals (and the area’s bohemian reputation) attracted some of the counterculture’s most famous faces. During the 50s, locals flocked to beat poetry readings, and punk rockers descended on the neighborhood’s live music venues (like CBGB) during the 70s. Andy Warhol, Charlie Parker and Madonna have all lived and worked in the East Village, laying the foundation for the culture found in the area today. The East Village is also home to the historic Cooper Union. Its Foundation Building at Astor Place became a particularly historic after speeches by multiple presidents, starting with Abraham Lincoln in 1860. Now newly renovated, The Copper Union has expanded to a modern and environmentally-friendly network of buildings dotting the East Village.
There’s always something to see or do in the East Village. Wander through unmarked doors with boutiques and art galleries hidden behind them, settle down at a café with sidewalk seating, or join your neighbors by the dog run in Tompkins Square Park. As night falls, the neighborhood becomes more lively as revelers come together for late-night dance parties and sophisticated artisan cocktails.
There’s a big push in the East Village to keep the population density low, so there aren’t many high-rise blocks around. There are some modern developments along Avenue B, where you’ll find a cluster of contemporary East Village condos. Most of the apartments in the East Village are in pre-war walk-ups. The further east you head, the more common these properties are. Although East Village apartment buildings don’t look overly fancy from the outside, they often hide luxury amenities like communal gardens and roof terraces. For hustle and bustle, look to the avenues; stick to the side streets if you’re looking for a quiet, residential atmosphere. 6 6 EAST The neighborhood’s largest green space is Tompkins Square Park. Another popular outdoor space nd B 2 STREET is East River Park, which has 2.4 miles of waterfront where you can relax and watch the world go by. D There’s a bike path, a garden, water play areas and a soccer field.
F M
COOPER UNION ST. MARKS HOTEL
14 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 15 RETAIL MAP
1 Whole Foods Market 12 Bank of America Financial Center
2 CVS 13 Forever 21
3 Starbucks 14 Walgreens
4 Apple SoHo 15 Gap
5 Equinox Bond Street 16 MUJI Cooper Square
6 Patagonia 17 Foot Locker
7 TD Bank 18 Chase Bank
8 adidas Brand Center 19 Billy Reid
9 American Eagle & Aerie Store 20 Crunch Fitness - Bowery
10 Best Buy 21 SoHo Court
11 Urban Outfitters 22 Wells Fargo Bank 6 EAST 2nd STREET
16 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 17 NEIGHBORHOOD MAP
RESTAURANTS
1 Blue Ribbon Fried Chicken
2 San Marzano
3 Lil' Frankie's
4 Katz's Delicatessen
5 il Buco
6 Frank
AMENITIES
1 Hotel Indigo Lower East Side New York
2 Merchant's House Museum
3 Rumpus Room 6 EAST 4 The Standard, East Village 2nd STREET 5 Bowery Electric
6 PUBLIC Hotel
SCHOOLS
1 Public School 19
2 East Side Community High School
3 Grace Church School - High School Campus
4 Harvey Milk High School
5 Nord Anglia International School, New York
6 New Amsterdam School
18 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 19 PARKS MAP
1. WASHINGTON SQUARE PARK 2. COOPER TRIANGLE 6 EAST 2nd STREET
3. SARA D. ROOSEVELT PARK 4. TOMPKINS SQUARE PARK
20 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 21 DUE DILIGENCE
ASTOR PLACE CUBE
22 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 23 JOHN DERIAN COMPANY INC. ZONING INFO
John Derian Company Inc. was established in New York City’s zoning regulates permitted uses of the property; the size of the building allowed in 1989. John’s decoupage is handmade in his studio relation to the size of the lot (“floor to area ratio”); required open space on lot, the number of dwelling in New York City, where he employs a small staff units permitted; the distance between the building and the lot line; and the amount of parking required. of artisans to assist with production. His designs The commercial district has eight (8) different classifications. The manufacturing district has three (3) are sold at upscale home stores, in catalogs, and different classifications. The residential district has ten (10) different classifications. gift shops worldwide. The full range of John’s work, including his ephemera, ceramic and furniture collaborations, is available at his own retail shops in Manhattan’s East Village where he has an ever-changing assortment of vintage and antique imports, bed and table linens, stationery, plate-ware, lighting and original art work by Hugo Guinness. The shop, John’s work and homes have been featured in Vogue, The New York Times, The World of Interiors, Elle Décor, Vanity Fair, Bon Appétit, New York Magazine, GQ, Details, W, Air France Madame, German AD and many more. The John Derian Picture Book, a compilation of some of his favorite 18th and 19th century images from his archive, was released in 2016 and quickly became a New York Times Best Seller.
FEATURED MEDIA OUTLETS:
THE PUBLIC THEATER
24 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 25 CERTIFICATE OF OCCUPANCY
26 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 27 CONFIDENTIALITY AND 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 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.
28 B6 REAL ESTATE ADVISORS 6 EAST 2nd STREET 29 B6 REAL ESTATE ADVISORS 1040 Avenue of the Americas, 8th Floor New York, NY 10018 B6REALESTATEADVISORS.COM
FOR MORE INFORMATION, PLEASE CONTACT EXCLUSIVE AGENTS
PAUL J. MASSEY JR. ZACH REDDING Chief Executive Officer Director 646 933 2601 646 933 2646 [email protected] [email protected]
DANNY O’MAHONY Senior Associate 646 933 2607 [email protected]
FOR FINANCING INQUIRIES, PLEASE CONTACT
STEVEN SPERANDIO DYLAN KANE Partner, Senior Managing Director Managing Director 646 933 2638 646 933 2671 [email protected] [email protected]