286 Broome Street HK & Lee Advisors New York, New York 10002

Home , Bowery, Broome Street, Grand Street (Manhattan)

HK & Lee Advisors CONFIDENTIALITY & DISCLAIMER | 286 Broome Street HK & Lee Advisors

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT FOR MORE DETAILS.

HKHK & &Lee Lee Advisors Advisors PROPERTY OVERVIEWHK & Lee Advisors

HK & Lee Advisors PROPERTY OVERVIEW | 286 Broome Street PROPERTY OVERVIEW HK & Lee Advisors INVESTMENT HIGHLIGHTS

• Five-Story Walk-Up Building on Lower East Side • Eight Apartments and One Store • Apartments: Six Rent Stabilized & Two Owner-Occupied • Store: Vacant with Backyard & Finished Basement • Three Blocks from New Essex Crossing Development • Three Blocks from Grand Street and Delancey Street Subways

Marcus & Millichap is the exclusive sales broker for 286 Broome Street, a five-story, mixed-use, walk-up building between Eldridge and Allen Streets on the border of the Lower East Side and Chinatown.

The building measures 22 feet by 69 feet totaling approximately 7,590 square feet and sits on a 22 foot by 102 foot C4-4A-zoned lot (maximum 4.0 floor area ratio). There are approximately 1,358 square feet of additional developable square feet, and the property is neither landmarked nor part of an historic district.

The building contains eight apartments of which all are one-bedrooms and rent stabilized (two are owner-occupied). The store measures approximately 1,300 square feet and includes a backyard and finished basement. Current ownership has been in place for over forty years.

The subject property is located in a section of the Lower East Side that is in the process of transforming from older businesses serving the construction industry to a new generation of restaurants, bars and retail. The building is located in an enclave between Allen and Eldridge Streets that is still relatively unchanged compared to other sections of the Lower East Side. It is equidistant from the Grand Street and Delancey/Essex Street subway stations.

Three blocks from the subject property is Essex Crossing, an unprecedented development comprising 1.9 million square feet of residential, commercial, and community space. The nine sites on six acres, commonly known as the Seward Park Extension Urban Renewal Area (SPEURA), have sat mostly vacant since 1967 and represent one of the most significant urban renewal developments in the history of New York City. Phased construction began in 2015 and is expected to be completed by 2024.

THE OFFERING SITE DESCRIPTION Property Address 286 Broome Street Number of Residential Units 8 New York, NY 10002 Number of Commercial Units 1 Block & Lot 414-30 Number of Stories 5 Zoning C4-4A Year Built (est.) 1900 Maximum Allowed FAR 4 Gross Square Feet 7,590 FAR as Built 4.82 Building Size 22 ft x 69 ft Remaining “Air Rights” 1,358 Lot Size 22 ft x 102 ft Type of Ownership Fee Simple

TAX LOT MAP CERTIFICATE OF OCCUPANCY

Extension of Ground Floor Retail

Basement Retail Ground Floor Retail Backyard

SUBJECT PROPERTY

260 Bowery 196 Orchard Street

140 Essex Street Mixed-Use | GF Retail, Gym & 94 Apartments

Mixed-Use | 6 Apartments - $7.3M Avg. Asking Price 165 Chrystie Street

Mixed-Use | GF Retail & Senior Housing 138-142 Bowery 150 Rivington Street 202 Broome Street

Condo/Hotel | 9 Apartments, Residential | 9 Apartments 46 Hotel Rooms

SUBJECT Residential | 45 Apartments PROPERTY 282 Grand Street Mixed-Use | 15-Story Tower 180 Broome Street

86 Delancey St.

Mixed-Use | 24,000 SF The Essex 115 Delancey Street Mixed-Use | 10,000 SF Retail, 175,000 SF Office, 263 Apartments

The Rollins 145 Clinton Street

Mixed-Use | 5,800 SF Comm., 24 Apartments

Mixed-Use | 150,000 Commercial (incl. new location of Essex Market & movie theater), 195 Apartments

Mixed-Use | Target & Trader Joes, 211 Apartments

Essex Crossing Development

HK & Lee Advisors

12 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus 12 & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of New York, Inc. © 2019 Marcus & Millichap. All rights reserved. PRICING AND FINANCIAL ANALYSIS | 286 Broome Street HK & Lee Advisors OFFERING SUMMARY

PROPERTY VITAL DATA Price $5,500,000 CAP Rate - Current 0.71% Price/SF $725 GRM - Current 59.92 Number of Residential Units 8 Net Operating Income - Current $39,089 Number of Commercial Units 1 Net Cash Flow After Debt Service - Current $16,553 Gross Square Feet 7,590 Total Return - Current $23,230 Building Size 22 ft x 69 ft CAP Rate - Pro Forma 4.85% Lot Size 22 ft x 102 ft GRM - Pro Forma 16.22 Net Operating Income - Pro Forma $265,223 Net Cash Flow After Debt Service - Pro Forma $244,383 Total Return - Pro Forma $251,060

Residential Units Unit Legal Unit Size Current Pro Forma Unit # Lease End Notes Current Rent Pro Forma Rent Type Status (SF) Rent/SF Rent/SF 1 1BR RS 650 7/31/2016 $ 26.31 $ 1,425.10 $ 26.57 $ 1,439.35 2 1BR TE 650 - Owner Occupied$ 18.46 $ 1,000.00 $ 64.62 $ 1,025.00 3 1BR RS 650 6/30/2016 $ 13.48 $ 730.00 $ 13.61 $ 737.30 4 1BR RS 650 1/31/2018 $ 16.34 $ 885.17 $ 16.51 $ 894.02 5 1BR RS 650 - $ 18.46 $ 1,000.00 $ 64.62 $ 1,025.00 6 1BR RS 650 12/31/2016 $ 19.45 $ 1,053.69 $ 19.65 $ 1,064.23 7 1BR RS 650 4/30/2016 $ 13.61 $ 737.23 $ 13.75 $ 744.60 8 1BR RS 650 10/31/2016 $ 15.10 $ 817.94 $ 15.25 $ 826.12 Total Monthly Residential Rent$ 7,649.13 $ 7,755.62 Total Annual Residential Rent $ 91,789.56 $ 93,067.46

Commercial Units Current Pro Forma Tenant Name SF (est.) Lease End Notes Annual Increases Current Rent Pro Forma Rent Rent/SF Rent/SF Vacant 2200 1,000 SF Basement -$ $ - $ 111.82 $ 20,500.00 Total Monthly Commercial Rent $ - $ 20,500.00 Total Annual Commercial Rent $ - $ 246,000.00

Total Monthly Gross Rent $ 7,649.13 $ 28,255.62 Total Annual Gross Rent $ 91,789.56 $ 339,067.46

Current Per Unit Pro Forma Per Unit 5 Year Fixed – 5 Year Fixed – Pro Loan Program Income Current Forma GROSS POTENTIAL INCOME $91,790 $10,199 $339,067 $37,674 Loan Amount Min $375,000 $375,000 Vacancy (1.5%) Deduction $1,377 $204 $6,781 $753 Loan Amount Max $400,000 $400,000 EFFECTIVE GROSS INCOME $90,413 $9,995 $332,286 $36,921 Interest Rate Min 4.000% 4.000% Interest Rate Max 4.250% 4.250% Expenses Fixed Term 5 Years 5 Years Real Estate Taxes $13,452 $1,495 $14,500 $1,611 Amortization (Years) 30 30 Insurance $3,100 $344 $4,000 $444 Water & Sewer $8,100 $900 $9,000 $1,000 Please note that rates and terms are subject to market fluctuations. Heat (Gas) $12,000 $1,333 $13,000 $1,444 For updated financing information, please contact: Electricity $0 $0 $2,000 $222 Stephen Filippo Repairs & Maintenance $1,000 $111 $1,000 $111 Marcus & Millichap Capital Corporation Management Fee (4%) $3,672 $408 $13,563 $1,507 (212) 430-5288 General & Administrative $1,000 $111 $1,000 $111 Reserves & Replacements $3,000 $333 $3,000 $333 Legal $1,000 $111 $1,000 $111 Supplies $5,000 $556 $5,000 $556 TOTAL EXPENSES $51,324 $5,703 $67,063 $7,451 Expenses per SF $6.76 $8.84 % of EGI 56.77% 20.18%

NET OPERATING INCOME $39,089 $4,292 $265,223 $29,469

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus 15 & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of New York, Inc. © 2019 Marcus & Millichap. All rights reserved. FOR FURTHER INFORMATION OR TO SCHEDULE A WALK-THROUGH, PLEASE CONTACT OUR EXCLUSIVE AGENTS: HK & Lee Advisors FOR FURTHER INFORMATION OR TO SCHEDULE A WALK-THROUGH, PLEASE CONTACT OUR EXCLUSIVE AGENTS: John J. Stewart Henri Kessler Dylan Torey Nelson Lee Sang Liu Associate Real Estate Broker Licensed Real EstateJohn Salesperson J. Stewart Licensed Real Estate Salesperson[AGENT NAME]Associate Real Estate Broker Licensed Real Estate Salesperson (212) 430-5152 (646)Assoicate 805-1427 Real Estate Broker (646) 805-1444Licensed Real Estate Salesperson(646) 805-1497 (212) 430-1498 [email protected] [email protected](212) 430-5152 [email protected][AGENT NUMBER][email protected] [email protected] [email protected] [email protected]

HK & Lee Advisors 16