105 A

Exclusive Offering Memorandum TerraCRG has been retained to exclusively represent ownership in the sale of 105 in Williamsburg.

For more information, please contact exclusive agents:

Ofer Cohen Dan Marks Founder & CEO Partner [email protected] [email protected]

Daniel Lebor Mike Hernandez Dir. of Business Development Associate Vice President [email protected] [email protected]

Matthew Trotter Mike Rafter Senior Associate Associate [email protected] [email protected]

Asking Price: $3,000,000

718-489-8333 terracrg.com

The information provided herein has either been given to us by the owner of the property or was obtained from sources we deem reliable. We do not guarantee the accuracy of any information. All , existing square feet of buildings, available buildable square feet, permitted uses and any other information provided herein must be independently verified. The value of any real estate investment is dependent upon a variety of factors including income, vacancy rates, expense estimates, tax brackets and general market assumptions, all of which should be evaluated by your tax advisor and/or legal counsel. Interested party should carefully verify each item of information herein; there can be no guarantee that the enclosed information is accurate or that the subject property will sell for the suggested asking price. The estimates and assumptions provided herein are based on the subject property containing no environmental contamination. 105 Broadway Williamsburg

3 The Offering

TerraCRG is pleased to present for sale a four-story, loft Over the last decade, Williamsburg has become one of building of approximately 5,000 SF (above grade) located the city’s most popular neighborhoods in which to live, at 105 Broadway in Williamsburg. work and play. Since the 2005 rezoning, over 10,000 luxury residential units have been developed and The block-through building, which is located in a C4-3 occupied, and there are more than 5,800 units in the commercial district (R6 residential district equivalent) Williamsburg development pipeline. At the same time, can be entered from both Broadway and South 6th the area has also been developing as a major office Street. It is comprised of four, full-floor units each of market. Exciting startups, creative services firms, as well approximately 1,250 SF and a cellar. The units on the as major tech companies and established corporations second and fourth floors along with the cellar will be are committing to Williamsburg and its talented, local delivered vacant. The units on the first and third floors workforce. are occupied as residences and have been granted Loft Law status. The new owner will need to complete the This location benefits from an array of attractions. Loft Law legalization process which will result in a Notable restaurants, bars and nightlife venues nearby multifamily or mixed-use building comprised of 50% rent include Peter Luger Steakhouse, Marlow & Sons, stabilized residential units, and 50% unregulated, Motorino Pizzeria, Meadowsweet, Loose Rouge, Baby’s market-rate residential or commercial space. (See pages All Right, Bembe, and TBA Brooklyn. City Acres Market, a 6-7 for further information regarding the Loft Law grocery store and food market, is just a few blocks away legislation process.) and provides both local and organic products.

This section of Broadway is developing into a vibrant The property is a short walk to the J, M and Z subway retail corridor that supports the emerging live-work lines at the and about a 10- neighborhood of South Williamsburg. The property minute walk to the Ferry on Kent Avenue, benefits from its walking-distance proximity to the heart making for a commute of just a few minutes. of Williamsburg, the Williamsburg waterfront and a The property is also only a short walk from the large, gourmet supermarket; iconic views from local neighborhood-changing Domino Factory streets of the and Manhattan; development, which will include more than 2,800 access to the Williamsburg Bridge walkway; and, one- apartments and a waterfront park, and 420 Kent, stop subway access to Manhattan via the J, M and Z located at the west end of Broadway, four blocks away. trains from the Marcy Avenue Subway Station, which is This highly-anticipated, ODA-designed development, will just four blocks East. include an 80,000 SF park and 400- foot-long esplanade just south of the Williamsburg Bridge, connecting this section of the waterfront to the Domino development to the North.

4 105 Broadway

The 5,000 SF building is located in Williamsburg between and Berry Street.

ADDRESS & DIMENSIONS Address: 105 Broadway Brooklyn, NY 11249 Neighborhood: Williamsburg Cross Streets: Berry St/Bedford Ave Block-Lot: 2471-9 ~ Lot Dimensions (irreg.) : 26.00 ft x 58.08 ft ~ Lot SF: 1,363 Inclusionary Housing Area: No Zoning: C4-3 (R6 equiv.) Residential FAR: 2.43 Commercial FAR: 3.40 Community Facility FAR: 4.80 ~ FAR as Built: 3.67

BUILDING INFORMATION Building Class: S3 ~ Building Dimensions (irreg.): 26.00 ft x 58.08 ft Stories: 4 Units: 4 ~ Building SF Above Grade: 5,000 ~ Cellar SF: 1,250 ~ Total Building SF: 6,250

TAX INFORMATION Tax Class: 2A Billable Assessed Value (18/19): $114,678 Taxes (18/19): $14,586

5 105 Broadway

The projected NOI after legalization is $179,830.

PROJECTED INCOME - AFTER LEGALIZATION

Unit Floor Status Rentable SF $/SF Monthly Rent Annual Rent 1 Ground RS 1,250 $ 22 $ 2,251 $ 27,010 2 Second FM 1,250 $ 65 $ 6,771 $ 81,250 3 Third RS 1,250 $ 19 $ 2,026 $ 24,309 4 Fourth FM 1,250 $ 65 $ 6,771 $ 81,250 Totals 5,000 $ 43 $ 17,818 $ 213,818 RS = Rent Stabilized, FM = Free Market

ESTIMATED EXPENSES

Basis Annual Expense Taxes (Actual 18/19) $ 14,586 Water & Sewer $/SF $ 0.25 $ 1,250 Insurance $/SF $ 1.00 $ 5,000 Heating (Tenant Paid) $/SF $ - $ - Electric (Tenant Paid) $/SF $ - $ - Cleaning & Maintenance $/Month $ 200 $ 2,400 Repairs $/Unit/Year $ 550 $ 2,200 Management % of Annual Rent 4% $ 8,553 Total $ 33,989

PROJECTED NET OPERATING INCOME AFTER LEGALIZATION

Gross Annual Income $ 213,818 Less Expenses $ 33,989 NOI $ 179,830

6 105 Broadway

105 Broadway has two IMD tenants that occupy the ground- and third-floor units. The second- and fourth-floor units will be delivered vacant.

Status of Units After Legalization 105 Broadway is an IMD building with two IMD tenants – the tenant that occupies the ground-floor unit and the tenant that occupies the third-floor unit. The second-floor unit, the fourth-floor unit and the cellar, will be delivered vacant. Once the Loft Law legalization process is completed, the Loft-Law units will be removed from the Loft Board’s jurisdiction and become traditional, rent-stabilized units. The non-Loft-Law units will be unregulated, free-market units and can be converted to any use permitted under the building’s zoning. 105 Broadway is located in a C4-3 zoning district, which has a residential zoning equivalent of R6. Legal Rents For Rent Stabilized Units The Loft Law authorizes owners to increase their IMD tenants’ rents as the phases of the legalization process are completed per the schedule below. In the case of 105 Broadway, the base rent for the calculation of the initial regulated rent for each IMD tenant is the historic rent being paid by each tenant as of June 2010.

ESTIMATED INITIAL REGULATED RENTS OF IMD UNITS FOLLOWING LEGALIZATION (UNITS 1 AND 3) Unit Monthly Rent Alteration Alteration Article 7-B Renewal Lease Initial as of June 2010 Application Permit Compliance Rent Increase* Regulated Rent

Permitted Rent Increases 3% 3% 4% 2%** 1 $ 2,000 $ 2,060 $ 2,122 $ 2,207 $ 2,251 $ 2,251 3 $ 1,800 $ 1,854 $ 1,910 $ 1,986 $ 2,026 $ 2,026 * Once final CO is issued and new rent stabilized lease is signed ** Estimated

Additionally, an owner may file for further rent increases based on the costs of code compliance. The owner must file for such increases within nine months of obtaining the final CO.

7 105 Broadway

The Loft Law Legalization Process

The City Loft Law and the Loft Board, established when the Loft Law was enacted, provides the legal framework for the conversion of lofts – units within commercial or manufacturing buildings with a history of residential use – to legal and safe residential use. The Law created a new classification of building in New York city know as an interim multiple dwelling (“IMD”), which is essentially a building that lacks a residential certificate of occupancy (“CO”) consistent with its use as a residential building.

The Loft Law legalization process has four phases which are Phase I – Beginning Legalization Process Phase III – Completing Work, Obtaining a CO summarized in the chart to the right: • Owner files alteration application and plans • Owner completes all work to obtain final CO with Department of Buildings (“DOB”). and resolves any open DOB applications and • DOB issues Objection Sheet and list of removes any DOB or Environmental Control requirements. Requirements include Board violations. obtaining Loft Board Certification. • Owner requests CO inspection from DOB. • Owner completes Narrative Statements DOB requests Loft Board review and approval process which allows occupants to review to issue CO. details of work to be performed. Loft Board • DOB issues final CO. holds Narrative Statement conference with owner and tenants to resolve issues relating to proposed legalization work. • DOB approves owner’s plans when all issues resolved and plans certified by the Loft Board.

Phase II – Obtaining Work Permit, Beginning Phase IV – Setting Legal Rents, Removing Building Construction, Documenting Article 7-B Compliance From Loft Board Jurisdiction (Fire Safety) • Work permit issued and filed by owner with • Owner may apply for rent increase based on the Loft Board. code compliance costs and also file for Rent • Legalization work begins. Guidelines Board increases. • Required work completed. Owner files • The Loft Board sets initial regulated rents and Article 7-B Compliance Form or Temporary building is removed from the Board’s Certificate of Occupancy (“TCO”) with the jurisdiction. Loft Board. • Owner registers rental units with the Department of Housing Preservation and Development and the Department of Housing and Community Renewal. 8 105 Broadway

Floor Plans

9 105 Broadway

Interior – First-Floor Unit

1 2

1. Living Area 2. Kitchen 3. Bathroom 4. Bedroom

3 4 10 105 Broadway

Interior – Second-Floor Unit

1 2

1. Living Area and Kitchen 2. Bedroom

11 105 Broadway

Interior – Third-Floor Unit

1 2 3

1. Living Area 2. Office 3. Kitchen 4. Bedroom 1 5. Bedroom 2

4 5

12 Zoning map

105 Broadway is zoned C4-3.

13 Area Map

The property is close to the J, M and Z subway lines at Marcy Avenue and walking distance to the East River Ferry.

Marcy Ave.

2016 Average Weekday Subway Ridership • 13,815

2016 Annual Subway Ridership • 4,272,443

CITI Bike

14 Williamsburg

Arguably the trendiest neighborhood in Brooklyn, Williamsburg is filled with stylish restaurants, hip bars and endless options to hear great music. Add a vibrant nightlife to the mix and this neighborhood is sure to provide something for everyone to enjoy.

Once a neighborhood packed with industrial warehouses, Williamsburg has transformed into a popular neighborhood with endless apartment buildings, luxury high-rises and condos on the waterfront. Multiple subway lines offer convenient access to Manhattan and the rest of the city.

Area Transportation

Citi Bike

37 transactions in 2017, with majority being in the mixed-use category

Was once a huge part of the manufacturing boom but has since become the most sought after place to live in all of Brooklyn

Has some of the highest rents in Brooklyn

15 Williamsburg Development

There are over 5,800 residential units coming to Williamsburg. 159 Broadway Domino Sugar Factory 79 Grand 134 Residential – 21 Units Mixed-Use Hotel - 251 Rooms 2,800 Units 354 Wythe 155 Broadway 95 S 5th Domino Sugar 308 N 7th Residential Mixed-Use 170 S 1st 144 Units 23 Units 95 S 5th 420 Kent 170 S 1st Residential Mixed-Use 194 S 3rd 856 Units 8 Units 356 Bedford 207 S 3rd 462 Kent 79 Grand Residential Mixed-Use 5 Units 754 Units 420 Kent 263 S 5th 134 Metropolitan 354 Wythe Mixed-Use 356 Bedford Residential 4 Units 77 Units 462 Kent 159 Broadway 263 S 5th 356 Bedford Mixed-Use Residential TBD 155 Broadway 19 Units

rd 500 Kent 207 S 3 500 Kent Residential Commercial 10 Units TBD 359 Bedford Residential TBD Residential 194 S 3rd Residential Mixed-Use, Retail, Office 30 Units Commercial 308 North 7th Residential 45 Units 16 Project Spotlight

Domino Sugar Factory

SHoP and Field Operation's master plan for the Domino Sugar site development by two trees will create almost 5 acres of publicly- accessible open space on a new street grid; provide for a 24/7 mix of creative office space, market-rate and affordable housing, neighborhood retail, and community facilities; and is an innovative form of open architecture that connects the existing neighborhood to the new quarter-mile waterfront. The plan also envisions a new skyline for Brooklyn— one that relates to the height of the Williamsburg bridge and scales down to meet the neighborhood. Central to the scheme is the renovated , which will become the nerve center of the project across from a new public space. The proposed buildings will be porous, featuring large openings that allow light and air to penetrate through the site and into the neighborhood beyond.

17 Project Spotlight

420 Kent Avenue

The 22-floor towers are comprised of 857 apartment units, 20% of which will be affordable housing. Units will boast northern sightlines onto the Williamsburg Bridge, the East River and eastern vistas of downtown Manhattan. Kent’s promenade will add to the communal boardwalk stretching from Greenpoint all the way to Dumbo. The Project will also see the creation of 80,000 SF of outdoor space.

18 Major Office Developments Map

25 Kent 25 Kent Ave. Dock 72 - Navy Yard

Domino Sugar

105 Broadway

Empire Stores

Brooklyn Navy Yard DUMBO Heights

Domino Sugar Empire Stores

160 Van Brunt

92 Third 1000 Dean

160 Van Brunt St. DUMBO Heights

Industry City

Industry City 1000 Dean St. 19 Notable Office development in the area

Several large projects are in development or planned for Brooklyn, examples include: 25 Kent, Williamsburg Property Information: Brooklyn’s first speculative office development in decades will create 400,000 SF of new office space Domino Sugar Factory, Williamsburg Property Information: A quarter mile of waterfront development including 25 Kent office, residential and retail

Dumbo Heights, DUMBO Property Information: 6-Buildings, 1.2 million SF being redeveloped into the “Epicenter” of the Brooklyn Tech Triangle Notable Tenants: Etsy, WeWork

Industry City, Sunset Park Property Information: 6-million-SF, 16-building commercial complex Notable Tenants: Brooklyn Nets, Li-Lac Chocolates, MakerBot, Time Inc

Brooklyn Navy Yard, Clinton Hill Property Information: 300-acre industrial park with over 4 million SF Notable Tenants: Steiner Studios, Wegmans, WeWork, Duggal Domino Sugar

20 Dumbo Heights Area retail

1 Peter Luger Steak House 29 Freehold Fitness 2 Diner 30 12 Chairs Cafe 49 48 3 Bembe 21+ 31 BERRY Clothing

4 Baby's All Right 32 Cobalt Salon 47 Bars & Restaurants 46 5 CKO Kickboxing 33 Brooklyn Shoe Space 45 44 43 Grocery 6 Patrizia's of Brooklyn 34 BeeHive Oven Biscuit Cafe 38 39 40 42 41 105 Broadway 7 Marlow & Daughters 35 Xixa 31 8 Meadowsweet 36 Blue Collar 30 28 37

9 Brooklyn Industries 37 Filthy Rich Barbershop 32 29 27 34 33 36 10 Motorino Pizzeria 38 Maison Premiere

11 Avenue Cafe 39 Quinoa Kitchen 22 21 20 35 12 Southside Food Plaza 40 The Chinese Club 25 23 19 13 Hollanders Cakes 41 Tabare 26 24 14 Barano 42 Brooklyn Running Company 59 56 55 15 Donna 43 Walter Foods 60 3 51 10 8 58 Roebling Pizza 50 1 16 44 53 2 7 4 57 9 18 15 6 52 17 17 Laughing Lotus Yoga 45 Tikka 54 5 13 16 11 18 Dunkin' Donuts 46 Fresh Kills Bar 14 12 19 Pies 'n' Thighs 47 Martha's Country Bakery

20 Pokito Brooklyn 48 by CHLOE. Williamsburg

21 The Bagel Store 49 Apple Williamsburg

22 Rabbithole 50 Marlow & Sons

23 Randolph Beer WBURG 51 OTB

24 Landmark Bicycles 52 Streets BK

25 Miss Favela 53 Blank Café 57 Velvet Brooklyn

26 The Woods 54 City Acres Market 58 Gordon Bennett

27 Wild Brooklyn 55 Soma 59 East River Bar

28 SYNCSTUDIO 56 Loosie Rouge 60 Bia 21 Neighborhood Attractions

Williamsburg

• Weylin B. Seymour, Weylin is the site of the iconic Williamsburg Savings Bank, Weylin acts as a multifunctional, cultural and community hub.

• Apple Store, Apple has crossed the bridge to Brooklyn! The tech giant's first brick-and-mortar store in the borough is open in Williamsburg.

• Wythe Hotel, Wythe Hotel started with the discovery of a factory on the Williamsburg waterfront. The building was constructed in 1901 and has been converted into a 70- room hotel.

• Domino Sugar Factory, Two Trees’s 6-block, mixed-use, waterfront development on the site of the former Domino Sugar refinery.

Weylin

Wythe Hotel

Apple Store Domino Sugar 22 Neighborhood Attractions

Williamsburg

• Peter Luger’s, Since 1887, Peter Luger Steak House, a bonafide New York institution, has served the finest of steaks. For 26 consecutive years, Peter Luger has been the number one steak house in New York, according to Zagat’s.

• , Since its founding in 1988, Brooklyn Brewery has brewed flavorful beers that enrich the life, tradition and culture of the communities it serves.

• , Brooklyn Bowl has redefined the destination entertainment experience. “One of the most incredible places on earth.”

• Smorgasburg, Smorgasburg food market brings together New York State Greenmarket farmers and top New York City purveyors and chefs on the spectacular Williamsburg waterfront every Saturday.

Peter Luger’s

Brooklyn Bowl

Brooklyn Brewery Smorgasburg 23 Brooklyn

With 2.6 million residents, Brooklyn is the most populous borough of New York City and the most populous county in New York state. It is the second most densely populated county in the U.S., after New York County (Manhattan). The borough is situated at the southwestern end of Long Island and is bounded on the north and east by the borough of Queens, on the south by Lower New York Bay, the Atlantic Ocean and Jamaica Bay and on the west by the East River, Upper New York Bay and the Narrows, which separates it from the borough of Staten Island. Brooklyn was an independent city until its consolidation with New York City in 1898. The borough’s 36 neighborhoods continue to maintain a distinct culture and unique heritage.

24 The information provided herein has either been given to us For more information, please contact exclusive agents: by the owner of the property or was obtained from sources we deem reliable. We do not guarantee the accuracy of any information. All zoning, existing square feet of buildings, available buildable square feet, permitted uses and any Ofer Cohen Dan Marks Daniel Lebor other information provided herein must be independently verified. The value of any real estate investment is Founder & CEO Partner Dir. of Business Development dependent upon a variety of factors including income, [email protected] [email protected] [email protected] vacancy rates, expense estimates, tax brackets and general market assumptions, all of which should be evaluated by your tax advisor and/or legal counsel. Interested party Matthew Trotter Mike Hernandez Mike Rafter should carefully verify each item of information herein; 718-768-6888 there can be no guarantee that the enclosed information is Senior Associate Associate Vice President Associate accurate or that the subject property will sell for the [email protected] [email protected] suggested asking price. The estimates and assumptions [email protected] terracrg.com provided herein are based on the subject property containing no environmental contamination.