57 Grand Street SOHO MIXED-USE LOFT BUILDING

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57 Grand Street SOHO MIXED-USE LOFT BUILDING 57 Grand Street SOHO MIXED-USE LOFT BUILDING CONFIDENTIAL OFFERING MEMORANDUM Offering Memorandum Disclaimer Table of Contents Executive Summary ..................................................4 This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the Pictures ......................................................................6 terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and constitutes part of the Confidential Information (as defined in the Confidentiality Agreement). Rent Roll & Expenses ............................................. 10 It is being given to you for the sole purpose of evaluating the possible investment in 57 Grand Market Overview ......................................................12 Street (the “Property”), and is not to be used for any other purpose or made available to any other party without the prior written consent of Alexander Development Group (“Managing Sales Comparables ..................................................18 Member”), or its exclusive broker, Cushman & Wakefield. This Memorandum was prepared Due Diligence ..........................................................20 by Cushman & Wakefield based primarily on information supplied by Managing Member. It contains select information about the Project and the real estate market but does not contain Financing .................................................................30 all the information necessary to evaluate the Project. The financial projections contained herein (or in any other Confidential Information) are for general reference only. They are based on assumptions relating to the overall economy and local competition, among other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. While the information contained in this Memorandum and any other Confidential Information is believed to be reliable, neither Cushman & Wakefield nor Managing Member guarantees its accuracy or completeness. Because of the foregoing and since the investment in the Project is being offered on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to facilitate the prospective purchaser’s investigation, must make its independent investigations, projections and For more information, please contact conclusions regarding the investment in the Project without reliance on this Memorandum or one of the following individuals: any other Confidential Information. Although additional Confidential Information, which may include engineering, environmental or other reports, may be provided to qualified parties as Robert Burton the marketing period proceeds, prospective purchasers should seek advice from their own Senior Managing Director attorneys, accountants, engineers and environmental experts. Neither Cushman & Wakefield +1 212 660 7770 nor Managing Member guarantees the accuracy or completeness of the information contained [email protected] in this Memorandum or any other Confidential Information provided by Cushman & Wakefield and Managing Member. Managing Member expressly reserves the right, at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at Keegan Mehlhorn any time with or without written notice. Managing Member shall have no legal commitment Associate Director or obligations to any prospective investor unless and until a written sale agreement has +1 212 660 7718 [email protected] been fully executed, delivered and approved by Managing Member and any conditions to Managing Member’s obligations thereunder have been satisfied or waived. Managing Member has retained Cushman & Wakefield as its exclusive broker and will be responsible for any Bobby Carrozzo commission due to Cushman & Wakefield in connection with a transaction relating to the Senior Associate Project pursuant to a separate agreement. Cushman & Wakefield is not authorized to make +1 212 589 5118 any representation or agreement on behalf of Managing Member. Each prospective investor [email protected] will be responsible for any claims for commissions by any other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or its broker. This Memorandum is the property of Managing Member and all parties approved by Managing Member and may be used only by parties approved by Managing Member. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement. Executive Summary 228 / 24 BLOCK LOT 22’ x 67’ LOT DIMENSIONS (APPROX.) 1,474 LOT SQUARE FOOTAGE (APPROX.) 4,554 EXISTING BUILDING SQUARE FOOTAGE (APPROX.) 7,370 TOTAL BUILDABLE SQUARE FOOTAGE (APPROX.) M1-5A ZONING $289,607 $36,835 ASSESSMENT (2017/2018) TAXES (2017/2018) 57 Grand Street BETWEEN WEST BROADWAY AND WOOSTER STREET Cushman & Wakefield has been exclusively retained to arrange for the sale of 57 Grand Street, a 4-story mixed-use loft property located on the south side of Grand Street between West Broadway Asking Price: $8,750,000 and Wooster Street. The property benefits from being Tax Class 2A, thus it is protected from Tax Increases of over 8% annually. The property is comprised of one ground floor restaurant and 3 floor-through loft spaces above. The Robert Burton Keegan Mehlhorn Bobby Carrozzo ground floor space is leased until 2025 to Toad Hall, a local SoHo watering hole that is famous for Senior Managing Director Associate Director Senior Associate +1 212 660 7770 +1 212 660 7718 +1 212 589 5118 its laid back atmosphere. The loft units above are all free market and occupied on annual leases, thus [email protected] [email protected] [email protected] not management intensive. Pictures TOAD HALL BACK 4TH FLOOR BEDROOMS TOAD HALL FRONT 4TH FLOOR 6 nyinvestmentsales.com 59 Grand Street | Cushman & Wakefield 7 Rent Roll & Expenses Rent Roll 4TH FLOOR KITCHEN Revenue Unit Tenant Status Lease Exp GSF NSF Rent PSF Monthly Rent Annual Rent Basement 440 440 Included Included Included Commercial Toad Hall 1/31/2025 1,474 1,327 $183 $20,248 $242,976 2 FM 4/30/2018 1,320 1,188 $84 $8,350 $100,200 3 FM 6/30/2018 880 792 $101 $6,675 $80,100 4 FM 7/31/2018 880 792 $102 $6,745 $80,940 TOTAL 4,554 4,099 $123 $42,018 $504,216 Expenses Expense Expense Amount Real Estate Taxes (17/18) Tax Class 2A* $36,835 Real Estate Taxes Reimbursement 30% Over the Base Year of 2013/2014 -$1,687 Water & Sewer Actual $21,637 Water & Sewer Reimbursement 60% of the Water & Sewer -$12,982 Insurance Actual $8,458 Fuel Tenants Pay $0 Electric (Common Areas) Actual $831 Repairs & Maintenance Actual $3,100 Management Projected $10,084 TOTALS $66,276 Net Operating Income Gross Monthly Income $42,018 Gross Annual Income $504,216 Less Expenses -$66,276 NET OPERATING INCOME $437,940 8 nyinvestmentsales.com 59 Grand Street | Cushman & Wakefield 9 Market Overview Retail Education SoHo has become one of the leading sources New York University’s campus is centered around of creativity for the fashion and retail industries Washington Square Park, a few blocks north of as well as many other forms of merchandise. In SoHo. Many teachers and students are housed fashion, Jill Stuart, Kenneth Cole, Kate Spade, in the surrounding area and the NYU Bus can be Armani, Chanel, Louis Vuitton, the MOMA Design seen regularly making its way down Broadway, Store, Prada, Stephane Kelian, DKNY, Ferragamo, across Spring, or up Lafayette. The school has an Dolce & Gabbana, Burberry, Anna Sui, Agnes B. enormous influence on New York City and SoHo and countless others can be spotted on a casual in particular. walk through SoHo. Arts & Culture Apple opened its first retail store in the old Post Office Building on Prince Street and dedicated Art galleries in SoHo include John McEnroe, Louis techies formed a line all night long awaiting its K. Meisel, Lumas, Peter Lik SoHo, Animazing first opening. Gallery, Aesthetic Realism Foundation’s Terrain Gallery, Dutesco Art, and Brentano’s. Museums Hotels or their stores include, The Drawing Center, the SoHo New Museum of Contemporary Art, and the Andre Balazs brought us the exclusive Mercer The Manhattan neighborhood which encompasses 57 Grand When the Great Depression hit the United States and cheaper MOMA Design Store. Theatres include the SoHo Hotel at Mercer and Prince. The Sterns’ delivered Street is known as SoHo. Today the area is a vibrant international sources of labor moved jobs overseas in the following decades, Playhouse and the Wooster Group. the SoHo Grand Hotel. SIXTY Hotels owns and retail and residential destination. these huge buildings gradually became vacant. This process operates SIXTY SoHo (formerly 60 Thompson). accelerated after World War II and by the 1960s, SoHo was The James is located at 27 Grand Street. There The name “SoHo” comes from the words “SO”uth of “HO”uston. practically a ghost town. Restaurants The area from Houston, south to Canal Street between Broadway is a Courtyard Marriott on Varick Street and a and West Broadway is considered the heart of SoHo. Little Italy, As often happens in New York real estate, underdeveloped areas Four Points by Sheraton at 66 Charlton Street. Excellent fare is
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