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 available throughout the area as which lies within SoHo, is world renowned and extends along are revitalized when a group of enterprising individuals band Additionally, the barriers of Soho are being some of the world’s finer chefs have establishments Mulberry Street from Canal to Houston Streets. together to create a renaissance. Such was SoHo’s destiny. pushed further west with the opening of Trump in SoHo. Older original restaurants include Fanelli Artists, primarily painters and sculptors, began seeking large SoHo, a hotel and condominium on Spring Street. Café at the corner of Prince and Mercer and Kenn’s In the 1800s, as New York developed along Broadway above spaces for their works of art. They found cheap rents from the All cater to exclusive clientele and enjoy extremely Broome Street Bar at West Broadway. Newer Canal Street, SoHo became an area of merchant buildings. The owners of hundreds of vacant loft buildings, and owners often high occupancy rates year round. restaurants include Aquagrill, Balthazar, Pravda, houses that sprang up around Greene and Mercer Streets housed looked the other way as tenants actually moved into their lofts as The Mercer Kitchen, Dos Caminos, the Dutch, and bordellos, which serviced all levels of New York society. It was a place to both live and work. Blue Ribbon Sushi. not unusual to see seamen, businessmen, politicians, policemen and all kinds of fancy carriages with rich gentlemen callers in the In the 1970s, the art dealer Leo Castelli was encouraged to open a evenings around SoHo. downtown gallery and become part owner of the building at 420 West Broadway and the boom began. Within a few short years In the 1850s and 1860s a new form of construction was developed SoHo had become an internationally recognized artistic center. which was quick and inexpensive. Preformed steel frames were joined with normal wood rafters. Cast Iron buildings proliferated Soon throngs of people were on the streets every weekend. and while the area remained primarily manufacturing and retail, Retailers saw the volume of foot traffic and were quick to take enormous loft buildings were built throughout SoHo. These advantage of the situation. By the end of the 1980s galleries and loft buildings replaced the federal townhouses that had once shops were everywhere. Today, artists, musicians, movie stars, dominated the area. models, attorneys, bankers and people from every conceivable profession, live and work in SoHo. It has truly become a The original New York City department stores thrived on cosmopolitan and international community. Broadway during this period of tremendous growth and gradually moved uptown as New York expanded north. New York became one of the largest producers of clothing during this period and sweatshops flourished. Points of Interest
1 1 Mercer Hotel
Mercer Hotel is set in the heart of SoHo at 147 Mercer Street, just steps away from some of the City’s most spectacular retail and fine-dining establishments. The hotel contains 75 guest rooms and is located in an elaborate, landmarked, Romanesque building. Within the hotel is chef Jean-Georges Vongerichten’s world-renowned Mercer Kitchen; a 200-seat restaurant satisfying customers appetites with it’s communal style 3 seating arrangements and open kitchen since 1998.
5 1 2 2 The Drawing Center
Established in 1977 on the principles of expressing “the quality and diversity of drawing—unique works on paper—as a major art form”, Martha Beck’s Drawing Center attracts hundreds of thousands of visitors each year. The non-profit museum and art gallery focuses on both historical and contemporary drawings. Located at 35 Wooster Street, The Drawing Center received a 4 $10 million renovation in 2012 and expanded its 6 exhibition space by over 50%. The Drawing Center regularly hosts film screenings, artists talks, performances and literary readings for adults and children alike. 2
12 nyinvestmentsales.com 59 Grand Street | Cushman & Wakefield 13 Points of Interest
3 5 3 New York University 5 Apple Store
The most expansive university in Manhattan, In 2001, Apple founder and visionary, Steve Jobs, New York University is a mainstay in Greenwich introduced the Apple Store to the world. The store Village and has expanded their presence into the was designed not only to sell Apple products, East Village. The private university has prominent but also as a point for customers to access the dormitories at 33 3rd Avenue, 55 East 10th Street, internet, take classes and even have their own 129 3rd Avenue, 1 East 2nd Street, and most products serviced at the Genius Bar. After success recently a 26-story dorm on East 12th Street. With in its inital roll-out, Apple turned its sights towards over 12,500 resident students and thousands of SoHo, building not only what they considered the others living in the area, NYU has provided stability first “high-profile” flagship store, but also the first and driven retail demand east of Lafayette Street in New York City. Apple fans lined up overnight over the last 20 years. eagerly awaiting the SoHo store’s opening. First year sales doubled the initial projections, proving Apple’s retail strategy a success.
4 4 63 Greene Street 6 6 The Wooster Group
AION Partners delivered the latest in SoHo Performing out of a garage at 33 Wooster Street, Cast-Iron, residential conversions. 63 Greene is The Wooster Group has become both a local equipped with six stories of luxury residencies and national staple. The Group is considered an featuring 12’ ceilings, over-sized windows, cast- experimental theater company, creating original iron and wood columns as well as high-end dramatic works in their performance garage. finishes from Lefroy Brooks and Bertazzoni. The The Wooster Group has launched the careers of building features a private rooftop terrace for several known actors, including Willem Dafoe. residents to relax and unwind after a long day. The When the garage is not filled with a packed 10 residential condominiums range in price from audience, The Wooster Group hosts its famous $2,375,000 to $12,950,000 for the penthouse. Summer Institute-an arts-in-education program, which teaches movement, as well as writing and voice training to teenagers in New York City’s public schools.
14 nyinvestmentsales.com 59 Grand Street | Cushman & Wakefield 15 Sale Comparables
4
Address Date Cap Rate Sale Price SF PPSF 1) 68-74 THOMPSON 12/28/2017 4.33% 62,000,000 36,000 $1,722 2) 137 THOMPSON 8/23/2017 4.36% 12,000,000 9,583 $1,252 2 3) 460 BROOME 1/6/2017 Vacant $17,340,000 11,000 $1,576 4) 51 MACDOUGAL 12/22/2016 Vacant $9,850,000 4,700 $2,096 Prince Street 5) 24 PRINCE 4/28/2016 UNK $13,750,000 8,958 $1,535 6) 81 SULLIVAN 10/14/2015 Vacant $11,000,000 6,297 $1,747 7) 61 SULLIVAN 10/13/2015 Vacant $8,050,000 5,474 $1,471 5
Sullivan Street Spring Street
6 1
Mercer Street 7 Crosby Street
Broome Street 3 Street Mott
Thompson Street Grand Street
Centre Street
16 nyinvestmentsales.com 59 Grand Street | Cushman & Wakefield 17 Demographics & Transportation
Demographics Transportation While 57 Grand is surrounded by innumerable amenities and cultural offerings for its residents and visitors, part 2000 2010 2016 2021 % Change % Change of the allure of coming to SoHo is that it provides remarkable accessibility to the entire city. The neighborhood is primarily Population Demographics Census Census Estimates Projection 2010-2016 2016-2021 served by the 6, A, C, E, B, D, F, M, N, R and W subway lines, which provide direct access to all corners of Manhattan and the boroughs. The property is located steps from the Canal Street CE and 1 train stops and can be served by the NQRW, 4/6 and J/Z trains that Total Population 7,952 8,035 8,379 8,471 4.3% 1.1% provide direct access to the rest of the city. By car, there is easy access to the Brooklyn Bridge, Manhattan Bridge, and Brooklyn- Population Density (Pop/Sq. Mi.) 45,997 46,457 48,448 48,979 4.3% 1.1% Battery tunnel. The area is equally accessible to John F. Kennedy and LaGuardia airports.
Total Households 4,592 4,634 4,843 4,907 4.5% 1.3%
2000 2010 2016 2021 % Change % Change Household Income Census Census Estimates Projection 2010-2016 2016-2021
$0-$15,000 607 13.2% 395 8.5% 392 8.1% 310 6.3% -0.8% -20.9%
$15,000-$24,999 362 7.9% 213 4.6% 222 4.6% 199 4.1% 4.2% -10.4% Spring Street
$25,000-$34,999 297 6.5% 288 6.2% 255 5.3% 212 4.3% -11.5% -16.9%
$35,000-$49,999 461 10.0% 233 5.0% 264 5.4% 237 4.8% 13.3% -10.2%
$50,000-$74,999 913 19.9% 424 9.1% 434 9.0% 354 7.2% 2.4% -18.4%
$75,000-$99,999 571 12.4% 682 14.7% 671 13.9% 564 11.5% -1.6% -15.9%
Thompson Street $100,000-$149,999 489 10.7% 865 18.7% 820 16.9% 980 20.0% -5.2% 19.5% Wooster Street
Mecrer Street $150,000+ 821 17.9% 1,536 33.1% 1,786 36.9% 2,051 41.8% 16.0% 14.8% Crosby Street 3 Minutes Average Income $112,692 $169,526 $176,204 $199,834 3.9% 13.4% Median Income $63,881 $102,707 $106,206 $118,964 3.4% 12.0% 1 Grand Street Income Per Capita $65,932 $98,935 $103,152 $117,285 4.3% 13.7% 3 Minutes
2016 Daytime Population Demographics
Total Daytime Population 33,402 Age 16 and Over at the Workplace 31,393 A C
Population age 16 and under (Children) 365 Age 16 and Over Unemployed 221 E Canal Street 5 Minutes Daytime Population Age 16 and Over 33,037 Age 16 and Over Working from Home 811
Students Pre-K to 8th Grade 35 N Q 7 Minutes Students 9th Grade to 12th Grade 113 R W Post-Secondary Students 232 4 6
Homemakers Aged 16 and Over 811 J Z
18 nyinvestmentsales.com 59 Grand Street | Cushman & Wakefield 19 R B R7 2 M1 5M R7B
C6 2A C1 6A C6 2A C6 4A R9A M1 1
C6 4A C1 A
C1 6A C6 3A