56 W 45th STREET

New York, NY CUSHMAN & WAKEFIELD | 56 WEST 45TH STREET TABLE OF CONTENTS

EXECUTIVE SUMMARY 1 PROPERTY OVERVIEW 11 MARKET ANALYSIS 23 FINANCIAL OVERVIEW 33 THE NEIGHBORHOOD 43

56 WEST 45TH STREET | THE KNAKAL GROUP EXECUTIVE SUMMARY

1 CUSHMAN & WAKEFIELD | 56 WEST 45TH STREET Cushman & Wakefield has been retained on an exclusive basis to arrange for the sale of 56 West 45th Street (the “Property”). The intricate Neo-Gothic tower was originally designed by architects Wallis & Goodwillie and constructed in 1914. The Property is an approximately 65,292 rentable square foot, 17- EXECUTIVE story, mixed-use, Class B office building featuring 2,600 square feet of ground floor retail space. Ideally positioned along the south side of West 45th Street between Fifth and Sixth Avenues, the Property benefits from an optimal Midtown location in the heart of . 56 West 45th Street is currently 100% occupied SUMMARY by a diverse tenant mix, offering an investor stable in-place cash flow with substantial future upside and repositioning potential as leases begin to expire.

56 WEST 45TH STREET | THE KNAKAL GROUP 2 EXECUTIVE SUMMARY

THE OPPORTUNITY

56 West 45th Street consists of 25 office suites spread across floors 2 through 18 and 2,600 square feet of retail space on the ground floor. 12 of the office units are 3,500 to 4,000 square foot full floor suites with direct access from the elevator. The remaining 13 units, ranging in size from 325 to 2,444 square feet, are spread across the 10th, 14th, 15th and 16th floors. The full floor suites boast large open layouts with generous light and air due to windows on three sides as well as ceiling heights that are all over 11’. The approximately 4,000 square foot open floor layouts attract a wide array of tenants from different industries due to the flexible configurations and overall manageable size.

LONG-TERM CASH FLOW & A DIVERSE TENANT MIX

A major key to the profitability of a mixed-use office building is long-term contractual cash flow from a qualified tenant mix. 56 West 45th Street provides just that as nearly 70% of leases, which cover 83% of the building, are set to expire in 2020 or later. This guaranteed revenue allows an investor to implement a more comprehensive capital expenditure campaign targeting major building improvements and tenant upgrades. The diverse tenant mix consisting of FIRE and TAMI tenants includes insurance, marketing, media and real estate firms as well as medical and jewelry retail locations. This wide range of tenancy minimizes ownership’s exposure to industry risk, further illustrating the versatility of the Property’s location and overall demand from the market place for mid- sized, full floor office suites.

3 CUSHMAN & WAKEFIELD | 56 WEST 45TH STREET EXECUTIVE SUMMARY

FUTURE RETAIL REPOSITIONING POTENTIAL

Positioned just west of the renowned retail corridor, the Property benefits from robust tourist and transient foot traffic as well as a strong local office employee demographic. The rapidly changing retail market city- wide has put significant upward pressure on rents, particularly in densely populated areas. Currently, DeJanerio, a women’s clothing store, occupies 2,600 square feet of retail space on the ground floor through April of 2020. In addition, Smart Choice Communications just signed a co-terminus lease for the entire 4,000 square foot office suite on the 2nd floor. The 2nd floor features ceiling heights in excess of 13’ and additional expansion potential due to a skylight in the rear of the floor. Upon lease expiration in 2020 an investor will have the opportunity to transform the 1st and 2nd floors into a remarkable ~6,600 square foot multi-level retail destination.

56 WEST 45TH STREET | THE KNAKAL GROUP 4 EXECUTIVE SUMMARY

VALUE ADD - LEASE TURNOVER

The Midtown office market ended 2015 on a high note largely due to the