64 UNIVERSITY PLACE CONFIDENTIAL OFFERING MEMORANDUM Table of Contents

Executive Summary 3 Property Overview 5 Location Overview 11 Property Due Diligence 14 64 University Place New York, New York

Highlights • $690,000 in annual rent will increase to nearly $1.2 million in Jan 2020 • Retail leased through 2026 • Floors 2 – 4 are vacant • 25,380± ZSF as built; 41,243± max ZSF per C1-7 zoning • 65.17± feet of frontage on the pedestrian corridor between Union Square and Washington Square Park • Prime location in Manhattan’s preeminent neighborhood • Convenient access to the Union Square transportation hub • 14th Street – Union Square transportation terminal is the Avison Young, as exclusive agent, is pleased to offer 64 University fourth busiest subway station in New York City Place (“Property”) for sale, property is a mixed-use building on • Highly successful luxury residential Manhattan’s Greenwich Village Gold Coast with redevelopment condominiums nearby potential. It is prominently located on the streetscape with over • Greenwich Village Gold Coast is home to world 65 feet of frontage between East 10th & 11th Streets, midway renowned restaurants between Union Square and Washington Square Park. Agata & Valentina is the building’s only tenant and is located on the ground floor of the four story building. Their lease runs through June 2026. The three upper floors are vacant and last used by a recording school. 64 University Place offers a potential investor the opportunity to acquire a location in a prime neighborhood with 65± feet of frontage on a main thoroughfare and several potential reuse options. The University Place address and proximity to Union Square’s transportation network makes the Property’s location ideal for residential and commercial uses. Agata & Valentina’s 2.00X 6.50X 6.02X rent nearly doubles at the end of 2019, which may present Commercial Community Facility Residential an opportunity to get vacant possession earlier than 2026. At 12,690 ZSF 41,243 ZSF 38,197 ZSF 25,380± existing square feet, the Property has the potential to be redeveloped up to 41,243± zoning square feet with a community facility based on an FAR of 6.5x.

For more information: properties.avisonyoung.com/64University $40,000,000 ASKING PRICE

For more information, please contact: James Nelson Charles Kingsley Toku Saito Principal, Head of Tri-State Investment Sales Principal Associate, Investment Sales 212.729.6585 | [email protected] 212.729.1851 | [email protected] 212.230.5994 | [email protected]

1166 Avenue of the Americas, 15th Floor | New York, NY 10036 | T 212.729.7140 | F 917.591.9300 | avisonyoung.com © 2018 Avison Young – New York, LLC. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. 64 University Place New York, New York

Property Information Development Potential FAR ZSF* Location Between E 10th & E 11th Streets Residential 6.02x 38,197 Block / Lot 568/21 Community Facility 6.50x 41,243 Lot Dimensions Irr. (approx.) 65.17 x 103.75 Commercial 2.00x 12,690 Lot SF (estimated) 6,345± *Based on 6,345 SF lot Building SF 25,380± Stories 4 Lease Summary Occupied Floors 1 (plus basement) Tenant Agata & Valentina Tenants Agata & Valentina Zoning* C1-7 Use Grocery Store 2.00x Commercial FAR 6.50x Community Facility Square Feet (approx.) 5,640 6.02x Residential RE Tax Assessment (18/19) $3,788,010 LXD Jun 2026 RE Taxes (18/19) $398,271 Village Alliance BID (18/19) $6,141 Current Rent with Abatement $122/SF $690,000 annual *A fractional portion of the lot falls within R7-2 but has not been included in zoning calculations Rent 1/1/2020 $202/SF $1,140,093 annual

Rent 7/1/2020 $208/SF $1,174,296 annual Union Square

Increases (2021 & beyond) 3% each July

50% over 2011/12 RE Tax Reimbursement Base Year 64 University Place Base Year Taxes $287,781

East 11th Street

Fifth Avenue East 10th Street East 11th Street

University Place

568 21 Washington Square Park

Fifth Avenue

University Place East 10th Street

AVISON YOUNG 64 UNIVERSITY PLACE | 5 Project Overview

64 University Place is a four-story building in the heart of Greenwich Village. Its lone tenant is Agata & Valentia, a fine foods grocery store, which occupies the first floor and basement. The remaining 19,035 SF on floors two through four are currently vacant. The lot measures 6,345 SF with 65.17± feet of frontage between East 10th & 11th Street. Development 64 University presents a potential investor with two unique development opportunities: This Property, situated between Union Square and Greenwich Village, would lend itself to a mixed-use retail and residential condominium, or community facility redevelopment with at-grade retail. Condo Because of its location in Greenwich Village, one of the most desired residential locations in New York City, 64 University would thrive as a mixed-use condominium redevelopment. The neighborhood is lined with restaurants and retail stores, and Washington Square Park provides a nice escape for residents. This Property is also conveniently located within blocks of transportation hub Union Square. The zoning allows for a 6.02x FAR for residential use or 38,197± ZSF. Given the amenities and convenience of the neighborhood, there have been plenty of exciting condominium redevelopments in the area. A few blocks north are 100 & 116 University Place, two highly anticipated luxury condominiums. 100 University Place will have 13,075 SF of retail on the ground and cellar levels, in addition to 1,050 SF of community facility space. The residential units, averaging 2,076 SF, have been trading at $2,500-3,000/SF. 116 University is a slightly smaller development, but the Morris Adjmi- designed condos have been seeing floors sell at around $2,500/SF. In addition, the ground floor could house an exceptional retail space within the 65.17± feet of frontage. See below for other condominium developments in Greenwich Village:

100 University Place Date Unit Price SF $/SF 1/12/18 10C $5,575,000 2,028 $2,749 10/25/17 9C $5,500,000 2,028 $2,712 10/25/17 11C $5,650,000 2,028 $2,786 5/23/17 10C $5,575,000 2,028 $2,749 Year Built 2018 5/23/17 15C $6,075,000 2,028 $2,996 # Units 52 4/6/17 THB $12,000,000 3,307 $3,629 # Stories 23

116 University Place Date Unit Price SF $/SF 6/7/17 5 $7,600,000 3,056 $2,487 6/7/17 2 $7,200,000 3,056 $2,356 6/7/17 4 $7,475,000 3,056 $2,446

Year Built 2018 # Units 5 # Stories 6

AVISON YOUNG 64 UNIVERSITY PLACE | 6 Project Overview

40 Bleecker Street Date Unit Price SF $/SF 6/18/18 4G $1,875,000 652 $2,876 6/11/18 3A $4,045,000 1,506 $2,686 6/11/18 2G $3,365,000 1,232 $2,731 6/11/18 3F $3,995,000 1,484 $2,692 Year Built 2019 5/9/18 PHC $10,185,000 2,855 $3,567 # Units 61 4/30/18 7E $5,700,000 1,872 $3,045 # Stories 12 4/23/18 6B $6,460,000 1,941 $3,328 4/23/18 7D $5,275,000 1,634 $3,228 4/23/18 8F $4,375,000 1,324 $3,304 3/20/18 2A $4,100,000 1,506 $2,722 3/20/18 3G $1,775,000 652 $2,722 3/20/18 5B $6,310,000 1,941 $3,251 3/20/18 8D $5,375,000 1,634 $3,289 37 East 12th Street Date Unit Price SF $/SF 8/21/17 4 $6,675,000 3,028 $2,204 7/14/17 6 $7,232,575 3,022 $2,393 11/3/16 5 $6,975,000 3,028 $2,304 10/13/16 3 $6,750,000 3,028 $2,229 Year Built 1896 # Units 6 # Stories 8 17 East 12th Street Date Unit Price SF $/SF 12/1/17 9 $9,571,550 4,514 $2,120 7/21/17 3 $7,950,000 4,514 $1,761 7/21/17 PH2 $14,950,000 4,743 $3,152 6/26/17 10 $15,086,418 4,514 $3,342 Year Built 2016 5/23/17 3 $7,644,121 4,514 $1,693 # Units 9 4/25/17 7 $9,150,000 4,514 $2,027 # Stories 11 Community Facility Whether it’s a school, library, child care center, or museum, 64 University would be a wonderful location for any type of community facility. NYU headlines the neighborhood and owns scores of properties nearby as the Greenwich Village campus has been actively expanding its presence in the area. The University owns approximately 12.8 million SF across 110 properties in New York City, most of which are just south of the Property. Per zoning restrictions, a community facility allows a maximum 41,243± ZSF. As a result, 64 University Place benefits as a sizeable community facility that can offer a personal identity. Alternatively, a buyer can incorporate a small community facility use into a mixed-use project with residential units above while maxing out the 6.5x FAR.

AVISON YOUNG 64 UNIVERSITY PLACE | 7 Retail Comparables

116 University Place

124 University Place

101 University Place

64 University Place

Transaction Property Tenant Floors Retail Annual Rent Bump Lease Date Address Name Occupied SF Rent / SF Percent Term 2017 - Q3 116 University Place Nutella Café Ground 2,215 SF $178.00 3.0% /1y 10 years

2017 - Q1 124 University Place Luke’s Lobster Ground 450 SF $333.00 - 10 years

2016 - Q4 101 University Place Blue Bottle Ground 620 SF $329.00 3.0% /1y 12 years

2016 - Q4 101 University Place Sweetgreen Ground 1,750 SF $315.00 - 10 years

AVISON YOUNG 64 UNIVERSITY PLACE | 8 Location Overview Location Overview

64 University Place is situated between Union Square and Washington Square Park, in the heart of Greenwich Village. The coveted site benefits from the high-end retail, restaurants, bars and residential area of Greenwich Village, while enjoying the convenience of Union Square.

Area Overview The neighborhood is bordered by Broadway to the east, 6th Avenue to the west, Houston Street to the South and 14th Street to the north. Greenwich Village has always been known for its artists and bohemian fares, but is also home to some of NYCs top restaurants, comedy clubs and hotels.

Greenwich Village Greenwich Village possesses its own sense of character and Union Square charm within the city. The neighborhood has served as a home to the creative community, the LGBT community and New York University. It has become a melting pot of its own, filled with bustling restaurants and venues, while keeping its small community feel. Residential Neighborhood Living space is limited in this ultra-popular neighborhood. Despite the prices, you can’t find a better value when it comes to living in an area that is beautiful, friendly, accessible to transportation and filled with people who are proud of their community. On almost every block are handcrafted goods, family-run restaurants and one-of-a-kind people that give Greenwich Village its appeal. The smorgasbord of living spaces includes centuries-old brownstones, well-appointed prewar buildings, high-ceilinged View of residential homes in Greenwich Village spaces in former factories and now luxurious residential developments in steel-and-glass buildings. The historic architecture in the village is unrivaled elsewhere in the city. Retail University Place is the pedestrian highway between the transportation hub at Union Square and the tourist and cultural center that is Washington Square Park. As such, the stretch from Waverly Place and 14th Street has become home to a number of destination food locations that draw from Greenwich Village and beyond. On the block just north of the property, Nix is changing the perception of vegetarian restaurants, drawing celebrities and enticing meat-eaters to an exceptional New York City dining experience. On nearly every block along Greenwich Village’s Gold Coast there is an exceptional food or retailing option. An eclectic Mix of people Gather in Greenwich Village

AVISON YOUNG 64 UNIVERSITY PLACE | 10 Location Overview

Transportation 64 University Place has the luxury of being five blocks south of Union Square, perhaps the most convenient transportation hub in New York City. Union Square is home to the 4, 5, 6 trains as well as the L train and N, Q, R, W trains – a few stops from Grand Central, Brooklyn and almost anywhere else in the city. The PATH train also stops north of the Property at the 9th Street Station, enabling expeditious travel between lower Manhattan and New Jersey. Bus stations surround the Property and for those who travel via bike, there are a two Citi Bike Stations within three blocks of the building. The neighborhood enjoys excellent access to both the West Side Highway and FDR Drive for those in need of automobile transportation.

Washington Square Park

AVISON YOUNG 64 UNIVERSITY PLACE | 11 Property Due Diligence Lease Abstract

Original Lease Sign Date 4/11/11 Term 15 years Commence 7/1/11 LXP 6/31/26 Security $450,000 Electric Submetered Renewal Option One 5-year period at 95% FMV 7/1/26 - 6/31/31

Annual Rent Increase Schedule Year 1 $900,000.00 7/1/11 - 6/3/12 Year 2 $927,000.00 7/1/12 - 6/31/13 Year 3 $954,810.00 7/1/13 - 6/31/14 Year 4 $983,454.30 7/1/14 - 6/31/15 Year 5 $1,012,957.93 7/1/15 - 6/31/16 Year 6 $1,043,346.67 7/1/16 - 6/3/17 Year 7 $1,074,647.07 7/1/17 - 6/3/18 Year 8 $1,106,886.48 7/1/18 - 6/31/19 Year 9 $1,140,093.00 7/1/19 - 6/31/20 Year 10 $1,174,295.87 7/1/20 - 6/31/21 Year 11 $1,209,524.74 7/1/21 - 6/31/22 Year 12 $1,245,810.48 7/1/22 - 6/3/23 Year 13 $1,283,184.80 7/1/23 - 6/3/24 Year 14 $1,321,680.34 7/1/24 - 6/31/25 Year 15 $1,361,330.75 7/1/25 - 6/31/26

RE Tax Reimbursement RE Tax Base Year 7/1/2011 - 6/30/2012 Base Year Taxes $287,780.61 Base Year Pro Rata 50%

Amendments to Lease #1 Reduce monthly rent by $20K from 3/1/14-2/28/15; and by $10K from 3/1/15 - 2/29/16 #2 Monthly fixed rent due is $66,666.67 from 1/1/16 - 12/31/17 #3 Monthly fixed rent reduced to $57,500 per month from 1/1/18 - 12/31/2019

AVISON YOUNG 64 UNIVERSITY PLACE | 13 Floor Plans

Basement Ground Floor

AVISON YOUNG 64 UNIVERSITY PLACE | 14 Floor Plans

Second Floor Plan Third Floor Plan

Fourth Floor Plan

AVISON YOUNG 64 UNIVERSITY PLACE | 15 Transportation

64 University Place

AVISON YOUNG 64 UNIVERSITY PLACE | 16 About Avison Young

AMERICAS CANADA UK AND EUROPE Atlanta Houston Philadelphia Calgary Berlin Austin Indianapolis Phoenix Edmonton Bucharest Boca Raton Inland Empire Pittsburgh Halifax Coventry Boston Jacksonville Raleigh-Durham Lethbridge Düsseldorf Chapel Hill Knoxville Reno Moncton Frankfurt Charleston Las Vegas Sacramento Montreal Hamburg Charlotte Long Island San Antonio Ottawa London City Chicago Los Angeles San Diego Regina London West End Chicago Suburban Memphis San Francisco Toronto Manchester Cleveland Mexico City San Jose - Silicon Valley Toronto North Mexico City Columbus, OH Miami San Mateo Toronto West Munich Dallas Minneapolis St. Louis Vancouver Thames Valley Denver Nashville Suburban Maryland Waterloo Region Detroit New Jersey Tampa Winnipeg Fairfield / Westchester New York Tysons Fort Lauderdale Oakland Washington, DC Greenville Orange County West Palm Beach Founded: 1978 Hartford Orlando Total Real Estate Professionals: 2,600+ Offices: 84 Brokerage Professionals: 1,100+ Properties Under Management: 110+ MSF

Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 2,600 real estate professionals in 84 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial, multi-family and hospitality properties.

AVISON YOUNG 64 UNIVERSITY PLACE | 17 The Tri-State Investment Sales Group

James Nelson Principal, Head of Tri-State Investment Sales 212.729.6585 [email protected]

James Kinsey Principal, Senior Director of Tri-State Investment Sales 212.729.3291 [email protected] INSTITUTIONAL SALES GROUP

A different approach to putting our clients first. With a principal-led and asset focused group, we are structured to enable maximum collaboration. Our Vincent Carrega Neil Helman Jon Epstein Charles Kingsley Principal Principal Principal Principal clients get the power of one, unified team working together that is driven by solutions, not silos. ASSET SPECIALIZATION GROUPS OFFICE • MULTI-FAMILY/MIXED-USED • RETAIL/NNN LEASE DEVELOPMENT • INDUSTRIAL

Brent Glodowski Mitchell Levine Brandon Polakoff David Shalom Willis Fries Eric Karmitz Sam Schertz Carly Weinreb

Philip Bowman Allan Fries David Lawrence Henry Post Joseph Rosenfeld Tokutada Saito Richard Sullivan

OPERATIONS

Erik Edeen Ethan Bidna Pierre Hills Juanice Mickles Lauren Perry John Santoro

AVISON YOUNG 64 UNIVERSITY PLACE | 18 For more information, please contact: James Nelson Charles Kingsley Toku Saito Principal, Head of Tri-State Investment Sales Principal Associate, Investment Sales 212.729.6585 | [email protected] 212.729.1851 | [email protected] 212.230.5994 | [email protected]