± TABLE OF CONTENTS EXECUTIVE SUMMARY FINANCIAL OVERVIEW LOCATION OVERVIEW ZONING OVERVIEW BESEN ADVISORY TEAM Moshe Herskovich Associate (646) 424-5315 [email protected] Shlomo Gelernter Senior Director (212) 951-8407 [email protected] Paul J. Nigido Senior Financial Analyst (646) 424-5350 [email protected] Jared Rehberg Marketing Manager (646) 424-5067 [email protected] Besen & Associates 381 Park Avenue South 15th Floor New York, NY 10016 (212) 689-8488 EXECUTIVE SUMMARY Besen & Associates, as exclusive agent for ownership, is pleased to offer for sale 121, 123, 125, & 127 Post Avenue, New York, NY 10034 (collectively the “Property” or “Portfolio”); four contiguous 5-story walkups located in the Inwood section of Upper Manhattan. The Portfolio consists of 43 units, ±36,905 gross square feet, and has been well maintained by current ownership. The 100% occupied Property, which is situated around the corner from the #1 train at Tenth Avenue and three blocks from the “A” train at Broadway and West 207th Street, contains one (1) one-bedroom unit, twenty-three (23) two-bedroom units, and nineteen (19) three-bedroom units. The 23 two-bedroom units have an average monthly rent of $1,516 and the 19 three-bedroom units have an average monthly rent of $2,117, representing a 25%-40% discount to current market rents. Overall, the 43 apartments are renting at well below market rates with an average monthly rent of $1,795, offering significant upside to new ownership. Current ownership has completed substantial capital improvements at the Property, including a new boiler at 121 Post Avenue, Entech System at all 4 buildings, new windows in 123 Post Avenue and new roofs at 123, 125, and 127 Post Avenue. Furthermore, there have been upgrades to the lobby and partial apartment renovations as well as an upgraded electric system and gas-conversion to one of the three (3) boilers. The Property also features a state-of-the-art, camera-mounted security system with 24-hour interior and exterior building surveillance. Major capital expenditures totaled approximately $1,000,000. Ownership is also in the process of contesting the real estate taxes at 123 Post Avenue ($56,712). They have been offered a settlement to reduce the taxes by approximately $8,089, but Ownership has not yet accepted this offer and is pushing for a further tax reduction. LOCATION & TRANSPORTATION The 4-building portfolio is located on the easterly side of Post Avenue mid-block between West 204th Street and West 207th Street, three blocks from the bustling retail corridor along Broadway. The residents are well served by public transportation and a network of bus lines available throughout the neighborhood. The north/south M100 runs along Tenth Avenue, as well as the Bx12, which runs along West 207th Street providing access into University Heights via the University Heights Bridge. For vehicular traffic, the area possesses easy access to the George Washington Bridge and I-95 (Cross Bronx Expressway) to the south and I-87 (Major Deegan) just to the east of the Property. The Henry Hudson Parkway provides access to points north of Upper Manhattan. ASKING PRICE: $12,250,000 $332 PSF | $284,900 PPU | 5.2% Cap Rate | 13.2x GRM INVESTMENT HIGHLIGHTS New Development: Two-blocks away from 3875 9th Avenue - a 600,000± SF mixed-use new development coming to the neighborhood Well-maintained property requiring minimal near-term capital and low maintenance costs Opportunity Zone: Located in the middle of Inwood Opportunity Zone Tax Class 2B preserves a low and stable expense ratio, as well as capping increases in assessed values Nearby Parks: Walking distance to Isham Park, Indian Road Playground and Inwood Hill Park Above market return and a strong in-place cash flow will result in favorable leverage due to the stability of historical occupancy at or near 100% Cross-town MTA Bus service (M100 & Bx12) at West 207th Street & Park Avenue Easy access to the Henry Hudson Parkway, the George Washington Bridge, Cross-Bronx Expressway (I-95) and the Major Deegan Expressway (1-87) for points North & South of NYC In the heart of the newly-passed Inwood Rezoning Current ownership has spent $1,000,000 on Capital Improvements PROPERTY OVERVIEW – 121, 123, 125, & 127 Post Avenue 121 Post Avenue 123 Post Avenue 125 Post Avenue 127 Post Avenue Block / Lot 2219 / 13 2219 / 14 2219 / 15 2219 / 16 Lot & Built Size 25’ x 100’ (built 87’) 25’ x 100’ (built 87’) 25’ x 100’ (built 87’) 25’ x 100’ (built 87’) Building Sq Ft ±9,650 SF ±9,650 SF ±9,650 SF ±7,955 SF Description 5-story + basement 5-story + basement 5-story + basement 5-story + basement Total Apartments & 11 Apts / 51 rooms 11 Apts / 47 rooms 11 Apts / 50 rooms 10 Apts / 42 rooms Rooms Layout 4/4, 7/5 8/4, 3/5 1/3, 3/4, 7/5 8/4, 2/5 Tax Class 2B 2B 2B 2B Zoning R7A R7A R7A R7A FAR (built / allowed) 3.62 / 4.00 3.62 / 4.00 4.02 / 4.00 3.54 / 4.00 Assessment / Taxes $179,934 / $22,693 $449,673 / $56,712 $130,322 / $16,436 $135,098 / $17,038 (2018 / 2019) LOCATION MAP – NORTH MANHATTAN 121, 123, 125, & 127 POST AVENUE PROPERTY PHOTOS PROPERTY PHOTOS LOCATION OVERVIEW Inwood is a neighborhood in the New York City borough of Manhattan, at the northern tip of Manhattan Island, in the state of New York. Inwood is physically bounded by the Harlem River to the north and east, and the Hudson River to the west. It extends southward to Fort Tryon Park and alternatively Dyckman Street or Fairview Avenue farther south. While Inwood is the northernmost neighborhood on the island of Manhattan, it is not the northernmost neighborhood of the entire borough of Manhattan. That distinction is held by Marble Hill, a neighborhood situated just north of Inwood, on what is properly the North American mainland bordering the Bronx. Marble Hill was isolated from Inwood and the rest of Manhattan in 1895 when the route of the Harlem River was altered by the construction of the Harlem River Ship Canal. Because of its water boundary on three sides, its hilly geography, and its limited local street connections (only Broadway and Fort George Hill connect to the rest of the Manhattan street grid), the neighborhood can feel somewhat physically detached from the rest of the borough. The W.P.A. Guide to New York City, published in the 1930s, described Inwood with "rivers and hills insulate a suburban community that is as separate an entity as any in Manhattan." Inwood marble, a soft, white, metamorphic rock found in northern Manhattan, takes its name after the neighborhood. From the mid-17th to the late 18th century, commercial quarries dotted the area as the material was used for building construction. However, due to its susceptibility to erosion, builders eventually used alternate construction materials. Inwood marble was quarried for government buildings in lower Manhattan and Washington, D.C. Small pieces of marble can still be seen in the stone retaining walls around Isham Park. 121, 123, 125, & 127 POST AVENUE NEW YORK, NY 10034 R7-2 ZONING 121, 123, 125, & 127 POST AVENUE NEW YORK, NY 10034 R7 districts are medium-density apartment house districts mapped in much of the Bronx as well as the Upper West Side in Manhattan and Brighton Beach in Brooklyn. The height factor regulations for R7 districts encourage lower apartment buildings on smaller zoning lots and, on larger lots, taller buildings with less lot coverage. As an alternative, developers may choose the optional Quality Housing regulations to build lower buildings with greater lot coverage. Regulations for residential development in R7-1 and R7-2 districts are essentially the same except that R7-2 districts, which are mapped primarily in upper Manhattan, have lower parking requirements. Height factor buildings are often set back from the street and surrounded by open space and on-site parking. The floor area ratio (FAR) in R7 districts ranges from 0.87 to a high of 3.44; the open space ratio (OSR) (OSR) ranges from 15.5 to 25.5. As in other non-contextual districts, a taller building may be obtained by providing more open space. For example, 76% of the zoning lot with a 14-story building must be open space (3.44 FAR × 22.0 OSR). The maximum FAR is achievable only where the zoning lot is large enough to accommodate a practical building footprint as well as the required amount of open space. The building must be set within a sky exposure plane which, in R7 districts, begins at a height of 60 feet above the street line and then slopes inward over the zoning lot. Off-street parking is generally required for 60 percent of a building’s dwelling units in an R7-1 district and 50 percent in an R7-2 district, but requirements are lower for income-restricted housing units (IRHU) and are further modified in certain areas, such as within the Transit Zone and the Manhattan Core, or for lots less than 15,000 square feet in R7-1 districts. Off-street parking requirements can be waived if 5 or fewer parking spaces are required in R7-1 districts, or if 15 or fewer parking spaces are required or if the zoning lot is 10,000 square feet or less in R7-2 districts..