1904-1906 Third Avenue New York, NY Investment Opportunity 2018 Q3

1 1878 Third Avenue New York, NY Investment Opportunity 2018 Q4 Kevin Darouvar Yoel Sarraf Ryan Sabet

461 Fifth Avenue 461 Fifth Avenue 461 Fifth Avenue Tel. (516) 317-1954 Tel. (516) 567-0437 Tel. (516) 315-6596 [email protected] [email protected] [email protected] This Investment Offering Memorandum has been prepared for use by a limited number of parties, and does not purport to provide a necessarily accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information that prospective investors may need or desire. All projections have been developed by designated sources, and are based upon assumptions relating to the general economy, competition and other factors beyond the control of Seller, and therefore are subject to variation. Seller or VCPRE LLC d/b/a Venture Capital Properties “VCP” makes no representation as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be correct, Seller, VCP and its employees, disclaim any responsibility for inaccuracies, and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, VCP, Seller and its employees, disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omission from, the Investment Offering Memorandum, or any other written or oral communication transmitted or made available to the recipient. The Investment Offering Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation of the Investment Offering Memorandum have remained the same. Analysis and verification of the information contained in the Investment Offering Memorandum is solely the responsibility of the prospective purchaser.

Seller and VCP each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any entity at any time with or without notice. Seller shall have no legal commitment or obligations to any entity reviewing the Investment Offering Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, a written agreement for the purchase of the Property has been fully executed, delivered and approved by Seller and its legal counsel, and any conditions to Seller’s obligations there under have been satisfied or waived.

This Investment Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Investment Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, and that you will not disclose the Investment Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or VCP, and that you will not use the Investment Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or VCP.

We obtained the information from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

All content subject to errors & omissions.

4 Venture Capital Properties has been retained on an exclusive basis to arrange for the sale of a vacant 2-story retail building at 1878 Third Avenue, located on third Avenue between East 103rd and East 104th Streets, steps away from the 6 train at 103 St station. The building features 25’ of frontage on Third Avenue. The property offers 12,040 buildable square feet.

Full Address 1878 Third Avenue

Block & Lot 1631-38

Building Size 2,920 SF Asset Overview Lot Size 2,000 SF Lot Dimensions 25 ft x 80 ft

Zoning R8A, C1-5

FAR 6.02

Buildable SF 12,040 BSF

Tax Bill $ 19,483

Price $ 2,500,000

$/BSF $208/BSF

5 Maps

6 Neighborhood Overview

7 Neighborhood

East Harlem: While other parts of Manhattan like SoHo, TriBeca, and the Lower East Side were quickly developing into some of the most highly desired and expensive places to live, developers began to realize Harlem’s potential as the next revitalized area of Manhattan. East Harlem is the area of Manhattan running north of East 96th Street and East of Fifth Avenue. Though the area was originally settled in 1654 by Dutch Governor Peter Enjoying an inventory of both large and architecturally distinct buildings, vast parcels of Stuyvesant and was named “Nieuw Haarlem,” the name was changed to “Harlem” with vacant land, and some of the most efficient transportation networks to Lower Manhattan the arrival of the English in 1664. and the outer boroughs, East Harlem possesses an urban infrastructure ripe for development. The region’s flat land provided some of New York’s most illustrious early families with vast farms and estates. In the 1800s, East Harlem developed into an early railroad suburb A combination of political, economic and social factors has contributed to East Harlem’s that provided housing for working-class immigrants relocating from the overcrowded tremendous growth. First, the city government encouraged developers through multiple Lower East Side. The earliest waves of immigrants to occupy east Harlem were channels, including re-zoning proposals, innovative tax breaks, and incentives for predominantly poor German and Irish families, followed by Italian and European Jewish developers to develop free market and low income housing. Economically, interest rates families. In the mid-1900s, Puerto Ricans and African-Americans began settling there as have remained low, providing both developers and residential buyers with cheap other groups left. The community is often referred to as “Spanish Harlem” or “El Barrio.” financing. In the 1960s, Harlem experienced a detrimental decline as middle-class families moved to safer parts of the city and the booming suburbs. Crime soared, buildings were Perhaps most importantly, crime diminished to a level that no longer dissuaded abandoned, and the community experienced bleak times for several generations. In the newcomers. These factors, coupled with the fact that one could purchase an East Harlem 1990s, a new Harlem Renaissance began to emerge. residence for half the price as of one below 96th Street, made the neighborhood a viable substitute and people have been arriving in droves.

8 Venture Capital Properties VCPRE LLC Real Estate Acquisitions Advisory

461 Fifth Avenue New York, NY 10017 Tel. (212) 213-7800 Fax (212) 213-7801 [email protected]