480 Fulton Street Brooklyn, NY Confidential Offering Memorandum Champs Sports Financial summary 480 Fulton Street Brooklyn, NY Asset Summary Asking Price Cap Rate NOI Increases Term Remaining $16,980,220 5.01% $851,511 3% 12 years Investment Highlights Rent/Month $85,779 - Located on a prime retail corridor in Downtown Brooklyn Fulton Mall featuring hundreds of small and national businesses Gross Building SF 8,965 - Credit BB- tenant, subsidiary of Footlocker with long-term lease Rentable SF 6,740 - Proximity to three subway stations servicing all major subway lines First Floor 2,907 sf including 2 3 4 5 B D N Q R W Second Floor 926 sf - Champs is in the center of Citypoint surrounded by retailers such as Macy’s, Target, Express and Chase Bank Cellar Floor 3,067 sf Tenant Footlocker, Inc. Champs Sports Ownership Type Fee Simple Guarantor Parent Lease Commencement February 14, 2017 Rent Commencement June 14, 2017 Lease Expiration January 31, 2033 Avison Young | Confidential Offering Memorandum 2 Champs Sports Rent schedule 480 Fulton Street Brooklyn, NY Term Increases Annual Rent Monthly 7/1/2017 - 6/30/2018 - $942,000 $78,500 7/1/2018 - 6/30/2019 3.00% $970,260 $80,855 7/1/2019 - 6/30/2020 3.00% $999,368 $83,281 7/1/2020 - 6/30/2021 3.00% $1,029,349 $85,779 7/1/2021 - 6/30/2022 3.00% $1,060,229 $88,352 7/1/2022 - 6/30/2023 3.00% $1,092,036 $91,003 7/1/2023 - 6/30/2024 3.00% $1,124,797 $93,733 7/1/2024 - 6/30/2025 3.00% $1,158,541 $96,545 7/1/2025 - 6/30/2026 3.00% $1,193,297 $99,441 7/1/2026 -6/30/2027 3.00% $1,229,096 $102,425 7/1/2027 - 6/30/2028 3.00% $1,265,969 $105,497 7/1/2028 - 6/30/2029 3.00% $1,303,948 $108,662 7/1/2029 - 6/30/2030 3.00% $1,343,067 $111,922 7/1/2030 - 6/30/2031 3.00% $1,383,359 $115,280 7/1/2031 - 6/30/2032 3.00% $1,424,859 $118,738 7/1/2032 - 1/31/2033 3.00% $1,467,605 $122,300 Avison Young | Confidential Offering Memorandum 3 Champs Sports Tenant overview 480 Fulton Street Brooklyn, NY About Champs Sports Foot Locker, Inc. leads the celebration of sneaker and youth culture around the globe through a portfolio of brands including Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, Footaction, and Sidestep. With approximately 3,100 retail stores in 27 countries across North America, Europe, Asia, Australia and New Zealand, as well as websites and mobile apps, the Company’s purpose is to inspire and empower youth around the world, by fueling a shared passion for self-expression and creating unrivaled experiences at the heart of the global sneaker community. Foot Locker, Inc. has its corporate headquarters in New York. Founded 1974 Revenue $8 billion Employees 32,175 Locations 3,100 Avison Young | Confidential Offering Memorandum 4 Champs Sports Floor plan 480 Fulton Street Brooklyn, NY Avison Young Capital Markets Group | Confidential Offering Memorandum 5 Champs Sports Market overview 480 Fulton Street Brooklyn, NY City Point & Fulton Mall City Point is a food, shopping, and entertainment destination in Downtown Brooklyn. Located along Brooklyn’s busiest retail corridor on Fulton Street, attractions include Alamo Drafthouse, McNally Jackson Bookstore, Lululemon, Target, and an impressive array of food vendors in the DeKalb Market Hall, located downstairs. Fulton Mall is a pedestrian street and transit mall in Downtown Brooklyn that runs on Fulton Street between Flatbush Avenue and Adams Street. Fulton Mall contains 230 stores as well as dedicated bus lanes. For the mall’s length, only buses, commercial vehicles, local truck deliveries, and emergency vehicles are allowed to use the street. The center of the Fulton Mall is an open public space known as Albee Square. Avison Young | Confidential Offering Memorandum 6 Champs Sports Location overview 480 Fulton Street Brooklyn, NY Subject Site Subject Site Avison Young Capital Markets Group | Confidential Offering Memorandum 7 Champs Sports Area retail 480 Fulton Street Brooklyn, NY Avison Young Capital Markets Group | Confidential Offering Memorandum 8 Champs Sports Market overview 480 Fulton Street Brooklyn, NY Downtown Brooklyn Downtown Brooklyn is the third largest central business district in New York City, United States (following Midtown Manhattan and Lower Manhattan), and is located in the northwestern section of the borough of Brooklyn. The neighborhood is known for its office retail and residential buildings, such as the Williamsburgh Savings Bank Tower, the MetroTech Center office complex, and the Fulton Mall Since the rezoning of Downtown Brooklyn in 2004, the area has been undergoing a transformation, with $9 billion of private investment and $300 million in public improvements underway. The area is a growing hub for education. In 2017, New York University announced that it would invest over $500 million to renovate and expand the NYU Tandon School of Engineering and its surrounding Downtown Brooklyn-based campus. Dense population of university driven students 125,855 $174,851 Universities to inlcude Long Island growing hub for population of Downtown average household University, New York University, Brooklyn within a one mile income of Downtown education investing radius Brooklyn within a school expansion Polytechnic University, NYU Tandon 1 mile radius and renovations School of Engineering & St. Francis College. 9 Champs Sports Location overview 480 Fulton Street Brooklyn, NY 35 New Developments Reshaping the Downtown Brooklyn Skyline Downtown Brooklyn was rezoned for greater residential development, and the once- industrial area has given way to an increasingly coveted residential one. Between its easy access to Manhattan, close proximity to popular Brooklyn neighborhoods, and increased retail, dining, and entertainment opportunities, it would seem everyone - developers, designers, residents - wants to be a part of it. The building boom shows no sign of slowing down and the real estate community is literally thinking bigger so as to keep up with increased office, educational, and retail demand that comes with residential. The Eagle Brooklyn Point 11 Hoyt 86 Fleet Place 138 Willoughby Street 11 Hoyt Street 32 stories 440 units 68 stories 458 condo units 57 stories 481 condo units One Boerum Place Hoyt & Horn Ace Hotel l Boerum Place 45 Hoyt Street 266 Schermerhorn Street 21 stories 122 Units 26 stories 368 units 13 stories Avison Young Capital Markets Group | Confidential Offering Memorandum 10 Champs Sports Location overview 480 Fulton Street Brooklyn, NY 9 DeKalb Avenue Steadily Rising Toward 1,066-Foot Pinnacle In Downtown Brooklyn Construction is ascending steadily at 9 DeKalb Avenue in Downtown Brooklyn, the first supertall project in the outer boroughs. The reinforced concrete superstructure currently stands around 28 $3.9B Subject Site stories tall, more than one-third of its 73-story total. Designed by per year in retail SHoP Architects and developed by JDS, the 1,066-foot-tall skyscraper + dining sales will yield 425 rental apartments and 150 condominiums. Read the full article 5,600+ businesses within Downtown Brooklyn Downtown Brooklyn has become one of the busiest areas with new malls, residential towers, and office spaces. Avison Young Capital Markets Group | Confidential Offering Memorandum 11 Champs Sports Location overview 480 Fulton Street Brooklyn, NY Subject Site Brooklyn Bridge 278 Cadman Plaza Dumbo Park Manhattan Bridge y p x e s n e e u Q Flatbush Ave n ly ok Bro 278 Navy Yard Commodore Barry Park Fort Greene Park r Stree fo t V k i c e i w l C Champs Sports Demographics 480 Fulton Street Brooklyn, NY 480 Fulton Street demographics within 5,10 & 15 minutes Population Total Employees 12,844 12,447 Avg. HH Income Total Businesses $131,430 827 5 min 10 min 15 min Population 2019 Population 12,844 37,457 37,457 2024 Population 14,588 42,413 42,413 2019 Median Age 32.5 34.9 36.2 Households 2019 Total Households 6,249 17,324 37,535 2024 Total Households 7,193 19,957 41,256 Median Household Income 2019 Median HH Income $131,430 $121,773 $110,550 2024 Median HH Income $149,200 $134,096 $121,443 Average Household Income 2019 Average HH Income $179,133 $171,606 $161,601 2024 Average HH Income $199,758 $189,913 $179,634 Avison Young Capital Markets Group | Confidential Offering Memorandum 13 About Avison Young $25 billion Optimize your Investment sales volume brokered real estate transactions and holdings $10 billion Financing transaction volume brokered Avison Young’s Capital Markets group offers comprehensive real estate 90 years transaction services to a global client base. A trusted advisor to real Combined industry experience estate owners and operators for more than 30 years, Avison Young sources investment opportunities and provides investment sales - Creative deal structuring and sales strategies execution for clients throughout Canada, the U.S., Europe and Asia. - Strong buyer and lender relationships Our capital markets experts are senior professionals who work seamlessly cross-border to deliver real estate solutions. Our expertise - Principals’ established market credibility has expanded organically in all asset classes, including office, industrial, - Extensive past and active leasing assignments retail, multi-family, hospitality, leisure, and land development. We have in the submarket a proven track record in representing an international range of buyers and sellers, including REITS, pension funds, insurance companies, private - Experienced, knowledgeable, creative and equity firms, opportunity and hedge funds, and both public and private responsive support companies. Our success is measured by our clients’ results, with more than US $5 billion in transactions annually. Market knowledge, Global relationships We’re global We combine Avison Young’s local, national and international experience Canada, Germany, Ireland, Mexico with our research tools and teams to gain exceptional access to both Poland, Romania, South Korea, domestic and international buyers seeking investment and development opportunities.