Besen & Associates Investment Sales Team Hilly Soleiman Director (646) 424-5078 [email protected] Ronald H. Cohen Chief Sales Officer (212) 424-5317 [email protected] Paul J. Nigido Senior Financial Analyst (646) 424-5350 [email protected] Jared Rehberg Marketing Manager (646) 424-5067 [email protected] Table of Contents Executive Summary 4 Investment Highlights Property Overview 9 Location Map Property Photos Financial Overview 13 Income/Expense Report Commercial Rent Roll Property Diligence 26 Certificate of Occupancy Location Overview 28 Transportation Maps Zoning Overview 31 Executive Summary EXECUTIVE SUMMARY Besen & Associates, Inc., as exclusive agent for ownership, is pleased to offer for sale 4468-4474 Broadway, New York, NY 10040 (the “Property”), an elevatored, 2-story commercial building consisting of 6 stores and 5 offices. Built in 1991, the Property contains 20,000± SF and features 100’ of prime retail frontage along Broadway. 4468-4474 Broadway is situated on the east side of Broadway between Fairview Avenue and 192nd Street and is 4468-4474 Broadway located in one of the most desirable sections of Washington Heights in Northern Manhattan, boasting high foot traffic and bustling retail. The stores are currently renting at well-below market rates, offering tremendous upside to new ownership, and the Property contains 14,400± SF of unused air rights (TDR’s) for future redevelopment or value-add potential. The Property is located just north of the George Washington Bridge between Fort Tyron Park and Harlem River Park. Commuters are well served by public transportation, including the 190th Street subway station [“A”] and the 191st Street subway station [“1”]. A network of bus lines are also available throughout the neighborhood, including the Bx7 & M100 which stop directly in front of the building on Broadway. For vehicular traffic, the area offers easy access to the Henry Hudson Parkway to the west, the Harlem River Drive and I-87 (NY State Thruway) to the east, and I-95 (Cross Bronx Expressway) to the south. 4468-4474 Broadway, New York, NY 10040 | 5 INVESTMENT HIGHLIGHTS • 2-story, 20,000± sq ft elevatored commercial building consisting of 6 stores & 5 offices, built in 1991 • The retail component of the Property offers exceptional avenue frontage with 100 linear feet along Broadway • Located in the Washington Heights / Hudson Heights neighborhood of Northern Manhattan, boasting high foot traffic and bustling retail • Retail units are averaging $19.98psf, which represents a tremendous discount to current asking market rents ranging between $43psf - $112psf, offering an investor significant upside (see pg. 16 for Broadway asking rents) • 14,400± sq ft of unused air rights (TDR’s) associated with the building which could be used for a future development site or potential assemblage • Bx7 & M100 bus lines are directly in front of the Property along Broadway for easily accessible convenience • Situated between the 190th Street subway station [“A”] and the 191st Street subway station [“1”] • Across the street from “Hudson 192”, a premier 63-unit luxury rental building newly constructed in 2011 with top-of-the-line finishes and amenities 4468-4474 Broadway, New York, NY 10040 | 6 PROPERTY UPSIDE • The 6 ground-floor retail units are rented at an average price per square foot of $19.98 based on current tenant leases. Asking market rents for similar units along Broadway in Upper Manhattan equate to a price per square foot between $43.00 and $113.00 (based on current market rent comparables), offering tremendous upside to new ownership • The Property has 14,400± square feet of unused air rights (TDR’s), a valuable commodity which can be used for additional floors or a potential redevelopment of up to 34,400± square feet 4468-4474 Broadway, New York, NY 10040 | 7 AERIAL MAP Inwood The Bronx Fort George Hudson Heights 4468-4474 Broadway ASKING PRICE: $10,250,000 4468-4474 Broadway, New York, NY 10040 | 8 Property Overview PROPERTY OVERVIEW – 4468-4474 Broadway Neighborhood Hudson Heights Block / Lot 2170 / 70 Lot & Built Size 100’ x 100’ (Built 90’) Gross Building Area 20,000± SF Stories 2-story commercial building Total Stores & Offices 6 stores & 5 offices Zoning R7-2 / C2-4 FAR (built / allowed) 1.8 / 3.44 Year Built 1991 Real Estate Taxes (2017/2018) $79,387 4468-4474 Broadway, New York, NY 10040 | 10 RETAIL MAP 4468-4474 Broadway 4468-4474 Broadway, New York, NY 10040 | 11 LOCATION MAP 4468-4474 Broadway 825 West 187th Street 4468-4474 Broadway, New York, NY 10040 | 12 Financial Overview INCOME & EXPENSE | 4468-4474 Broadway REVENUE AMOUNT Retail Revenue (6 occupied stores – street level) $263,790 Office Revenue (5 occupied offices – second floor) $185,250 Expense Reimbursements $38,580 Credit / Vacancy Loss (2%) ($8,975) GROSS INCOME: $478,645 EXPENSES Real Estate Taxes (17/18) $79,400 Water & Sewer Tenants Pay Fuel (Gas) Tenants Pay Insurance $9,200 Utilities $5,000 Elevator Maintenance $6,500 Management Fee (3%) $13,475 Professional Fees $5,000 Repairs & Maintenance $10,000 TOTAL EXPENSES: $128,575 NET OPERATING INCOME: $350,070 4468-4474 Broadway, New York, NY 10040 | 14 FIRST FLOOR | RENT ROLL | 4468-4474 Broadway REAL ESTATE TAX TOTAL UNIT TENANT RENT / MONTH LEASE TERM RENT INCREASE PASS-THRU REIMBURSEMENT 1A Heights Wine & Spirits $3,689.62 11/01/09 - 10/31/19 5% of total taxes $3,970.00 3% Annually 1B C&R Beauty Salon $3,639.25 09/01/13 - 06/30/23 12% over 12/13 $4,226.52 4% Annually 1C NY Neuro & Rehab Center (1) $4,469.09 08/01/14 - 07/31/19 8% over 98/99 $4,521.44 2.5% Annually 1D Restaurant $3,400.00 03/01/06 - 02/28/26 8% of total taxes $6,350.96 1E BR Shipping Inc. $4,052.72 01/01/15 - 12/31/19 - - 3% Annually 1F Carolina's Spa $2,731.82 01/01/12 - 12/31/21 - - 3% Annually (1) Tenant has one 5-year option SECOND FLOOR | RENT ROLL | 4468-4474 Broadway REAL ESTATE TAX TOTAL STE TENANT RENT / MONTH LEASE TERM RENT INCREASE PASS-THRU REIMBURSEMENT 1 & 3 Fitness Gym $4,201.90 11/01/12 - 10/31/20 - - 4% Annually 2 Multi Service $3,336.68 01/01/14 - 12/31/23 6% over 94/95 $3,361.92 4% Annually 4 NY Neuro & Rehab Center (2) $4,899.85 08/01/14 - 07/31/19 12.5% over 93/94 $6,230.30 2.5% Annually 5 SungSim Acupuncture $3,000.00 10/25/16 - 10/31/21 12.5% of total taxes $9,923.38 4% Annually (2) Tenant has two 5-year options Monthly Total: $37,421 $38,585 Annual Total: $487,635 4468-4474 Broadway, New York, NY 10040 | 15 COMPARABLE BROADWAY COMMERCIAL ASKING RENTS (ON THE MARKET) 4117 Broadway 4101-4117 Broadway 4761-4779 Broadway 4459 Broadway 4257 Broadway Neighborhood: Neighborhood: Neighborhood: Neighborhood: Neighborhood: Washington Heights Washington Heights Inwood Washington Heights Washington Heights 1,899 SF 4,309 SF 1,500 SF 1,000 SF 1,810 SF Asking Rent/Mo: $15,825 Asking Rent/Mo: $35,908 Asking Rent/Mo: $14,000 Asking Rent/Mo: $7,000 Asking Rent/Mo: $15,083 $/PSF: $100 $/PSF: $100 $/PSF: $112 $/PSF: $84 $/PSF: $100 5008 Broadway 4941 Broadway 4066 Broadway 3599 Broadway 3556 Broadway Neighborhood: Neighborhood: Neighborhood: Neighborhood: Neighborhood: Inwood Inwood Washington Heights Hamilton Heights Hamilton Heights 5,820 SF 8,267 SF 800 SF 2,109 SF 5,500 SF Asking Rent/Mo: $20,883 Asking Rent/Mo: $33,757 Asking Rent/Mo: $5,500 Asking Rent/Mo: $10,000 Asking Rent/Mo: $20,625 $/PSF: $43 $/PSF: $49 $/PSF: $83 $/PSF: $57 $/PSF: $45 4468-4474 Broadway, New York, NY 10040 | 16 Property Photos EXTERIOR BROADWAY FRONTAGE 4468-4474 Broadway, New York, NY 10040 | 18 CAROLINA’S SPA 4468-4474 Broadway, New York, NY 10040 | 19 HEIGHTS WINE & SPIRITS 4468-4474 Broadway, New York, NY 10040 | 20 C & R BEAUTY SALON 4468-4474 Broadway, New York, NY 10040 | 21 NY NEURO & REHAB CENTER 4468-4474 Broadway, New York, NY 10040 | 22 LOBBY, HALLWAY AND ELEVATOR 4468-4474 Broadway, New York, NY 10040 | 23 MECHANICALS 4468-4474 Broadway, New York, NY 10040 | 24 MECHANICALS 4468-4474 Broadway, New York, NY 10040 | 25 Due Diligence CERTIFICATE OF OCCUPANCY 4468-4474 Broadway, New York, NY 10040 | 27 Location Overview LOCATION OVERVIEW Hudson Heights is a residential subsection of the Washington Heights area of Upper Manhattan, New York City. Many of the residences are in apartment buildings, many of which are cooperatives, and most were constructed in the 1920’s through 1940’s. The Art Deco style is prominent, along with Tudor Revival. Notable complexes include Hudson View Gardens and Castle Village, which were both developed by Dr. Charles V. Paterno, and were designed by George F. Pelham and his son, George F. Pelham, Jr., respectively. The neighborhood is located on a plateau on top of a high bluff overlooking both the Hudson River on the west and the Broadway valley of Washington Heights on the east, and includes the highest natural point in Manhattan, located in Bennett Park. At 265 feet (81 m) above sea level, it is a few dozen feet lower than the torch on the Statue of Liberty. At the northern end of the neighborhood, where Cabrini Boulevard meets Fort Washington Avenue at Margaret Corbin Circle, is Fort Tryon Park, conceived by John D. Rockefeller Jr., designed by the Olmstead Brothers, and given to the city by Rockefeller in 1931. The park contains within it The Cloisters – also conceived of by Rockefeller – which houses the Medieval art collection of the Metropolitan Museum of Art.