ASKING PRICE $25,000,000 Michael Gembecki Ian Brooks (212) 660-7743 (212) 589-5107 [email protected] [email protected] Alessandra Faglione (212) 660-7722 [email protected] TABLE OF CONTENTS EXECUTIVE SUMMARY 1 FINANCIAL OVERVIEW 3 THE NEIGHBORHOOD 9 PROPERTY PHOTOS 25 DUE DILIGENCE 29 EXECUTIVE SUMMARY The Opportunity: Cushman & Wakefield has been retained on an exclusive basis to arrange for the sale of the retail condo at 230 Varick Street (AKA 63 Downing Street & 80 Carmine Street). This newly finished Class A, multi-tenant retail condo is ideally located on a heavily trafficked corner in Manhattan’s vibrant West Village neighborhood. Being just blocks north of the emerging Hudson Square submarket and nestled between major office projects to the west, this asset presents unparalleled growth potential. The condo totals approximately 12,600 square feet of above grade prime retail space and includes impressive ceiling heights throughout. The space features 118’ of wrap around frontage on both Carmine and Varick Streets including an additional 17’ of frontage on Downing Street for a total of 135’ of corner exposure. The condo has recently undergone major renovations which include new floor to ceiling glass facades and enlarged footprints. This work required current ownership 2+ years to get approval from the DOB and MTA. Divided into 7 separate store fronts, this retail condo features notable fitness and restaurant tenants such as iLoveKickBoxing, Llama Inn, Taboonette, Taco Bell Cantina, and a steady stream of interest for the remaining spaces. Along with stable cash flow, future ownership can realize additional upside in the rent roll by reconfiguring the Downing Street façade and lower level for maximum exposure. The modern retail condo offers an investor a unique opportunity to acquire an income producing asset in one of the most highly desired neighborhoods in New York City. The exceptional daily foot traffic is driven by its proximity to major city transportation hubs such as the West 4th station via the ACEBDFM transits and Houston Street ! lines which attribute to on average 56,000 weekday riders. Large commercial properties 5,000 businesses, and 43,779 people living in a half mile radius. 1 EXECUTIVE SUMMARY EXECUTIVE SUMMARY 2 3 FINANCIAL OVERVIEW FINANCIAL OVERVIEW FINANCIAL OVERVIEW 4 ASKING PRICE PPSF: $1,980 $25,000,000 CAP: 4.78% Property Highlights: • Total 12,600 SF with 8,800 Square Feet Leased and 3,800 square feet vacant • Corner retail featuring over 135’ of wrap around frontage spanning over 3 blocks • Stable cash flow, with potential realize additional upside in the rent roll by reconfiguring the Downing Street façade • The vacant spaces will be delivered in a “white box” condition • Consumers in this submarket spend on average $5,000-$6,000+ on food away from home per year • 11 million square feet total of office space that features major tenants such as Disney and Google • 2018 West Village/Hudson Square population 43,779 in a half mile radius • Annual subway ridership 14,560,000 via West 4th Station and West Houston ACEBDFM! 5 FINANCIAL OVERVIEW PROPERTY FEATURES Property Information: Address: 230 Varick Street, New York, NY 10014 Alternate Addresses: 63 Downing Street | 80 Carmine Street | 57-63 Downing Street Located on the blockthrough from the southeast corner of Varick Location: and Carmine Streets to Downing Sreet. Block & Lot: 528 - 7501 Lot Dimensions: 86.39' x 150' (irregular) Lot Square Footage: 11,257 SF (approx.) Total Square Footage: 12,624 SF (approx.) Total Retail Spaces: 7 Assessment (19/20): $1,464,597 Taxes (19/20): $153,988 FINANCIAL OVERVIEW 6 230 VARICK STREET Commercial Income: LEASE LEASE UNIT TENANT SF $/SF MONTHLY RENT START END Lower Level ILKB Jul-16 Jun-26 3,350 $74 $20,688 A LLama Inn Feb-18 Jan-30 1,500 $124 $15,450 B Taboonette Jun-18 May-33 1,500 $144 $18,025 C Vacant - - 800 $150 $10,000 D Vacant - Corner - - 750 $264 $16,500 E Taco Bell Jan-19 Dec-28 1,712 $117 $16,667 F + Level Vacant - Downing St. - - 3,012 $90 $22,500 GROSS MONTHLY COMMERCIAL RENT: $119,830 GROSS ANNUAL COMMERCIAL RENT: $1,437,955 AVERAGE RENT PER NET SQUARE FOOT: $113.91 Tax Reimbursements: UNIT TENANT TAX REIMB. BASE YEAR 2018 TOTAL TOTAL REIMB. Lower Level ILKB 24.67% 16/17 $5,205 $5,205 A LLama Inn 14.00% 17/18 $7,023 $7,023 B Taboonette 19.00% 18/19 $2,707 $2,707 C Vacant - - - - D Vacant - Corner - - - - E Taco Bell 16.00% 19/20 - - F + Level Vacant - Downing St. - - - - TOTAL: 68.67% $14,934 $14,934 7 FINANCIAL OVERVIEW INCOME & EXPENSES Projected Commercial Revenue: Gross Annual Commercial Revenue $1,437,955 Vacancy Allowance @ 3% of Gross Annual Income: ($43,139) Effective Gross Annual Commercial Revenue: $1,394,816 Expenses (Estimated): C&W Projected Taxes 2019 / 2020 Projected $153,988 Tax Reimbursements 2019 / 2020 Projected ($14,934) CAM @ $0.45 / GSF $22,631 Additional Insurance @ $0.40 / GSF $20,117 Fuel Tenant Pays - Common Electric Tenant Pays - Management @ $500 / Month $6,000 Total Expenses: @ $1,000 / Month $12,000 Total Expenses: $199,801 EFFECTIVE GROSS ANNUAL COMM. REVENUE: $1,394,816 LESS EXPENSES: 29% ($199,801) NET OPERATING INCOME: $1,195,014 FINANCIAL OVERVIEW 8 9 THE NEIGHBORHOOD THE NEIGHBORHOOD THE NEIGHBORHOOD 10 GREENWICH VILLAGE INTRODUCTION Greenwich Village, often simply called “The Village” by locals, is one of Manhattan’s exclusive neighborhoods. The Village has both a storied past, dynamic present and an exciting future. It has drawn attention over the years from the proverbial starving artists and street buskers to the most successful academics and fashionistas. While many people have their own definitions of the boundaries of The Village, it is traditionally considered to be bounded by Houston Street to the south, 14th Street to the north, Broadway to the east, and the Hudson River to the west. Other than sub neighborhoods including the West Village and the Meatpacking district, the adjacent neighborhoods include Chelsea on the north side, the East Village and NoHo on the east side, and SoHo on the south side. HISTORY Like many areas in the Northeast, the history of Greenwich Village stretches back well before the arrival of the Dutch to local Native American tribes. That being said, the more recent history of The Village begins in 1712, when it was officially incorporated as a village located along the Hudson River. The area boomed in the early 19th Century in response to disease spread in Lower Manhattan. Today, The Village’s older homes still stand, and in order to preserve their unique and important architectural qualities, many of its tree lined streets are protected under Historic Districts. Earlier homes in The Village frequently display the Federal Style, while newer homes are more commonly Greek Revival style. A notable example can be seen in the homes on the north side of Washington Square Park. Nearby, “secret” alleys such as Macdougal Alley, Patchin Place, and Grove Court dot The Village adding to its charm. On Fifth Avenue and Broadway, meanwhile, a number of tall buildings, some of the first in New York City featuring elevators, provide contrast to their low-rise neighbors farther west. 11 THE NEIGHBORHOOD THE NEIGHBORHOOD 12 230 VARICK STREET Hudson Square: Another Manhattan neighborhood which encompasses 230 Varick Street is known as Hudson Square. The area lies on the west side of Manhattan bound by W Houston Street to the north, Avenue of the Americas on the east, Canal Street to the south and extends as far west as the West Side Highway and the Hudson River. The area now known as Hudson Square has a rich and at times tumultuous past. Since the early days of the Colony of New York, it has transitioned from farm land to a high-density urban area, and then from residential to manufacturing and industrial uses. The area has experienced extreme wealth and poverty, economic growth and downfall, but it has always held an important place in the city’s infrastructure, supporting trade and commerce. Today, Hudson Square is home to mostly commercial activities in large industrial loft buildings. Trinity Church plays a central role in Hudson Square’s history. In 1697, the King of England leased farm land to Trinity to help the Church cover its costs. In present-day terms, the Church Farm was bounded roughly by Broadway on the east, the Hudson River on the west, Fulton Street on the south and Christopher Street on the north. Queen Anne made the grant permanent in 1705. Over the years, the Church gave away, sold or leased large amounts of its land. Once the population of New York grew and the land could be divided into lots, it became more valuable. Today, Trinity along with its new partner Norges, remains one of the largest landowners in Lower Manhattan, including its stake in Hudson Square. The streets in Hudson Square were originally laid out by Trinity, and almost all of them were named after Trinity vestrymen or clergy. In the mid-1820s, land fill extended the shoreline by one block west. By the 1950s, the nearby port required more space and moved out of the city. Infrastructure works had a huge impact on the real estate development in Hudson Square from the late 19th well into the 20th century. During this time period, the Seventh Avenue Inter-borough Rapid Transit (IRT) subway and the Holland Tunnel were built and Sixth Avenue was extended southward from West 14th Street. Most of the residential buildings were demolished and replaced with commercial buildings. In more recent history, the area was known as the Printing District.