INVESTMENT OVERVIEW

PRICING & FINANCIAL ANALYSIS

PROPERTY DESCRIPTION

MARKET OVERVIEW

Section I

Section II

Section III

Section IV

223 & 235 Saint Nicholas AvenueTABLE OF CONTENTS

EXECUTIVE SUMMARY

INVESTMENT SUMMARY

FINANCIAL SUMMARY

MARKET OVERVIEW

TABLE OF CONTENTS

Peter Von Der Ahe260 Madison Avenue, 5th Floor, New York, NY

Tel: (212) 430-5114 - Fax: (646) 349-3308peter.vonderahe@mmreis.com

Joe Koicim260 Madison Avenue, 5th Floor, New York, NY 10016

Tel: (212) 430-5147 - Cell: (516) 425-2785joseph.koicim@mmreis.com

Noah Kossoff260 Madison Avenue, 5th Floor, New York, NY 10016

Tel: (646) 805-1426 - Cell: (917) 880-1475noah.kossoff@marcusmillichap.com

Andrew Dansker, Financing Inquiries260 Madison Avenue, 5th Floor, New York, NY

Tel: (212) 430-5168 - Fax: (212) 500-5110andrew.dansker@marcusmillichap.com

ADVISORY TEAM

149 Spring Street18,409 SQUARE FEET

8 TOTAL UNITS

OFFERED AT $22,950,000In the SoHo neighborhood of Manhattan

FINANCIAL HIGHLIGHTS$/SF $1,247$/UNIT $2,868,750TOTAL SF 18,409TOTAL UNITS 8

CURRENT METRICS

CAP RATE 5.7%GRM 14.2

PRO FORMA METRICS

CAP RATE 6.3%GRM 13.0

EXPENSE RATIO UPSIDE ANALYSIS

18%

57% FAIR MARKET UNITS

11% PROPERTY TAXRATIO

$8,882 AVERAGE MONTHLY RENTPRO FORMA

OFFERING PRICE

$22,950,000

$0$2,000$4,000$6,000$8,000

$10,000$12,000$14,000$16,000

Current Avg RS UnitsMarket RentsCurrent Avg FM Rents

INVESTMENTSUMMARY

THE OFFERING

Marcus & Millichap is pleased to offer the followingopportunity located in the booming SoHoneighborhood. 149 Spring Street is located betweenWest Broadway and Wooster Street, and contains agross square footage of 18,409. The building is built25 ft X 99 ft feet on a 25 ft X 100 ft lot (Block: 501 Lot:35). The property is zoned M1-5A.

THE OPPORTUNITY

40+ Years of Current Ownership. 149 Spring Streetrepresents the rare opportunity to acquire an 8-story, mixed-use elevator building in the heart ofSoHo. The property has been owned by the samefamily for 40+ years. The loft-style building features 8total units (7 residential and 1 commercial).

Residential & Retail Upside. 149 Spring Streetpresents a unique luxury repositioning opportunity.

INVESTMENT DRIVERS

An investor can renovate the free-market units andreposition the retail to significantly increase the asset’salready strong in-place cash flow.

Protected Tax Class 2B. 149 Spring Street falls into thehighly desirable protected tax class 2B. As such, theproperty’s tax increases are capped at 8% annually, andcan increase by no more than 30% over any given five-year period.

Trophy Location. Located between West Broadwayand Wooster Streets, 149 Spring Street sits in the heartof the booming SoHo neighborhood. 149 Spring Streetis situated just steps from famous retailers, includingChanel, Canada Goose, Apple, Eileen Fisher, Nike andGucci. The subject property rests on a highly traffickedblock lined with cast iron facades. Due to theseappealing factors, high profile renters are especiallywilling to pay a premium to enjoy all this area has tooffer. Just steps from the B, C, D, E, F, M, N, R, W, 1 & 6trains, 149 Spring Street provides seamless access to allof New York City.

MARKET SUMMARYASSET SUMMARY

City: New Yorki

State: NYi

Block & Lot: 501 / 35i

Lot Dimensions: 25 ft X 100 fti

Lot SF: 2,500i

Building Dimensions: 25 ft X 99 fti

Building SF: 18,409i

Zoning: M1-5Ai

Max FAR: 5i

Available Air Rights: 0i

Landmark District: SoHo- Cast Iron Districti

Historic District: Nonei

Annual Tax Bill: __ $181,123i

Tax Class: 2Bi

ASSET SUMMARY

TYPICAL FLOOR PLAN

Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyofthe information. References tosquare footage orageareapproximate. Buyermustverify the information and bearsall risk for any inaccuracies. Any projections,opinions,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus&MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2019Marcus&Millichap

A S S E T S U M M A R Y

MARKET SUMMARY

FINANCIALSUMMARY

FINANCIAL OVERVIEW

Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyofthe information. References tosquare footage orageareapproximate. Buyermustverify the information and bearsall risk for any inaccuracies. Any projections,opinions,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus&MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2019Marcus&Millichap

F I N A N C I A L S U M M A R Y

INCOME CURRENT PRO FORMAGross Potential Residential Rent $596,613 $746,104Gross Potential Commercial Rent $1,014,000 $1,014,000Gross Income $1,610,613 $1,760,104

PRICE PER SQUARE FOOT $1,247 Vacancy/Collection Loss ($11,932) ($14,922)PRICE PER UNIT $2,868,750 Commercial Reimbursements $11,292 $11,292TOTAL SQUARE FEET 18,409 Effective Gross Income $1,609,973 $1,756,474TOTAL UNITS 8 Average Residential Rent/Month/Unit $7,103 $8,882CURRENT CAP RATE 5.7%CURRENT GRM 14.2 EXPENSESPRO FORMA CAP RATE 6.3% Property Taxes Tax Class: 2B $181,123 $181,123PRO FORMA GRM 13.0 Fuel - Oil #2 $12,000 $12,000

Insurance $7,500 $7,500Water and Sewer $6,500 $6,500Repairs and Maintenance $7,500 $7,500

PROPOSED DEBT Common Electric (PPSF) $3,500 $3,500Loan Amount $12,250,000 Super Salary $10,000 $10,000Interest Rate 4.00% Management Fee $61,179 $66,746Amortization 30 Elevator Contract $7,500 $7,500Annual Debt Service ($708,419) Total Expenses $296,802 $302,369Debt Coverage Ratio 0.00 Net Operating Income $1,313,171 $1,454,105Net Cash Flow After Debt Service $745,686

UPSIDE ANALYSIS SCHEDULE OF INCOMEUNIT BREAKDOWN TOTAL % OF TOTAL RENTStudio 0 0% $01 Bedroom 0 0% $02 Bedroom 0 0% $03 Bedroom 7 100% $7,1034 Bedroom 0 0% $05 Bedroom 0 0% $06 Bedroom 0 0% $0SRO 0 0% $0

$/SF

$22,950,000OFFERING PRICE

CAP RATEGRM

14.1518,409 $1,247 5.7%SQUARE FEET

GROSS TOTAL SF

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Studio 1Bedroom

2Bedroom

3Bedroom

4Bedroom

5Bedroom

6Bedroom

SRO

Current Avg RS UnitsMarket RentsCurrent Avg FM Rents

RENT ROLLF I N A N C I A L S U M M A R Y

Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyofthe information. References tosquare footage orageareapproximate. Buyermustverify the information and bearsall risk for any inaccuracies. Any projections,opinions,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus&MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2019Marcus&Millichap

UNIT TENANT NAME REIMBURSEMENTS & NOTES SF EXPIRATION ACTUAL PRO FORMA $/PSF

1 2,254 $84,500 $84,500 $4502,254 $84,500 $84,500

RESIDENTIAL RENTUNIT# LEASE STATUS NOTES BEDROOMS ROOMS SF EXPIRATION ACTUAL PRO FORMA $/PSF

2 RS 3 Bedroom 5 2,200 Mar-21 $923 $923 $53 FM 1 Year Renewal Option 3 Bedroom 5 2,200 Aug-20 $10,000 $14,750 $804 RS 3 Bedroom 5 2,200 Mar-21 $942 $942 $55 FM 3 Bedroom 5 2,200 Mar-21 $9,750 $14,750 $806 FM 2% Annual Increases 3 Bedroom 5 2,200 Feb-22 $9,700 $9,894 $547 RS 3 Bedroom 5 2,200 Oct-20 $903 $916 $5PH FM Duplex Apartment and Roof Access 3 Bedroom 5 3,000 May-20 $17,500 $20,000 $80MONTHLY RESIDENTIAL REVENUE 21 35 16,200 $49,718 $62,175

ANNUAL RESIDENTIAL REVENUE $596,613 $746,104ANNUAL COMMERCIAL REVENUE $1,014,000 $1,014,000

ACTUAL PRO FORMATOTAL ANNUAL REVENUE $1,610,613 $1,760,104There is currently 1 vacant unit in the building. The super lives off site.There are 8 total units.

149 Spring Street

COMMERCIAL RENT

Delivered Vacant - Has Additional 1,500 SF Basement

INCOME AND EXPENSE ANALYSISF I N A N C I A L S U M M A R Y

Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyofthe information. References tosquare footage orageareapproximate. Buyermustverify the information and bearsall risk for any inaccuracies. Any projections,opinions,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus&MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2019Marcus&Millichap

GROSS POTENTIAL INCOME ACTUAL PRO FORMA%EGI $/UNIT %EGI $/UNIT

Gross Potential Residential Rent $596,613 37% $74,577 $746,104 42% $93,263Gross Potential Commercial Rent $1,014,000 63% $126,750 $1,014,000 58% $126,750Gross Income $1,610,613 $201,327 $1,760,104 $220,013Vacancy/Collection Loss ($11,932) 2% ($1,492) ($14,922) 2% ($1,865)Commercial Reimbursements $11,292 $1,411 $11,292 $1,411Effective Gross Income $1,609,973 $201,247 $1,756,474 $219,559Average Residential Rent/Month/Unit $7,103 $8,882

EXPENSESProperty Taxes Tax Class: 2B $181,123 11% $22,640 $181,123 10% $22,640Fuel - Oil #2 $12,000 1% $1,500 $12,000 1% $1,500Insurance $7,500 0% $938 $7,500 0% $938Water and Sewer $6,500 0% $813 $6,500 0% $813Repairs and Maintenance $7,500 0% $938 $7,500 0% $938Common Electric (PPSF) $3,500 0.2% $0.19 $3,500 0.2% $0.19Super Salary $10,000 1% $1,250 $10,000 1% $1,250Management Fee $61,179 4% $7,647 $66,746 4% $8,343Elevator Contract $7,500 0% $938 $7,500 0% $938Total Expenses $296,802 18% $37,100 $302,369 17% $37,796Net Operating Income $1,313,171 $1,454,105

LEASE STATUS MIXUNIT BREAKDOWN % OF TOTAL RENT TOTAL AVG. RENTTotal Units -- $134,218 7 $19,174Total RS Units 43% $2,768 3 $923Total RC Units 0% $0 0 $0Total FM Units 57% $46,950 4 $11,738Total Commercial -- $84,500 1 $84,500

RENTAL ANALYSIS BY UNIT TYPETYPE % OF TOTAL RENT TOTAL AVG. RENTStudio 0% $0 0 $01 Bedroom 0% $0 0 $02 Bedroom 0% $0 0 $03 Bedroom 100% $49,718 7 $7,1034 Bedroom 0% $0 0 $05 Bedroom 0% $0 0 $06 Bedroom 0% $0 0 $0SRO 0% $0 0 $0

UPSIDE ANALYSIS

57%

AVERAGE RENTPER MONTH

$7,103PERCENT

FAIR MARKET

TAXES AS PERCENT OF EGI

11%

EXPENSE RATIO

18%

$0$2,000$4,000$6,000$8,000

$10,000$12,000$14,000$16,000

Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom 6 Bedroom SRO

Current Avg RS Units Market Rents Current Avg FM Rents

MARKETOVERVIEW

The island of Manhattan is one of New York City's five boroughs,approximately 13 miles long and two miles wide. Solid bedrockprovides a firm foundation for the high-rise buildings that dominatethe skyline.

Manhattan's deep-water port and proximity to the nation's interiorbolster its position as a global economic powerhouse. Manhattanalso contains Central Park, which encompasses 843 acres in thecenter of the island and is considered one of the nation's premierpublic spaces.

B O R O U G H

Manhattan is home to over 1.6 million residents who are part of amuch larger population system. The New York City metropolitanarea is the largest in the United States, with more than 19 millioninhabitants in three states. New York City consists of five boroughswith about 8.4 million people.

Manhattan is well placed, situated 100 miles from Philadelphia, 210miles from Boston, 230 miles from Washington, D.C., and 790 milesfrom Chicago.

I N F R A S T R U C T U R E

New York City has an extensive mass-transportation network.Subway and bus systems serve virtually every area in the fiveboroughs. There are 468 stations in the New York City Transitsubway system, including 147 stations in Manhattan. Grand CentralStation and Penn Station, both in Midtown Manhattan, provide railservice to the suburbs and long-distance connections, while threeinternational airports offer flights to most global destinations.

The island of Manhattan is linked to the other boroughs and NewJersey by 11 bridges and four tunnels for vehicular traffic, withnumerous additional tunnels for subway and rail lines. Highwaysalong the borough's eastern and western edges connect to freewaysthroughout the five boroughs.

G R O W T H PAT T E R N S

Large population:New York City is the United States’ largest city, with upwards of 8 million residents.

Top address for corporate headquarters:40+ Fortune 500 companies call New York City home.

High barriers to development:few parcels of developable land + high costs = limits to new construction.

M A R K E T H I G H L I G H T S

New York Harbor contains docks for freight andpassenger ships and provides ferry service to NewJersey and around the city.

MANHATTAN

1 4 9 S p r i n g S t r e e t

E C O N O M Y

New York City is home to around 40 Fortune 500companies, more than any other MSA in the country, andmost are located in Manhattan. The city serves as theepicenter for a wide variety of industries, making theperformance of its local economy integral to the nation. ThePort of New York is also a vital component of New York’scentrality to American and regional trade.

As one of the leading financial centers in the world, NewYork City boasts many international banks and financialfirms maintaining offices in the city.

Wall Street is a major driver of the local economy, as asignificant number of people are employed directly in thesecurities industry. The city is also a hub for the media,communications and publishing industries. The majortelevision networks have substantial operations inManhattan, while hundreds of newspapers, magazines andseveral music recording companies are headquartered inthe city. In addition, New York City is the advertising capitalof the United States and has a growing presence in theInternet/new media field. The entertainment and tourismindustries are crucial to the Manhattan economy, withnumerous theaters and attractions drawing billions ofdollars each year.

Manhattan is also an important location for many retailers,both national and local. Retail sales in the borough typicallygrew faster than the U.S. rate over the past decade.

L A B O R

Job growth in Manhattan slowed over the past five years asthe economic downturn weighed on the localmanufacturing, information, trade, transportation andutilities, and financial activities sectors.

Professional and business services is the largestemployment sector, accounting for over 470,000 positions,or 20 percent of the labor force. The government sectorfollows closely, with 19 percent of jobs in Manhattan. Thesesectors will post average annual gains of 2.3 percent and 1.2percent, respectively, over the next five years.

The leisure and hospitality and education and healthservices sectors will record the largest growth through 2015,increasing at average annual rates of 3.1 percent and 2.9percent, respectively. An annual gain of 2.9 percent is alsoexpected in the other services sector.

MANHATTAN

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information.References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates usedherein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark ofMarcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap

C O N F I D E N T I A L

E M P L O Y E R S

Over half of Manhattan’s labor market is involved infinancial activities and the services sectors. This is due toNew York City being the headquarters of some of thelargest U.S.-based consulting businesses, accountingoffices, insurance companies and legal firms, as well as theUnited Nations. In addition, Manhattan is the financialcenter of the country and home to the New York StockExchange, being one of the only two Alpha++ cities in theworld, sharing the title with London. Many of the world'stop securities firms and banks are located here. Majoremployers in the finance industry based in Manhattaninclude Goldman Sachs, JPMorgan Chase and MorganStanley Smith Barney.

Media conglomerate Time Warner is the largest company inthe information sector, employing thousands of people inManhattan from its headquarters at the Time WarnerCenter in Midtown. Other large media employers in theborough are Viacom and Verizon. The education and healthservices sector accounts for 13 percent of jobs inManhattan. Large employers include New York University,Columbia University, New York-Presbyterian Healthcare,Mount Sinai Hospital and Continuum Health Partners Inc.

D E M O G R A P H I C S

New York City is the largest city in the United States, withover 8 million residents. An estimated 19 million people livewithin the tristate metro area. Among the five boroughs,Manhattan is third largest behind Brooklyn and Queens,with a population of over 1.6 million. Manhattan grew 0.7percent annually during the past decade, a rate expected tocontinue through 2015.

The share of Manhattan residents with a Bachelor’s degreeis more than 34 percent, far above the national average ofalmost 28 percent. Additionally, more than 14 percent ofthe borough residents over age 25 have a graduate degree,compared to just over 10 percent nationally. There aresignificant and noteworthy differences betweenManhattan’s demographic profile and the profile of thenation.

In particular, residents under age 20 make up only 20percent of Manhattan's population, compared to 27 percentat the U.S. level. Additionally, residents ages 25 to 44comprise 37 percent of the local population, up from 27percent nationally, as this vital job market attracts many intheir prime working years.

MANHATTAN

1 4 9 S p r i n g S t r e e t

Although Manhattan’s median household income stands ata healthy $68,100 annually, the borough also has one of thehighest housing costs in the country, with the median homeprice resting at nearly $1.2 million.

Q U A L I T Y O F L I F E

Manhattan offers a quality of life unique even within thenation’s largest cities. Although housing costs are amongthe most expensive in the country, the borough provides avariety of cultural, entertainment and employmentopportunities. The area is one of the few places in theUnited States where a person can live without a car andrely completely upon mass transit. You can get anywhereeasily by taking the subway, buses or taxicabs, and railterminals and airports make long-distance travel accessible.A variety of entertainment options are available toManhattanites, including Broadway shows, first-run filmsand famous nightlife venues.

There are two MLB teams, two NFL teams, two NHL teamsand two NBA teams within the metro area. New York Cityhas an extensive public park system, the jewel of which isCentral Park in Manhattan offering natural areas, lawns,playing fields, running trails, biking paths, boating facilitiesand a zoo.

Manhattan also boasts world class art museums includingthe Metropolitan Museum of Art, the Guggenheim and theMuseum of Modern Art. The city's international flavor isalways on display in the island's many restaurants, featuringrecipes from around the world.

New York’s island of Manhattan continues to rise in culture, quality of life, and wealth. As a global gateway city, New York will continue to deliver promising opportunities and investment potential.

MANHATTAN

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information.References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates usedherein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark ofMarcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap

C O N F I D E N T I A L

N E I G H B O R H O O D

SoHo is a formally industrial neighborhood in New YorkCity which originally came to the public’s attention for beingthe location of many artists’ lofts and art galleries. It is nowmore noted for its variety of restaurants and shops rangingfrom upscale boutiques to international chain store outlets;for being a popular tourist destination for people seekingout fashionable clothing and noteworthy architecture; andfor being home to some of the most valuable real estate inthe country.

SoHo’s chain outlets are clustered in the northern area ofthe neighborhood along Broadway and Prince and SpringStreets (near the subject property) where its sidewalks aretypically crowded with tourists and vendors.

SoHo is a desirable residential area for "entry-level" youngprofessionals, and the immediate area to the subjectproperty will absorb over 100 new high-end condominiumunits in the next few years. The neighborhood's averagehousehold income is over $130,000, and its borders areHouston Street to the north, Canal Street to the south,Crosby Street to the east, and West Street to the west.

T R A N S P O RTAT I O N

Trains C, E accessible at Spring Street and the 1 train atHouston Street. The N and R trains are located at Broadwayand Prince Street.

SOHO

1 4 9 S p r i n g S t r e e t

MARKET OVERVIEW

Peter Von Der Ahe260 Madison Avenue, 5th Floor, New York, NYTel: (212) 430-5114 - Fax: (646) 349-3308peter.vonderahe@mmreis.com

Joe Koicim260 Madison Avenue, 5th Floor, New York, NY 10016Tel: (212) 430-5147 - Fax: (212) 500-7565joseph.koicim@mmreis.com

Noah Kossoff260 Madison Avenue, 5th Floor, New York, NY 10016Tel: (646) 805-1426 - Fax: (646) 349-3308noah.kossoff@marcusmillichap.com

Andrew Dansker, Financing Inquiries260 Madison Avenue, 5th Floor, New York, NYTel: (212) 430-5168 - Fax: (212) 500-5110andrew.dansker@marcusmillichap.com

ADVISORY TEAM