MARKETING TEAM - falkon-listings.s3.amazonaws.com...MARKETING TEAM. 21- 23 Catherine Street. Peter...

M A R K E T I N G T E A M

2 1 - 2 3 C a t h e r i n e S t r e e t

Peter Von Der Ahe260 Madison Avenue, 5th FloorNew York, NYTel: (212) 430-5114Fax: (646) [email protected]

Andrew Dansker | Financing Inquiries260 Madison Avenue, 5th FloorNew York, NYTel: (212) 430-5168Fax: (212) [email protected]

Joe Koicim260 Madison Avenue, 5th FloorNew York, NY 10016Tel: (212) 430-5147Cell: (516) [email protected]

Jared Bernstein260 Madison Ave, 5th FloorNew YorkTel: 646-805-1451Cell: (862) [email protected]

INVESTMENT OVERVIEW

PRICING & FINANCIAL ANALYSIS

PROPERTY DESCRIPTION

MARKET OVERVIEW

Section I

Section II

Section III

Section IV

TA B L E O F C O N T E N T S


I N V E S T M E N T O V E R V I E W

THE OFFERING

New York Multifamily is pleased to offer thefollowing opportunity located in the boomingTwo Bridges neighborhood. 21 & 23 CatherineStreet is located on the East Side of the streetbetween Henry Street and East Broadway andcontains a gross square footage of 21,258. Theproperty is zoned R7-2.

THE OPPORTUNITY

The offering consists of two mixed-use walkup buildings containing a total of 30 residential apartment units and 3 commercial units. The buildings contain 25 two-bedrooms units, 4 three-bedroom units, and 1 one-bedroom unit while 70% of the rents are at market. The two buildings combined offer an opportunity to capture an asset with tremendous in-place cash flow at 5.7%.

This opportunity allows an investor to purchase 123’ of wraparound frontage with seamless access to the B,D,F,J,Z,4,5 & 6 Subway Line.

21-23 Catherine StreetIs being offered at

| $15,850,000

O F F E R I N G M E M O R A N D U M

LISTING METRICS

33TOTAL UNITS

$746PRICE /SF

5.7%CAP RATE

146 ‘WRAP- AROUND FRONTAGE

21,258TOTAL SQUARE FEET

$184,643PROJECTED TAXES

12.6GRM

2TAX CLASS

P R I C I N G & F I N A N C I A L A N A LY S I S

F INANCIAL OVERVIEW


Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyofthe information. Referencestosquare footageorageareapproximate. Buyermustverify the information and bearsall risk forany inaccuracies.Any projections,opinions,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus&MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2019Marcus&Millichap


INCOME CURRENT PRO FORMAGross Potential Residential Rent $873,969 $904,395Gross Potential Commercial Rent $386,400 $393,672Gross Income $1,260,369 $1,298,067

PRICE PER SQUARE FOOT $746 Vacancy/Collection Loss ($26,219) ($27,132)PRICE PER UNIT $480,303 R.E. Tax Reimbursement $2,088 $2,088TOTAL SQUARE FEET 21,258 Effective Gross Income $1,236,238 $1,273,023TOTAL UNITS 33 Average Residential Rent/Month/Unit $2,428 $2,512CURRENT CAP RATE 5.7%CURRENT GRM 12.6 EXPENSESPRO FORMA CAP RATE 5.9% Property Taxes Tax Class: 2 $184,643 $184,643PRO FORMA GRM 12.2 Fuel $29,267 $29,267PRO FORMA CASH ON CASH RETURN 7.55% Insurance $19,897 $19,897

Water and Sewer $28,086 $28,086Repairs and Maintenance $14,850 $14,850

PROPOSED DEBT Common Electric (PPSF) $5,703 $5,703Loan Amount $12,150,000 Super Salary $12,500 $12,500Interest Rate 3.50% Management Fee $37,087 $38,191Amortization 30 Total Expenses $332,033 $333,137Annual Debt Service ($660,612) Net Operating Income $904,205 $939,887Debt Coverage Ratio 1.37Net Cash Flow After Debt Service $279,275

UPSIDE ANALYSIS SCHEDULE OF INCOMEUNIT BREAKDOWN TOTAL % OF TOTAL RENTStudio 0 0% $01 Bedroom 1 3% $2,7662 Bedroom 25 83% $2,0573 Bedroom 4 13% $4,6574 Bedroom 0 0% $05 Bedroom 0 0% $06 Bedroom 0 0% $0SRO 0 0% $0

$/SF

$15,850,000OFFERING PRICE

CAP RATEGRM

12.5521,258 $746 5.7%SQUARE FEET

GROSS TOTAL SF

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Studio 1Bedroom

2Bedroom

3Bedroom

4Bedroom

5Bedroom

6Bedroom

SRO

Current Avg RS UnitsMarket RentsCurrent Avg FM Rents


RENT ROLL



UNIT TENANT NAME NOTES LEASE START SF EXPIRATION ACTUAL PRO FORMA $/PSF

1-ST-1 Vacant - Projected 1,700 $12,000 $12,000 $85

2-ST-1 JJ Noodle, Inc. Full operating kitchen in basement

Dec-08 1,100 Apr-20 $12,000 $12,360 $135

2-ST-2 Hai Thanh Seafood Inc. Aug-09 800 Apr-20 $8,200 $8,446 $1273,600 $32,200 $32,806

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

21 Catherine Street1-2A FM 2 Bedroom 4 Aug-19 $2,600 $3,1001-2B RS 2 Bedroom 4 Oct-19 $3,073 $3,1191-2C RC 2 Bedroom 4 $199 $1991-3A RS 2 Bedroom 4 Jun-20 $3,000 $3,0451-3B RS 2 Bedroom 4 Jun-20 $3,000 $3,0451-3C RS 1 Bedroom 3 Jun-20 $2,766 $2,8081-3D FM 2 Bedroom 4 Jan-20 $3,000 $3,1001-4A RS 2 Bedroom 4 May-17 $864 $8641-4B RS 2 Bedroom 4 May-20 $480 $4881-4C FM 2 Bedroom 4 May-20 $3,000 $3,1001-4D FM 2 Bedroom 4 Jul-20 $3,000 $3,1001-5A FM 2 Bedroom 4 Jun-20 $2,875 $3,1001-5B RS 2 Bedroom 4 May-20 $879 $8921-5C FM 2 Bedroom 4 Dec-19 $2,800 $3,1001-5D FM 2 Bedroom 4 Mar-20 $2,800 $3,10023 Catherine Street2-2A RS 2 Bedroom 4 Dec-20 $766 $7662-2B RS 2 Bedroom 4 Aug-19 $3,302 $3,3022-2C RS 3 Bedroom 5 May-20 $4,228 $4,2912-3A RC 2 Bedroom 4 $188 $1882-3B RS 2 Bedroom 4 Apr-20 $3,400 $3,4512-3C RS 2 Bedroom 4 Jun-21 $1,397 $1,3972-4A RS 3 Bedroom 5 $4,700 $4,7002-4B RC 2 Bedroom 4 $155 $1552-4C RS 2 Bedroom 4 Mar-20 $1,740 $1,7662-5A RC 2 Bedroom 4 $178 $1782-5B FM 2 Bedroom 4 May-20 $3,400 $3,5362-5C FM 3 Bedroom 5 Jul-19 $4,800 $4,9002-6A FM 3 Bedroom 5 Jul-20 $4,900 $5,0962-6B FM 2 Bedroom 4 May-20 $3,500 $3,6402-6C RS 2 Bedroom 4 Feb-21 $1,840 $1,840MONTHLY RESIDENTIAL REVENUE 63 123 $72,831 $75,366

ANNUAL RESIDENTIAL REVENUE $873,969 $904,395ANNUAL COMMERCIAL REVENUE $386,400 $393,672

ACTUAL PRO FORMATOTAL ANNUAL REVENUE $1,260,369 $1,298,067There are currently 0 vacant units in the building. The super lives off site.

MONTHLY COMMERCIAL REVENUE

COMMERCIAL RENT


INCOME AND EXPENSE ANALYSIS



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

Gross Potential Residential Rent $873,969 69% $26,484 $904,395 70% $27,406Gross Potential Commercial Rent $386,400 31% $11,709 $393,672 30% $11,929Gross Income $1,260,369 $38,193 $1,298,067 $39,335Vacancy/Collection Loss ($26,219) 3% ($795) ($27,132) 3% ($822)R.E. Tax Reimbursement $2,088 $63 $2,088 $63Effective Gross Income $1,236,238 $37,462 $1,273,023 $38,576Average Residential Rent/Month/Unit $2,428 $2,512

EXPENSESProperty Taxes Tax Class: 2 $184,643 15% $5,595 $184,643 15% $5,595Fuel $29,267 2% $887 $29,267 2% $887Insurance $19,897 2% $603 $19,897 2% $603Water and Sewer $28,086 2% $851 $28,086 2% $851Repairs and Maintenance $14,850 1% $450 $14,850 1% $450Common Electric (PPSF) $5,703 0.5% $0.27 $5,703 0.4% $0.27Super Salary $12,500 1% $379 $12,500 1% $379Management Fee $37,087 3% $1,124 $38,191 3% $1,157Total Expenses $332,033 27% $10,062 $333,137 26% $10,095Net Operating Income $904,205 $939,887

RENTAL ANALYSIS BY UNIT TYPETYPE % OF TOTAL RENT TOTAL AVG. RENTStudio 0% $0 0 $01 Bedroom 3% $2,766 1 $2,7662 Bedroom 83% $51,437 25 $2,0573 Bedroom 13% $18,628 4 $4,6574 Bedroom 0% $0 0 $05 Bedroom 0% $0 0 $06 Bedroom 0% $0 0 $0SRO 0% $0 0 $0LEASE STATUS MIXUNIT BREAKDOWN % OF TOTAL RENT TOTAL AVG. RENTTotal Fair Market Units 63% $105,031 19 $3,376Total RS Units 50% $35,435 15 $2,362Total RC Units 13% $720 4 $180Total FM Units 37% $36,675 11 $3,334Total Commercial -- $32,200 3 $10,733UPSIDE ANALYSIS

37%

AVERAGE RENTPER MONTH

$2,428PERCENT

FAIR MARKET

EXPENSE RATIO

27%

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

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

Market Rents Current Avg FM Rents

P R O P E R T Y D E S C R I P T I O N

PROPERTY DESCRIPTION

CITY: New Yorki New Yorki

STATE: NYi NYi

BLOCK & LOT: 280 /54 280 / 55

LOT DIMENSIONS: 23 ft X 104 fti 23 ft X 100 fti

LOT SF: 2,367 2,420

BUILDING DIMENSIONS: 23 ft X 80 fti 23 ft X 100 fti

BUILDING SF: 8,875 12,383

ZONING: R7-2i R7-2i

MAX FAR: 6.5i 6.5i

AVAILABLE AIR RIGHTS: 0i 0i

LANDMARK DISTRICT: Nonei Nonei

HISTORIC DISTRICT: Nonei Nonei

ANNUAL TAX BILL: __$66,470 __$118,173

TAX CLASS: 2i 2i


21 Catherine Street 23 Catherine Street

B O R O U G H

Manhattan is a significant part of a much larger population system; the New York City metropolitan area is the largest in the United States, with more than 19 million inhabitants in three states.

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. Referencesto square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are forexample purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap RealEstate Investment Services, Inc. © 2019 Marcus & Millichap

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

M A R K E T O V E R V I E W

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


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


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


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


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212 430 5114

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