2481 Adam Clayton Powell Jr Blvd - Harlem - New York City
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2481 Adam Clayton Powell Jr Blvd – Harlem – New York City THE NNN PRO GROUP
Table of Contents
Financial Overview
Investment Highlights & Overview
Investment Summary
Tenant Overview
Location Overview
Property Photos
Market Overview – Manhattan
Market Overview – Harlem
Surrounding Area Map
Subway Map
Local Map
Regional Map
Demographics
FINANCIAL OVERVIEW
Located at 2481 Adam Clayton Powell Jr Blvd, New York, NY
PRICE: $6,480,000 | 4.00% CAP | NOI: $259,200
THE OFFERING INVESTMENT HIGHLIGHTS
Price $6,480,000
➢ Trophy Asset | Extremely Rare Net Leased Offering in
CAP Rate 4.00% Manhattan
Annual Rent $259,200
➢ Commitment to the Site | Citibank Just Exercised Their 2nd
Rent Per SF (Ground Floor) $34.60
Option Period
Price Per Buildable SF $215.56
➢ $76m In Deposits | In the Top 5% of All Banks in Harlem
PROPERTY DESCRIPTION ➢ Development Opportunity | Ability to Build 30,052 Square Feet
Property Name Citibank ➢ Below Market Rent | Rental Comps Range From $40-$80/ft
Property Address 2481 Adam Clayton Powell Jr Blvd Extremely Low Level of Retail Vacancy in Area
FINANCIAL OVERVIEW
City, State, Zip New York, NY 10030 Lease Economics:
Estimated Building Size SF 7,492 ➢ 5+ Years Remaining in the Second Option Period of a Modified
Triple-Net (NNN) Lease
Estimated Ground Floor SF 5,200
➢ Rental Increases: 20% Every Five Years – Strong Inflation
Building Dimensions 50x100 Protected Yields
Year Built 1922 ➢ Renewal Options: One (1), Five (5) - Year Tenant Renewal
Lot Square Footage 4,992 Option Remaining
Residential FAR 6.02 Credit of Tenant:
Commercial FAR ➢ Citibank N.A. - $160.82 Billion Market Cap
3.4
Property Taxes ➢ Investment Grade Rating – S&P (A+) – Moody’s (A1) – Fitch
$83,536
(A+)
Ownership Fee Simple
Representative Photo ➢ Posted $4.1 Billion Revenue 2017 Q1 Earnings | 17% Increase
from Q4 2016
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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 4
LEASE SUMMARY ANNUALIZED OPERATING DATA
Property Type Net Leased Bank Lease Term Annual Rent
Ownership Public 8/1/2017-7/31/2022 $259,200
Tenant Citibank 8/1/2022-7/30/3027* $311,040
Guarantor Corporate
Lease Term 10 Years Current NOI $259,200
Lease Commencement *Tenant has no remaining options after 2027
8/1/2002
Date
Lease Expiration 7/31/2022
Lease Term Remaining 5+ Years
Lease Type Modified Triple Net (NNN)
Roof Tenant Responsible
FINANCIAL OVERVIEW
Structure Landlord Responsible
Three Options, One 5-Year Option
Options to Renew
Remaining
Rental Escalations 20% Every 5 Years
Representative Photo
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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 5
Citibank
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries
and jurisdictions. Citi provides consumers, corporations,
governments, and institutions with a broad range of financial
products and services, including consumer banking and credit,
corporate and investment banking, securities brokerage,
transactions services, and wealth management.
Citi’s Global Consumer Bank (GCB) is a global leader in credit cards,
wealth management and Commercial banking. It serves as a
trusted partner to more than 110 million customers to 19 countries
worldwide. GCB operates approximately 2,600 branches and
generated $7.8 billion in pretax earnings, representing 37% of
Citicorp’s total. In 2016, the GCB business held $300 billion in
average deposits, and $280 billion in average loans.
As of 2016, In 2016, GCB’s credit card business held more than 55
million account, $421 billion in annual purchase sales and $140
billion in average receivables across Citi Branded Cards and Citi
Retail Services.
TENANT OVERVIEW
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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 6
LOCATION OVERVIEW
PROPERTY PHOTOS 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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 8
PROPERTY PHOTOS 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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 9
PROPERTY PHOTOS 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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 10
SURROUNDING AREA PHOTOS 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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 11
SURROUNDING AREA PHOTOS 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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 12
SURROUNDING AREA PHOTOS 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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 13
Location Overview
The Citibank property is located at 2481 Adam Clayton Powell Jr
Boulevard in Harlem, New York. Harlem is an up and coming
gentrified neighborhood in upper Manhattan that is known for its
popular art and theater culture.
Surrounding Retail and Points of Interest
The subject property is strategically positioned on the corner of
Adam Clayton Powell Junior Boulevard and 144th street. Major
retailers in the area include Target, Best Buy, BJ’s, The Home
Depot, Marshalls, Applebee’s, Papa John’s Pizza, McDonald’s,
Domino’s, and many others. The bank is less than one mile from
Yankee Stadium, which receives over 2.3 million visitors per year.
It is also located less than one mile away from the main campus
of the City College of New York, which has over 16,200 students
enrolled.
LOCATION OVERVIEW
Demographics and Pedestrian Traffic
There are over 1,262,106 people residing within 3 miles of the
property, and over 2,671,02 people within 5 miles. There are over
1,081,719 households within five miles of this Citibank. Pedestrian
traffic in Manhattan is known to be some of the highest in the
entire country, with particularly high traffic on Amsterdam
Avenue in Harlem, which is located nearby to the subject
property.
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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap
14Metro Economy
Manhattan is home to more than 1.6 million residents who are New York City is home to 49 Fortune 500 companies, more than any
part of a much bigger population system; the New York City other metro in the country, and most are located in Manhattan. The
metropolitan area is the largest in the United States, with city serves as the epicenter for a wide variety of industries, making the
approximately 20 million inhabitants in three states. New York performance of its local economy integral to the nation.
City consists of five boroughs with more than 8.5 million people.
New York City is one of the leading financial centers in the world, with
Employers many international banks and financial firms maintaining offices in the
More than half of Manhattan’s labor market is involved in city. Wall Street is a major driver of the local economy, as a significant
financial activities and services sectors. This is because New York number of people are employed directly in the securities industry. The
City is the headquarters of some of the largest U.S.-based city is a hub for the media, communications and publishing industries.
consulting businesses, accounting offices, insurance companies
MARKET OVERVIEW
The major television networks have substantial operations in
and legal firms, as well as the United Nations. In addition, Manhattan, while hundreds of newspapers and magazines and several
Manhattan is the financial center of the country and home to music-recording companies are headquartered in the city. In addition,
the New York Stock Exchange. Many of the world’s top banks New York City is the advertising capital of the United States and has a
and securities firms are located here. Major employers in the growing presence in the Internet/new media field. The entertainment
finance industry based in Manhattan include Goldman Sachs, and tourism industries are crucial to the Manhattan economy, with
JPMorgan Chase and Morgan Stanley. numerous theaters and attractions drawing billions of dollars each
year.
Media conglomerate Time Warner is the largest company in the
information sector, employing thousands of people in Manhattan is also an important location for many retailers, both
Manhattan from its headquarters at the Time Warner Center in national and local. Retail sales in the borough typically grow faster
Midtown. Google also has thousands of workers on payroll, and than the U.S. rate; this year, Manhattan will exceed the national sales
other large media employers are Viacom and Verizon. growth average with a rate of 9.3 percent. In addition, many major
technology firms are expanding in the borough
The education and health services sector accounts for 13
percent of jobs in Manhattan. Large employers include New York
University, Columbia University, New York-Presbyterian
Healthcare, and Mount Sinai Hospital.
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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap
15Harlem is a large neighborhood in the northern section of the
Manhattan borough. Since New York City’s revival in the late 20th
century, long time residents of Harlem have been experiencing
the effects of gentrification and new wealth.
Harlem stretches from East River to the Hudson River; and
between 155th street down to 96th street east of Fifth Avenue.
Harlem contains many neighborhoods within itself such as
Central, West, and East Harlem – also known as Spanish Harlem.
Culturally, Harlem has been known for its numerous actors and
MARKET OVERVIEW
theater companies, including the popular Apollo Theater on
125th Street. The city is home to the largest African American Day
Parade which celebrates the culture of African diaspora in
America.
Harlem is also home to several educational facilities. These
include the CUNY Graduate School of Public Health and Policy,
New York College of Podiatric Medicine, City college of New
York, and Touro College of Osteopathic Medicine. The New York
Public Library also operates several Harlem branches in the area.
The presence of art, cultural, and academic institutions has
attracted a well educated workforce and is creating a vast and
talented labor pool. Majority of workers in Harlem are employed
in the service industry, particularly hospitals and health
institutions. Retail trade represents the second largest industry,
followed closely behind by manufacturing.
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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap
16Surrounding Area Map
A & C Line at 145th St Station – 7
Minute Walk – 24.3 Million Riders
Annually
3 Line at 145th & 148th St Station – 4
Minute Walk – 3.6 Million Riders
Annually
B & D Line at 145th St Station – 7
Minute Walk – 24.3 Million Riders
Annually
SUBWAY MAP
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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap
18LOCAL MAP 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 used herein 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 of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 19
DEMOGRAPHICS
1 Mile 3 Miles 5 Miles
POPULATION
2021 Projection 211,569 1,281,943 2,711,550
2016 Estimate 209,920 1,262,106 2,671,025
2010 Census 198,847 1,197,629 2,536,517
2000 Census 198,310 1,169,083 2,486,483
INCOME
Average $54,478 $72,919 $89,492
Median $30,960 $35,773 $46,115
Per Capita $21,990 $28,446 $36,589
HOUSEHOLDS
2021 Projection 85,226 495,618 1,103,581
2016 Estimate 83,880 485,182 1,081,719
2010 Census 79,106 458,176 1,021,915
2000 Census 76,784 439,756 996,885
HOUSING
2016 $352,257 $497,137 $498,511
DEMOGRAPHICS
EMPLOYMENT
2016 Daytime Population 176,509 1,055,603 2,752,571
2016 Unemployment 8.93% 8.64% 7.64%
2016 Median Time
41 41 40
Traveled
HARLEM - NYC
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 used herein 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 of Marcus &
Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 21confidentiality & disclaimer
Marcus & Millichap hereby advises all prospective purchasers guarantors may fail to pay the lease rent or property taxes, or reliable; however, Marcus & Millichap has not verified, and
of Net Leased property as follows: may fail to comply with other material terms of the lease; cash will not verify, any of the information contained herein, nor
flow may be interrupted in part or in whole due to market, has Marcus & Millichap conducted any investigation regarding
The information contained in this Marketing Brochure has economic, environmental or other conditions. Regardless of these matters and makes no warranty or representation
been obtained from sources we believe to be reliable. tenant history and lease guarantees, Buyer is responsible for whatsoever regarding the accuracy or completeness of the
However, Marcus & Millichap has not and will not verify any of conducting his/her own investigation of all matters affecting information provided. All potential buyers must take
this information, nor has Marcus & Millichap conducted any the intrinsic value of the property and the value of any long- appropriate measures to verify all of the information set forth
investigation regarding these matters. Marcus & Millichap term lease, including the likelihood of locating a replacement herein.
makes no guarantee, warranty or representation whatsoever tenant if the current tenant should default or abandon the
about the accuracy or completeness of any information property, and the lease terms that Buyer may be able to NON-ENDORSEMENT NOTICE
provided. negotiate with a potential replacement tenant considering the
location of the property, and Buyer’s legal ability to make Marcus & Millichap Real Estate Investment Services, Inc.
As the Buyer of a net leased property, it is the Buyer’s alternate use of the property. (“M&M”) is not affiliated with, sponsored by, or endorsed by
responsibility to independently confirm the accuracy and any commercial tenant or lessee identified in this marketing
completeness of all material information before completing By accepting this Marketing Brochure you agree to release package. The presence of any corporation’s logo or name is
any purchase. This Marketing Brochure is not a substitute for Marcus & Millichap Real Estate Investment Services and hold it not intended to indicate or imply affiliation with, or
your thorough due diligence investigation of this investment harmless from any kind of claim, cost, expense, or liability sponsorship or endorsement by, said corporation of M&M, its
opportunity. Marcus & Millichap expressly denies any arising out of your investigation and/or purchase of this net affiliates or subsidiaries, or any agent, product, service, or
obligation to conduct a due diligence examination of this leased property. commercial listing of M&M, and is solely included for the
Property for Buyer. purpose of providing tenant lessee information about this
CONFIDENTIALITY AND DISCLAIMER listing to prospective customers.
Any projections, opinions, assumptions or estimates used in
this Marketing Brochure are for example only and do not The information contained in the following Marketing ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
represent the current or future performance of this property. Brochure is proprietary and strictly confidential. It is intended PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR
The value of a net leased property to you depends on factors to be reviewed only by the party receiving it from Marcus & MORE DETAILS.
that should be evaluated by you and your tax, financial and Millichap and should not be made available to any other
legal advisors. person or entity without the written consent of Marcus &
Millichap. This Marketing Brochure has been prepared to
Buyer and Buyer’s tax, financial, legal, and construction provide summary, unverified information to prospective
advisors should conduct a careful, independent investigation purchasers, and to establish only a preliminary level of interest
of any net leased property to determine to your satisfaction in the subject property. The information contained herein is
with the suitability of the property for your needs. not a substitute for a thorough due diligence investigation.
Marcus & Millichap has not made any investigation, and makes
Like all real estate investments, this investment carries no warranty or representation, with respect to the income or
significant risks. Buyer and Buyer’s legal and financial advisors expenses for the subject property, the future projected
must request and carefully review all legal and financial financial performance of the property, the size and square
documents related to the property and tenant. While the footage of the property and improvements, the presence or
tenant’s past performance at this or other locations is an absence of contaminating substances, PCB’s or asbestos, the
important consideration, it is not a guarantee of future compliance with State and Federal regulations, the physical
success. Similarly, the lease rate for some properties, including condition of the improvements thereon, or the financial
newly-constructed facilities or newly-acquired locations, may condition or business prospects of any tenant, or any tenant’s
be set based on a tenant’s projected sales with little or no plans or intentions to continue its occupancy of the subject
record of actual performance, or comparable rents for the property. The information contained in this Marketing
area. Returns are not guaranteed; the tenant and any Brochure has been obtained from sources we believe to beTHE NNN PRO GROUP
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