CAPITAL ONE RETAIL CONDO 501 BROADWAY - SOHO - NEW YORK CITY - OFFERING MEMORANDUM - LoopNet

 
CAPITAL ONE RETAIL CONDO 501 BROADWAY - SOHO - NEW YORK CITY - OFFERING MEMORANDUM - LoopNet
THE NNN PRO GROUP

      CAPITAL ONE RETAIL CONDO
501 BROADWAY – SOHO – NEW YORK CITY
          OFFERING MEMORANDUM
CAPITAL ONE RETAIL CONDO 501 BROADWAY - SOHO - NEW YORK CITY - OFFERING MEMORANDUM - LoopNet
confidentiality & disclaimer
Marcus & Millichap hereby advises all prospective purchasers        guarantors may fail to pay the lease rent or property taxes, or     Federal regulations, the physical condition of the
of Net Leased property as follows:                                  may fail to comply with other material terms of the lease; cash     improvements thereon, or the financial condition or business
                                                                    flow may be interrupted in part or in whole due to market,          prospects of any tenant, or any tenant’s plans or intentions to
The information contained in this Marketing Brochure has            economic, environmental or other conditions. Regardless of          continue its occupancy of the subject property. The
been obtained from sources we believe to be reliable.               tenant history and lease guarantees, Buyer is responsible for       information contained in this Marketing Brochure has been
However, Marcus & Millichap has not and will not verify any of      conducting his/her own investigation of all matters affecting       obtained from sources we believe to be reliable; however,
this information, nor has Marcus & Millichap conducted any          the intrinsic value of the property and the value of any long-      Marcus & Millichap has not verified, and will not verify, any of
investigation regarding these matters. Marcus & Millichap           term lease, including the likelihood of locating a replacement      the information contained herein, nor has Marcus & Millichap
makes no guarantee, warranty or representation whatsoever           tenant if the current tenant should default or abandon the          conducted any investigation regarding these matters and
about the accuracy or completeness of any information               property, and the lease terms that Buyer may be able to             makes no warranty or representation whatsoever regarding
provided.                                                           negotiate with a potential replacement tenant considering the       the accuracy or completeness of the information provided. All
                                                                    location of the property, and Buyer’s legal ability to make         potential buyers must take appropriate measures to verify all
As the Buyer of a net leased property, it is the Buyer’s            alternate use of the property.                                      of the information set forth herein.
responsibility to independently confirm the accuracy and
completeness of all material information before completing          By accepting this Marketing Brochure you agree to release           NON-ENDORSEMENT NOTICE
any purchase. This Marketing Brochure is not a substitute for       Marcus & Millichap Real Estate Investment Services and hold it
your thorough due diligence investigation of this investment        harmless from any kind of claim, cost, expense, or liability        Marcus & Millichap Real Estate Investment Services, Inc.
opportunity. Marcus & Millichap expressly denies any                arising out of your investigation and/or purchase of this net       (“M&M”) is not affiliated with, sponsored by, or endorsed by
obligation to conduct a due diligence examination of this           leased property.                                                    any commercial tenant or lessee identified in this marketing
Property for Buyer.                                                                                                                     package. The presence of any corporation’s logo or name is
                                                                    CONFIDENTIALITY AND DISCLAIMER                                      not intended to indicate or imply affiliation with, or
Any projections, opinions, assumptions or estimates used in                                                                             sponsorship or endorsement by, said corporation of M&M, its
this Marketing Brochure are for example only and do not             The information contained in the following Marketing                affiliates or subsidiaries, or any agent, product, service, or
represent the current or future performance of this property.       Brochure is proprietary and strictly confidential. It is intended   commercial listing of M&M, and is solely included for the
The value of a net leased property to you depends on factors        to be reviewed only by the party receiving it from Marcus &         purpose of providing tenant lessee information about this
that should be evaluated by you and your tax, financial and         Millichap and should not be made available to any other             listing to prospective customers.
legal advisors.                                                     person or entity without the written consent of Marcus &
                                                                    Millichap. By acceptance of this information, the recipient         ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.
Buyer and Buyer’s tax, financial, legal, and construction           agrees to treat this information as strictly confidential, not to   PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR
advisors should conduct a careful, independent investigation        use it for any purpose other than in connection with an             MORE DETAILS.
of any net leased property to determine to your satisfaction        analysis of the potential sale of the property from the owner
with the suitability of the property for your needs.                as contemplated herein and that the owner of the property
                                                                    may enforce these restrictions. This Marketing Brochure has
Like all real estate investments, this investment carries           been prepared to provide summary, unverified information to
significant risks. Buyer and Buyer’s legal and financial advisors   prospective purchasers, and to establish only a preliminary
must request and carefully review all legal and financial           level of interest in the subject property. The information
documents related to the property and tenant. While the             contained herein is not a substitute for a thorough due
tenant’s past performance at this or other locations is an          diligence investigation. Marcus & Millichap has not made any
important consideration, it is not a guarantee of future            investigation, and makes no warranty or representation, with
success. Similarly, the lease rate for some properties, including   respect to the income or expenses for the subject property,
newly-constructed facilities or newly-acquired locations, may       the future projected financial performance of the property,
be set based on a tenant’s projected sales with little or no        the size and square footage of the property and
record of actual performance, or comparable rents for the           improvements, the presence or absence of contaminating
area. Returns are not guaranteed; the tenant and any                substances, PCB’s or asbestos, the compliance with State and
CAPITAL ONE RETAIL CONDO 501 BROADWAY - SOHO - NEW YORK CITY - OFFERING MEMORANDUM - LoopNet
Table of Contents
 Financial Overview

      Investment Highlights & Overview
      Projected Cash Flow Statement
      Investment Summary
      Sales Comparables
      Rental Comparables
      Tenant Overview

 Location Overview

      Location Overview
      Market Overview – Manhattan
      Market Overview- SoHo
      Surrounding Area Map
      Floor Plans and Other Info
      Subway Map
      Local Map
      Regional Map
      Property Photos
      Surrounding Area Photos

 Demographics
CAPITAL ONE RETAIL CONDO 501 BROADWAY - SOHO - NEW YORK CITY - OFFERING MEMORANDUM - LoopNet
FINANCIAL OVERVIEW
CAPITAL ONE RETAIL CONDO 501 BROADWAY - SOHO - NEW YORK CITY - OFFERING MEMORANDUM - LoopNet
Located at 501 Broadway – Between Broome & Spring Streets
PRICE: $49,750,000 | 4.91% CAP | NOI: $2,441,668
                                                  PROPERTY DESCRIPTION
Property Name
Property Address
                                                                                                               Capital One Bank
                                                                                                                  501 Broadway                                                    501
City, State, Zip                                                                                             New York, NY 10012                                          BROADWAY
Estimated Condo Size (SF)                                                                                                  9,035
Block / Lot                                                                                                          484 / 1001
Ownership                                                                                                            Fee Simple                                                                            INVESTMENT HIGHLIGHTS
                                                                                                                                                           Real Estate Fundamentals:
                                                           THE OFFERING
                                                                                                                                                                  ➢ Recently Constructed (2007) – Modern Design – Attractive Physical
Price                                                                                                                       $49,750,000
                                                                                                                                                                    Features
CAP Rate                                                                                                                          4.91%
Annual Rent                                                                                                                 $2,541,000*                           ➢ Institutionally Owned and Managed: No Major / Upcoming Capital
                                                                                                                                                                    Expenditures
Net Operating Income                                                                                                         $2,441,668
Price Per SF                                                                                                                     $5,956                           ➢ World-Class Broadway Location – Strategically Situated Among Major
Rent Per SF                                                                                                                        $292                             Flagships and National Retailers
                                               *Based on 8/1/19 rental increase, seller will credit the difference in rent at closing.
                                                                                                                                                                  ➢ More Than 1,000,000 Individuals Within a Three-Mile Radius with an
                                                                                                                                                                    Average Household Income Exceeding $130,000
                                                        LEASE SUMMARY

                                                                                                                                                                                                                                                                       FINANCIAL OVERVIEW
Property Type                                                                                   Net Leased Bank
Ownership                                                                                                    Public                                        Lease Economics:
Tenant                                                                                          Capital One, N.A.                                                 ➢ 7+ Years Remaining on the Original 12 Year Modified Triple-Net
Guarantor                                                                                               Corporate                                                   (NNN) Lease
Lease Term                                                                                                12 Years
                                                                                                                                                                  ➢ Rental Increases: 10% Every Three Years – Strong Inflation Protected
Lease Commencement Date                                                                                3/15/2013
                                                                                                                                                                    Yields
Lease Expiration                                                                                       7/31/2025
Lease Term Remaining                                                                                      7+ Years                                                ➢ Renewal Options: Two (2), Five (5) - Year Tenant Renewal Options
Lease Type                                                                             Modified Triple Net (NNN)                                                  ➢ Rental Increases in Options: The Rent Increases 10% Upon Execution
Options to Renew                                                                          Two, Five-Year Options                                                    of the First Option Period, With an Additional 10% Increase in Year
Base Term Rental Escalations                                                              10% Every Three Years                                                     15. Rent resets to Fair Market Value in Option Period 2
Rental Escalations in Option Period 1                                        10% Increase in Year 13 and Year 15                                           Credit of Tenant:
Rental Escalations in Option Period 2                                                                  100% FMV
                                                                                                                                                                  ➢ Capital One Financial Corp. - $43.3 Billion Market Cap
                                                                           RE Tax Increases Over $99,327; CAM –
Reimbursements
                                                                                              net, utilities direct                                               ➢ Investment Grade Ratings – S&P (BBB+) – Moody’s (Baa1) – Fitch (A-)
                                                                                                                                                                  ➢ Revenues of $27.237 Billion in 2017

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 (Activity ID: Z0330904)
                                                                                                                                                                                                                                                                                      5
CAPITAL ONE RETAIL CONDO 501 BROADWAY - SOHO - NEW YORK CITY - OFFERING MEMORANDUM - LoopNet
Projected Cash Flow Statement

                                                                                                  Schedule Of Prospective Cash Flow
                                                                                       In Inflated Dollars for the Fiscal Year Beginning 7/1/2018

                                                                    Year 1                  Year 2                  Year 3                   Year 4                  Year 5                  Year 6                  Year 7                  Year 8                      Year 9    Year 10
For the Years Ending                                              Jun-2019                Jun-2020                Jun-2021                 Jun-2022                Jun-2023                Jun-2024                Jun-2025                Jun-2026                    Jun-2027   Jun-2028

                                                                                                                                                                                                                                                                                             PROJECTED CASH FLOW STATEMENT
REVENUE                                                      ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________
 Base Rental Revenue                                          $2,310,000 $2,521,750 $2,541,000 $2,541,000 $2,773,925 $2,795,100 $2,795,100 $3,051,318 $3,074,610 $3,356,449
 Real Estate Taxes (Full AV)                                      31,398      39,189      47,431      56,181      65,440      75,259      85,670      96,694     108,385     120,772
 Condo CAM Reimbursement                                          44,187      45,517      46,879      48,286      49,733      51,229      52,764      54,349      55,975      57,658
                                                             ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________
Effective Gross Revenue                                        2,234,415   2,437,044   2,446,690   2,436,533   2,658,752   2,668,612   2,656,666   2,900,275   2,910,250   3,178,019

Operating Expenses
 Real Estate Taxes (Full AV)                                     130,729     138,511     146,763     155,503     164,769     174,588     184,994     196,023     207,711     220,100
 421a RE Tax Savings                                            (15,213)      (5,176)          0           0           0           0           0           0           0           0
 Condo CAM                                                        44,190       45,514     46,879      48,287      49,736      51,226      52,764      54,348      55,977      57,657
                                                             ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________
Total Operating Expenses                                         159,706     178,849     193,642     203,790     214,505     225,814     237,758     250,371     263,688     277,757

Rent Credit*                                                     215,789      14,061
                                                             ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________
Net Operating Income                                           2,441,668   2,441,668   2,441,668   2,441,677   2,674,593   2,695,774   2,695,776   2,951,990   2,975,282   3,257,122
*Seller to provide rent credit at closing

                                                                                                               Capital One Retail Condominium
                                                                                                                        501 Broadway
                                                                                                                        New York, NY

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 (Activity ID: Z0330904)                                                                                                                                                                           6
CAPITAL ONE RETAIL CONDO 501 BROADWAY - SOHO - NEW YORK CITY - OFFERING MEMORANDUM - LoopNet
Investment Summary
The subject investment is the opportunity to acquire a newly constructed
modern block-through retail condominium leased to an investment grade
tenant. The asset is 100% leased to Capital One with approximately 7 years
remaining on the initial term of the lease. The condominium provides an
investor with a prime New York City asset in the heart of SoHo with extremely
minimal landlord responsibilities. The asset offers the owner an opportunity to
purchase a best of class location generational asset with a credit tenant.

The ground floor condominium features 3,659 square feet, 4,694 square feet of
lower level space and 682 square feet of additional space. The annual rent is
$2,541,000 annually ($211,750 monthly) and features ten percent (10%) rental
increases every three years. The asset is conveniently located on Broadway
which experiences unrivaled foot traffic coupled with exceptional subway
access in one of the most profound retail arteries in the world. The strategic
positioning of this property resulted in deposits of over $119 Million at this
location.

Annualized Operating Data
 Annual Rent                                                                                                      $2,541,000*
 Net Operating Income                                                                                             $2,441,668

                                                                                                                                                                                                                                                                       FINANCIAL OVERVIEW
 Base Term Rental Escalations                                                                           10% Every Three Years
 Rental Escalations in Options                                                                             See Rent Schedule
                                               *Based on 8/1/19 rental increase, seller will credit the difference in rent at closing.

                                                          RENT SCHEDULE
             Lease Year                                     Annual Rent                                    Monthly Rent
         08/2016 – 07/2019                                  $2,310,000                                      $192,500
         08/2019 – 07/2022                                  $2,541,000                                      $211,750
         08/2022 – 07/2025                                  $2,795,100                                      $232,925
          Option Period 1
         08/2025 – 07/2027                                     $3,074,610                                      $256,218
         08/2027 – 07/2030                                     $3,382,071                                      $281,839
          Option Period 2
         08/2030 – 07/2035                                      100% FMV                                     100% FMV
           CAP Rate                                                                                            4.91%
           Purchase Price                                                                                   $49,750,000

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 (Activity ID: Z0330904)                                                                                                                                            7
CAPITAL ONE RETAIL CONDO 501 BROADWAY - SOHO - NEW YORK CITY - OFFERING MEMORANDUM - LoopNet
Sales Comparables

                                                                                                                                                                                                                                                                                      RENTAL AND SALES COMPARABLES
                                                       SUBJECT PROPERTY                                                                                                                                          SALES COMPS
      Property Name                                                            Capital One Bank                                                           Property Address                                   114 Prince Street                                  503 Broadway
      Property Address                                                          501 Broadway                                                                                                                                                                Between Spring Street &
                                                                                                                                                                                                          New York, NY 10012
                                                                                                                                                                                                                                                                Broome Street
                                                                     Between Spring Street & Broome Street
      Ground Level (SF)                                                              3,659                                                                Ground Level (SF)                                             2,750                                             13,600
      Asking Price                                                               $49,750,000                                                              Sale Price                                             $41,729,429                                           $279,996,800
      Asking $/SF                                                                  $13,596                                                                $/SF                                                     $15,174                                               $20,588

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 (Activity ID: Z0330904)                                                                                                                                                                  8
CAPITAL ONE RETAIL CONDO 501 BROADWAY - SOHO - NEW YORK CITY - OFFERING MEMORANDUM - LoopNet
Rental Comparables

                                                                                                                                                                                                                                                                                       RENTAL AND SALES COMPARABLES
                                                           RENTAL COMPS                                                                                                                                      ASKING RENT COMPS
 Property Name                                   Sketchers Footwear                                       Melissa
 Property Address                                  530 Broadway                                        500 Broadway                                       Property Address                              568-578 Broadway                                          543 Broadway
                                                                                                   Between Spring Street &                                                                           NE Corner of Prince Street                                AKA 114 Mercer Street
                                              Corner of Spring Street
                                                                                                       Broome Street                                      Ground Level (SF)                                   10,250                                                   4,242
 Ground Level (SF)                                          2,280                                          4,200                                          Annual Rent                                       $8,712,500                                              $2,748,816
 Annual Rent                                             $2,300,000                                     $2,940,000                                        Asking $/SF                                          $850                                                    $648
 $/SF – Ground Level                                       $1,009                                           $700

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 (Activity ID: Z0330904)                                                                                                                                                                   9
CAPITAL ONE RETAIL CONDO 501 BROADWAY - SOHO - NEW YORK CITY - OFFERING MEMORANDUM - LoopNet
Capital One
  Capital One Financial Corporation is a financial holding company whose
  subsidiaries, which include Capital One, N.A., and Capital One Bank (USA),
  N.A., had $236.8 billion in deposits and $365 billion in total assets as of
  December 31, 2017. Headquartered in McLean, Virginia, Capital One
  offers a broad spectrum of financial products and services to consumers,
  small businesses and commercial clients through a variety of channels.
  Capital One, N.A. has branches located primarily in New York, Louisiana,
  Texas, Maryland, Virginia, New Jersey and the District of Columbia. A
  Fortune 500 company, Capital One trades on the New York Stock
  Exchange under the symbol "COF" and is included in the S&P 100 index.
  The bank is the 10th largest in the US with 755 branches and 2,000 ATMs.
  In 2017, Capital One grew revenues by $1.7 billion and increased
  earnings per share even as they continued their investments in growth,
  transformation, and risk management. The combination of strong
  revenue growth and careful expense management resulted in better
  operating efficiency. They have improved our efficiency ratio by over 300
  basis points since 2015, including over 100 basis points in 2017. They
  posted 2017 GAAP net income of $1.98 billion, or $3.49 per share, which
  included a $1.77 billion one-time reduction in net income due to
  December’s Tax Act legislation.

                                                                                                                                                                                                                                                                       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 (Activity ID: Z0330904)                                                                                                                                     10
LOCATION OVERVIEW
Location Overview
The Capital One property is located at 501 Broadway in the heart
of SoHo in Lower Manhattan. SoHo refers to the region being
south of Houston Street; the neighborhood is well-regarded for its
rich architecture and a vibrant avant-garde art scene.

Surrounding Retail and Points of Interest
The subject property is strategically positioned on Broadway
benefiting from the abundance of major retailers, high-end
boutiques, luxury hotels, and world renowned restaurants in the
area. Retailers have opened many new flagship stores including:
Nike, Adidas, Zara, Dolce & Gabbana, and Tory Burch. Various
major retailers in the area include: Bloomingdales, H&M, Forever
21, MAC, Madewell, Prada, Lululemon, Kate Spade, Balenciaga,
Vince Camuto, AllSaints, as well as many others.

                                                                                                                                                                                                                                                                       LOCATION OVERVIEW
Demographics and Pedestrian Traffic
SoHo has 51,240 individuals residing in the neighborhood, with a
total of 26,527 households. The average household income in
the neighborhood is $143,313 representing a 7% increase since
2010. The average household net worth is $1,108,237 and the
median home sale price in the neighborhood exceeds
$2,381,250. Pedestrian activity on Broadway is ranked as the
highest in the entire New York City area, comparing to Times
Square and Fifth Avenue.

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 (Activity ID: Z0330904)
                                                                                                                                                                                                                                                                               12
Metro                                                                                                                                             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 (Activity ID: Z0330904)
                                                                                                                                                                                                                                                                              13
SoHo is a neighborhood in Lower Manhattan, New York City,
which in recent history came to the public's attention for being
the location of many artists' lofts and art galleries, but is now
better known for its variety of shops ranging from trendy upscale
boutiques to national and international chain store outlets. The
name "SoHo" refers to the area being "South of Houston Street",
and was also a reference to SoHo, an area in London's West End.

Almost all of SoHo is included in the SoHo-Cast Iron Historic
District, which was designated by the New York City Landmarks
Preservation Commission in 1973, extended in 2010, and was

                                                                                                                                                                                                                                                                       MARKET OVERVIEW
listed on the National Register of Historic Places and declared a
National Historic Landmark in 1978. It consists of 26 blocks and
approximately 500 buildings, many of them incorporating cast-
iron architectural elements.

SoHo is bounded by Houston Street on the northern side, Canal
Street on the south, Crosby Street on the east, and Sixth Avenue
to the west. SoHo's chain outlets are clustered in the northern
area of the neighborhood, along Broadway and Prince and
Spring Streets. The sidewalks in this area are often crowded with
tourists and with vendors selling jewelry, T-shirts, and other works.
SoHo is known for its commercialization and eclectic mix of
boutiques for shopping. New York City’s tourist visitor numbers
have increased to a record breaking 60.3 million in 2016, up from
48.8 million in 2010.

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 (Activity ID: Z0330904)
                                                                                                                                                                                                                                                                              14
MERCER STREET                   MERCER STREET

G                           S   P                   H
                    B                               O
R                   R       P   R
                            R   I                   U
A                   O                               S
N                   O       I   N
                                                    T
D                   M       N   C                   O
                    E       G   E                   N
S                           S   S
                    S                               S
T                           T   T                   T
R                   T
                            R   R                   R
                    R
E                           E   E                   E
                    E   5
                                                    E
E                   E   0   E   E
T                       1   T   T                   T
                    T

     BROADWAY                        BROADWAY
Frontage
The retail unit has 29.25 feet of
frontage on Broadway, 30 feet        FLOOR PLANS
of frontage on Mercer Street,
and 200 feet of block-through
depth.

Zoning
                                         3,659 SF
It is located in an M1-5B zoning
district which permits many
industrial and commercial uses.
The building is also located
within the SoHo Cast Iron Historic
District.

Ceiling Heights
Ground Floor – 20 Feet
Lower Level – 12 Feet
Sub-lower Level – 8 Feet

Common Area Maintenance
                                         4,694 SF
Tenant is responsible for
reimbursing ownership for CAM
charges. The charges include
payroll, cleaning, water & sewer,
insurance, and repairs &
maintenance. CAM charges are
expected to total $44,187 in
2018.

Prohibited Use
•To sell/display any
pornographic or obscene
material
•Live Performances, including
Nude/Semi-Nude or Sex                  682 SF
Club/Massage Parlor
•Laundromat/Dry Cleaner
•Bar/Restaurant/Café/Cabaret
•To sell tickets for
lotteries/games of chance
A, C & E Line at Spring Street Station –
         8 Minute Walk – 3.8 Million Riders
         Annually

         6 Line at Spring Street Station – 3
         Minute Walk – 3.8 Million Riders
         Annually

         B, D, F, & M Line at Broadway-
         Lafayette Station – 6 Minute Walk –
                                                                                                                                                                                                                                                                       6
         12.7 Million Riders Annually

         N & R Line at Prince Street Station – 4
         Minute Walk – 5.4 Million Riders
         Annually
                                                                                                                                                                                                                                          501
                                                                                                                                                                                                                                  BROADWAY

                                                                                                                                                                                                                                                                           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 (Activity ID: Z0330904)
                                                                                                                                                                                                                                                                                17
LOCAL 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 (Activity ID: Z0330904)                                                                                                                                   18
REGIONAL 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 (Activity ID: Z0330904)                                                                                                                                    19
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 (Activity ID: Z0330904)                                                                                                                                      20
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 (Activity ID: Z0330904)                                                                                                                                      21
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 (Activity ID: Z0330904)                                                                                                                                      22
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 (Activity ID: Z0330904)                                                                                                                                          23
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 (Activity ID: Z0330904)                                                                                                                                          24
DEMOGRAPHICS
10012                  1 Mile     3 Miles
                                                                                                                                                                               POPULATION
                                                                                                                                                                                 2020 Projection                                               25,114                  240,324   1,060,966
                                                                                                                                                                                 2015 Estimate                                                 25,321                  234,491   1,011,336
                                                                                                                                                                                 2010 Census                                                   23,925                  221,505     945,728
                                                                                                                                                                                 2000 Census                                                   26,210                  216,555     854,950

                                                                                                                                                                               INCOME
                                                                                                                                                                                  Average                                                  $149,395                $132,937      $130,392
                                                                                                                                                                                  Median                                                    $93,222                 $75,904       $80,875
                                                                                                                                                                                  Per Capita                                                $83,803                 $65,375       $64,544

                                                                                                                                                                               HOUSEHOLDS
                                                                                                                                                                                 2020 Projection                                               14,042                  117,276    523,353
                                                                                                                                                                                 2015 Estimate                                                 14,077                  113,789    496,375
                                                                                                                                                                                 2010 Census                                                   13,206                  106,639    460,681
                                                                                                                                                                                 2000 Census                                                   13,815                  102,800    409,452

                                                                                                                                                                               HOUSING
                                                                                                                                                                                 Total Housing Units -
                                                                                                                                                                                                                                               14,908                  119,728    532,617
                                                                                                                                                                                 2015

                                                                                                                                                                                                                                                                                             DEMOGRAPHICS
                                                                                                                                                                               RACE & ETHNICITY
                                                                                                                                                                                 White                                                           73.7%                  58.3%       65.3%
                                                                                                                                                                                 Native American                                                  0.1%                   0.2%        0.3%
                                                                                                                                                                                 African American                                                 2.7%                   4.4%        7.3%
                                                                                                                                                                                 Asian/Pacific Islander                                          17.7%                  29.7%       17.6%

                                                                                                                                                                                                           SOHO 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 (Activity ID: Z0330904)                                                                                                                                                           26
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