MARC JACOBS 382 BLEECKER RETAIL CONDOMINIUM

 
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MARC JACOBS 382 BLEECKER RETAIL CONDOMINIUM
382 BLEECKER RETAIL CONDOMINIUM

     MARC JACOBS
MARC JACOBS 382 BLEECKER RETAIL CONDOMINIUM
property
CONTACT

                               a

James P. Nelson
t / 212 696 2500 x7710
e / jnelson@masseyknakal.com

Robert A. Knakal
t / 212 696 2500 x7777
e / rknakal@masseyknakal.com

Mitchell Levine
t / 212 696 2500 x7761
e / mlevine@masseyknakal.com

275 Madison Avenue, Third Floor
New York NY 10016
t / 212 696 2500
f / 212 696 0333
MARC JACOBS 382 BLEECKER RETAIL CONDOMINIUM
Introduction
           INTRODUCTION
           There are few streets – perhaps         Today, they are home to Beck

                                                                                            Tenant Description
           only Rue St. Honore, Bond Street,       Street Capital’s own collection of
           Rodeo Drive, and Russell Street         jewel-box luxury retailers including
           – which share the attributes that       Burberry, Michael Kors, Mulberry,
           make Bleecker Street one of the         Marc Jacobs, and APC, as well as
           elite locations for luxury retail       other internationally recognized
           worldwide. I first noticed this         brands such as Ralph Lauren,

                                                                                            Investment Summary
           potential for Bleecker in the early     Brunello Cucinelli, and Diptyque.
           90’s when I lived just around the       Perhaps the most appealing aspect
           corner, on Christopher Street. Even     of Bleecker Street is that unlike
           then, the narrow street, lined with     virtually every other location
           flowering pear trees and historic       around the globe, this street is
           townhomes, was occupied by some         forever protected from the threat

                                                                                            Property Overview
           of the most desirable retailers in      of modern development – and
           the country, including the original     consequently new supply of
           home of Pierre Deux Antiques. It        leasable space – by the power of
           was at Pierre Deux where I first met    its designation as a historic area
           the “deux” of Pierre Moulin and         by the New York City Landmarks’
           Pierre LeVec, who together made         Preservation Commission. This

                                                                                            Bleecker Street
           me fall in love with not only their     designation ensures the historic
           antiques, but Bleecker Street itself.   buildings, narrow street, and
           Their store, and their home above,      character of Bleecker Street are
BLEECKER   became our first investment on the
           street.
                                                   enshrined in their present state in
                                                   perpetuity, and are as a result likely

 STREET

                                                                                            Contact Information
                                                   to retain their appeal to luxury
           Since then, these few precious          retailers and loyal consumers for
           blocks have continued to evolve.        generations to come.

           Kevin Comer
           Senior Managing Director
           Beck Street Capital

                                                                                            01
MARC JACOBS 382 BLEECKER RETAIL CONDOMINIUM
Introduction
TENANT DESCRIPTION
Marc Jacobs is an internationally       Marc Jacobs is a global fashion

                                                                                    Tenant Description
recognized iconic luxury fashion        leader with stores in New York,
firm with a worldwide distribution      San Francisco, Los Angeles, Paris,
network specializing in fashion,        London, Madrid, Copenhagen,
leather goods and accessories.          Moscow, Beirut, Riyadh, Dubai,
Marc Jacobs is a dominant Bleecker      Kuwait, and Doha, Tokyo, Osaka,
Street retailer, with multiple stores   Kyoto, Kobe, Nagoya, Sendai,

                                                                                    Investment Summary
and numerous brands. Marc               S h i z u o k a , Na g a n o, C h i b a ,
Jacobs is a subsidiary of LVMH,         Matsuyama, and Tottori, Seoul,
one of the world’s largest luxury       Hong Kong, Taipei, Shanghai,
goods conglomerates. In 2009            Beijing, Chengdu, Guangzhou,
LVMH had revenues in excess of          Manila, Kuala Lumpur, Singapore,
17 billion euros.                       Jakarta, and Bangkok.

                                                                                    Property Overview
                                                                                    Bleecker Street
                                                                                    Contact Information
                                                                                    03
MARC JACOBS 382 BLEECKER RETAIL CONDOMINIUM
Introduction
INVESTMENT SUMMARY
The 382-384 Bleecker Street retail    1,131 NSF of retail space, plus

                                                                             Tenant Description
condominiums – which feature          an additional 876 NSF of storage
the prestigious Marc Jacobs with      and outdoor space in an area where
LVMH credit until at least 2017       retail rents ommand north of $500/
– are now for sale. These two         SF. This is evident in Marc Jacobs’s
condominiums offer an investor an     recent lease signing at 400 Bleecker
immediate and dominant position       Street, the former Biography

                                                                             Investment Summary
on Greenwich Village’s strongest      Bookshop, for $545/SF. Before
retail corridor.                      2009, rents were achieved as high
                                      as $740/SF, as seen with Diptyque’s
This northern portion of Bleecker     lease at 377 Bleecker.
Street serves as the connection
between the Meatpacking District      Located in the heart of the
and the heart of Greenwich Village,   West Village, these two retail

                                                                             Property Overview
catering to thousands of retail       condominiums are nestled between
customers on a daily basis.           other high end retailers such
                                      as Polo Ralph Lauren, Tommy
This offering provides an investor    Hilfiger, Michael Kors, Black
in-place income from an established   Fleece by Brooks Brothers, Alexis
credit tenant with a combined net     Bittar, Cynthia Rowley, Brunello

                                                                             Bleecker Street
operating income of $419,582.         Cucinelli, Bonpoint, and Jack
                                      Spade, among many others.
The offering consists of nearly

                                                                             Contact Information
                                                                             05
MARC JACOBS 382 BLEECKER RETAIL CONDOMINIUM
Introduction
PROPERTY OVERVIEW
The Marc Jacobs Retail Condominiums consist of two units located in

                                                                              Tenant Description
the heart of the West Village along a stretch of Bleecker Street, which
has become one of the top luxury shopping districts of Manhattan. Retail
adjacencies include Ralph Lauren, Coach, Brooks Brothers, Bonpoint,
Robert Marc, Dyptique, Tommy Hilfiger and Brunello Cucinelli. Marc
Jacobs, a subsidiary of LVMH, currently occupies the two commercial
units, with leases expiring in 2017. One of the two units is located on the

                                                                              Investment Summary
ground and the other is located on the lower level, accessible on Perry
Street. The units generate a combined rent, including tax passthrough,
of $449,114.

Retail Condominium Unit Information

                                                                              Property Overview
Tenant                                Marc Jacobs
Total Retail NSF                      1,131 sf (approx)
Total Storage and Outdoor NSF         876 sf (approx)
Assessment                            $ 142,127 (2010)
Estimated Taxes                       $ 17,623 (2011)

                                                                              Bleecker Street
Building Information
Location                              Southwest corner, Perry
                                      and Bleecker Streets
Lot Size                              42’6” x 70’ (approx)

                                                                              Contact Information
Lot Area                              2,975 sf (approx)
Zoning                                C1-6
Landmark                              Yes; Greenwich Village
                                      Historic District

                                                                              07
MARC JACOBS 382 BLEECKER RETAIL CONDOMINIUM
Introduction
                                                                    Lease Abstract
                                                                    Tenant                Marc Jacobs
                                                                    Date                  January 26, 2007
                                                                    Premises              382 Bleecker Street, Ground Floor and basement

                                                                                                                                                   Tenant Description
                                                                    Use of Premises       Tenant shall use and occupy the demised premises
                                                                                          for the retail sale of luxury goods such as those that
                                                                                          are sold by those entities on the “Morgan Stanley
                                                                                          Luxury Sector Index” or if such index ceases to
                                                                                          be published then on such other index of luxury
                                                                                          retailers as shall be reasonably similar and for no

                                                                                                                                                   Investment Summary
                                                                                          other purpose.
                                                                    Term                  10 years with 3% annual increases
                                                                    Lease Commencement    February 01, 2007
                                                                    Lease Expiration      July 31, 2017
                                                                    Option to Renew       One option to renew lease for 5 years, at 95% of fair
                                                                                          market value

                                                                                                                                                   Property Overview
                                                                    Additional Rent       100% of taxes
                                                                    Security Deposit      None
                                                                    Assignment Rights     Only with the Landlord’s prior written consent
                                                                    Guaranty              Guaranteed by Louis Vuitton North America, Inc.

                                                                                                                                                   Bleecker Street
MARC JACOBS          rental income
                                                                                                                         $585,992     rent

                                                                                                                                                   Contact Information
                                                                                                          $568,924
                                                                                          $552,354
                                                                               $536,266
                                                                $520,646
                                                     $505,482
                                          $490,759
                               $476,465
  rent   $449,114   $462,587

           2011       2012       2013       2014      2015       2016           2017      2018            2019           2020

                                                                                                                                                   09
MARC JACOBS 382 BLEECKER RETAIL CONDOMINIUM
Financial Information

                                                                                                                                                              Introduction
                                                                                      Lease Expiration                         July 31, 2017
                                                                                      Annual Rent                                 $ 449,114
                                                                                      Annual Increase                                      3%

                                                                                                                                                              Tenant Description
                                                                                      Revenue
                                                                                      Potential Gross Annual Revenue
                                                                                         Base Rental Revenue                      $ 431,491
                                                                                      Expense Reimbursement Revenue

                                                                                                                                                              Investment Summary
                                                                                        Real Estate Taxes                         $ 17,623

                                                                                      Total Potential Gross Annual Revenue        $ 449,114

                                                                                      Expenses
                                                                                      Real Estate Taxes                           $ 17,623

                                                                                                                                                              Property Overview
                                                                                      Common Charges                              $     7,418
                                                                                      Miscellaneous                               $     4,491

                                                                                      Total Operating Expenses                    $ 29,532

                                                                                      Projected Net Operating Income              $ 419,582

                                                                                                                                                              Bleecker Street
  MARC JACOBS                 net operating income
                                                                                                                                 $585,992       rent

                                                                                                                                                              Contact Information
                                                                                                                   $568,924     $547,459      net operating
                                                                                                                                             income
                                                                                                      $552,354     $531,513
                                                                                      $536,266
                                                                          $520,646                  $516,032
                                                              $505,482                $501,002
                                                  $490,759               $486,410
                                       $476,465              $472,243
          rent   $449,114   $462,587              $458,488
                                       $445,134
net operating    $419,582   $432,169
     income
    expense      $29,532    $30,418    $31,331    $32,271    $33,239     $34,236     $35,264     $36,322         $37,411      $38,533   expense

                    2011       2012       2013       2014       2015        2016        2017          2018          2019         2020

                                                                                                                                                              11
Chelsea

                                                                                                                                Introduction
 Meatpacking District
                                                        Bank St                         BLEECKER STREET
                                                                                        Dominating the luxury retail scene

                                Bleecke r St

                                                                                                                                Tenant Description
                                                                                        in downtown Manhattan, the few
                                                                                        blocks of Bleecker Street that
                   JACK SPADE
                                                                                        stretch from West 10th, to Charles,
                                                      W 11th St
                                                                                        Perry and West 11th Streets, have
                                                                                        become home to many of the
                                                                                        world’s most prestigious retailers,

                                                                                                                                Investment Summary
                                                                    Greenwich Village   including Burberry, Michael Kors,
                                                                                        Marc Jacobs, Ralph Lauren, Brooks
                                                                                        Brothers and Brunello Cucinelli.
                                                                                        This small tree-lined street serves
                                                                                        as the connector between the uber-
                                                        Perryy St                       trendy Meatpacking District, and
                                                                                        the dense historic neighborhood of

                                                                                                                                Property Overview
                                                                                        Greenwich Village, with residents
                                                                                        and tourists walking this small strip
                                                                                        by the tens of thousands on any day
                                                                                        of the week. While global luxury
                                                                                        retail dominates these few blocks
 St

                                                                                                                                Bleecker Street
                                                                                        of Bleecker, the surrounding side
son

                                                      Charles St                        streets are all home to many of New
Hud

                                                                                        York City’s finest restaurants and
                                                                                        hotels, as well as its most exclusive
                                                                                        residential neighborhoods.

                                                                                                                                Contact Information
                                                                             ve
                                                                            hA
                                                      W 10th St            7t

                                               Soho

 Tribeca

                                                                                                                                13
CONTACT

                                                                                                            1st Floor

a                                                     property

                                                                                                                            bleecker street
Beck Street Capital, LLC
Beck Street Capital is a real estate investment company with
offices in New York City and Washington Depot, CT. Beck Street
Capital consists of a team of highly experienced professionals
led by accomplished real estate entrepreneurs with direct real
estate development and operating experience across multiple real
                                                                                                            Basement Level
                                                                                                                                                     rear yard
estate cycles. BSC specializes in the adaptive re-use of historically
significant buildings, working closely with neighborhood civic

                                                                                                          bleecker street
groups and preservationist organizations.

                                                                                                                                                                 side yard
Tel: +1 212 337 3173
beckstreetcapital.com

Sponsor name: 382/384 Bleecker, LLC. Sponsor address: 100 Vandam Street, 4th Floor, New York, NY 10013
The complete offering terms are in an offering plan available from sponsor. File No.CD060256

Financial Assumptions
- At lease termination, the renewal option is exercised at a rent 3% greater than the prior year’s rent                                       perry street
- Expenses are inflated by 3% per year
- Property Taxes increase in July, all other expenses increase in January
- Property Management and Miscellaneous Expenses equal 1% of revenues

design: Brooklyn Digital Foundry / printing: CRW Graphics
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