TO: PARTICIPANTS
BLUE MOON HOTEL
SUBJECT: $7,000,000 LOAN DATE: MARCH 18, 2014 GUARANTOR: Randy Settenbrino LOAN AMOUNT: $7,000,000 LOAN TO VALUE: 46% TERM: 2 years, with an option to extend for year 3; INTEREST: Year 1: 10.5% - @ 0.833% a month Year 2: 11.5% - @ 0.959% a month Year 3: 12% - @1 % a month (minus 0.5% management Fee) COLLATERAL: FIRST LIEN ON: The Blue Moon Hotel Located at 100 Orchard Street (East Village) NY, NY. A Stately Hotel with Apartment-Style Suites Capturing The Historical Significance of Manhattan’s. Lower East Side.
Tel: 201-880-7850 | Fax: 201-368-0837 www.centurycapllc.com
• A Unique 8-Story Boutique Hotel • Winner Of The 2012 Trip Advisor’s Certificate Of Excellence • New York Magazine’s Critic’s Pick. • City Search’s Best Boutique Hotel. • Zoned For Virtually Every Use Group Allowing Multiple Future Development Strategies. The property, known as the Blue Moon Hotel, is currently comprised of: 22 guest rooms and suites ranging in size from 320 to 750 square feet with soaring ceilings and comfortable living spaces. This 8-story elevatored hotel features many rooms with private balconies and spectacular views of the city. All of the guest quarters are considered to be oversized relative to other hotels throughout Manhattan and some are large enough to accommodate four people or more. The ground floor serves as a spacious hotel lobby for guests and their visitors and is more than ample in size to accommodate a number of potential future uses, such
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as a bar and restaurant that would cater to hotel guests as well as the tremendous volume of pedestrian traffic throughout the Lower East Side and on Orchard Street in particular.
Tel: 201-880-7850 | Fax: 201-368-0837 www.centurycapllc.com
Our valuation came at $15,000,000 based on actual offers to purchase at above $15,000,000, which our Borrower refused (Borrower believes he can get more for the Hotel) Attached in schedule “A” an email indicating a possible purchase of $17.9 million which was withdrawn. This was verified by Century Capital with borrower’s legal council. • Important to note that the value is based on the Prime Location in the Lower East Side. LOCATION: The property is centrally located: East side of Orchard Street between Delancey Street and Broome Street.
Tel: 201-880-7850 | Fax: 201-368-0837 www.centurycapllc.com
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DELUXE ROOM
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Tel: 201-880-7850 | Fax: 201-368-0837 www.centurycapllc.com
FRONT VIEW
Tel: 201-880-7850 | Fax: 201-368-0837 www.centurycapllc.com
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STRUCTURE OF LOAN: This is a two year loan with an option to extend to a third year. ADDITIONAL INFORMATION: The Borrower Loan with Madison Capital matures March 31st 2014. Madison offered an extension at a higher rate. Borrower preferred our offer. EXIT STRATEGY: The Borrower can refinance once a NNN Lease is in place. In case of a Default we would love to own this Property and sell at a profit. USE OF PROCEEDS: Loan amount
$7,000,000
Pay Off Madison Capital Updates and repairs Fee Century (1%) Brokers Fee Closing Cost (est)
$5,540,000 $200,000 $70,000 $TBD $75,000
Net to Borrower
Aprox. $1,000,000
If you would like to participate with CCP on this transaction, please Contact: David Hecht at (201) 880-7850 Ext. 101, david@cneturycapllc.com or Victor Cohen at (212) 873-2200 Ext. 101, nitebags@yahoo.com
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Tel: 201-880-7850 | Fax: 201-368-0837 www.centurycapllc.com
Schedule A Irwin K. Fingerit, Esq. Fingerit & Fingerit, LLP 75 East End Avenue, Suite 1G New York, NY 10028 (212) 249-7700 From: Steven Weiss Sent: Tuesday, January 14, 2014 1:40 PM To: Irwin Fingerit Cc: Randy Settenbrino ; mailto:cr1802@me.com ; mailto:giampiero@domusny.com Subject: RE: 100 Orchard Street Irwin – my client would like to move forward with the purchase subject to execution of a mutually acceptable Contract with the following changes/terms: 1. Purchase price $17,900,000.00 with 100 % allocated to the realty. 2. 5% down-payment 3. Subject to a satisfactory engineering inspection. 4. Subject to receipt of years of income statements 5. Subject to receipt of SDR reports for 2012 and 2013 6. Closing 3/31 7. At purchasers option - Seller to take back a pm mortgage of $4,150,000.00 at 5% for 10 years with 30 year amortization and no pre-payment penalty. Steven E. Weiss, Esq. Scheichet & Davis, P.C. 767 Third Avenue - 24th Floor New York, NY 10017 tel: (212) 688-3200 fax: (212) 371-7634 e-mail: steven@scheichetdavis.com
Tel: 201-880-7850 | Fax: 201-368-0837 www.centurycapllc.com