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260 Madison Avenue, 5th Floor New York, NY Tel: (212) 430-5114 Fax: (646) 349-3308 pvonderahe@mmreis.com

260 Madison Avenue, 5th Floor New York, NY 10016 Tel: (212) 430-5147 Cell: (516) 425-2785 jkoicim@mmreis.com

260 Madison Avenue, 5th Floor New York, NY 10016 Tel: (212) 430-5185 Cell: (347) 552-2293 david.lloyd@mmreis.com

260 Madison Avenue, 5th Floor New York, NY Tel: (212) 430-5138 Cell: (917) 242-2746 daniel.handweiler@mmreis.com

260 Madison Avenue, 5th Floor New York, NY Tel: (212) 430-5168 Fax: (212) 500-5110 adansker@marcusmillichap.com


Marcus & Millichap is pleased to offer the following opportunity located in the booming Midtown East neighborhood. 224 East 48th Street is located on the south side of 48th Street between 2nd and 3rd Avenues, and contains a gross square footage of 15,402. The building is built 37 ft X 87 ft feet on a 37.33 ft X 100.42 ft lot (Block: 1321 Lot: 38). The property is zoned R7-2.

The Opportunity. The asset is a six- story, 37-foot wide elevator served building located on East 48th Street between Second and Third Avenues, in the heart of Midtown East. The building encompasses approximately 15,400 square feet and is comprised of one studio unit, twenty-two 1-bedroom units, and one 2-bedroom duplex unit, allowing an investor to gain an immediate footprint in Midtown East - a rare opportunity to acquire an elevatored apartment building in a low velocity submarket.

Immediate Value-Add. Offered to the market for the first time in approximately 40 years, this building contains immediate upside upon acquisition. Nearly 90% of the units are free market, allowing the investor an opportunity to renovate the apartments and common areas to capitalize on increased cash flow in year one. Additionally, the remaining regulated apartments offer potential for significant rental increase when brought to market levels.

Proven Location. Midtown East, one of Manhattan’s most accessible neighborhoods, is known for convenience, livability, and charm. Unrivaled in it’s proximity to local amenities, shops, and restaurants, the asset is just three blocks northeast of Grand Central Station, which is home to the 4, 5, 6, 7, and S subway lines, and the Metro North train lines, which collectively serve over 750,000 commuters each day. Just steps from the United Nations, Empire State Building, and Rockefeller Plaza combined with an abundance of world-class dining including Smith & Wollensky, Sparks Steakhouse, La Pecora Bianca and The Smith, Midtown Manhattan has much to offer residents and visitors alike.

TOTAL UNITS

TOTAL SQUARE FEET

PRICE /SF

PROJECTED TAXES

CAP RATE

GRM

FRONTAGE


$14,950,000 OFFERING PRICE PRICE PER SQUARE FOOT PRICE PER UNIT

$971 $622,917

TOTAL SQUARE FEET

15,402

TOTAL UNITS CURRENT CAP RATE

INCOME Gross Potential Residential Rent Gross Potential Commercial Rent

CURRENT $755,927 $0

PRO FORMA $907,967 $0

Gross Income

$755,927

$907,967

Vacancy/Collection Loss Effective Gross Income

($15,119) $740,809

($18,159) $889,808

Average Residential Rent/Month/Unit

$2,625

$3,153

EXPENSES Property Taxes Fuel

$227,242 $19,859

$227,242 $19,859

Insurance Water and Sewer Repairs and Maintenance

$14,500 $18,000 $18,000

$14,500 $18,000 $18,000

Common Electric (PPSF) Super Salary

$4,832 $10,000

$4,832 $10,000

Management Fee Elevator Contract Total Expenses Net Operating Income

$22,224 $7,000 $341,657 $399,151

$26,694 $7,000 $346,127 $543,681

% OF TOTAL 4% 92% 4%

RENT $1,900 $2,504 $6,000

24 2.7%

CURRENT GRM

19.8

PRO FORMA CAP RATE PRO FORMA GRM

3.6% 16.5

PRO FORMA CASH ON CASH RETURN

PROPOSED DEBT Loan Amount Interest Rate Amortization Annual Debt Service Debt Coverage Ratio Net Cash Flow After Debt Service

2.49%

$5,500,000 3.75% 30 ($308,482) 1.29 $235,199

Tax Class: 2

UPSIDE ANALYSIS $7,000

SCHEDULE OF INCOME UNIT BREAKDOWN Studio 1 Bedroom 2 Bedroom

$6,000 $5,000 $4,000 $3,000

TOTAL 1 22 1

$2,000 $1,000 $0 Studio

1 Bedroom

2 Bedroom

Current Avg RS Units Market Rents Current Avg FM Rents

15,402

$971

19.78

2.7%

SQUARE FEET

GROSS TOTAL SF

$/SF

GRM

Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyof 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,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus& MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2018Marcus&Millichap

CAP RATE


RESIDENTIAL RENT UNIT#

LEASE STATUS

NOTES

BEDROOMS

ROOMS

EXPIRATION

ACTUAL

PRO FORMA

1A

FM

1B

FM

Super

Studio

2

Oct-18

$1,900

$2,400

1 Bedroom

3

$2,500

1C

FM

Duplex

2 Bedroom

4

$2,800

$6,000

1D

FM

Vacant - Projected Rent

1 Bedroom

3

$6,200

$3,200

2A

FM

1 Bedroom

3

$3,200

Feb-18

$2,750

2B

RS

1 Bedroom

$3,200

3

Oct-19

$1,500

2C

FM

$1,500

1 Bedroom

3

Jan-19

$2,365

2D

FM

$4,000

1 Bedroom

3

Nov-18

$2,600

3A

FM

$4,000

1 Bedroom

3

$3,200

3B

$3,200

FM

1 Bedroom

3

Jun-18

$2,550

$3,200

3C

FM

1 Bedroom

3

Apr-18

$2,400

$3,200

3D

FM

1 Bedroom

3

Jun-18

$3,200

$3,200

4A

FM

1 Bedroom

3

Jun-18

$2,995

$3,200

4B

FM

1 Bedroom

3

Dec-18

$2,400

$3,200

4C

FM

1 Bedroom

3

Aug-18

$2,695

$3,200

4D

FM

1 Bedroom

3

Oct-18

$2,525

$3,200

5A

FM

1 Bedroom

3

Jan-19

$3,000

$3,200

5B

RS

1 Bedroom

3

Oct-18

$1,597

$1,597

5C

RC

1 Bedroom

3

5D

FM

1 Bedroom

3

6A

FM

1 Bedroom

6B

FM

1 Bedroom

6C

FM

6D

FM

Vacant - Projected Rent

Delivered Vacant - Projected Rent

MONTHLY RESIDENTIAL REVENUE

May-18

$367

$367

Sep-18

$2,550

$4,000

3

Aug-18

$3,175

$3,200

3

Jun-18

$2,500

$3,200

1 Bedroom

3

Oct-18

$2,350

$4,000

1 Bedroom

3

Dec-18

$2,675

$3,200

25

72

$62,994

$75,664

ACTUAL

PRO FORMA

$755,927

$907,967

TOTAL ANNUAL REVENUE There are currently 3 vacant units in the building. The super lives in a unit.

Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyof 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,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus& MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2018Marcus&Millichap


GROSS POTENTIAL INCOME

ACTUAL %EGI 100% 0%

$/UNIT $31,497 $0 $31,497 ($630) $0 $30,867

PRO FORMA $/UNIT $37,832 $0 $37,832 ($757) $0 $37,075

Gross Potential Residential Rent Gross Potential Commercial Rent Gross Income Vacancy/Collection Loss Other Income Effective Gross Income Average Residential Rent/Month/Unit

$755,927 $0 $755,927 ($15,119) $0 $740,809 $2,625

EXPENSES Property Taxes Fuel Insurance

$227,242 $19,859 $14,500

31% 3% 2%

$9,468 $827 $604

$227,242 $19,859 $14,500

26% 2% 2%

$9,468 $827 $604

Water and Sewer

$18,000

2%

$750

$18,000

2%

$750

Repairs and Maintenance

$18,000

2%

$750

$18,000

2%

$750

$4,832

0.7%

$0.31

$4,832

0.5%

$0.31

Tax Class: 2

Common Electric (PPSF)

2%

$907,967 $0 $907,967 ($18,159) $0 $889,808 $3,153

%EGI 100% 0% 2%

Super Salary

$10,000

1%

$417

$10,000

1%

$417

Management Fee

$22,224

3.0%

$926

$26,694

3%

$1,112

$7,000 $341,657 $399,151

1% 46%

$7,000 $346,127 $543,681

1% 39%

$292 $14,422

Elevator Contract Total Expenses Net Operating Income LEASE STATUS MIX UNIT BREAKDOWN Total Units Total RS Units

$292 $14,236

% OF TOTAL -8%

RENT TOTAL AVG. RENT $62,994 24 $2,625 $3,097 2 $1,548

4%

$367

1

$367

Total FM Units

88%

$59,530

21

$2,835

--

$0

0

$0

RENTAL ANALYSIS BY UNIT TYPE TYPE Studio 1 Bedroom

% OF TOTAL 4% 92%

2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom 6 Bedroom SRO

4% 0% 0% 0% 0% 0%

RENT TOTAL AVG. RENT $1,900 1 $1,900 $55,094 22 $2,504 $6,000 $0 $0 $0 $0 $0

1 0 0 0 0 0

UPSIDE ANALYSIS $7,000 $6,000 $5,000

$4,000 $3,000 $2,000 $1,000 $0

Studio Current Avg RS Units

1 Bedroom Market Rents

PER MONTH

$2,625 PERCENT

FAIR MARKET

88%

TAXES AS PERCENT OF EGI

Total RC Units Total Commercial

AVERAGE RENT

2 Bedroom

Current Avg FM Rents

Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyof 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,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus& MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2018Marcus&Millichap

$6,000 $0 $0 $0 $0 $0

31%

EXPENSE RATIO

46%


CITY: STATE: BLOCK & LOT: LOT DIMENSIONS: LOT SF: BUILDING DIMENSIONS: BUILDING SF:

New Yorki NYi 1321 / 38i 37.33 ft X 100.42 fti 3,749i 37 ft X 87 fti 15,402i

ZONING:

R7-2i

MAX FAR:

3.44i

AVAILABLE AIR RIGHTS:

0i

LANDMARK DISTRICT:

Nonei

HISTORIC DISTRICT:

Nonei

ANNUAL TAX BILL: TAX CLASS:

__$227,424i 2i


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

C O N F I D E N T I A L 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. Š 2018 Marcus & Millichap


The island of Manhattan is one of New York City's five boroughs, approximately 13 miles long and two miles wide. Solid bedrock provides a firm foundation for the high-rise buildings that dominate the skyline. Manhattan's deep-water port and proximity to the nation's interior bolster its position as a global economic powerhouse. Manhattan also contains Central Park, which encompasses 843 acres in the center of the island and is considered one of the nation's premier public spaces.

Manhattan is home to over 1.6 million residents who are part of a much larger population system. The New York City metropolitan area is the largest in the United States, with more than 19 million inhabitants in three states. New York City consists of five boroughs with about 8.4 million people. Manhattan is well placed, situated 100 miles from Philadelphia, 210 miles from Boston, 230 miles from Washington, D.C., and 790 miles from Chicago.

New York City has an extensive mass-transportation network. Subway and bus systems serve virtually every area in the five boroughs. There are 468 stations in the New York City Transit subway system, including 147 stations in Manhattan. Grand Central Station and Penn Station, both in Midtown Manhattan, provide rail service to the suburbs and long-distance connections, while three international airports offer flights to most global destinations. The island of Manhattan is linked to the other boroughs and New Jersey by 11 bridges and four tunnels for vehicular traffic, with numerous additional tunnels for subway and rail lines. Highways along the borough's eastern and western edges connect to freeways throughout the five boroughs.

New York Harbor contains docks for freight and passenger ships and provides ferry service to New Jersey and around the city.

Large population: New York City is the United States’ largest city, with upwards of 8 million residents. Top address for corporate headquarters: 40+ Fortune 500 companies call New York City home. High barriers to development: few parcels of developable land + high costs = limits to new construction.


New York City is home to around 40 Fortune 500 companies, more than any other MSA in the country, and most are located in Manhattan. The city serves as the epicenter for a wide variety of industries, making the performance of its local economy integral to the nation. The Port of New York is also a vital component of New York’s centrality to American and regional trade. As one of the leading financial centers in the world, New York City boasts many international banks and financial firms maintaining offices in the city. Wall Street is a major driver of the local economy, as a significant number of people are employed directly in the securities industry. The city is also a hub for the media, communications and publishing industries. The major television networks have substantial operations in Manhattan, while hundreds of newspapers, magazines and several music recording companies are headquartered in the city. In addition, New York City is the advertising capital of the United States and has a growing presence in the Internet/new media field. The entertainment and tourism industries are crucial to the Manhattan economy, with numerous theaters and attractions drawing billions of dollars each year.

Manhattan is also an important location for many retailers, both national and local. Retail sales in the borough typically grew faster than the U.S. rate over the past decade.

Job growth in Manhattan slowed over the past five years as the economic downturn weighed on the local manufacturing, information, trade, transportation and utilities, and financial activities sectors. Professional and business services is the largest employment sector, accounting for over 470,000 positions, or 20 percent of the labor force. The government sector follows closely, with 19 percent of jobs in Manhattan. These sectors will post average annual gains of 2.3 percent and 1.2 percent, respectively, over the next five years. The leisure and hospitality and education and health services sectors will record the largest growth through 2015, increasing at average annual rates of 3.1 percent and 2.9 percent, respectively. An annual gain of 2.9 percent is also expected in the other services sector.

C O N F I D E N T I A L 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. Š 2016 Marcus & Millichap


Over half of Manhattan’s labor market is involved in financial activities and the services sectors. This is due to New York City being the headquarters of some of the largest U.S.-based consulting businesses, accounting offices, insurance companies and legal firms, as well as the United Nations. In addition, Manhattan is the financial center of the country and home to the New York Stock Exchange, being one of the only two Alpha++ cities in the world, sharing the title with London. Many of the world's top securities firms and banks are located here. Major employers in the finance industry based in Manhattan include Goldman Sachs, JPMorgan Chase and Morgan Stanley Smith Barney. Media conglomerate Time Warner is the largest company in the information sector, employing thousands of people in Manhattan from its headquarters at the Time Warner Center in Midtown. Other large media employers in the borough are Viacom and Verizon. 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, Mount Sinai Hospital and Continuum Health Partners Inc.

New York City is the largest city in the United States, with over 8 million residents. An estimated 19 million people live within the tristate metro area. Among the five boroughs, Manhattan is third largest behind Brooklyn and Queens, with a population of over 1.6 million. Manhattan grew 0.7 percent annually during the past decade, a rate expected to continue through 2015. The share of Manhattan residents with a Bachelor’s degree is more than 34 percent, far above the national average of almost 28 percent. Additionally, more than 14 percent of the borough residents over age 25 have a graduate degree, compared to just over 10 percent nationally. There are significant and noteworthy differences between Manhattan’s demographic profile and the profile of the nation. In particular, residents under age 20 make up only 20 percent of Manhattan's population, compared to 27 percent at the U.S. level. Additionally, residents ages 25 to 44 comprise 37 percent of the local population, up from 27 percent nationally, as this vital job market attracts many in their prime working years.


Although Manhattan’s median household income stands at a healthy $68,100 annually, the borough also has one of the highest housing costs in the country, with the median home price resting at nearly $1.2 million.

There are two MLB teams, two NFL teams, two NHL teams and two NBA teams within the metro area. New York City has an extensive public park system, the jewel of which is Central Park in Manhattan offering natural areas, lawns, playing fields, running trails, biking paths, boating facilities and a zoo.

Manhattan offers a quality of life unique even within the nation’s largest cities. Although housing costs are among the most expensive in the country, the borough provides a variety of cultural, entertainment and employment opportunities. The area is one of the few places in the United States where a person can live without a car and rely completely upon mass transit. You can get anywhere easily by taking the subway, buses or taxicabs, and rail terminals and airports make long-distance travel accessible. A variety of entertainment options are available to Manhattanites, including Broadway shows, first-run films and famous nightlife venues.

Manhattan also boasts world class art museums including the Metropolitan Museum of Art, the Guggenheim and the Museum of Modern Art. The city's international flavor is always on display in the island's many restaurants, featuring recipes from around the world. New York’s island of Manhattan continues to rise in culture, quality of life, and wealth. As a global gateway city, New York will continue to deliver promising opportunities and investment potential.

C O N F I D E N T I A L 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. © 2016 Marcus & Millichap


Midtown East extends from 34th Street to 59th Street, between Fifth Avenue and the East River. Within these boundaries lie smaller residential and commercial neighborhoods with some of the most iconic buildings in Manhattan: Sutton Place, between East 53rd Street to East 59th Street along the East River; Turtle Bay, from East 42nd Street to 53rd Street, between Lexington Avenue and the East River; Tudor City, from East 40th Street to 43rd Street, between 1st and 2nd Avenues; Murray Hill, from East 34th Street to East 42nd Street, between 5th and 2nd Avenues.

Living in Midtown not only offers the advantage of walking to work, but being able to walk to everything. Filled with an abundance of stores and boutiques, Fifth Avenue is home to luxury shops that include Bergdorf Goodman, Saks Fifth Avenue, Henri Bendel, and Tiffany’s, as well as fun destinations like FAO Schwartz! Along Lexington Avenue is the fashionable and landmark department store since 1861, Bloomingdales, or otherwise known as “Bloomies.” Once locals are done shopping and walking along Fifth Avenue, they enjoy no shortage of restaurants and bars to choose from for entertainment. Just at the northern tip of Midtown East is the most famous park in the world: Central Park. For nearly 150 years, residents and tourists alike have been flocking to the park for a peace and quiet escape. The park also offers activities that include strolling though Strawberry Fields and the Great Lawn, exploring the Central Park Zoo, relaxing on a horse-drawn carriage ride, or even rowing a boat to the Loeb Boathouse. Whatever your recreational activity of choice, Central Park has something for everyone.

The “Plaza District,” a term frequently used to specify the most expensive region of Midtown from a commercial real estate standpoint, lies between 42nd and 59th Streets, from Third Avenue to Seventh Avenue. As New York’s largest central business district, Midtown Manhattan serves as the busiest single commercial district in the United States, and is home to the most diverse group of real estate in the country The majority of Manhattan’s tallest skyscrapers, hotels, and apartment establishments lie in the central business district of Midtown Manhattan. Midtown East is home to several of the largest corporations in Manhattan, including the Chrysler Building, Graybar Building, and the Lever House. Even further, it is difficult to think about Midtown East without mentioning the iconic Empire State Building, which serves as an anchor to the amazing Manhattan skyline as well as a tourist magnet attracting visitors from across the globe. The Grand Central Terminal is another magnificent, historic building in Midtown East that has undergone a multi-million dollar renovation and consequently inspired the restoration and development of new construction office buildings and hotels throughout the neighborhood. For many professionals who wish to reside close to work, Midtown East is the perfect place to live. The neighborhood offers a mix of new-luxury high-rise condominiums as well as traditional pre-war townhomes and classic cooperatives. Beekman Place and Sutton Place are two of the most expensive neighborhoods in Midtown East, and feature luxurious pre-war homes that are within walking distance of five area parks.

7 to Grand Central | 4,5,6 to Grand Central | 7 to Fifth Ave. | E,V to Fifth Ave.-53rd. St. | 6 to 51st St. | E,M to 53rd St.Lexington Ave. | 4,5,6 to 59th St.-Lexington Ave.


224 East 48 Street  
224 East 48 Street