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283 Evergreen Avenue OFFERING MEMORANDUM

CONFIDENTIAL EXECUTIVE SUMMARY

Bushwick, Brooklyn


MARKETING TEAM

Shaun Riney 16 Court Street, Suite 2A Brooklyn, NY Tel: (718) 475-4369 Fax: (646) 349-2282 shaun.riney@mmreis.com

Thomas Shihadeh 16 Court Street, Suite 2A Brooklyn, NY Tel: (718) 475-4380 Fax: (646) 349-2282 thomas.shihadeh@mmreis.com

Dan Greenblatt 16 Court Street, Suite 2A Brooklyn, NY Tel: (718) 475-4357 Fax: (718) 475-4310 daniel.greenblatt@mmreis.com

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

283 Evergreen Avenue


INVESTMENT OVERVIEW

283 Evergreen Avenue


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E v e r g r e e n

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Investment Overview

283 Evergreen Avenue is being offered for:

$3,700,000 Investment Description Marcus & Millichap is pleased to offer 283 Evergreen Avenue (Block: 3265 Lot: 0004) in the Bushwick neighborhood of Brooklyn, New York. The subject property is a vacant eight-unit, four-story frame building built 35.42’ x 75’ totaling approximately 9,708 square feet. The property is zoned R6 and falls under the protected 2B tax class.

Investment Highlights •

Vacant Eight Family

9,708 Gross Square Feet

Built 35.42’ x 75’

Central Avenue “M” Train & Kosciuszko Street “J” Train

Tax Class 2B

The Opportunity 283 Evergreen Avenue is being offered at $412 per square foot giving an investor the opportunity to acquire the building at a low basis and add value immediately upon closing. Situated between Stanhope and Himrod Street, 283 Evergreen is just two blocks to the Kosciuszko Street “J” Train and four blocks to the Central Avenue “M” Train. With over 35 feet of frontage on Evergreen and close to 10,000 gross square feet, this property is one of the largest eight families in all of Bushwick.

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 Activity ID Number


PRICING + FINANCIAL ANALYSIS

283 Evergreen Avenue


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Pricing + Financial Analysis Financial Overview INCOME

CURRENT

PRO FORMA

$0

$345,600

OFFERING PRICE

($10,368)

Num ber of Units

$335,232

Price/Unit

Gross Potential Residential Rent Vacancy / Collection Loss

$0

Effective Gross Incom e

$0

PRICING METRICS $3,700,000 8 $462,500

Gross Square Feet

EXPENSES

9,708

Price / SF

Property Taxes

$7,445

Fuel

(Separate)

$7,445

$381

Pro Form a Cap Rate

8.03%

$0

$0

Insurance

$3,400

$3,400

Water and Sew er

$7,200

$7,200

SCHEDULE OF INCOME

Repairs and Maintenance

$4,000

$4,000

Unit Breakdown

Total

%

Rent

Common Electric (PSF)

$1,456

$1,456

Total RS Units

8

100%

$0

Super Salary

$1,200

$1,200

Total RC Units

0

0%

$0

$0 $24,701

$13,409 $38,110

Total FM Units Total Commercial

0 0

0% 0%

$0 $0

-$24,701

$297,122

Total Units

8

100%

$0

Management Fee Total Expenses Net Operating Incom e

EXPENSES BY TYPE

Pro Form a GRM

10.7

GROSS POTENTIAL INCOME BY TYPE

Property Taxes

20% Fuel

35%

Insurance

9%

Water and Sewer

Resi. 100%

Repairs and Maintenance Common Electric (PSF)

3% 4%

19%

10%

Super Salary Management Fee

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 Activity ID Number


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Pricing + Financial Analysis Rent Roll RESIDENTIAL LEASE STATUS RS

NOTES Vacant

BEDROOMS 4 Bedroom

ROOMS 6

SF 1,030

PRO FORMA

$/PSF

$3,600

$42

1R

RS

Vacant

4 Bedroom

6

1,030

$3,600

$42

2L

RS

Vacant

4 Bedroom

6

1,030

$3,600

$42

2R

RS

Vacant

4 Bedroom

6

1,030

$3,600

$42

3L

RS

Vacant

4 Bedroom

6

1,030

$3,600

$42

3R

RS

Vacant

4 Bedroom

6

1,030

$3,600

$42

4L

RS

Vacant

4 Bedroom

6

1,030

$3,600

$42

4R

RS

Vacant

4 Bedroom

6

1,030

$3,600

$42

32

48

8,240

$28,800

UNIT# 1L

Monthly Residential Revenue Annual Residential Revenue

$345,600

Annual Commercial Income

$0

$345,600

Total Annual Revenue Vacant units currently in the building

There are

8

The super

lives off site

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 Activity ID Number


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E v e r g r e e n

A v e n u e

Pricing + Financial Analysis Cash Flow Building Size (SF)

9,708

Number of Residential Units

INCOME Gross Potential Income Gross Potential Residential Rent Vacancy / Collection Loss Effective Gross Income Average Residential Rent/Month/Unit EXPENSES Property Taxes Fuel Insurance Water and Sew er Repairs and Maintenance Common Electric (PSF) Super Salary Management Fee Total Expenses Net Operating Incom e

Tax Class: 2B No Assume Separate Boilers

8

PRO FORMA $/Unit / $/SF $0 $0 $0

$345,600 ($10,368) $335,232 $3,600

%EGI 100.00% 3%

$931 $0 $425 $900 $500 $0.15 $150 $0

$7,445 $0 $3,400 $7,200 $4,000 $1,456 $1,200 $13,409

2% 0% 1% 2% 1% 0% 0% 4%

$3,088

$38,110

11%

$/Unit / $/SF $43,200 ($1,296) $41,904

$931 $0 $425 $900 $500 $0.15 $150 $1,676 $4,764

$297,122

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 Activity ID Number


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E v e r g r e e n

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Pricing + Financial Analysis Rent Roll Analysis LEASE STATUS MIX Unit Breakdow n

MARKET RENTAL ANALYSIS BY UNIT TYPE

Total

% of Total

Avg Rent

Total Rent

Total

% of Total

Avg Rent.

Total Rent

Market Rent

% Below Market

Total Units

8

100%

$0

$0

Studio

0

0%

$0

$0

$0

N/A

Total RS Units

8

100%

$0

$0

1 Bedroom

0

0%

$0

$0

$0

N/A

Total RC Units

0

0%

$0

$0

2 Bedroom

0

0%

$0

$0

$0

N/A

Total FM Units

0

0%

$0

$0

3 Bedroom

0

0%

$0

$0

$2,900

N/A

Total Commercial

0

0%

$0

$0

4 Bedroom

8

100%

$0

$0

$3,600

N/A

RENT UPSIDE

Type

INCOME BY LEASE TYPE

INCOME BY UNIT TYPE

$4,000

$3,500 $3,000 $2,500

$2,000

Total RS Units 100%

$1,500

4 Bedroom 100%

$1,000 $500

$0 Studio

1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom

Current Avg Rents

Market Rents

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 Activity ID Number


PROPERTY DESCRIPTION

283 Evergreen Avenue


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E v e r g r e e n

A v e n u e

Property Description Address:

283 Evergreen Avenuei

City:

Brooklyni

State:

NYi

Block & Lot:

3265 / 4i

Lot Dimensions:

35.42 x 100i

Lot SF:

3,542i

Building Dimensions:

35.42 x 75i

Building SF:

9,708i

Zoning:

R6i

Max FAR:

2.20i

Available Air Rights:

0i

Landmark District:

Nonei

Historic District:

Nonei

Annual Tax Bill:

$7,445__i

Tax Class:

2Bi


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Property Description

283 Evergreen Avenue SUBJECT PROPERTY


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A v e n u e

Property Description Exteriors


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Property Description


MARKET OVERVIEW

283 Evergreen Avenue


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Market Overview

Brooklyn. OVERVIEW

TRANSPORTATION

The borough we know today as “Brooklyn” was named by Dutch colonists after a village in the Netherlands called “Breuckelen.” Brooklyn is home to over 2.6 million residents who are part of a much larger population system;

About 66 percent of Brooklyn's population take public transit to get to and from work daily. They spend an average of 43 minutes traveling to work.

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. Brooklyn, also goes by the name Kings County and the “Borough of Homes and Churches.” Brooklyn is the 7th most populous county in the United States behind such major cities as Los Angeles and San Diego. While physically located on the island, Brooklyn is not considered a part of Long Island.

• • • • • •

45% take the subway to work 22% drive to work 10% take the bus 9% walk to work 8% carpool 2% work at home

Public transportation is easily accessible with the subway and bus systems. The vast majority of current subway lines in Brooklyn trace their lineage back to the Brooklyn–Manhattan Transit (BMT) and Brooklyn Rapid Transit (BRT). Subway lines include but are not limited to:

D, N, R, F, A, C, B, Q, 2, 3, L, G, S, J, M, Z, 4, 5


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E v e r g r e e n

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Market Overview

ARTS & CULTURE

DEMOGRAPHICS

Brooklyn has played a major role in various aspects of American culture including literature, cinema and theater. Brooklyn hosts the world-renowned Brooklyn Academy of Music, the Brooklyn Philharmonic, and the second largest public art collection in the United States, housed in the Brooklyn Museum. Brooklyn has roughly 700 arts and cultural institutions and about 30 miles of waterfront.

The median age of a Brooklyn resident is 34.7 years. 38 percent of Brooklyn's population are foreign born. Families make up 64 percent of Brooklyn households. In 2006, the U.S. Census Bureau calculates Brooklyn's population at 2,508,820.

Brooklyn is also made up of some of New York's prominent Universities and Colleges. Some of the more popular and well respected include:

• • • • • •

Brooklyn College Polytechnic Institute Packer Collegiate Institute St. Joseph’s College St. Francis College Brooklyn Law School

Brooklyn remains the most populous of the city's five boroughs. • • • •

2,230,722 in Queens 1,585,873 in Manhattan 1,385,108 in The Bronx 468,730 in Staten Island

7.5% are under the age of 5 years 25.1% are under the age of 18 12.3% are age 65 or older. The median age of females in Brooklyn is 36.5 years old. For males, it's 32.7 years.


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Market Overview

NEIGHBORHOODS Brooklyn is an international brand, cultural hub, culinary capital, and real estate juggernaut. Its streets are full of diversity, interesting people, and things to do. For more New York City arrivals than ever, for long-time New Yorkers looking for an easier life, for first-time homeowners and long-term renters, it has become the first choice of where to live and where to lay down their roots. “Brownstone Brooklyn” contains row after row of magnificent homes. Downtown has become a perfect mixed-use neighborhood, containing a vibrant mélange of residential lofts, top retail, and commercial creativity. Williamsburg has emerged as one of the best neighborhoods for adults and families in the world. Park Slope rivals the West Village and Upper West Side for New Yorkers seeking good schools and park-front living. Brooklyn Heights, Fort Greene and Clinton Hill are blessed by some of the most beautiful urban streets anywhere. Manhattan Beach offers coastal living in a neighborhood lined with trees. There are breathtaking mansions in Prospect Lefferts Gardens, Midwood, and Ditmas Park. Prospect Heights has an arch like Paris and edifices that resemble life on Europe’s grandest boulevards. The only way to truly understand Brooklyn is to walk its streets, see its homes, meet its people, and understand its ebb and flow. Never before, has looking for a home in Brooklyn been this exciting. One of the best places to start is here.


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E v e r g r e e n

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Market Overview

BUSHWICK TRANSPORTATION

ARTS & CULTURE

Major subway stops include: Jefferson Street, DeKalb Avenue, Myrtle-Wycoff Avenues, Halsey Street, Wilson Avenue, and Bushwick-Aberdeen on the L line; Centreal Avenue, Knickerbocker Avenue, Myrtle-Wyckoff Avenues on the M line; and Flushing Avenue, Halsey Street, Chauncey on the J and Z Line.

Bushwick has also emerged as a center for art and music with a variety of different types of art galleries and live music venues opening in the area. For example, Bushwick Collective, a massive organized street art project, emerged at the intersection of Troutman Street and St. Nicholas Avenue. All kinds of creative types have been filing into Bushwick and a considerable amount of trendiness is trickling in from its ultra-hip neighbor to the west, Williamsburg. New dive bars, bodegas, and gallery spaces continue to flourish, fueled by the intrepid movers and shakers that are pouring into Bushwick’s converted loft spaces. Although Bushwick is busy reinventing itself, a somewhat grungy heart still beats beneath its remodeled exterior. Despite the relatively recent migration of artistic youth to Bushwick, the neighborhood still characterizes Brooklyn's brash ideals. Several business corridors weave through Bushwick. From slightly seedy to grey and grungy, each one exhibits a distinctive personality:

The Myrtle Avenue/Wyckoff Avenue bus and subway hub was renovated into a state-of-the-art transportation center in 2007. Bus lines serving Bushwick include the B13, B26, B38, B52, B54, and B60. JFK Airport: 25 minutes by cab without traffic LaGuardia Airport: 20 minutes by cab without traffic Wall Street: 35 minutes by subway Times Square: 39 minutes by subway

It's the new class of old-school Williamsburg.


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E v e r g r e e n

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Market Overview

BUSHWICK NEIGHBORHOOD Bushwick has become synonymous with new music, trendy eateries, and cutting-edge artists. Bushwick is a rapidly gentrifying working and middle-class neighborhood in the northern part of the New York City borough of Brooklyn. Bushwick shares a border with Queens, Williamsburg, East New York, Brownsville, and Bedford-Stuyvesant. Bushwick’s diverse housing stock includes six-family apartment buildings and two- and three-family townhouses. The median age of the housing stock is 76 years. Over 91% of housing units are within 440 yards of a park, and over 97% of housing units are within 880 yards of a subway. Often referred to as the little sister of Williamsburg, Bushwick is vibrant, creative and full of energy. Bars, restaurants, cafes, are all within walking distance of the apartment as well as grocery stores and laundromats right on the block.

Radio Bushwick See the profile of this NYC bar at 22 Wyckoff Ave. in Brooklyn. 22 Wyckoff Ave.

LOCAL BUSINESSES

The Northeast Kingdom A friendly Vermont deer camp dishes up comfort food in the wilds of Bushwick. 18 Wyckoff Ave.

Trendy restaurants, cafes, clubs, bars and specialty markets are quickly opening to meet the increasing demand from this new demographic group. Some of the newer retailers that have opened include: Central Cafe Brooklyn

983 Bushwick’s Living Room Much less fussy than the other hardwood eateries north and south of Flushing that serve the neighborhood’s creative class. 983 Flushing Ave. Cafetería La Mejor See the review of this Cafes restaurant at 191 Suydam St. in Brooklyn. 191 Suydam St.


MARKETING TEAM

Shaun Riney 16 Court Street, Suite 2A Brooklyn, NY Tel: (718) 475-4369 Fax: (646) 349-2282 shaun.riney@mmreis.com

Thomas Shihadeh 16 Court Street, Suite 2A Brooklyn, NY Tel: (718) 475-4380 Fax: (646) 349-2282 thomas.shihadeh@mmreis.com

Dan Greenblatt 16 Court Street, Suite 2A Brooklyn, NY Tel: (718) 475-4357 Fax: (718) 475-4310 daniel.greenblatt@mmreis.com

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

283 Evergreen Avenue

283 Evergreen Avenue  
283 Evergreen Avenue