Page 1


MARKETING TEAM

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

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

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

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

313 East 92nd Street


TA B L E O F C O N T E N T S

INVESTMENT OVERVIEW

Section I

PRICING & FINANCIAL ANALYSIS

Section II

PROPERTY DESCRIPTION

Section III

MARKET OVERVIEW

Section IV

313 East 92nd Street


INVESTMENT OVERVIEW


313 East 92nd Street Is being offered at

| $8,500,000

THE OFFERING Marcus & Millichap is pleased to offer the following opportunity located in the booming Yorkville neighborhood. 313 East 92 Street is located on the North side of East 92nd Street between First and Second Avenues, and contains a gross square footage of 8,540. The building is built 25 x 68 feet on a 25 x 100 lot (Block: 1555 Lot: 9). The property is zoned R8B.

Turn-Key Asset. All free market units, hallways, backyard, and basement are gut-renovated to the highest degree. Each free market apartment boasts condo-quality finishes including: washer/dryer, dishwasher, recessed halogen lighting, tiled bathrooms, granite countertops, and a virtual doorman.

THE OPPORTUNITY

LISTING METRICS

Strategic Location. This 10-unit multifamily building is located on the Upper East Side of Manhattan, one of New York City’s most mature and stable rental markets. Situated just east of 2nd Avenue, the asset will continue to benefit tremendously from the recently completed Second Avenue Subway. Free Market Building. The building is 70% free market, which will allow the new buyer to capitalize on a strong existing stream income while preserving the ability to capture future upside in the rent-stabilized units, which are rented significantly below market levels. Finally, the building falls under the protected 2B tax class status, which caps tax increases at 8% annually and at 30% over any five-year period.

10

TOTAL UNITS

$995 PRICE /SF

4.1% CAP RATE

25'

FRONTAGE

OFFERING MEMORANDUM

8,540

TOTAL SQUARE FEET

$30,883

PROJECTED TAXES

19.7

GRM

1,460

TOTAL AIR RIGHTS


PRICING & F I N A N C I A L A N A LY S I S


P R I C I N G & F I N A N C I A L A N A LY S I S

FINANCIAL OVERVIEW OFFERING PRICE

$/SF $/UNIT

$8,500,000

$995 $850,000

TOTAL SF

8,540

TOTAL UNITS

70%

RATIO OF FAIR MARKET UNITS

7%

PROPERTY TAXES RATIO

$3,699

PRO FORMA AVERAGE MONTHLY

10

CURRENT METRICS

CAP RATE GRM

4.1% 19.7

CAP RATE GRM CASH ON CASH

EXPENSE RATIO

4.2% 19.1 2.22%

UPSIDE ANALYSIS $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0

Current Avg RS Units Market Rents Current Avg FM Rents

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

8,540

($285,449) 1.21 $72,250 $5,250,000 3.50% 30

$995

GROSS TOTAL SF

CURRENT $432,276

PRO FORMA $443,880

Gross Potential Commercial Rent

$0

$0

Gross Income Vacancy/Collection Loss Other Income

$432,276 ($8,646) $0

$443,880 ($8,878) $0

Effective Gross Income Average Residential Rent/Month/Unit

$423,630 $3,602

$435,002 $3,699

EXPENSES Property Taxes Fuel - Oil #2 Insurance Water and Sewer Repairs and Maintenance Common Electric (PPSF) Super Salary Management Fee Elevator Contract Legal & Miscellaneous SCRIE/DRIE Other Total Expenses Net Operating Income

$30,883 $10,611 $5,334 $3,069 $5,000 $2,856 $6,500 $12,709 N/A N/A N/A N/A $76,962 $346,669

$30,883 $10,611 $5,334 $3,069 $5,000 $2,856 $6,500 $13,050 N/A N/A N/A N/A $77,303 $357,699

LEASE STATUS ANALYSIS UNIT BREAKDOWN % OF TOTAL Total Units -Total RS Units 30% Total RC Units 0% Total FM Units 70% Total Commercial --

TOTAL 10 3 0 7 0

AVG. RENT $3,602 $1,216 $0 $4,625 $0

UNIT TYPE ANALYSIS TYPE Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom

% OF TOTAL 0% 40% 40% 10% 10%

TOTAL 0 4 4 1 1

AVG. RENT $0 $1,937 $4,119 $5,300 $6,500

5 Bedroom

0%

0

$0

6 Bedroom SRO

0% 0%

0 0

$0 $0

PRO FORMA METRICS

RENT

18%

INCOME Gross Potential Residential Rent

$/SF

Tax Class: 2B

Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyof the information. References to square footage or age are approximate. Buyermust verify the information and bears all risk for any inaccuracies.Any projections, opinions,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus& MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2016Marcus&Millichap

313 East 92nd Street


P R I C I N G & F I N A N C I A L A N A LY S I S

RENT ROLL RESIDENTIAL RENT UNIT# LEASE STATUS 1E FM 1W FM 2E FM 2W FM 3E RS 3W RS 4E FM 4W FM 5E FM 5W RS MONTHLY RESIDENTIAL REVENUE

NOTES

Vacant - Projected

Vacating on 1/31/2018 - Projected

BEDROOMS

ROOMS

EXPIRATION

ACTUAL

PRO FORMA

4 Bedroom 3 Bedroom 2 Bedroom 2 Bedroom 1 Bedroom 1 Bedroom 2 Bedroom 1 Bedroom 2 Bedroom 1 Bedroom 19

6 5 4 4 3 3 4 3 4 3 39

May-18 Jun-18 Apr-18

$6,500 $5,300 $4,175 $4,100 $2,206 $593 $4,100 $4,100 $4,100 $849 $36,023

$6,760 $5,512 $4,342 $4,100 $2,206 $593 $4,264 $4,100 $4,264 $849 $36,990

ACTUAL $432,276

PRO FORMA $443,880

Apr-18 Mar-18 May-18 May-18 Sep-18

TOTAL ANNUAL REVENUE There is currently 1 vacant unit in the building. The super lives off site.

Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyof the information. References to square footage or age are approximate. Buyermust verify the information and bears all risk for any inaccuracies.Any projections, opinions,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus& MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2016Marcus&Millichap

313 East 92nd Street


P R I C I N G & F I N A N C I A L A N A LY S I S

INCOME AND EXPENSE ANALYSIS GROSS POTENTIAL INCOME

ACTUAL

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

EXPENSES Property Taxes Fuel - Oil #2 Insurance Water and Sewer

$432,276 $432,276 ($8,646) $423,630 $3,602

Tax Class: 2B

Repairs and Maintenance Common Electric (PPSF) Super Salary Management Fee Total Expenses Net Operating Income

%EGI 100% 2%

$/UNIT $43,228 $43,228 ($865) $42,363

PRO FORMA $443,880 $443,880 ($8,878) $435,002 $3,699

%EGI 100% 2%

$/UNIT $44,388 $44,388 ($888) $43,500

7% 3% 1% 1%

$3,088 $1,061 $533 $307

$30,883 $10,611 $5,334 $3,069

7% 2% 1% 1%

$3,088 $1,061 $533 $307

$5,000 $2,856 $6,500

1% 0.7% 2%

$500 $0.33 $650

$5,000 $2,856 $6,500

1% 0.7% 1%

$500 $0.33 $650

$12,709 $76,962 $346,669

3% 18%

$1,271

$13,050

3% 18%

$1,305

$7,696

$77,303 $357,699

% OF TOTAL -30% 0%

RENT $36,023 $3,648 $0

70%

$32,375

7

$4,625

--

$0

0

$0

% OF TOTAL 0% 40% 40% 10% 10%

RENT $0 $7,748 $16,475 $5,300 $6,500

Total FM Units Total Commercial RENTAL ANALYSIS BY UNIT TYPE TYPE Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom

$3,602

PERCENT FAIR MARKET

$30,883 $10,611 $5,334 $3,069

LEASE STATUS MIX UNIT BREAKDOWN Total Units Total RS Units Total RC Units

AVERAGE RENT PER MONTH

$7,730

TOTAL AVG. RENT 10 $3,602 3 $1,216 0 $0

TOTAL AVG. RENT 0 $0 4 $1,937 4 $4,119 1 $5,300 1 $6,500

70%

TAXES AS PERCENT OF EGI

7%

EXPENSE RATIO

18%

UPSIDE ANALYSIS $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0

Studio

1 Bedroom

Current Avg RS Units

2 Bedroom

3 Bedroom

Market Rents

4 Bedroom Current Avg FM Rents

UPSIDE ANALYSIS

Thisinformationhasbeensecuredfromsourceswebelievetobereliable,butwemakenorepresentationsorwarranties,expressedorimplied,astotheaccuracyof the information. References to square footage or age are approximate. Buyermust verify the information and bears all risk for any inaccuracies.Any projections, opinions,assumptionsorestimatesusedhereinareforexamplepurposesonlyanddonotrepresentthecurrentorfutureperformanceoftheproperty.Marcus& MillichapRealEstateInvestmentServicesisaservicemarkofMarcus&MillichapRealEstateInvestmentServices,Inc.©2016Marcus&Millichap

313 East 92nd Street


PROPERTY DESCRIPTION


P R O P E RT Y D E S C R I P T I O N

New Yorki

CITY:

NYi

STATE: BLOCK & LOT:

1555 / 9i

LOT DIMENSIONS:

25 x 100i 2,500i

LOT SF:

25 x 68i

BUILDING DIMENSIONS:

8,540i

BUILDING SF: ZONING:

R8Bi

MAX FAR:

4.00i

AVAILABLE AIR RIGHTS:

1,460i

LANDMARK DISTRICT:

Nonei

HISTORIC DISTRICT:

Nonei __$30,883

ANNUAL TAX BILL:

2Bi

TAX CLASS:

313 East 92nd Street


BOROUGH 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 2016 Marcus & Millichap


PROPERTY DESCRIPTION | PROPERTY PHOTOS

313 East 92nd Street


PROPERTY DESCRIPTION | PROPERTY PHOTOS

313 East 92nd Street


PROPERTY DESCRIPTION | PROPERTY PHOTOS

313 East 92nd Street


PROPERTY DESCRIPTION | INTERIOR PHOTOS

313 East 92nd Street


PROPERTY DESCRIPTION | PROPERTY PHOTOS

313 East 92nd Street


MARKET OVERVIEW


M A N H AT TA N 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.

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

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.

MARKET HIGHLIGHTS Large population: New York City is the United States’ largest city, with upwards of 8 million residents.

BOROUGH

Top address for corporate headquarters: 40+ Fortune 500 companies call New York City home.

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.

High barriers to development: few parcels of developable land + high costs = limits to new construction.

Manhattan is well placed, situated 100 miles from Philadelphia, 210 miles from Boston, 230 miles from Washington, D.C., and 790 miles from Chicago.

INFRASTRUCTURE

G R O W T H PAT T E R N S

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.

313 East 92nd Street


M A N H AT TA N ECONOMY 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.

LABOR 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


M A N H AT TA N EMPLOYERS

DEMOGRAPHICS

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.

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.

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.

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.

313 East 92nd Street


M A N H AT TA N 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.

QUALITY OF LIFE 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.

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 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


www.newyorkmultifamily.com 212 430 5114

313 East 92 Street  
313 East 92 Street