Exclusive Offering Memorandum

Transcription

1 Macon Hart Street Street, Brooklyn, Bushwick Brooklyn, NY NY Unit Fully Vacant Multi-Family Property Exclusive Offering Memorandum 1

2 Terra CRG LLC has been retained as the exclusive agent to the Seller for the sale of the 5 unit multi-family building at 773 Hart Street in the Bushwick neighborhood of Brooklyn. For More Information Please Contact Exclusive Agent: Matthew Cosentino Vice President, Investment Sales mcosentino@terracrg.com The information provided herein has either been given to us by the owner of the property or was obtained from sources we deem reliable. We do not guarantee the accuracy of any information. All zoning, existing square feet of buildings, available buildable square feet, permitted uses and any other information provided herein must be independently verified. The value of any real estate investment is dependent upon a variety of factors including income, vacancy rates, expense estimates, tax brackets and general market assumptions, all of which should be evaluated by your tax advisor and/or legal counsel. Prospective buyer should carefully verify each item of information herein, there can be no guarantee that the enclosed information is accurate or that the subject property will sell for the suggested asking price. The estimates and assumptions provided herein are based on the subject property containing no environmental contamination. Eric Satanovsky Associate esatanovsky@terracrg.com (718) Terra CRG LLC I Licensed Real Estate Broker I 592 Pacific Street, Suite B, Brooklyn, NY I P: I F:

3 Table of Contents Executive Summary The Offering 5 Property Summary 6 Aerial Photo 7 Neighborhood Map 8 Property Tax Map 9 Zoning Information 10 Interior Photos 12 Neighborhood & Market Information Market Overview 14 Brooklyn Residential Rental Market 15 Neighborhood Description 17 Neighborhood Transportation 20 Brooklyn Commercial Sales 23 3

4 Executive Summary 4

5 Executive Summary The Offering The fully vacant five unit building at 773 Hart Street is now offered for sale. The property is in a very prime Bushwick location between Knickerbocker Avenue and Wilson Avenue in close proximity to both the Jefferson Street L train station and the DeKalb Avenue L train. The property is also 1½ blocks from newly refurbished Maria Hernandez Park. The 4,275 SF building (not including full ceiling height basement with windows) is 25 ft x 57 ft and consists of 5 vacant free market residential apartments. All the units are currently vacant and have been fully gutted so that a new owner can begin the next step of the renovation process immediately. Also, a significant number of structural improvements have already been made to the building, including: (a) new footings, columns, beams and joists in the basement; (b) replacement of beams and joists on second and third floor; and (c) all floors in entire building have been leveled. When completed the building would allow for 4 three bedroom apartments and 1 ground floor duplex apartment that would be approx. 1,680 SF. Newly renovated units in the area are achieving rents in the $45-50/SF range. After renovation, the building has gross income potential in excess of $200,000 and will have minimal utility expenses as each apartment will have its own HVAC unit and hot water heater. The units also have outstanding ceiling heights throughout, stretching to approx. 14 ft on the top floor (allowing for a mezzanine on the top floor). The property is ideally located in one of the most prime locations in Bushwick, in very close proximity to both the Jefferson Street L train and the DeKalb Avenue L train. The property is located in the heart of Bushwick s revitalization and just a few blocks from some of the best retailers in Brooklyn, including the highly acclaimed Northeast Kingdom restaurant, Hanna Natural Organic Market and Wine Shop and Fritzl s Lunch Box. The property is also located in the heart of Bushwick s flourishing art scene (just a few blocks from Bushwick Collective a massive organized street art project). This particular block is one of the most desirable blocks in Bushwick with some of the most successful luxury rental, condo and retail projects in the area. (including the Knick Condos and the 782 Hart Street Luxury Rentals directly across the street from the property). Asking Price: $1,795,000 Any and all offers should be submitted in writing to Terra CRG, LLC. All zoning, existing square footage of buildings, available buildable square footage, permitted uses and any other information provided herein must be independently verified by prospective purchasers. 5

6 Property Information Property Summary Property Information Address: 773 Hart Street Neighborhood: Bushwick Cross Streets: Block: Knickerbocker Ave and Wilson Ave 3219 Lot: 44 Lot Size: 25 ft x 100 ft Building Information Building Size: 25 ft x 57 ft Building Class: C2 Zoning: R6 Stories: 3 Total Units: 5 Building Sq. Ft.: 4,275 (plus basement with full ceiling heights and windows) Taxes (13/14): $ 4,836 6

7 Aerial Map 773 Hart Street 7

8 Neighborhood Map 773 Hart Street 8

9 Property Tax Map 773 Hart Street Brooklyn, NY Block 3219 Lots 44 The property is located between Wilson Avenue and Knickerbocker Avenue 9

10 Zoning Zoning Map 773 Hart Street is zoned R6 10

11 Zoning Zoning Description 773 Hart Street is zoned R6 R6 zoning districts are widely mapped in built-up, medium-density areas in Brooklyn, Queens and the Bronx. The character of R6 districts can range from neighborhoods with a diverse mix of building types and heights to large-scale tower in the park developments such as Ravenswood in Queens and Homecrest in Brooklyn. Developers can choose between two sets of bulk regulations. Standard height factor regulations, introduced in 1961, produce small multifamily buildings on small zoning lots and, on larger lots, tall buildings that are set back from the street. Optional Quality Housing regulations produce high lot coverage buildings within height limits that often reflect the scale of older, pre-1961 apartment buildings in the neighborhood. Height Factor Regulations Buildings developed pursuant to height factor regulations are often tall buildings set back from the street and surrounded by open space and on-site parking. The floor area ratio (FAR) in R6 districts ranges from 0.78 (for a single-story building) to 2.43 at a typical height of 13 stories; the open space ratio (OSR) ranges from 27.5 to Generally, the more open space, the taller the building. In the diagram, for example, 81% of the zoning lot with the 13-story building is required to be open space (2.43 FAR 33.5 OSR). Thus, the maximum floor area ratio is achievable only where the zoning lot is large enough to accommodate a practical building footprint as well as the required amount of open space. There are no height limits for height factor buildings although they must be set within a sky exposure plane which begins at a height of 60 feet above the street line and then slopes inward over the zoning lot. Off-street parking is required for 70% of a building s dwelling units, or it can be waived if five or fewer spaces are required

12 Interior Photos 12 12

13 Neighborhood & Market Information 13

14 Brooklyn Market Overview Brooklyn Brooklyn is the most populous of New York City's five boroughs, with nearly 2.6 million residents, and the secondlargest in area with over 70 square miles. Brooklyn is now the most populous county in New York State and the second-most densely populated county in the United States, after New York County (Manhattan). The borough is situated at the southwestern end of Long Island and is bounded on the north and east by the borough of Queens, on the south by Lower New York Bay, the Atlantic Ocean and Jamaica Bay and on the west by the East River, Upper New York Bay and the Narrows which separates it from the borough of Staten Island. Brooklyn was an independent city until its consolidation with New York City in The Borough s 30 neighborhoods continue to maintain a distinct culture, independent art scene, and unique architectural heritage. 14

15 Brooklyn Market Overview Brooklyn Residential Rental Market The New York employment market is ranked 3 rd in the country. Apartment vacancy rates in the Northeast are the lowest in the country (During the last two recessions, the New York residential market experienced less than 1.0% annual market rent decreases). Brooklyn vacancy rate is expected to stay under 2%. The strength of the NYC economy means more college graduates migrate to NYC from rest of the country for jobs. Quite often, their rental apartment in Brooklyn becomes their first New York City home. These trends, coupled with a very tight inventory of luxury units, caused rental rates to increase considerably in the last few years. As a result of the downturn and the rental boom that followed, there has been very little condo development in Brooklyn over the last 4 years. The lack of condo inventory created a surge in condo pricing over the last few months and a need for quality condo units. 15

16 Brooklyn Market Overview Brooklyn Residential Market Brooklyn s easy commute into Manhattan with its many subway lines along with numerous amenities and attractions make it a very appealing location for many New York residents. Brooklyn is the lone borough in which non-regulated apartments outnumber rent-stabilized units. The borough has seen a significant number of new luxury residential rental and condo developments over the last few years particularly in neighborhoods such as Williamsburg, Greenpoint, Dumbo, Downtown Brooklyn & Park Slope. Neighborhoods such as Bushwick and Bedford Stuyvesant are no longer secondary markets; they are now looked at as extremely opportunistic areas. 16

17 Neighborhood Information Bushwick Bushwick is a neighborhood in the northern part of the New York City borough of Brooklyn. The neighborhood is now part of Brooklyn Community Board 4. Bushwick is bound by Williamsburg to the west, East New York to the east, Bed-Stuy and Brownsville to the south, and Ridgewood, Queens to the north. Over the last decade, Bushwick became one of the most rapidly developing and exciting real estate submarkets in New York City. There has been an enormous influx of new residents, both condo buyers and renters moving to Bushwick from Manhattan and from nearby Williamsburg. The newcomers are dispersed throughout Brooklyn, but are most concentrated near the L and M subway stations (which both allow very quick access to Manhattan). 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. Starting in the middle of the 2000s, the City and State of New York began pouring resources into the Bushwick neighborhood, primarily through a program called the Bushwick Initiative. The program goal is to improve the lives of Bushwick residents in the twenty-three square blocks surrounding Maria Hernandez Park through various housing and quality of life programs. Transportation Major subway stops include: Jefferson Street, DeKalb Avenue, Myrtle Wyckoff Avenues, Halsey Street, Wilson Ave, and Bushwick-Aberdeen on the L Line; Central Avenue, Knickerbocker Avenue, Myrtle Wyckoff Avenues on the M Line; and Flushing Av, Myrtle Avenue, Koscuisko Street, Gates Avenue, Halsey Street, Chauncey on the J and Z Line. The Myrtle Avenue/Wyckoff Avenue bus and subway hub was renovated into a state-of-the-art transportation center in Bus lines serving Bushwick include the B13, B26, B38, B52, B54, and B60. Trendy restaurants, cafes, clubs, bars and specialty markets are quickly opening to meet the increasing demand from this new demographic group. 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. 17

18 Neighborhood Information Bushwick Retail & Arts Bushwick is one of the most rapidly developing and exciting real estate sub-markets in New York City. There has been an enormous influx of new residents, both condo buyers and renters moving to Bushwick from Manhattan and from nearby Williamsburg. The newcomers are dispersed throughout Brooklyn, but are most concentrated near the L and M subway stations (which both allow very quick access to Manhattan). Retail 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 Café Brooklyn Green Streets Salads Barcey s Coffee Shop Tandem Bar & Restaurant Arancini Brothers El Mio Cid Tapas Molasses Books Guacuco Fritzl s Lunch Box Little Skips Northeast Kingdom Verde Coal Oven Wyckoff Starr Hana Natural The Rookery Cain s Tavern Arts 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, the Luhring Augustine art gallery, a fixture in Chelsea for 25 years, has expanded into Bushwick with the purchase of a 10,200 SF warehouse on Knickerbocker Avenue. Also Bushwick Collective, a massive organized street art project, emerged at the intersection of Troutman Street and St. Nicholas Avenue. 18

19 Neighborhood Information Bushwick Development New Condo & Rental Developments 1209 Colony (1209 DeKalb Avenue) a 120 unit luxury rental project with 24 hour doorman, landscaped courtyard, gym, roof deck, lounges, screening room, rehearsal studios, arcade and shuffleboard courts. Castle Braid (114 Troutman St.) a 146 unit rental complex that is described as artists community which includes a yoga studio, a screening room, apple computer lab, and free camera equipment available for tenants. The Knick a 49 unit condominium development on Knickerbocker Avenue with top of the line finishes and many amenities, including a rooftop lounge. Developed by the Hudson Companies. 550 Irving Avenue a 65 unit luxury rental building with a rooftop lounge, garden with Jacuzzi, gaming lounge, gym, sauna and coffee shop. 369 Harman St a 18 unit luxury condominium development with private terraces and parking. Menahan Gardens a large condominium development on Menahan Street between Wyckoff and St. Nicholas Avenues 38 Wilson Avenue 15 unit boutique condominium development with doorman and Zip Car in building. 358 Grove Street 59 unit luxury condominium development with many amenities including rooftop cabanas. 19

20 Public Transportation 20

21 Public Transportation 21

22 Bushwick Neighborhood Attractions Maria Hernandez Park Maria Hernandez Park is a municipal park in Bushwick, Brooklyn, New York. It is located between Knickerbocker Avenue on the southwest to Irving Avenue on the northeast, and Starr Street on the northwest to Suydam Street on the southeast. The park is 6.87 acres (2.78 ha) and is near the Jefferson Street station and the M subway. Maria Hernandez Park is also home to the Bushwick Farmer s Market. It has a newly renovated basketball court, handball court, fitness equipment, spray showers and benches, a newly built performance stage and a planned $425,000 dog run. Maria Hernandez Park was the Park of the Month in December

23 Brooklyn Market Overview Brooklyn 2013 Commercial Property Sales Dollar and Transaction Volume Region Multifamily Mixed Use Retail Development Industrial/Office Sub-Total Other Grand Total Bed Stuy/Bushwick/Crown Heights $ 452,906,142 $ 169,408,355 $ 24,555,500 $ 85,819,152 $ 23,291,982 $ 755,981,131 $ 61,203,639 $ 817,184,770 # of Sales East Brooklyn $ 60,212,170 $ 40,753,147 $ 20,864,212 $ 2,942,000 $ 17,665,000 $ 142,436,529 $ 67,587,445 $ 210,023,974 # of Sales Greater Flatbush $ 302,239,746 $ 102,002,433 $ 42,345,000 $ 71,943,990 $ 52,317,849 $ 570,849,018 $ 90,082,015 $ 660,931,033 # of Sales Downtown Brooklyn & Park Slope $ 257,186,359 $ 170,186,009 $ 198,591,639 $ 365,812,582 $ 359,012,600 $ 1,350,789,189 $ 215,124,074 $ 1,565,913,263 # of Sales South Brooklyn $ 97,563,819 $ 42,324,699 $ 71,511,252 $ 15,753,480 $ 10,623,000 $ 237,776,250 $ 80,678,999 $ 318,455,249 # of Sales Williamsburg/Greenpoint $ 343,503,771 $ 97,547,675 $ 107,410,990 $ 101,681,100 $ 108,339,799 $ 758,483,335 $ 177,793,139 $ 936,276,474 # of Sales West Brooklyn $ 104,469,086 $ 108,803,287 $ 54,539,500 $ 29,110,000 $ 190,590,003 $ 487,511,876 $ 49,537,000 $ 537,048,876 # of Sales Dollar Volume 2013 $ 1,618,081,093 $ 731,025,605 $ 519,818,093 $ 673,062,304 $ 761,840,233 $ 4,303,827,328 $ 742,006,311 $ 5,045,833,639 Number of Transactions , ,956 Y/Y Dollar Volume Increase % 49% -56% -3% 135% 10% 69% 16% Y/Y Number of Transaction Increase 23% 27% -16% 3% 17% 17% 78% 22% The Brooklyn commercial real estate market continued to show strength in Our team verified a total of 1,956 commercial sales with a total consideration of $5 Billion, an approx. 16% increase in dollar volume from 2012 and approx. 22% increase in total number of sales*. Over the course of the last four years, the Brooklyn commercial sales market boomed with a dollar volume increase of approx. 397%, and transaction volume increase of approx. 151%. The largest year over year increase in dollar volume in Brooklyn was in the Industrial/Office asset class more than doubled from $323.9M in 2012 to $761.8M in The sales of multifamily buildings represented the highest dollar volume category, totaling over $1.6B in trades with a total of 663 transactions. The Downtown Brooklyn/Park Slope region had the highest dollar volume with sales totaling over $1.5B, up 71% from Dollar volume of residentially zoned development site sales in 2013 maintained similar levels to those of 2012, yet still showed a 12 fold increase from The Bed Stuy/Bushwick/Crown Heights region had the highest number of transactions, for the fourth year in a row, with 655 trades, up 24% from Other transactions which include conversion properties, residentially zoned industrial buildings, hotels and special use properties had a total of $742M in dollar volume and 210 Other commercial properties sold this year. 23

24 For More Information Please Contact Exclusive Agents: Matt Cosentino VP, Investment Sales Eric Satanovsky Associate (718) Terra CRG, LLC Licensed Real Estate Broker 592 Pacific Street, Suite B Brooklyn, NY P: F: