LOWER EAST SIDE NEW YORK

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Liliana Lawrence
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1 REDEVELOPMENT OPPORTUNITY 48 CLINTON STREET LOWER EAST SIDE NEW YORK RKF INVESTMENT SALES & ADVISORY SERVICES

48 CLINTON STREET INVESTMENT OPPORTUNITY 2 EXECUTIVE SUMMARY HOUSTON STREET RKF Investment Sales & Advisory Services ( RKF ) has been retained as the exclusive agent for the sale of 48 Clinton

The Property is situated mid-block with 25 FT of frontage along the east side of Clinton Street between Stanton and NORFOLK STREET SUFFOLK STREET STANTON STREET CLINTON STREET ATTORNEY STREET 48

The Lower East Side neighborhood is currently undergoing transformation into an upscale, dynamic center of residential, nightlife and commerce with a host of new residential developments, hotels,

New residential projects include the adjacent 50 Clinton and The Ludlow, which have introduced 280 high-end residential apartments, bringing many young, affluent New Yorkers to the neighborhood.

tourism and nightlife in the neighborhood. Served by seven subway lines and six bus routes, the Lower East Side is bustling with people in a true seven-day-a-week market.

x 100 FT FRONTAGE (ON CLINTON STREET) 25 FT EXISTING SF 5,073 SF EXISTING SF (LOWER LEVEL) 1,452 SF FAR 4 TOTAL BUILDABLE AREA 10,000 SF ZONING R7A/C1-5 REAL ESTATE TAXES (2016/2017) $49,325 RKF

2 48 CLINTON STREET INVESTMENT OPPORTUNITY 2 EXECUTIVE SUMMARY HOUSTON STREET RKF Investment Sales & Advisory Services ( RKF ) has been retained as the exclusive agent for the sale of 48 Clinton Street, New York, NY (the Property ), a four-story building currently used as a professional music recording studio. The Property is situated mid-block with 25 FT of frontage along the east side of Clinton Street between Stanton and NORFOLK STREET SUFFOLK STREET STANTON STREET CLINTON STREET ATTORNEY STREET 48 CLINTON STREET ELDRIDGE STREET Rivington Streets in Manhattan s historic Lower East Side. The property can be redeveloped up to 10,000 SF for a mixed-use development as per R7A zoning. The Lower East Side neighborhood is currently undergoing transformation into an upscale, dynamic center of residential, nightlife and commerce with a host of new residential developments, hotels, retail boutiques, restaurants, bars and nightclubs that will continue to shape the urban landscape. New residential projects include the adjacent 50 Clinton and The Ludlow, which have introduced 280 high-end residential apartments, bringing many young, affluent New Yorkers to the neighborhood. Hotels, such as The Ludlow Hotel, The Hotel on Rivington and Hotel Indigo, and restaurants, including Beauty & Essex, Serafina and many others, have contributed to the increasing popularity of tourism and nightlife in the neighborhood. Served by seven subway lines and six bus routes, the Lower East Side is bustling with people in a true seven-day-a-week market. RIVINGTON STREET PROPERTY SNAPSHOT feet PROPERTY ADDRESS 48 Clinton Street, New York, NY LOCATION Clinton Street (between Stanton and Rivington Streets) LOT SF 2,500 SF LOT SIZE 25 FT x 100 FT FRONTAGE (ON CLINTON STREET) 25 FT EXISTING SF 5,073 SF EXISTING SF (LOWER LEVEL) 1,452 SF FAR 4 TOTAL BUILDABLE AREA 10,000 SF ZONING R7A/C1-5 REAL ESTATE TAXES (2016/2017) $49,325 RKF INVESTMENT SALES & ADVISORY SERVICES 521 Fifth Avenue, Floor 7, New York, NY T F info@rkf.com FOR MORE INFORMATION PLEASE CONTACT BRIAN SEGALL Vice President bsegall@rkf.com GEORGE MARTINECZ Associate gmartinecz@rkf.com 2017 ROBERT K. FUTTERMAN & ASSOCIATES, LLC All information is from sources believed reliable, not independently verified, and thus subject to errors, omissions, and modifications such as price, listing, square footage, rates and commissions. All information, estimates and projections subject to change, market assumptions, unknown facts and conditions, and future potentialities. RKF makes no express or implied representations or warranties, as facts and results may vary materially from all information, estimates and projections. All renderings presented are conceptual.

48 CLINTON STREET INVESTMENT OPPORTUNITY 3 INVESTMENT HIGHLIGHTS DYNAMIC LOCATION Located in

in the Lower East Side, indicative of the market demand and robust market conditions.

creating an eclectic mix of nightlife, music, art, high-end boutiques, hotels and high-end

Situated in close proximity to two subway stations with access to the B, D, F, M, J and Z

NEW DEVELOPMENT Driving the transformation is the $1.

units along with 250,000 SF of office space and 600,000 SF of retail across ten buildings.

condominiums at 196 Orchard, the base of which will soon house an Equinox Fitness Club.

3 48 CLINTON STREET INVESTMENT OPPORTUNITY 3 INVESTMENT HIGHLIGHTS DYNAMIC LOCATION Located in the Lower East Side, the property benefits from a market that is currently undergoing a dramatic makeover. There is a steady increase in pricing in both the residential and retail rents year-over-year in the Lower East Side, indicative of the market demand and robust market conditions. The neighborhood is hip for millennials and has also seen rising interest from families creating an eclectic mix of nightlife, music, art, high-end boutiques, hotels and high-end residential developments. Situated in close proximity to two subway stations with access to the B, D, F, M, J and Z subway lines make it ideal for the surrounding residential and retail developments. NEW DEVELOPMENT Driving the transformation is the $1.1 billion mixed-use Essex Crossing mega project, which is set to deliver 1,000 residential units along with 250,000 SF of office space and 600,000 SF of retail across ten buildings. Other developments in the neighborhood include members club Ludlow House and luxury condominiums at 196 Orchard, the base of which will soon house an Equinox Fitness Club. One Manhattan Square, a luxury condo building, has a projected sell-out of $2.1 billion. OWNER-USER The fully functioning recording studio presents a unique opportunity for a potential buyer to use the space in its current capacity. Additional uses, such as boutique fitness or medical office, position the property as a livework space.

4 48 CLINTON STREET INVESTMENT OPPORTUNITY 4 PROPERTY OVERVIEW PROPERTY PHOTOS

5 48 CLINTON STREET INVESTMENT OPPORTUNITY 5 PROPERTY OVERVIEW PROPERTY PHOTOS

6 48 CLINTON STREET INVESTMENT OPPORTUNITY 6 PROPERTY OVERVIEW FLOOR PLANS GROUND FLOOR LOWER LEVEL FIRST MEZZANINE THIRD FLOOR SECOND MEZZANINE ROOF ROOF BELOW SKYLIGHT SKYLIGHT SKYLIGHT SKYLIGHT SKYLIGHT SKYLIGHT SKYLIGHT ROOF BELOW 2,500 SF 1,452 SF 1,583 SF 491 SF 499 SF BALCONY DECK THIRD FLOOR BALCONY 25 FT CLINTON STREET

48 CLINTON STREET INVESTMENT OPPORTUNITY 7 PROPERTY OVERVIEW ZONING 48 Clinton Street is a 25 FT X 100 FT in-line lot located between Stanton and Rivington Streets.

Zoned with higher FAR, the highest and best use is for either buyers that are driven by the valuation of the property as a development site for mixed-use or as a redevelopment site.

TOTAL LOT SIZE 2,500 SF FAR 4 TOTAL BUILDABLE AREA 10,000 SF C1-5 R7-A Building cannot penetrate sky exposure plane, which begins at 30 above street line Higher parking requirement in auto-dependent

7 48 CLINTON STREET INVESTMENT OPPORTUNITY 7 PROPERTY OVERVIEW ZONING 48 Clinton Street is a 25 FT X 100 FT in-line lot located between Stanton and Rivington Streets. Currently, the property is improved with a 6,525-SF building with retail and residential use. Zoned with higher FAR, the highest and best use is for either buyers that are driven by the valuation of the property as a development site for mixed-use or as a redevelopment site. ZONING ANALYSIS The property resides in C1-5 zoning with the residential equivalent district of R7-7A. TOTAL LOT SIZE 2,500 SF FAR 4 TOTAL BUILDABLE AREA 10,000 SF C1-5 R7-A Building cannot penetrate sky exposure plane, which begins at 30 above street line Higher parking requirement in auto-dependent areas Above the maximum base height, building must be set back at least 10 from the street wall when facing a wide street or 15 when facing a narrow street Base height: 80 maximum building height 40 minimum 65 maximum C1-2 mapped within R3-2 Parking lots with 18 or more spaces must be planted In a mixed building, residential uses must always be above commercial uses Building cannot penetrate sky exposure plane, which begins at 85 above the street line Street line All open areas between the street wall and the street line must be planted Off-street parking permitted only within, or to the side or rear of a building, never between the street wall and the street line C1-7 residential district equivalent: R8 C1 & C2 COMMERCIAL OVERLAY DISTRICTS R7A GENERAL RESIDENCE DISTRICT C1-1 C1-2 C1-3 C1-4 C1-5 C2-1 C2-2 C2-3 C2-4 C2-5 COMMERCIAL FAR WITHIN R1-R COMMERCIAL FAR WITHIN R6-R R7A FAR LOT COVERAGE (max) BASE HEIGHT BUILDING HEIGHT REQUIRED PARKING 2 (max) Corner Lot Interior/Through Lot (min/max) (max) (min) % 65% FT 80 FT 50% of dwelling units DEPTH OF OVERLAY DISTRICT (IN FEET) FAR with Inclusionary Housing designated area bonus 2 30% if zoning lot is 10,000 SF or less; waived if 15 or fewer spaces required

8 48 CLINTON STREET INVESTMENT OPPORTUNITY 8 MARKET OVERVIEW NEW DEVELOPMENTS EXTRA PL BARUCH DR The Lower East Side is a neighborhood in lower Manhattan, bounded by Canal Street, Houston Street, Bowery and the East River. Like other neighborhoods in the city, it has undergone successive transformations from a colonial-era farm into a working-class district where immigrants lived in tenement buildings, and from a hub of nightlife, music and art into an enclave for wealthy New Yorkers. Positioned as a mixed-use development site in a growing market with an increased demand and constrained supply, 48 Clinton Street has an upside for buyers to deliver high-end residential and mixed use space with a retail component. T ELIZABETH ST MOTT ST BOWERY SPRING ST NOLITA KENMARE ST STANTON ST FREEMAN AL CHRYSTIE ST FORSYTH ST ELDRIDGE ST ALLEN ST E 1 ST 11 LOWER EAST SIDE ORCHARD ST LUDLOW ST ESSEX CROSSING 1.9 MILLION SF OF MIXED-USE SPACE (REFER TO THE NEXT PAGE) ESSEX ST NORFOLK ST 48 CLINTON STREET 8 1 SUFFOLK ST 9 CLINTON ST RIVINGTON ST 5 6 ATTORNEY ST STANTON ST CLINTON ST 10 ATTORNEY ST 7 ATTORNEY ST RIDGE ST PITT ST BROOME ST HAMILTON FISH PARK SAMUEL DICKSTEI DELANCEY ST BIALYSTOKER PL SHERIFF ST DELANCEY ST COLUMBIA ST BROOME ST RIVINGTON ST WILLIAMSBURG BRIDGE ABRAHAM KAZAN ST HENRY ST CANNON ST J GRAND ST WAY GOU MADISON ST PROPERTY ADDRESS DEVELOPER TOTAL SF TOTAL # OF RESIDENTIAL UNITS BROOME STREET Taconic Investment Partners 139,205 SF CHRYSTIE STREET Nexus Property Group 17,225 SF CHRYSTIE STREET Nexus Property Group 25,265 SF CHRYSTIE STREET Witkoff Group 341,040 SF CLINTON STREET DHA Capital 50,000 SF CLINTON STREET Taconic Investment Partners 222,750 SF DELANCEY STREET Taconic Investment Partners 138,705 SF GRAND STREET Henry Lou 6,711 SF EAST HOUSTON STREET Hogg Holdings 30,000 SF EAST HOUSTON STREET Halpern Real Estate Ventures 57,560 SF ORCHARD STREET Magnum Realty and Real Estate Equities Corporation 178,376 SF 94

48 CLINTON STREET INVESTMENT OPPORTUNITY 9 MARKET OVERVIEW ESSEX CROSSING Essex Crossing is a planned mixed-use development in the

existing area known as the Seward Park Urban Renewal Area (SPURA). The $1.

Upon its completion, Essex Crossing will host a new and expanded Essex Street Market, restaurants, office space, a movie theater and

The development is also set to include 1,000 residential units, half of which will be permanently affordable housing.

buildings to the Essex Street Market, is slated to open next year with phase two breaking ground in June 2017.

9 48 CLINTON STREET INVESTMENT OPPORTUNITY 9 MARKET OVERVIEW ESSEX CROSSING Essex Crossing is a planned mixed-use development in the Lower East Side, specifically at the intersection of Delancey Street and Essex Street just north of Seward Park, in part of an existing area known as the Seward Park Urban Renewal Area (SPURA). The $1.1 billion megaproject will sit on a total of nine city blocks. Construction began in mid-2015 and is expected to conclude by Upon its completion, Essex Crossing will host a new and expanded Essex Street Market, restaurants, office space, a movie theater and a park. Retail tenants, such as Trader Joes, Planet Fitness and Regal Cinemas have signed on to be part of the project. The development is also set to include 1,000 residential units, half of which will be permanently affordable housing. The first phase of Essex Crossing, which includes four new buildings and Market Line, a 150,000-SF marketplace connecting the buildings to the Essex Street Market, is slated to open next year with phase two breaking ground in June ESSEX CROSSING HIGHLIGHTS PROJECT SIZE 2,000,000 SF COMMERCIAL SPACE 600,000 SF OFFICE SPACE 250,000 SF RESIDENTIAL SPACE 1,000 UNITS PUBLIC SPACE 15,000 SF LOT SIZE 6 AC ESTIMATED COST $1.1 BILLION ANTICIPATED DATE OF COMPLETION 2024 All renderings are conceptual.

10 48 CLINTON STREET INVESTMENT OPPORTUNITY 10 MARKET OVERVIEW MARKET TRENDS RESIDENTIAL CONDOMINIUMS Robust demand and a new development pipeline has led to growth and apprecation of rental and sales prices over the last few years. PROPERTY ADDRESS TYPE ASKING PRICE SIZE (IN SF) $/SF 199 BOWERY 1 BR $799, $1, RIVINGTON STREET 1 BR $829, $1, RIVINGTON STREET 1 BR $1,030, $1, BROOME STREET 1 BR $1,100, $1, BROOME STREET 1 BR $1,100, $1, NORFOLK STREET 1 BR $1,295, $1, ORCHARD STREET 1 BR $1,455, $2, NORFOLK STREET 1 BR $1,450, $1, EAST HOUSTON STREET 2 BR $2,765,000 1,386 $1, FORSYTH STREET 2 BR $2,850,000 1,549 $1, DELANCEY STREET 2 BR $1,538, $1, CLINTON STREET 2.5 BR $1,575, $1, ORCHARD STREET 2 BR $1,995,000 1,205 $1, RIVINGTON STREET 2 BR $2,120,000 1,066 $1, RIVINGTON STREET 2 BR $2,275,000 1,215 $1, CLINTON STREET 1 BR $2,650,000 1,734 $1, RIVINGTON STREET 3 BR $2,750,000 1,378 $1,996 RESIDENTIAL RENTALS PROPERTY ADDRESS TYPE MONTHLY RENT SIZE (IN SF) $/SF 229 CHRYSTIE STREET 1 BR $5, $ SUFFOLK STREET 2 BR $4, $ LUDLOW STREET 3 BR $4, $74.93

11 48 CLINTON STREET INVESTMENT OPPORTUNITY 11 MARKET OVERVIEW MARKET TRENDS RETAIL ASKING RENTS Continued residential growth is spurring continued transformation for retail tenants in the Lower East Side. PROPERTY ADDRESS MONTHLY RENT ANNUAL RENT SIZE (IN SF) $/SF 50 CLINTON STREET $25,958 $311,500 1,780 $ CLINTON STREET $13,416 $161,000 1,400 $ NORFOLK STREET $28,000 $336,000 2,200 $ RIVINGTON STREET $13,875 $166,500 1,500 $ MARKET VALUATION SALES COMPARABLES Property comps of existing buildings and development sites. ADDRESS GROSS BUILDABLE SF SALE PRICE SALE PRICE PER BUILDABLE SF 69 CLINTON STREET 6,705 SF $8,800,000 $1, RIVINGTON STREET 15,475 SF $16,100,000 $1, STANTON STREET 6,700 SF $4,900,000 $ SUFFOLK STREET 7,425 SF $7,600,000 $1, GRAND STREET* 11,900 SF $6,000,000 $ *In contract

141 Chrystie Street New York, NY

141 Chrystie Street New York, NY Prime Lower East Side Development Opportunity 18,950 Maximum Buildable SF 140 Broadway New York, NY 10005 it s who you know www.gfirealty.com great development opportunity