Newest LichtensteinRE Exclusive Development Site for Sale 2762 Morris Avenue, Bronx NY 10468

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1 Newest LichtensteinRE Exclusive Development Site for Sale 2762 Morris Avenue, Bronx NY Page 1 of 39

2 Page 2 of 39

3 Property Introduction LichtensteinRE is Proud to Introduce its Newest Exclusive Property for Sale 2762 Morris Avenue, Bedford Park Bronx, NY, LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 3 of 39 AL@LichtensteinRE.com (800)

4 analysis FINANCIAL ANALYSIS Page 4 of 39

5 $49 PBSF 2762 Morris Avenue Bronx Development Make a Huge Profit. Bargain Opportunity to the Right Buyer. 1 Family Home Here Now. Delivered Vacant Unique Chance for Ready Profitable Development. 13,190 Square Foot Buildable As of Right Residential. FOR SALE: Seller will Accept all Cash: $650,000 ONLY Compare this to Broker Opinion of Value: $750, = GRM Gross Income Multiplier Projected After Buyer Buys, Develops, and Rents $38,235 = Price Per Unit Projected After Buyer Buys, Before Demo & Construction $49 $42 Price Per Maximum Usable Buildable Square Footage and Air Rights as Residential Building Price Per Maximum Usable Buildable Square Footage and Air Rights as Residential Building Plus Optional Community Facailty. Current Home On Lot of subject property 2762 Morris Ave See 2776 Morris Ave 2 doors north. This is an example of similar size lot successfully developed. They built an 8 Story, 15 Unit Elevator Apartment Building Projected Profit ROI Profit Potential to demo, build, rent up & sell as an ordinary 17 Family Plus Optional Community Facility $2,611, % market rate rental development. G5 Profit Potential to demo, build, rent up & sell as an ordinary 17 Family WITHOUT Optional Community $1,569,544 89% Facility market rate rental development. H5 7.72% Cap Rate Projected Upon Completion (CASH OUT) = Cash Equity Required to Own Over And Above Proposed Takeout Permanent Mortgage ($89,018) Financing After Building is Built & Rented Up: (Projected Estimate Based On Above Information Before Closing Costs, Capital Improvements, and prepayment penalty if applicable, etc. Subject to Change & Error) True Initial Cash On Cash Return on Equity Investment Including Net Income PLUS Amortization Principal Reduction After Property Is Built & Rented:: (NOIADS Plus Amortization Principal Reduction) Divided by Investment) (Projected Estimate Based On Above Information Before Closing Costs, Capital Improvements, and Prepayment Penalty, If Applicable, etc. Subject to Change & Error) Square Feet Subject Property Address Being Sold, Location and Description Property Address: 2762 Morris Avenue Neighborhood: Bedford Park Section of City, State, Zipcode: Bronx, New York Location: (Cross Streets East 196th Street & East 198th Street ) Block & Lot # Block:3318 Lot: 76 Description: Property Consists of an existing 2,055+/- square foot 2 story residential home being delivered vacant. Proposed Construction of up to maximum 17 Residential Apartments building with up to 13,190 Buildable Square Feet. Page 1 of 10

6 CERTIFICATE OF OCCUPANCY INFORMATION: Property constructed before certificates of occupancy was required. There is no c of o and no "I" cards on record with NYC DOB. Property and Land Lot Size, Square Footage, Zoning, etc. G) 17 Zoning District: R8 Square Footage Feet Wide Width E-Designation: None Historic District: None Landmark: None Feet Deep Depth Address of Property Lot Lot Size Land Square Footage & Land Dimensions: 2, Morris Avenue Block: 3318 Lot: 76 Maximum Allowed FAR: 6.02 Existing FAR As Built: 0.94 R8 Zoning District Dwelling Unit Factor 680 * Projected Maximum Potential USABLE Rentable/Saleable Actual Size of All Floor Area Square Feet including balconies including buildable FAR Air Rights after Loss Factor If Building Were Demolished And Built New From the Ground Up: 11,342 Maximum # of Buildable Units Limited by Dwelling Unit Factor If Buyer Demolishes & Builds Maximum as of right Community USABLE FAR after Closing Assuming Each Unit is * Source Property Shark (Buyer must verify) Feet Wide Feet Deep * March 22, 2016, the City Council adopted the Zoning for Quality and Square Footage Width Depth Affordability text amendment Minimum Unit Size - ZQA proposed to eliminate unit density limitations and minimum unit sizes for affordable senior housing. Existing Home Base Exterior Square Footage & Building Exterior Dimensions: LOT SIZE LAND SQUARE FOOTAGE & LAND DIMENSIONS: 2, Square Feet 13,188 TOTAL as of right maximum FAR Buildable 86% Maximum Percentage Usable Square Footage After Loss Factors for Hallways, Stairs, etc. NOT INCLUDING BONUSES FOR MECHANICAL SPACES 680 Square Feet The Council modifications establish a minimum unit size of 325 square feet for all affordable senior housing units. Maximum # of Buildable Units Limited by Dwelling Unit Factor Optional Community Facility Medical Center 2,191 Square Feet Usable SF Community Facility on Ground/Cellar Level Square Feet Page 2 of 10

7 Projected Layout of Apartment Units and Estimated Comparable Rentals of Different Unit Sizes: # of Each APARTMENT LAYOUTS: Rent/SqFt/Year Market Value Comparable Quality Rental Apartments Rooms Baths Total # of Rooms Total Monthly Market Value Of Each Apartment Unit Layout Average Usable Square Foot Per Apartment 17 1 Bedroom 1 Bathroom $ $1, TOTAL Apartments Projected Buildable 51 $30,351 Monthly $364,207 Annually 51 TOTAL NUMBER OF ROOMS Projected Apartment Layout Summary: Potential for buyer to construct up to 17 (1 Bedrooms) totalling 51 rooms. Page 3 of 10

8 Proforma Projected Financial Overview Proforma Projected Income If Property Developed & Rental Upon Completion: Usable Square Footage Total # of Apartments RESIDENTIAL INCOME: 17 PROJECTED RENTS UPON CONSTRUCTION & RENTAL 11,342 $364,207 1 Average Rent Per Month $1, Residential Rent Per Square Foot Per Year $32.11 Community Facility Medical Office (Optional this does not have to be built) $35 PSF 2,191 $76,676 1 TOTAL COMMUNITY FACILITY GROSS ANNUAL RENTAL INCOME: 0% 2,191 $76,676 Commercial & Retail Rent Per Square Foot Per Year Square Feet TOTAL GROSS ANNUAL RENTAL INCOME ACTUAL & PROJECTED ALL SOURCES: $440,883 Residential Vacancy & Collection Allowance: -5% ($18,210) Commercial Vacancy & Collection Allowance: -5% ($3,834) EFFECTIVE GROSS INCOME (EGI) After Vacancy & Collection Allowance: $418,839 EXPENSES: (Estimated Ordinary Operating Expenses) Projected Ordinary Operating Expenses Upon Completion of Rental: (Excluding Capital Expenses & Improvements) * Real Estate Taxes Projected assuming buyer/builder obtains 421A Real Estate Tax Abatement freezing current taxes $2,709 Water & Sewer $0.50 /SF $6,594 Insurance (Actual) $500 /Unit $8,500 Heating Fuel Common Areas: Tenants Will Be Directly Privately Metererd 0 $0 Utilities: Electricity Common Areas: Tenants Will Be Directly Privately Metererd 0 $0 Labor Payroll $4,800 Repair & Maintenance: as per Seller $550 /Unit $9,350 Management Fee (Estimate For New Buyer) 3% $12,565 Residential Replacement Reserves Per/unit/year Underwriting Analysis $200 /Unit $3,400 TOTAL ORDINARY OPERATING EXPENSES: (Estimated) $47,918 Expenses Per Unit Per Year ($2,819) Expenses Per Square Foot Per Year ($4.22) Expenses As Percentage of EGI 11% NOI BDS: The Above Information Before Capital Improvements, and prepayment penalty if applicable etc.) $370,921 A) PRICING METRICS PRICE Seller will Accept All Cash $650,000 B) NET INCOME PROJECTED Before Debt Service Annually: NOI BDS (Based On B) True Value To Efficient Hands On Self Managed Buyers, but not All Lenders, Appraisers will value it based on the following: NET INCOME PROJECTED Before Debt Service Annually: NOI BDS NOI BDS: (Based On The Above Information Before Capital Improvements, and prepayment penalty if applicable etc.) $370,921 B) Add Back Vacancy, Collection, TILC, Replacement Reserves & Management Fee $38,009 B) NET INCOME CURRENT PROJECTED (Estimate Based On Above Information Before Closing Costs, Capital Improvements, and prepayment penalty if applicable etc.) Proforma Projected Income If Property Developed Upon Completion & Rental: $35.00 $408,930 Page 4 of 10

9 PROJECTED RESALE VALUE UPON COMPLETION OF DEVELOPMENT, RENTAL & RESALE: NET INCOME PROJECTED Before Debt Service Annually: NOI BDS NOI BDS: (Based On The Above Information Before Capital Improvements, and prepayment penalty if applicable etc.) $370,921 C) Cap Rate: Projected Resale Value Upon Completion of Construction Development(All Cash Purchase Cash On Cash Return On Investment): (Projected Estimate Based On Above Information Before Closing Costs, Capital Improvements, and prepayment penalty if applicable etc.) 5.0% $7,418,416 Projected Upon Development GRM = Gross Rent Multiplier Projected Upon Development Price Per Unit 17 $436,377 Projected Upon Development Price Per Square Foot 15,379 $482 Page 5 of 10

10 D2) G4) PROPOSED TAKEOUT PERMANENT FINANCING UPON COMPLETION OF CONSTRUCTION AND RENTAL including optional community facility: (Subject to lender approval & closing.) Optional Possible FINANCING offered via 1% MORTGAGE BROKER FEE to ANDREW LICHTENSTEIN, INC. after construction and rent up. 10 Year US Treasury Index Yield 2.72% As of Date: 2/1/2018 subject to change until rate locked. Spread 2.14% FIXED INTEREST RATE: 4.86% FIXED FOR 10 YEARS WITH 30 YEAR AMORTIZATION SCHEDULE Amortization Schedule in Years 30 A $4,896,155 Projected As Completed Property Value as Stabilized Rental: $7,418,416 LTV (Estimated Based on Cap Rate PROJECTED RESALE VALUE, & I&E Above): 66% ($4,807,136) NOI BDS: $370,921 D2) DS: First Mortgage Projected Takeout Permanent Financing After Construction and Rent Up Proposed by Mortgage Broker Andrew Lichtenstein, Inc. Cost Basis Purchase Price Plus (G3) Hard & Soft Cost of Ground-Up Construction, before closing costs NET INCOME PROJECTED Before Debt Service Annually: NOI BDS (Based On The Above Information Before Capital Improvements, and prepayment penalty if applicable etc.) Debt Service Principal & Interest Payments Annually: (Projected Estimate Subject to Rate Lock, Changing Rates, Terms, Withdrawal & Error) ($310,396) Rate Constant: [Formula: Annual Debt Service P & I Divided By Mortgage Amount Borrowed] 6.34% DSCR = Debt Service Coverage Ratio [Formula: NABDS/Annual Debt Service] (1.19) Debt Yield: [Formula: NABDS/Lender's Proposed First Mortgage] 7.58% LTV (Estimated Based on Cap Rate PROJECTED RESALE VALUE, & I&E Above): 66% NET INCOME PROJECTED AFTER DEBT SERVICE From Proposed New Financing: NOI ADS: (Projected Estimate Based On Above Information Before Closing Costs, Capital Improvements, and prepayment penalty if applicable etc. Subject to Rate Lock, Changing Rates, Terms, NOI ADS: Withdrawal & Error) $60,525 Cash Equity Required to Own Over And Above Proposed Takeout Permanent Mortgage Financing After Building is Built & Rented Up: (Projected Estimate Based On Above Information Before Closing Costs, Capital Improvements, and prepayment penalty if applicable, etc. Subject to Change D2) DS: & Error) ($89,018) ROI: Initial Cash On Cash Return on Investment With Proposed New Financing After Property Is Built & Rented:(Cash Flow Divided by Equity Investment) D2) ROI: Penalty If Applicable etc. Subject to Change & Error) D2)Amort. Add Back Principal Reduction Amortization Equity Buildup: $74,078 TRUE INITIAL TOTAL RETURN: NOIADS PLUS AMORTIZATION PRINCIPAL REDUCTION From DEBT SERVICE: (Projected Estimate Based On Above Information Before Closing Costs, Capital Improvements, and Prepayment Penalty If Applicable, etc. Subject to Rate D2) $134,603 Lock, Changing Rates, Terms, Withdrawal & Error) True Initial Cash On Cash Return on Equity Investment Including Net Income PLUS Amortization Principal Reduction After Property Is Built & Rented:: (NOIADS Plus Amortization Principal Reduction) Divided by Investment) (Projected Estimate Based On Above Information Before Closing Costs, Capital Improvements, and Prepayment Penalty, If Applicable, etc. Subject to D2) ROE: Change & Error) CASH OUT, NO CASH EQUITY invested AFTER REFINANCING completed constructed rented building Page 6 of 10

11 E) E) True Value To Efficient Hands On Self Managed Buyers, but All Lenders, Appraisers will not value it based on the following: NET INCOME AFTER DEBT SERVICE From Proposed New Financing: NOI ADS: (Projected Estimate Based On Above Information Before Closing Costs, Capital Improvements, and prepayment penalty if applicable etc. Subject to Rate Lock, Changing Rates, Terms, Withdrawal & NOI ADS: Error) $60,525 Add Back Vacancy, Collection Loss, Replacement Reserves, TILC and 5% Management Fee E1,E2&E3) $38,009 D2)Amort. Add Back Principal Reduction Amortization Equity Buildup: $74,078 TRUE INITIAL TOTAL RETURN: NOIADS PLUS ADD BACK VACANCY, COLLECTION LOSS, REPLACEMENT RESERVES, 5% MANAGEMENT FEE PLUS AMORTIZATION PRINCIPAL REDUCTION From DEBT SERVICE: (Projected Estimate Based On Above Information Before Closing Costs, Capital Improvements, and Prepayment Penalty If Applicable, etc. Subject to Rate Lock, E4) $172,613 Cash Equity Required to Buy Over And Above Proposed New Financing Herein: D2) DS: (Projected Estimate Based On Above Information Before Closing Costs, Capital Improvements, and prepayment penalty if applicable, etc. Subject to Change & Error) ($89,018) E5) ROE: Changing Rates, Terms, Withdrawal & Error) True Initial Cash On Cash Return on Equity Investment Including Net Income After Debt Service PLUS Add Back Vacancy Allowance, Collection Loss, Replacement Reserves, TILC, 5% Management Fee Plus Amortization Principal Reduction From Debt Service: (NOIADS Plus Amortization Principal Reduction) Divided by Investment) (Projected Estimate Based On Above Information Before Closing Costs, Capital Improvements, and Prepayment Penalty, If Applicable, etc. Subject to Change & Error) CASH OUT, NO CASH EQUITY invested AFTER REFINANCING completed constructed rented building Page 7 of 10

12 G) G1) POTENTIAL VERTICAL DEVELOPMENT ALL FAR AIR RIGHTS NEW BUILDABLE SQUARE FOOTAGE ON VACANT LAND INCLUDING OPTIONAL COMMUNITY FACILITY: PROJECTED NET INCOME IF PROPERTY IS CONSTRUCTED Including Optional Community Facility Before Debt Service Annually: NOI BDS plus total projected number of apartments: NOI BDS: (Based On The Above Information Before Capital Improvements, and prepayment penalty if applicable etc.) 17 $370,921 Projected Capitalized Future Potential Resale Value of Property Upon Buyers G2) Completion of Ground-up After Closing: 5.00% $7,418,416 Optional Excavation of Bedrock & Demolition of Home ESTIMATED COSTS??? ($400,000) Minus Estimated Hard & Soft Construction Costs to Build Optional Community Facility SF x $PSF: Gross Buildable Square Feet Minus Estimated Hard $175 & $75 Soft Construction Costs to Build SF x $PSF: 2,191 $210 ($460,058) G3) Gross Buildable Residential Square Feet 13,188 $250 ($3,297,079) Minus PRICE Seller will Accept All Cash $650,000 ($650,000) Cost Basis Purchase Price Plus (G3) Hard & Soft Cost of Ground-up Construction, before G4) closing costs ($4,807,136) Projected Profit Assuming Construction of Unused FAR if resold at Projected Value Upon G5) Completion of Construction: G2 - G4 = G6) Estimated Cash Investment Required if Buyer Builds With 40% of Project Cost Basis In $2,611,280 40% Cash and Borrows 60% LTC New Construction Financing Mortgage: ($1,922,855) G7) Projected Cap Rate Upon Completion: Projected GRM Gross Rent Multiplier Upon Completion: (Cost Basis to Complete Divided by Gross Rent Roll including optional community facility): 7.7% 10.9 Projected Return On Investment Projected Resale Upon Completion of Buildup & G9) Rentup: (G5/G6) = % Page 8 of 10

13 H) G1) POTENTIAL VERTICAL DEVELOPMENT ALL FAR AIR RIGHTS NEW BUILDABLE SQUARE FOOTAGE ON VACANT LAND WITHOUT OPTIONAL COMMUNITY FACILITY: PROJECTED NET INCOME IF PROPERTY IS CONSTRUCTED WITHOUT OPTIONAL COMMUNITY FACILITY Before Debt Service Annually: NOI BDS plus total projected number of apartments: (Based On The Above Information Before Capital Improvements, and prepayment penalty if applicable etc.) NOI BDS: 17 $298,078 Projected Capitalized Future Potential Resale Value of Property Upon Buyers H2) Completion of Ground-up After Closing: 5.00% $5,961,567 Optional Excavation of Bedrock & Demolition of Home ESTIMATED COSTS??? ($400,000) Minus Estimated Hard & Soft Construction Costs to Build Optional Community Facility SF x $PSF: Gross Buildable Square Feet Minus Estimated Hard $175 & $75 Soft Construction Costs to Build SF x $PSF: 0 $210 $0 H3) Gross Buildable Residential Square Feet 13,188 $250 ($3,297,079) Minus PRICE Seller will Accept All Cash $650,000 ($650,000) Cost Basis Purchase Price Plus (H3) Hard & Soft Cost of Ground-up Construction, before H4) closing costs ($4,392,023) Projected Profit Assuming Construction of Unused FAR if resold at Projected Value Upon H5) Completion of Construction: H2 - H4 = $1,569,544 H6) Estimated Cash Investment Required if Buyer Builds With 40% of Project Cost Basis In 40% Cash and Borrows 60% LTC New Construction Financing Mortgage: ($1,756,809) H7) Projected Cap Rate Upon Completion: 6.8% Projected GRM Gross Rent Multiplier Upon Completion: (Cost Basis to Complete Divided by Gross Rent Roll WITHOUT H8) 12.1 optional community facility): Projected Return On Investment Projected Resale Upon Completion of Buildup & Rentup: (G5/G6) = H9) 89.34% Page 9 of 10

14 Highlights, Notes, Remarks, Comments, Conditions and Some Known Violations: Valuable desirable location. Possibility to construct Multifamily building with up to 17 residential apartments. Fantastic Block only 2 blocks to subway. Several brand new successfully developed new buildings on this block. Violations: A Class HPD Housing Violations: 0 Buyer must obtain its own title report with full departmental searches. As of Date: B Class HPD Housing Violations: 0 1/31/2018 C Class HPD Housing Violations: 0 I Class HPD Housing Violations: 0 Total Number of HPD Housing Violations: 0 # of Open DOB Department of Building Violations: # of Open ECB Environmental Control Board Violations: 7 # of Open Complaints: Seller's Required Terms and Conditions of Sale: All Cash. Unconditional agreement of sale to be signed by buyer upon completion of buyer s due diligence with 10% non-refundable deposit closing in As Is condition, subject to any and all violations, without any contingencies except good marketable insured title at closing. Buyer must sign Broker ALI's Buyer Registration NCCFA Non-Circumvention and Conditional Andrew Lichtenstein, Inc. 1% Financing brokerage Agreement and if Buyer requires property inspection and receipt of confidential seller due diligence this shall be made available to only bona fide buyer who first submits letter of intent offer to buy satisfactory to Seller "subject to satisfactory property inspection and due diligence that includes Buyer's proof of cash funds for the required equity over proposed mortgage financing." Contact Seller's Exclusive Broker ONLY: Andrew Lichtenstein (800) AL@LichtensteinRE.com Do Not circumvent Broker. No site access without Broker appointment. Cooperating Buyer's Broker will be paid 25% of the fee received from Seller by Broker ALI. (Fee Currently Set at 6%) This opportunity is limited and restricted to a single Institution or Accredited Investor. The statements, figures and information including financial analysis regarding this opportunity, business, affiliates, or affiliated matters or any of the numbers or of any economic value attributable to the subject investment et al etc. herein or provided hereafter at all times are received from sources believed to be reliable and authoritative, but no representation, warranty, or guarantee is made, express or implied or is to be relied upon, as to its accuracy, correctness or completeness and all is subject to errors, inaccuracies, omissions, withdrawal, cancellation, modification, constantly changing conditions, price, terms, rate, availability, prior sale, lease, rental, occupancy, vacancy, collection, arrears, approval, closing, financing, placement or other conditions, etc. all without notice and we hereby disclaim any duty or obligation to update such information. As with any real estate or business transaction, the principle of caveat emptor applies, and anyone considering this opportunity must perform their own independent due diligence investigation and personally vet anything related to herein verify all information and bear all risk for any inaccuracies, error, omission etc. Independent estimates of business, financial, investment or economic attributes should be developed with due diligence of and are advised to be represented by legal counsel and independent professionals before any decision is made regarding this. References to square footage or age are approximate, or estimated. This summary is for information only and does not constitute all or any part of an offer or contract. 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15 Comparable Rental Market Study: Address Size Sq Ft Rent/Month Rent/SF/Yr. Source Source of SF 2763 Morris Avenue Apartment #607 Bronx, NY Bedroom 1 bath 600 $1,895 $38 Streeteasy.com SF guess 2763 Morris Avenue Apartment #602 Bronx, NY Bedroom 1 bath 650 $1,985 $37 Streeteasy.com SF guess 2763 Morris Avenue Apartment #602 Bronx, NY Bedroom 1 bath 700 $2,540 $44 Streeteasy.com SF guess 2685 Creston Avenue #3B Bronx, NY Bedroom 1 bath 780 $1,700 $26 Trulia website 2776 Morris Avenue BX NY Bedroom 1 bath 600 $1,350 $27 Trulia website 2785 Creston Avenue 1 Bedroom 1 bath 600 $1,700 $34 HotPads.com website 2707 Creston Ave #6 1 Bedroom 1 bath 600 $1,600 $32 Source: HotPads.com photos online 215 E 197th Street 1 Bedroom 1 bath 650 $1,450 $27 Source: HotPads.com photos online 2698 Morris Avenue #B8 BX NY Condominium 1 Bedroom 1 bath 550 $1,500 $33 Source: HotPads.com photos online 2675 Creston Ave #3H 1 Bedroom 1 bath 780 $1,700 $26 Source: HotPads.com website 2675 Creston Ave #1M 1 Bedroom 1 bath 700 $1,600 $27 Source: HotPads.com website 2989 Marion Avenue #C8 BX NY Bedroom 1 bath 700 $1,595 $27 Source: HotPads.com SF guess 2771 Morris Avenue BX NY Studio 650 $1,800 $33 Source: HotPads.com SF guess 2707 Creston Ave Studio 550 $1,500 $33 Source: HotPads.com SF guess 2675 Creston Ave Studio 650 $1,375 $25 Source: HotPads.com website 2763 Morris Avenue Apartment #905 Bronx, NY Studio 600 $1,660 $33 Streeteasy.com SF guess Sedgewick Avenue Bronx, NY Studio 575 $1,600 $33 Trulia SF guess $31.51 Average Rent/SF/Year Information gathered from internet with square footage estimated by viewing photos online or from data on websites subject to error, change, omission. Page 14 of 39

16 BOV Valuation Comparable Sales Subject Property 1 #1 Comparable Building Sold #2 Comparable Building Sold #3 Comparable Building Sold #4 Comparable Building Sold 4 Addresses of Subject Property and Comparable Building Sales For Appraisal 2762 Morris Avenue 2662 Kingsbridge Terrace 2860 Valentine Avenue Villa Avenue 2306 Grand Avenue Borough Bronx Bronx Bronx Bronx Bronx Neighborhood Fordham Fordham Manor Bedford Park Bedford Park University Heights TOTAL of ALL These SOLD BUILDING Comparables AVERAGE of ALL These SOLD BUILDING Comparables Zipcode Block & Lot # Block:3318 Lot: 76 Block: 3237 Lot: Building Class Two Story Detatched (Small Moderate Size, with or without attic) A1 Two Story Detatched (Small Moderate Size, with or without attic) A1 Vacant Land - Zoned Residential, Except Not Manhattan Below 110 St (V0) Vacant Land - Zoned Residential, Except Not Manhattan Below 110 St (V0) Vacant Land - Zoned Residential, Except Not Manhattan Below 110 St (V0) Date Closed FOR SALE NOW /24/2017 4/7/ /19/2017 Distance Miles to Subject Property Gross ACTUAL BUILT USABLE Square Footage 2,055 3, , PRICE SOLD FOR SALE NOW $600,000 $353,694 $1,465,000 $375,000 $2,793,694 $698,424 Year Built FOR SALE NOW 1901 Building Built Feet Deep Depth Building Dimensions ft x ft 19Ft. x 45Ft Building Built Feet Wide Width Frontage # of Commercial or Retail Units FAR as Built # of Stories High Corner Lot? Yes or No No NO No No NE Lot Size Land Area Square Footage 2,191 4,132 2,481 6,087 2,500 15,200 3,800 Lot Depth Feet Lot Dimensions 23Ft. x 95.25Ft Ft. X 161 Ft. 25 ft x ft 50 ft x 121 ft 25 ft x 100 ft Lot Wide Width Frontage Feet Zoning R8 R6 R7B, R5B, C1 3 R8, C R7 1 Photos Total # of Units Maximum Allowed FAR Maximum Potential Available Buildable Usable SF FAR Air Rights (Ignoring existing structure) Price Sold $/FAR Per Each Total Buildable Square Foot(Ignoring existing structure) 13,190 10,041 7,443 36,444 8,600 62,528 15,632 FOR SALE NOW $60 $48 $40 $44 $47.77 Unused Buildable Square Footage FAR 11,135 6,529 7,443 36,444 8,600 59,016 14,754 Source: Public Records, CoStar, PropertyShark, Loopnet, etc. Notice: This is NOT an appraisal. Broker is not a licensed appraiser. This is a BOV Broker Opinion of Value using comparable sales research and appraisal methodologies to determine the broker's conclusion of what the maximum possible sales value might be in an ideal market if owner signs broker's exclusive sales agreement for broker to professionally market the property for sale. Page 15 of 39

17 2 V1 V2 = = VALUATION METHODOLOGIES: $PSF Valuation of Subject Property: Price Per Buildable Square Foot Based on Actual Comparables Sold for Development In This Report Subject Property Max Buildable SF: 13,190 13,190 Comparable Market Value Indexes: A:$ Per Existing Sq.Ft Land.; B:$ Per Max Buildable SF; Subject Property Appraisal BOV $PSF Valuation of Subject Property: Price Per Buildable Square Foot Based on Comparable ArielPA Market Survey 2nd Quarter 2017 All Bronx Areas: $48 $65 CONCLUSION: Value of Subject Property Based On Average of the All These Valuation Methodologies V1 & V2 & V3: Broker Opinion of Value 2762 Morris Avenue Bronx, NY Valuations: $630,073 $857,338 $743,706 $750,000 Price Per Square Foot Land $339 $342 Price Per Buildable Square Foot Land $56.38 $57 Source: Public Records, CoStar, PropertyShark, Loopnet, etc. Notice: This is NOT an appraisal. Broker is not a licensed appraiser. This is a BOV Broker Opinion of Value using comparable sales research and appraisal methodologies to determine the broker's conclusion of what the maximum possible sales value might be in an ideal market if owner signs broker's exclusive sales agreement for broker to professionally market the property for sale. Page 16 of 39

18 description PROPERTY DESCRIPTION Page 17 of 39

19 Property Description - Property Overview Block & Lot Zoning R8 Neighborhood Bedford Park LOT LOT sqft 2,191 LOT Shape Regular LOT Dimensions 23ft x 29.25ft FAR (Floor Area Ratio) Residential FAR 6.02 Facility FAR 6.5 FAR as Built 0.94 Allowed Usable Floor Area 13,190 LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 18 of 39 AL@LichtensteinRE.com (800)

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21 Property Description Only $49.30 PBSF per buildable square foot. This is a true bargain compared to $68+- PBSF sites being sold today. The buyer developer can build up to 17 apartments plus optional 2,190 sq ft community facility on this desirable location. Only 2 blocks to Grand Concourse, shopping, and subway. Amazing location. Wonderful block. Amazing profit potential. LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 20 of 39 AL@LichtensteinRE.com (800)

22 Property Description 2776 Morris Avenue, a new property just built in 2012 on similar lot only two lots north of subject property. A well known and established developer built this 8 story, 15 residential units totaling 14,459 square foot elevator apartment building on a very similar lot to the subject one offered by LichtensteinRE. The property was built 25 ft. by ft. and sits on a 25 ft. by ft. lot (block: 3318 lot: 79). The building contains 14 1 bedroom and 1 studio apartment. The average unit size is 964 sq. ft. LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 21 of 39 AL@LichtensteinRE.com (800)

23 Property Location Rentals available nearby the subject property 2763 Morris Avenue #905 Bronx, NY Studio 1 Bathroom FOR RENT $1,660/month Sedgwick Avenue, Bronx, NY Studio 1 Bathroom FOR RENT $1,600/ month 2685 Creston Avenue #3B Bronx, NY Bedroom 1 full Bathroom FOR RENT $1,700/month 2763 Morris Avenue #607 Bronx, NY Bedroom 1 Bathroom FOR RENT $1,895/month 2763 Morris Avenue #602 Bronx, NY Bedroom 1 Bathroom FOR RENT $1,985/month 2763 Morris Avenue #1003 Bronx, NY Bedroom 1 l Bathroom FOR RENT $2,540/month LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 22 of 39 AL@LichtensteinRE.com (800)

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25 location PROPERTY NEIGHBORHOOD The Property is located in Bedford Park, Bronx, NY. Page 24 of 39

26 Property Location The Property is located in Bedford Park LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 25 of 39 (800)

27 Property Location The Property is located in Bedford Park Bedford Park is a residential neighborhood in the northwest Bronx between the New York Botanical Garden and Lehman College. Its boundaries, starting from the north and moving clockwise are: Mosholu Parkway to the north, Webster Avenue to the east, East 198th Street to the south, and Goulden Avenue to the west. The Grand Concourse is the primary thoroughfare through Bedford Park. The IND Concourse and IRT Jerome Avenue Lines of the New York City Subway serve the area. Zip codes include and The neighborhood is part of Bronx Community District 7. The area is patrolled by the 52nd Precinct located at 3016 Webster Ave in the Norwood section of the Bronx. LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 26 of 39 AL@LichtensteinRE.com (800)

28 Property Location In a very desirable block on Morris Avenue LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 27 of 39 AL@LichtensteinRE.com (800)

29 Property Location Luxury rental building right across the street of the development land in 2763 Morris Avenue LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 28 of 39 (800)

30 Property Location Bronx s quiet Bedford Park enclave gets an 11-story luxury rental building (Article published in Curbed New York, July 31, 2017) The Bronx is becoming home to many new developments throughout its various neighborhoods and the development boom isn t showing any signs of slowing down. One of the latest developments to take shape is an 11-story rental building at 2763 Morris Avenue in Bedford Park. The luxury project is being touted as the first of its kind for the neighborhood, which historically has been considered a peaceful enclave full of historic tenements and row houses. Developed by Alex and Eric Berkovich of Universal Contracting, the project has introduced a residential building that boasts modern urban living in this lesser known section of the Bronx, designed by James McCullar Architecture with interiors by Ana Monasher. The building offer 75 apartments and is a mix of primarily one- and two-bedrooms with just a few studios sprinkled in. The individual units aren t laden with over-the-top finishes but does offer subtle elegance that includes open floor plans, contemporary kitchens with subway tile backsplashes, high ceilings, oversized windows, and central air conditioning/heating. The views are pretty stunning as well, looking out onto the New York Botanical Gardens, Fordham University, and the Manhattan skyline. As for building amenities, 2763 Morris Avenue offers those that are typical of most new buildings these days. There is a part-time doorman, fitness center, a laundry room, a tenant s lounge, bicycle storage, and a 9th floor sun terrace. There are currently six apartments that are up for grabs, with a studio that s asking $2,285/month; one-bedrooms asking from $1,755 to $2,540/month; and two-bedrooms that are renting between $2,075 to $2,310/month. LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 29 of 39 AL@LichtensteinRE.com (800)

31 Property Location Only (2) Two blocks from the B, D and 4 Trains. LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 30 of 39 AL@LichtensteinRE.com (800)

32 Property Location Bx28, Bx1, Bx2, BxM4, Bx34 and Bx38 Bus Stops all Within 3 Blocks LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 31 of 39 AL@LichtensteinRE.com (800)

33 Property Location Shopping around the corner LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 32 of 39 (800)

34 Property Location Off Grand Concourse LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 33 of 39 (800)

35 Property Location Near the Botanical Garden LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 34 of 39 (800)

36 Property Location Near Frodham University and Lehman College LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 35 of 39 (800)

37 Property Location Near the Kingsbridge Armory, soon to be the country s largest ice skating complex. LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 36 of 39 AL@LichtensteinRE.com (800)

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39 Disclaimer Seller s Required Terms and Conditions of Sale: All Cash. Unconditional agreement of sale to be signed by buyer upon completion of buyer s due diligence with 5% to 10% non-refundable deposit closing in As Is condition, subject to any and all violations, without any contingencies except good marketable insured title at closing. Buyer must sign Broker ALI s Buyer Registration NCCFA Non-Circumvention and Conditional Optional Andrew Lichtenstein, Inc. 1% Financing brokerage Agreement. Contact Seller s Exclusive Broker ONLY: Andrew Lichtenstein (800) AL@LichtensteinRE.com Do Not circumvent Broker. No site access without Broker appointment. LichtensteinRE Andrew Lichtenstein Inc., Licensed Broker 5770 Palisade Avenue Riverdale, NY, Page 38 of 39 AL@LichtensteinRE.com (800)

40 Disclaimer This opportunity is limited and restricted to a single Institution or Accredited Investor. The statements, figures and information including financial analysis regarding this opportunity, business, affiliates, or affiliated matters or any of the numbers or of any economic value attributable to the subject investment et al etc. herein or provided hereafter at all times are received from sources believed to be reliable and authoritative, but no representation, warranty, or guarantee is made, express or implied or is to be relied upon, as to its accuracy, correctness or completeness and all is subject to errors, inaccuracies, omissions, withdrawal, cancellation, modification, constantly changing conditions, price, terms, rate, availability, prior sale, lease, rental, occupancy, vacancy, collection, arrears, approval, closing, financing, placement or other conditions, etc. all without notice and we hereby disclaim any duty or obligation to update such information. As with any real estate or business transaction, the principle of caveat emptor applies, and anyone considering this opportunity must perform their own independent due diligence investigation and personally vet anything related to herein verify all information and bear all risk for any inaccuracies, error, omission etc. Independent estimates of business, financial, investment or economic attributes should be developed with due diligence of and are advised to be represented by legal counsel and independent professionals before any decision is made regarding this. References to Size, square footage, or age are approximate, or estimated, zoning, calculations, and projections are made on best efforts basis and should not be relied upon and must be verified independently. This summary is for information only and does not constitute all or any part of an offer or contract. 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