15-17 EAST 16TH STREET RETAIL CO-OP

Transcription

1 INVESTMENT OPPORTUNITY EAST 16TH STREET RETAIL CO-OP FLATIRON DISTRICT/UNION SQUARE NEW YORK RKF INVESTMENT SALES & ADVISORY SERVICES

2 2 RKF INVESTMENT SALES & ADVISORY SERVICE HAS BEEN EXCLUSIVELY RETAINED FOR THE SALE OF THE RETAIL SPACE AT EAST 16TH STREET. INVESTMENT HIGHLIGHTS 5,679-SF commercial unit with Ground Floor, Mezzanine and Lower Level Prime street connecting Flatiron District and Union Square One of Manhattan s most dynamic retail markets Short-term Sale-Leaseback will be considered Favorable Tax Class 2 FOR MORE INFORMATION PLEASE CONTACT GEORGE MARTINECZ Associate gmartinecz@rkf.com BRIAN SEGALL Senior Managing Director bsegall@rkf.com RKF INVESTMENT SALES & ADVISORY SERVICES 521 Fifth Avenue, Floor 7, New York, NY T F info@rkf.com 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.

3 3 PROPERTY OVERVIEW East 16th Street is a retail cooperative conveniently located between Fifth Avenue and Union Square West. The elegant pre-war loft building features 30-FT of glass frontage beneath a striking limestone arch flanked by ornate and detailed carvings. The storefront is built out for a luxury home furnishings showroom for which side streets in the Flatiron District have become known. Dramatic ceiling heights on the Ground Floor eclipse 20-FT and complement the easily accessible Mezzanine and Lower Level, which can be utilized as additional merchandising floors. The open layout lends itself to a variety of uses and can be easily modified to suit a gallery, design showroom or Ground Floor office space. A prospective purchaser of the co-op will assume ownership of six shares in the corporation. The retail unit is currently owner-occupied and a sale-leaseback of the property will be considered. PROPERTY DETAILS ADDRESS 15 East 16th Street BLOCK/LOT TENANT Country Floors RETAIL AREA 5,679 SF GROUND FLOOR 3,417 SF LOWER LEVEL 1,943 SF MEZZANINE 319 SF MAINTENANCE (PROJ. 2019) $122,299 TAX CLASS 2 ZONING C6-2A CO-OP SHARES 6 CEILING HEIGHT (GROUND FLOOR) 20 FT FRONTAGE 30 FT USE GROUP 6 PROHIBITED USES Food/Restaurant, Fitness, Clinic, Spa, Pets

4 4 FLOOR PLANS GROUND FLOOR 30 FT MEZZANINE LOWER LEVEL 3,417 SF 319 SF 1,943 SF

5 5 MARKET OVERVIEW The concept of live-work-play is rooted in Flatiron District/Union Square. Value in this centrally-located area is driven by high-end residential development, technology and media company headquarters and contemporary retailers alongside national brands. The 14th Street/Union Square subway station is the fourth busiest in the city, serving approximately 35 million riders annually on seven different train lines. New York University students and staff flock to the park and surrounding side streets as an extension of the campus. Students living in Carlyle Court, the school s dormitory on East 16th Street, frequent the surrounding storefronts and experiential retail concepts. Tenants like Whole Foods Market, Paragon Sports, and Barnes & Noble are complemented by New York City s world-famous Union Square Greenmarket, where vendors sell produce, meats, baked goods and other artisanal foods in an electric outdoor market. Weekend foot traffic is buoyed by a national retail corridor on Fifth Avenue in the Flatiron District. East 16th Street is the most active thoroughfare connecting these two vibrant and interconnected submarkets. A limited supply of quality retail space on Flatiron District side streets has kept vacancy low and rents high.

6 IRVING PLACE 6 AREA MAP EAST 19TH STREET Scampi EAST 18TH STREET Venchi Rothmans PARK AVENUE SOUTH Boucherie CVS pharmacy Fraiche Maxx EAST 17TH STREET Irvington EAST 16TH STREET EAST 16TH STREET Kindbody EAST 15TH STREET UNION SQUARE PARK Daryl Roth Theater EAST 14TH STREET Fit Hub N Q R W NOTABLE LEASE TRANSACTIONS ADDRESS TENANT APPROXIMATE SIZE DEAL RENT DATE 108 FIFTH AVENUE Southwest corner of East 16th Street Bandier Ground Floor Lower Level Total 2,300 SF 3,000 SF 5,300 SF $787,500 per annum NNN $250,000 Tenant Allowance 8.5 Year Sublease 4 Months Free FIFTH AVENUE West block between West 18th and West 19th Streets Sleep Number Ground Floor Lower Level Mezzanine Total 3,650 SF 3,650 SF 350 SF 7,650 SF $1,150,000 per annum NNN $370,000 Taxes BROADWAY West block between East 17th and 18th Streets Bulletin Ground Floor Basement Total 1,440 SF 1,200 SF 2,640 SF $400 PSF $576,000 per annum 2018

7 7 FINANCIAL OVERVIEW ASSUMPTIONS GROUND FLOOR RENT $150 LOWER LEVEL RENT $25 RENT INCREASE/PER YEAR 3% PROJECTED STABILIZATION COSTS LEASING COMMISSIONS $202,005 DOWNTIME $280,563 FREE RENT $140,281 DOWNTIME FREE RENT 6 Months 3 Months TOTAL LEASING COSTS $622,849 LEASING COMMISSION 36% PROJECTED CASH FLOW RENTAL REVENUE (PROJ.) GROUND FLOOR $512,550 $527,927 $543,764 $560,077 $576,880 LOWER LEVEL $48,575 $50,032 $51,533 $53,079 $54,672 EFFECTIVE GROSS REVENUE $561,125 $577,959 $595,298 $613,156 $631,551 OPERATING EXPENSES CO-OP MAINTENANCE (PROJ.) $122,299 $125,968 $129,637 $133,306 $136,975 MANAGEMENT FEE (PROJ.) $10,251 $10,559 $10,886 $11,174 $11,481 TOTAL EXPENSES $132,550 $136,527 $140,503 $144,480 $148,456 NET OPERATING INCOME $428,575 $441,432 $454,794 $468,677 $483,095