GREENWICH STREET HOTEL + RETAIL ASKING PRICE SUBMIT PROPOSALS

Transcription

1 102 GREENWICH STREET HOTEL + RETAIL ASKING PRICE SUBMIT PROPOSALS

2 Offering Memorandum Disclaimer JAMES NELSON Vice Chairman (212) WILL SUAREZ Senior Director (212) MAURICE SUEDE Associate Director (212) SEAN RUCKER Associate (212) This offering was prepared by Cushman & Wakefield and has been reviewed by the Owner. It contains select information pertaining to the Property and does not purport to be allinclusive or to contain all of the information which a prospective purchaser may desire. Financial projections shall not be relied upon, are provided for general reference purposes only, and are based on assumptions relating to the general economy, competition, and other factors beyond control and, therefore, are subject to material change or variation. Actual results will differ from those projected. An opportunity to inspect the Property will be made available to qualified prospective purchasers. In this Offering, certain documents, including the leases and other materials, are described in summary form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents. This Offering is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by Cushman & Wakefield or Owner. Each prospective purchaser is to rely solely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein. Owner and Cushman & Wakefield expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any party at any time with or without notice. Owner shall have no legal commitment or obligation to any purchaser reviewing this Offering or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by Owner and any conditions to Owner s obligations thereunder have been satisfied or waived. Cushman & Wakefield is not authorized to make any representations or agreements on behalf of Owner. This Offering is the property of Cushman & Wakefield and may be used only by parties approved by Cushman & Wakefield. The Property is privately offered and, by accepting this Offering, the party in possession hereof agrees (i) to return it to Cushman & Wakefield immediately upon request of Cushman & Wakefield or Owner and (ii) that this Offering and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Cushman & Wakefield and Owner. Your obligations to keep the Evaluation Material confidential shall not include information that: (i) is or becomes publicly available other than as a result of acts by you or your Representatives in breach of this agreement; or (ii) on your counsel s advice must be disclosed pursuant to law or a subpoena or other court order, but only to the extent specified in such subpoena or court order; provided prior to complying with any such order you shall give written notice to us that such demand has been made upon you and to the extent not legally prohibited you shall provide us with an opportunity to contest any such direction or order. The terms and conditions set forth above apply to this Offering in its entirety. The sale does not include the Riff Brand Cushman & Wakefield. The material in this presentation has been prepared solely for information purposes, and is strictly confidential. Any disclosure, use, copying or circulation of this presentation (or the information contained within it) is strictly prohibited, unless you have obtained Cushman & Wakefield s prior written consent. The views expressed in this presentation are the views of the author and do not necessarily reflect the views of Cushman & Wakefield. Neither this presentation nor any part of it shall form the basis of, or be relied upon in connection with any offer, or act as an inducement to enter into any contract or commitment whatsoever. NO REPRESENTATION OR WARRANTY IS GIVEN, EXPRESS OR IMPLIED, AS TO THE ACCURACY OF THE INFORMATION CONTAINED WITHIN THIS PRESENTATION, AND CUSHMAN & WAKEFIELD IS UNDER NO OBLIGATION TO SUBSEQUENTLY CORRECT IT IN THE EVENT OF ERRORS. 2 nyinvestmentsales.com

3 Table of Contents Property Description... 4 Neighborhood Map...6 Floor Plans...10 Market Overview & Attractions...14 Due Diligence Cushman & Wakefield 3

4 Property Description Cushman and Wakefield has been retained on an exclusive basis to arrange for the sale of 102 Greenwich Street, The newly developed Riff Hotel consisting of 36 rooms over four above floors, as well as 1 retail space consisting of approximately 3,200 SF on the ground floor and 2,500 SF in the lower level. The NY Post recently cited as one of New York City s Best New Hotels. The hotel currently has a 24-hour front desk concierge, computer station with printer, and free Wi-Fi. Each guestroom features concrete slab floors, exposed brick walls, and Queen Beds along with amenities such a flat screen televisions with cable, fully appointed kitchenettes, and safes. 20 of the units feature balconies and command a premium nightly rate. Currently, the average daily rate of approximately $188 per night is well below what neighboring hotels command and is set for tremendous growth as new developments are completed including the 9/11 memorial at 88 Greenwich and the Pace University Dorm at 68 Trinity Place. The property is surrounded by the best the area has to offer including Battery Park, the ferries to Ellis Island and Statue of Liberty, Museum of American Finance, and the new World Trade Center and Transportation Center. The property offers an outstanding opportunity for an investor to acquire a prestige asset located in one of the most thriving neighborhoods in all of New York City, where both residential and commercial developments continue to spring up within this small Manhattan enclave that expects over 15 million visitors in Tax Map CARLISLE STREET WASHINGTON STREET GREENWICH STREET RECTOR STREET 4 nyinvestmentsales.com

5 Hotel Portion Block / Lot 53 / 37 Retail Portion 4,664 SF LOT AREA 16,900 SF TOTAL SF 36 ROOMS Air Rights SOLD $129,576 REAL ESTATE TAXES (APPROX.) $1,215,990 R.E ASSESSMENT 50 x 93 LOT DIMENSION 3,200 SF GROUND FLOOR SQUARE FEET 2,500 SF LOWER LEVEL SQUARE FEET 5,700 SF TOTAL SQUARE FEET $30,000 REAL ESTATE TAXES (APPROX.) $30,000 ANNUAL COMMON CHARGES (APPROX.) Asking Price: Submit Proposals Cushman & Wakefield 5

6 Hotel Market Summary Introduction Cushman & Wakefield is pleased to offer the newly developed (grand opening 2016) 36 key RIFF Hotel at 102 Greenwich Street, only two blocks south of the World Trade Center, for sale. In only a few short months, the hotel has been recognized as one of the top new boutique hotels in the City. The NY Post cited the RIFF Downtown as one of New York City s Best New Hotels. It was also highlighted as the fastest growing boutique hotel on Hotel Tonight in Downtown Manhattan. This is a tremendous opportunity for an operator to capitalize on this tremendous momentum as well unlock enormous upside by securing approvals for a roof top food and beverage operation. The RIFF Downtown is being offered at a time when New York City s annual tourism rate is hitting record highs. The over 60 million annual visitors in 2015 generated an estimated $70 billion of tourism related revenue. This tremendous growth in tourism has driven the Manhattan occupancy percentage to a near record level of 87.8% per the most recent PWC Manhattan Lodging Index. Within two blocks of the RIFF Downtown, is the W Hotel, Marriott, and Club Quarters World Trade Center. A Hampton Inn is opening next door, and a Courtyard Marriott and Four Season are set to open nearby. All of these full service offerings, command week night rates in excess of $400 per night and weekend rates of over $350. With land prices having previously soared, developers delivered mostly ultra-high end market, the supply of luxury and upper upscale hotels. While this high end of the segment has seen some recent occupancy declines, the affordable, undersupplied market has experienced boosting occupancy rates to over 90% as millennials and international travelers seek more affordable alternatives with similar offerings. That all being said, the RIFF Downtown brings a fresh and cool vibe to the neighborhood. Its rooms are oversized and expertly designed. It does not just cater to the younger traveler. The hotel has also booked corporate clients including American Express and Goldman Sachs. As the RIFF Downtown s currently ADR is $188, the lowest off all downtown hotels, it is well positioned to capitalize on this thriving market segment. There is tremendous upside potential in the ADRs as there is much room to grow. New boutique hotels can take up to a year to establish their brand before beginning to achieve peak rents. With all the recent positive press, this uptick could happen much sooner. Above all, the biggest driver of the hotels will be the soon completion of the World Trade Center, PATH, and transportation hubs. Only two blocks north of the RIFF Downtown is the World Trade Center complex which upon full completion, will bring over 10 million square feet of office space, and add six new gleaming Class A office towers to the Lower Manhattan skyline, plus 550,000 square feet of retail space and a performing arts center. The transportation center is expected to service over 200,000 commuters daily. With the abundance of commercial offerings, Lower Manhattan was also recently named the fastest growing residential area of the city by Crain s. The Property The RIFF Downtown is a newly opened hotel located just two blocks south of the World Trade Center complex on the west side of Greenwich Street between Rector and Carlisle Streets. Completed in 2016, this boutique, five-story hotel has 36 rooms featuring large windows and excellent views of Lower Manhattan. The hotel has a 24-hour front desk concierge, computer station with printer, and free Wi-Fi. Newly appointed rooms are 6 Cushman & Wakefield

7 Hotel Market Summary Immediately upon receiving TCO in February, (temporary certificate of occupancy), ownership began renting units near $200 per night. Currently, the nightly rates that the RIFF has been achieving are heavily discounted as it is a new entrant into the market. The construction of 125 Greenwich Street, a 77-story, 275-unit luxury residential building has also blocked foot traffic headed south from the World Trade Center complex. As the World Trade Center complex achieves full occupancy and 125 Greenwich nears completion, the area south of the complex is sure to see a pop in activity. The demand in the area is clear as The W Hotel and Club Quarters World Trade see consistent daily rates in excess of $349. The Hotel Market Per the PWC Hospitality Direction Report published in January 2016, occupancy levels have hit 35-year high and the increased confidence amongst hotel operators and brands is expected to result in more average daily rate increases. PWC adjusted their prediction for RevPAR growth to 5.5% this year when factoring the strong dollar. With unemployment at a 24-month low of 5.0% and low oil prices making airfare less expensive tourism is expected to continue at a rapid pace. Widely considered a new market relative to more established hotel markets like Times Square and Chelsea, the Lower Manhattan market is one of the few hotel areas that still exhibits strong growth. The Neighborhood The RIFF is surrounded by nearly every major subway line. The Rector Street 1 train station is located just outside of the front entrance and the R train is just steps further. To the north is the new World Trade Center Oculus Hub with the 2, 3, A, C, E, and N lines and connection to PATH service. This unparalleled transportation access is sure to drive foot traffic and visibility to the immediate area. Only two blocks north of the RIFF Downtown is the World Trade Center complex which upon full completion, will bring over 10 million square feet of office space, and add six new gleaming Class A office towers to the Lower Manhattan skyline, plus 550,000 square feet of retail space and a performing arts center. Within walking distance of the property, the redevelopment of the South Street Seaport is underway. Led by the Howard Hughes Corporation, Pier 17 will bring a much needed recreational community and fashion anchor Conclusion As only five hotels with under 50 keys have sold in the last five years, The RIFF Downtown represents a rare offering; the ability to purchase a boutique hotel that is currently expanding its market presence in one of the fastest growing areas of the city given its close proximity to the booming World Trade Center complex. GUEST ROOMS OPENING AVERAGE DAILY RATE CITY $267 nyinvestmentsales.com 7

8 Neighborhood Map 8 nyinvestmentsales.com

9 Cushman & Wakefield 9

10 5-YEAR CASH FLOW PROJECTION Year 1 Year 2 Year 3 Year 4 Year 5 Days Total Rooms Available 13,140 13,140 13,140 13,176 13,140 Occupancy 88.00% 90.00% 92.00% 92.00% 92.00% Total Rooms Sold 11,563 11,826 12,089 12,122 12,089 Average Daily Rate $189 $194 $200 $206 $212 RevPar $166 $175 $184 $190 $195 Revenues Rooms $2,181,398 $2,297,904 $2,419,438 $2,498,848 $2,566,782 Food & Beverage Misc. Income $49,508 $50,993 $52,523 $54,098 $55,721 Total Revenues $2,230,905 $2,348,897 $2,471,961 $2,552,947 $2,622,503 Expenses RE Taxes $129,576 $136,429 $143,577 $148,281 $152,321 Property Insurance $34,020 $35,041 $36,092 $37,175 $38,290 Payroll - Expenses $124,597 $127,712 $130,905 $134,178 $137,532 Payroll - Labor $342,300 $350,858 $359,629 $368,620 $377,835 Rooms $261,459 $267,995 $274,695 $281,563 $288,602 Misc. $26,760 $27,429 $28,115 $28,818 $29,538 Administrative & General $117,510 $120,447 $123,458 $126,545 $129,709 Energy Costs $80,510 $82,522 $84,585 $86,700 $88,867 Sales & Marketing $20,970 $21,494 $22,032 $22,582 $23,147 Building Expenses $57,886 $59,333 $60,816 $62,337 $63,895 Total Expenses $1,195,587 $1,229,261 $1,263,905 $1,296,797 $1,329,736 Net Operating Income $1,035,318 $1,119,636 $1,208,056 $1,256,150 $1,292, nyinvestmentsales.com

11 Retail Map WTC TRANSPORTATION HUB Aveda J Lindberg Godiva L Occitane Tumi Charles Tyrwhitt Bobby Brown Bose Cole Haan Disney Apple Breitling Mont Blanc Lacoste Michael Kors Barclay Street School FULTON CENTER O Hara s 125 Greenwich (77-Story Condo Building) DOWNTOWN HOTELS CHELSEA St. George Tavern Clinton Hall Attitude Apparel Medici 21 Yorganic Ticket Office Regis Royal Wogies Cushman & Wakefield 11

12 12 nyinvestmentsales.com Area Hotel Market

13 Area Hotel Market # Property Address Rooms ADR 1 Andaz Wall Street (Hyatt) 75 Wall Street 253 $499 2 Q&A Residential Hotel 70 Pine Street 132 $499 3 Residence Inn Downtown 170 Broadway 242 $489 4 Conrad New York 102 North End Avenue 463 $489 5 W New York - Downtown 8 Albany Street 217 $409 6 Club Quarters - World Trade Center 140 Washington Street 421 $400 7 The Ritz-Carlton Downtown 2 West Street 298 $400 8 Gild Hall (Thompson Hotels) 15 Gold Street 130 $399 9 Eurostars Wall Street 129 Front Street 56 $ Four Points by Sheraton 6 Platt Street 261 $ Club Quarters - Wall Street 52 William Street 289 $ Marriott Downtown 85 West Street N/A $ DoubleTree by Hilton 8 Stone Street 399 $ The Millenium Hilton 55 Church Street 569 $ Holiday Inn Express - Wall Street 126 Water Street 112 $ Hampton Inn - Seaport 320 Pearl Street 65 $ Best Western Plus Seaport Inn 33 Peck Slip 72 $ Aloft Downtown - Financial District Ann Street 128 $ The Wall Street Inn 9 South William Street 46 $ Holiday Inn - Financial District 99 Washington Street 120 $ Holiday Inn - Wall Street 51 Nassau Street 113 $ Hampton Inn - Financial District 32 Pearl Street 81 $ Fairfield Inn - Financial District 161 Front Street 176 $ Courtyard By Marriott (Coming Soon) 133 Greenwich Street 317 TBD 25 Four Seasons Downtown (Coming Soon) 30 Park Place 185 TBD Cushman & Wakefield 13

14 Retail Cellar Floor Plan Hotel Area: 2,425 SF Retail Area: 2,500 SF 14 nyinvestmentsales.com

15 Retail Ground Floor Plan Hotel Area: 1,205 SF Retail Area: 3,200 SF Cushman & Wakefield 15

16 2nd Floor Plan 16 Cushman & Wakefield

17 3rd Floor Plan Cushman & Wakefield 17

18 4th Floor Plan 18 Cushman & Wakefield

19 5th Floor Plan Cushman & Wakefield 19

20 Photos 20 Cushman & Wakefield

21 Photos Cushman & Wakefield 21

22 C of O Certificate of Occupancy CO Number: Page 1 of T002 This certifies that the premises described herein conforms substantially to the approved plans and specifications and to the requirements of all applicable laws, rules and regulations for the uses and occupancies specified. No change of use or occupancy shall be made unless a new Certificate of Occupancy is issued. This document or a copy shall be available for inspection at the building at all reasonable times. A. Borough: Address: Manhattan 102 GREENWICH ST Building Identification Number (BIN): Block Number: Lot Number(s): 37 Building Type: Altered Certificate Type: Temporary Effective Date: 05/12/2016 Expiration Date: 08/10/2016 This building is subject to this Building Code: 2008 Code For zoning lot metes & bounds, please see BISWeb. B. Construction classification: 3-A (2008 Code) Building Occupancy Group classification: R-1 (2008 Code) Multiple Dwelling Law Classification: HAEB No. of stories: 5 Height in feet: 58 No. of dwelling units: C. Fire Protection Equipment: Fire alarm system, Sprinkler system 36 D. E. Type and number of open spaces: None associated with this filing. This Certificate is issued with the following legal limitations: None Outstanding requirements for obtaining Final Certificate of Occupancy: There are 18 outstanding requirements. Please refer to BISWeb for further detail. Borough Comments: None 22 nyinvestmentsales.com

23 C of 0 Certificate of Occupancy CO Number: Page 2 of T002 Floor From To CEL Permissible Use and Occupancy All Building Code occupancy group designations below are 2008 designations. Maximum persons permitted Live load lbs per sq. ft. Building Code occupancy group M R-1 Dwelling or Rooming Units Zoning use group Description of use 10 OG 6, 5 RETAIL SPACE STORAGE, HOTEL STORAGE, ACCESSORY USES R-1 5, 6 HOTEL LOBBY, STORE M R NINE (9) HOTEL ROOMS R NINE (9) HOTEL ROOMS R NINE (9) HOTEL ROOMS R NINE (9) HOTEL ROOMS.- END OF SECTION Cushman & Wakefield 23

24 Nearby Attractions DOWNTOWN HOTELS CHELSEA World Trade Center 1 World Trade Center 2 WTC Transportation 5 6 Fulton Center Brookfield Place 3 Million+ Visitors DOWNTOWN HOTELS 3 Battery Park 7 9/11 Memorial 9/11 Tribute Center 4 Wall Street 8 42 Trinity Place 24 nyinvestmentsales.com

25 Nearby Attractions 1 WTC One World Trade Center is a symbol of hope and resilience for New York City. Designed to be the safest commercial structure in the world, the building recognizes architectural and environmental standards in an urban environment. At 1,776 feet and 104-stories, it is the tallest skyscraper in the Western Hemisphere and utilizes several environmentally friendly features including the reclaiming of rain water. The three million square foot office tower opened on November 3, 2014 and is more than 65 percent leased. Current tenants include Conde Nast, High 5 Games, and xad, Moody s, China Center, and the U.S. General Services Administration. The building also features three floors of observation decks with a restaurant, where guests have panoramic views of the city and beyond. 2 WTC Transportation The World Trade Center Transportation Hub is an 800,000 SF transportation center that will serve over 200,000 daily commuters as well as millions of visitors from all over the world. The Hub s concourse connects visitors to 11 different subway lines, the PATH rail system, and the Battery Park Ferry Terminal. Its oculus design, from world-renowned architect Santiago Calatrava, which evokes a wing-like appearance, will incorporate 350,000 square feet of multilevel retail and restaurant space. The Hub includes climate-controlled concourses and platforms with high performance lighting. In October 2014, it was announced that Eataly will have a 45,000 SF outpost at the Oculus. Other tenants who have signed leases include Apple, Kate Spade, John Varvatos, Disney, Hugo Boss, Breitling, and Tumi. The Transportation Hub has already been partially introduced to the public. Cushman & Wakefield 25

26 Nearby Attractions 3 Battery Park Battery Park is a 25-acre public park located at the southern tip of Manhattan. The area and park are named for the artillery batteries that were positioned there in the city s early years to protect the settlement behind them. Ferries dock at its shore to pick up visitors to the Statue of Liberty and Ellis Island, and all summer long concerts play on its grounds. Its beautiful waterfront and flower gardens make The Battery a lovely place to wander. 4 Wall Street Running less than a mile between Broadway and the East River, Wall Street derives its name from the short wooden wall built along its path by the Dutch in It is home to the New York Stock Exchange and Federal Hall among other landmarks. The area attracts millions of tourists annually visiting New York s most famous financial landmarks and stores such as Tiffany & Co., Hermes, and Thomas Pink. 26 nyinvestmentsales.com

27 Nearby Attractions 5 Fulton Center The Fulton Center, dubbed the The Gateway to Lower Manhattan, offers connection to nine MTA subway lines and five subway stations, allowing for commuters to access the benefits of efficient connectivity. The subway lines offer fast service to Grand Central, Penn Station, and Time Square, serving individuals from all over New York and New Jersey. It is estimated that 300,000 people per average weekday pass through the Fulton Center to get to their destinations. The $2.1 billion complex managed and owned by Westfield features 65,000 SF of retail over five levels that has already began lease up. The center is expected to stimulate the retail spending potential of Lower Manhattan and serve as an opportunity for workers to contribute to the growing employer market of Lower Manhattan. 6 Brookfield Place With the unveiling of Brookfield Place, retail in Lower Manhattan has made a turn for the higher end. Brookfield spent 250 million dollars on the renovation of 350,000 square feet into fresh luxury retail space. Brookfield Place has attracted some of the biggest names in fashion: Burberry, Michael Kors, Hermes, Salvatore Ferragamo, Scoop, and many others. This development signals a notable influx of well-capitalized residents and tourists alike, and has joined SoHo and Fifth Avenue as one of Manhattan s go-to places to shop. Cushman & Wakefield 27

28 Key Points of Interest 7 9/11 Memorial The more permanent center located at 88 Greenwich Street is slated to open in spring When it s done, the center is expected to handle 750,000 to 1 million visitors per year. The expanded location will feature exhibits from the day of the attack 15 years ago, the response and the rebuilding. It is said that 30 percent of the exhibition will be dedicated to the day itself and immediate aftermath; another 30 percent to the long-term physical and emotional recovery; and another 30 percent to recognize humanitarian efforts such as foundations that were established after the attacks Trinity Place The 280,700-square-foot development will bring a new elementary school, condos, and retail to the site of a shuttered Syms clothing store between Edgar and Rector Streets in the Financial District. The 476-seat, pre-k through fifth grade school will fill the first eight floors. A 4,800-square-foot retail space will also occupy part of the ground floor, along with lobbies for the school and the apartments. 28 stories of apartments will follow, then two floors of amenities, and two stories of mechanicals. 28 nyinvestmentsales.com

29 Cushman & Wakefield 29

30 Financial District Introduction Lower Manhattan is the southernmost part of the island of Manhattan, the main island and center of business and government of the City of New York. Lower Manhattan or downtown is defined most commonly as the area delineated on the north by Canal Street, on the west by the Hudson River, on the east by Bowery and the East River, and on the south by New York Harbor (also known as Upper New York Bay). Anchored by Wall Street, Lower Manhattan, still functions as the financial capital of the world and is home to the New York Stock Exchange, the world s largest stock exchange, although the mix of businesses and industries has greatly diversified. The Lower Manhattan business district forms the core of the area below Chambers Street. It includes the Financial District (often referred to as Wall Street, after its primary artery) and the World Trade Center site. At the island s southern tip is Battery Park; City Hall is just to the north of the Financial District. Also south of Chambers Street are the planned community of Battery Park City and the South Street Seaport historic area. The neighborhood of TriBeCa straddles Chambers on the west side; at the street s east end is the giant Manhattan Municipal Building. North of Chambers Street and the Brooklyn Bridge and south of Canal Street lies most of New York s oldest Chinatown neighborhood. Many court buildings and other government offices are also located in this area. The Financial Disrict (sometimes called FiDi) is the southernmost section of Manhattan that comprises the offices and headquarters of many of the city s major financial institutions, including the New York Stock Exchange and Federal Reserve Bank of New York. The neighborhood roughly overlaps the boundaries of the New Amsterdam settlement in the late 17th century. 30 nyinvestmentsales.com

31 Financial District The neighborhood was considered to be primarily a destination for daytime traders and office workers from around New York City and the surrounding areas. The neighborhood now has a growing full-time residential population estimated to be 61,000, a jump from the 15 to 20 thousand living there before Many buildings have been and continue to be converted from office space to apartments and condominiums. It also has a growing number of tourist attractions such as the adjacent South Street Seaport Historic District, New York City Police Museum, and Museum of American Finance. Bowling Green is the starting point of traditional ticker-tape parades on Broadway, where here it is also known as the Canyon of Heroes. The Museum of Jewish Heritage and the Skyscraper Museum are both in adjacent Battery Park City which is also home to the World Financial Center. The area s eclectic mix of history and commerce and the combination of a 17th Century street-pattern with 20th Century skyscrapers make it a fascinating place. Such an environment can be a valuable attribute in a world where people increasingly crave a neighborhood with character. wsj The proximity to the waterfront is another important feature of the Downtown neighborhood. Given the narrowness of the island at this point, it is an easy walk to the waterfront from any location in Downtown. Such universal accessibility to the waterfront is virtually unparalleled in any Manhattan or New York City neighborhood. This is an extremely valuable asset, which over time, as the waterfront is further improved, will only increase in importance. Cushman & Wakefield 31

32 Zoning New York City s zoning regulates permitted uses of the property; the size of the building allowed in relation to the size of the lot ( floor to area ratio ); required open space on the lot, the number of dwelling units permitted; the distance between the building and the street; the distance between the building and the lot line; and the amount of parking required. The commercial district has eight different classifications. The manufacturing district has three different classifications. The residential district has ten different classifications. The property is zoned C6-9. DOWNTOWN 32 nyinvestmentsales.com

33 Zoning C6 districts permit a wide range of high-bulk commercial uses requiring a central location. Most C6 districts are in Manhattan, Downtown Brooklyn and Downtown Jamaica; a C6-3D district is mapped in the Civic Center area of the Bronx. Corporate headquarters, large hotels, department stores and entertainment facilities in high-rise mixed buildings are permitted in C6 districts. C6-4 through C6-9 districts, typically mapped within the city s major business districts, have a maximum FAR of 10.0 or 15.0, exclusive of any applicable bonus. Floor area may be increased by a bonus for a public plaza or Inclusionary Housing. The Special Lower Manhattan District (LM) was established to enhance the vitality of Lower Manhattan, home of the city s oldest central business district and a growing residential community. The district regulations allow for the conversion of older commercial buildings to residential use and encourage a dynamic mix of uses in the area while protecting its distinctive skyline and old street patterns. The built character of the area is enhanced by height and setback regulations and limitations on the dimensions of tall buildings. The pedestrian environment is enriched by requirements for retail continuity, pedestrian circulation space and subway station improvements. The Special Lower Manhattan District covers the area south of Murray Street, City Hall Park and the approaches to the Brooklyn Bridge, excluding Battery Park City. Two subareas are located within the special district: the South Street Seaport Subdistrict and the Historic and Commercial Core. Cushman & Wakefield 33

34 Recent Press Explore New York City s best new hotels FOR THE MILLENNIAL The fastest growing boutique hotel on HotelTonight in Downtown Manhattan. -Q nyinvestmentsales.com

35 Cushman & Wakefield 35

36 JAMES NELSON Vice Chairman (212) WILL SUAREZ Senior Director (212) MAURICE SUEDE Associate Director (212) SEAN RUCKER Associate (212) Asking Price: Submit Proposals 36