A CULTURAL DESTINATION. Ariel Property Advisors I June 2016

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1 A CULTURAL DESTINATION Ariel Property Advisors I June 2016

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3 Belmont A Cultural Destination From Old to New 6 Little Italy 10 Belmont the College Town 14 5 A (Mostly) Residential Pocket Surrounded by Landmarks 9 Lack of Transportation: The Curse that is the Blessing 13 Conclusion 3

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5 Belmont A Cultural Destination FROM OLD TO NEW Belmont is a quaint, old-fashioned neighborhood in the Bronx. Its centralized location, demographic, and lack of a nearby subway system, makes this neighborhood a unique area to analyze. The neighborhood is also very diverse. In addition to a heavy Italian immigrant population, Belmont is seeing a large influx of Albanian and Mexican immigrants. Most recently Belmont plays host to the Cinco De Mayo Parade along Crescent Avenue. The old Belmont, also known as Little Italy, still resonates along Arthur Avenue, but the influx of millennials is quickly leaving its mark, as the growing popularity of student-housing is beginning to change the landscape. The question arises: Is Belmont the next outer-borough neighborhood headed for gentrification? Or will it embrace the change and maintain its more familiar, rooted DNA. 5

6 A (MOSTLY) RESIDENTIAL POCKET SURROUNDED BY LANDMARKS Unlike most New York City neighborhoods, Belmont does not have a subway that runs through its center. It is however, surrounded by three major cultural institutions: Fordham University to the north, the Bronx Zoo to the east, and the Bronx Botanical Gardens further north. These landmarks substantially help attract tourists to the area despite its lack of subway. Belmont is also a retail destination. Along Arthur Avenue and East 187th Street you can find plenty of restaurants, cafes and markets that offer visitors authentic Italian food and cultural immersion. The northern border of East Fordham Road is one of the busiest retail streets in all of the Bronx in terms of foot traffic. Sales of commercial buildings have, in some case, reached over $1,000 per square foot, indicating the growth and potential that investors see in Belmont. On the southern end of Belmont is St. Barnabas Hospital. When it opened in 1866, it was the first hospital of chronic diseases in the U.S. The hospital employs over 2,500 people, many of whom are local Bronxites residing in Belmont who live close enough in the Belmont area to walk to work. Visitors Per Year: NYC Landmarks Empire State Building 4m BRONX ZOO 2.15m Museum Of Natural History 2m 6

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Belmont A Cultural Destination LITTLE ITALY Belmont s most significant attribute is Little Italy, a historic strip nestled along Arthur Avenue, between East 183rd and East 187th

The Arthur Avenue Retail Market, Dominik s, Tino s, Addeo & Sons, Biancardi s, among many others offer a taste of authentic Italia, while still conveniently located in NYC.

The estate s inheritor Catherine Lorillard Wolfe, auctioned off the site in the late 1800s which was then subdivided into street sections.

In the early 1900s, Italian immigrants moved to Belmont in search of employment in the newly built Bronx Zoo and Bronx Botanical Garden.

9 Belmont A Cultural Destination LITTLE ITALY Belmont s most significant attribute is Little Italy, a historic strip nestled along Arthur Avenue, between East 183rd and East 187th streets. The storied area offers residents and tourists alike a variety of restaurants, shops, bakeries and delis with an Italian-American flare. The Arthur Avenue Retail Market, Dominik s, Tino s, Addeo & Sons, Biancardi s, among many others offer a taste of authentic Italia, while still conveniently located in NYC. Belmont or Belle Mont in Latin, literally means Beautiful Mountain. The neighborhood was named after a large estate which was originally purchased for use as a snuff plant. The estate s inheritor Catherine Lorillard Wolfe, auctioned off the site in the late 1800s which was then subdivided into street sections. She named the main street of the community after her role model, President Chester Arthur. Wolfe s personal mansion was donated to become what is now St. Barnabas Hospital. In the early 1900s, Italian immigrants moved to Belmont in search of employment in the newly built Bronx Zoo and Bronx Botanical Garden. By 1913, the press nicknamed this small section of the Bronx as the Italian Colony. The original vision of developers and influence of Italian immigrants in the Little Italy section very much shaped Belmont into what it is today. It is not only a tourist destination, but also a diverse family oriented community. 9

10 LACK OF TRANSPORTATION: THE CURSE THAT IS A BLESSING The lack of a subway system in Belmont maintains the community s relatively quiet, untouched business feel. The Metro North at Webster Avenue and East Fordham Road is the only public train in the neighborhood. Bushwick, Williamsburg, and Long Island City experienced rapid gentrification in part because of the infrastructure provided by the existing transportation system leading to many native neighborhood dwellers being uprooted from their long-standing homes. Belmont, on the other hand, lacks this infrastructure and has therefore experienced healthy and steady growth over the years. The bus lines that run through Belmont such as the Bx15, Bx17, and Bx36 sufficiently serve the local residents and tourists. $/SF Multifamily Sales: Belmont Bushwick Williamsburg $800 $600 $400 $200 $ Metro North Lines East of the Hudson River New Haven Line 40.35m Harlem Line 27.5m Hudson Line 16.42m m Ridership 10

11 32 WEBB AV W 190 ST Fordham Rd JEROME AV 4 E 184 ST Kingsbridge Rd W 192 ST B D 32 ST JAMES PARK B D Fordham Rd UNION HOSPITAL Kingsbridge Rd POE COTTAGE FORDHAM PLAZA 17 E 194 ST E 193 ST VALENTINE AV BAINBRIDGE AV METRO NORTH FORDHAM 34 WEBSTER AV FORDHAM UNIVERSITY MA DECATUR AV NEW YORK BOTANICAL GARDEN 19 METRO NORTH BOTANICAL GARDEN B R FO 2 RIS AV B D St GRAND CONCOURSE E 183 ST TIEBOUT AV 41 WEBSTER AV E 184 ST 15 BASSFORD AV 55 THIRD AV E 189 ST LORILLD PL 17 9 HOFFMAN ST E FORDHAM RD ARTHUR AV Little Italy 22 HUGHES ST BELMONT AV CAMBRELENG AV BEAUMONT AV ZOO ENTRANCE E BURNSEID AV METRO NORTH TREMONT PARK AV E TREMONT AV WASHINGTON AV BATHGATE AV E 181 ST 3RD AV LA FONTAINE AV E 179 ST ST BARNABAS HOSPITAL E 182 ST Belmont E 180 ST CRESCENT AV E 183 ST CROTONA AV SOUTHERN BLVD ZOO ENTRANCE BRONX PARK BRONX ZOO INTERNATIONAL WILDLIFE CONSERVATION PARK E 174 ST CROSS BRONX EXPY CROTONA PARK CLINTON AV E TREMONT AV PROSPECT AV MAPES AV MARMION AV HONEYWELL AV DALY AV BRONX PARK SOUTH 9 36 ZOO ENTRANCE 17 3RD AV CROTONA PARK N E 175 ST FAIRMOUNT PL CROSS BRONX EX 19 E 178 ST West Farms Sq ON RD Q

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13 Belmont A Cultural Destination BELMONT: THE COLLEGE TOWN Fordham University provides a huge economic boost for the neighborhood. There are approximately 7,000 undergraduate students enrolled in the Bronx campus. Many of these students prefer the off-campus lifestyle provided by small houses, regular apartments, or designated student housing, privately owned by investors. While the number of students is nowhere near the enrollment statistics of Columbia University and NYU (over 30,000 and 57,000 respectively), the desired area for housing is increasingly dense for Fordham, leaving supply very low and driving up demand. Developers are beginning to notice this trend. A typical student is willing to pay anywhere from $750-$1,000 per room per month. For a 3-bedroom unit, the $2,500 per month for the apartment is well above the $1,750 average for a Bronx 3-bedroom. Although these are short-term tenants and maintenance is much higher, the owners are still willing to take the risk for the higher returns. In addition, there is minimal risk of default because most of the time parents are cosigning on the leases, almost guaranteeing that rent will be paid on time. The off-campus housing options are much cheaper than Fordham s private student housing providing an economical advantage to students. AB Capstone purchased a property specifically with that in mind Arthur Avenue, or Artu Viale (Arthur Avenue in Italian), is set to be developed with the intended use specifically for student housing. Under a rarely utilized zoning law, student housing can be considered community facility use. By doing so, the developer more than doubles the typical allowable building area for that site. Due to its large student population, Belmont has transformed into a college town which is a dramatic shift from the old days of Little Italy. Student Housing Bronx NYU/The Village Columbia University/Morningside Heights Fordham University/Belmont $2,500 $1,750 3-Bedroom Rent Comparison $4,800 $3,600 $2,500 Off-Campus Student Housing 3 BR Rent Per Month 13

CONCLUSION As the development boom continues, it is unique to find such a traditionally quaint neighborhood like Belmont against the backdrop of New York City s gentrified neighborhoods.

14 CONCLUSION As the development boom continues, it is unique to find such a traditionally quaint neighborhood like Belmont against the backdrop of New York City s gentrified neighborhoods. The neighborhood has adopted its old-fashioned reputation as the community that once relied on its own sustainability into a neighborhood that is welcoming and a destination for tourists and New Yorkers alike. The culture and diversity that it continues to maintain through Little Italy, Fordham University, and the Bronx Zoo are the three most contributing factors to its continued success. The college students provide the economic boost to the neighborhood similar to what NYU has done to Greenwich Village and Columbia University to Morningside Heights. Belmont is a community first, not just another trend-setting neighborhood. 14

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16 COMPILED BY: ANALYST: David Baruch ext. 36 THE BRONX SALES TEAM: Scot Hirschfield ext. 16 Jason M. Gold ext. 22 Marko Agbaba ext. 32 arielpa.com 122 East 42 nd Street, New York NY p f The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee the accuracy of any information provided herein. As an example, all zoning information, buildable footage estimates and indicated uses must be independently verified. Vacancy factors used herein are an arbitrary percentage used only as an example, and does not necessarily relate to actual vacancy, if any. The value of this prospective investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket, and other factors which your tax advisor and/or legal counsel should evaluate. The prospective buyer should carefully verify each item of income, and all other information contained herein. 16

Multifamily Month In Review: New York City January 2016 Released March 2016 By Ariel Property Advisors

Multifamily Month In Review: New York City January 2016 Released March 2016 By Ariel Property Advisors Join Our Network: e-mail join@arielpa.com or visit arielpa.nyc 212.544.9500 I arielpa.nyc 122 East