Offering Memorandum 1550 ST PETERS AVENUE BRONX, NEW YORK 10461

Transcription

1 Offering Memorandum BRONX, NEW YORK 10461

2 NON-ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Bronx, NY ACT ID Y

3 TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Property Overview Local Map Aerial Map Regional Map Certificate of Occupancy Parcel Map Floor Plans and Pictures FINANCIAL ANALYSIS 02 Executive Summary Tenant Summary Operating Statement Pricing Detail MARKET OVERVIEW 03

4 INVESTMENT OVERVIEW 4

5 1550 SAINT PETERS AVE OFFERING SUMMARY INVESTMENT OVERVIEW Marcus & Millichap is pleased to exclusively offer for sale or net lease 1550 St. Peters Avenue, Bronx, New York, located on the northeast corner of St. Peters and Glebe Avenues in the Westchester Square area of the Bronx. This former three story warehouse has undergone a gut renovation, is ADA compliant, and has many state-of-theart features including new electrical and plumbing systems, new HVAC system on each floor, new elevator, new sprinkler and fire alarm system, a new security camera system, new windows and doors, a new facade and roof. In addition, there is ample energy to support all X-ray/MRI/imaging equipment. The building is fully sprinklered and has a useable lower level. This is an ideal building for medical professionals, day care, charter schools or other community service providers. The use of the space is subject to the terms of the C of O and the applicable zoning resolution. Owner would consider net leasing the property for $300,000 per year. INVESTMENT HIGHLIGHTS Gut-Renovated with State-of-the-Art Features Easy Access to Public Transportation Servicing the Westchester Square Area of Bronx Move-in Condition Wired for Hi-Speed Date and Internet Interior and Exterior Monitoring #5

6 LOCAL MAP 6

7 AERIAL PHOTO 7

8 REGIONAL MAP 8

9 CERTIFICATE OF OCCUPANCY 9

10 PARCEL MAP 10

11 LOBBY AND ELEVATOR 11

12 1ST FLOOR 12

13 2nd FLOOR 13

14 3rd FLOOR 14

15 LOWER LEVEL 15

16 PROPERTY PHOTOS Data Room Interior Stairwell Security Room ADA Compliant Lavoratory 16

17 FINANCIAL ANALYSIS 17

18 OFFERING SUMMARY EXECUTIVE SUMMARY VITAL DATA PRO FORMA Price $4,400,000 Down Payment 35% / $1,540,000 Loan Amount $2,860,000 Loan Type Proposed New Interest Rate / Amortization 4.50% / 30 Years Year Due 2027 Rentable SF 12,860 Price/SF $ Current Occupancy Vacant CAP Rate Income Schedule Base Rental Income $300,000 Net Operating Income $300,000 $300, Acre(s) Debt Service Taxes (17/18) $35, Operating Data Lot Size 03986/ % / $174,363 Debt Coverage Ratio Cash Flow Block/Lot 8.04% / $126,106 Total Return 1927/ x 91 $300,000 Net Cash Flow After Debt Service Year Built/Renovated Lot Dimensions 6.82% Net Operating Income ($173,894) Net Cash Flow After Debt Service 8.04% $126,106 Principal Reduction TOTAL RETURN BUILDING DETAIL $48, % $174,363 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles Lower Level (75 x 46 ) 3, Estimate Pop 103, ,190 1,788,612 1st Floor (69 x 41 ) 2, Census Pop 99, ,487 1,704,576 2nd Floor (76 x 47 ) 3, Estimate HH 39, , ,525 3rd Floor (76 x 47 ) 3, Census HH 38, , ,571 Median HH Income $42,013 $33,955 $33,946 Per Capita Income $21,831 $18,255 $19,008 Average HH Income $56,064 $49,815 $52,506 TOTAL SQUARE FEET 13,423 Total Net Rental Above Grade 10,014 Total Net Rental Lower Level 2,846 Combined Total Net Rental 12,860 # 18

19 TENANT SUMMARY FINANCIAL ANALYSIS OPERATING STATEMENT 19

20 MARKET OVERVIEW 20

21 ST STPETERS PETERSAVENUE AVENUE BRONX Market Highlights Heavy population density Supported by a large population, the Bronx is a premier destination for retailers. Transportation infrastructure The borough offers an extensive mass-transit system with bus, subway and rail service. Strategic location Local businesses can easily access both Manhattan and the Hudson River Valley. Geography The Bronx is the northernmost of the five New York City boroughs and is the only part of the city connected to the mainland. It is bordered to the west by the Hudson River, Westchester County to the north, Long Island Sound to the east and Manhattan to the south. The Bronx River divides the borough into a hillier section on the west and flatter land to the east. The area derives its name from the first permanent European settler, Jonas Bronck, who established his estate north of the confluence of the Harlem and East rivers in The Borough of the Bronx

22 ST ST PETERS PETERS AVENUE AVENUE 1550 BRONX Metro The Bronx, which encompasses all of Bronx County, has a population of more than 1.4 million and consists of 12 community districts. The most populous is Community District 9 (Clason Point, Castle Hill, Soundview, Unionport, Westchester Square and Parkchester). The lowest residential population is in District 2, which is more commercial. Hunts Point Food Processing and Distribution Center the world s largest food market and the region s primary food supplier is located here. Infrastructure Although the Bronx does not have an airport within its physical boundaries, the borough has access to three major international airports: JFK, LaGuardia and Newark Liberty. These airports service every major city in the world and carry more than 100 million passengers per year. Newark Liberty is also one of the largest cargo hubs in the nation. Largest Cities in Metro by Population The Bronx boasts an impressive array of mass transit, freeways and rail service. Multiple New York City Brooklyn 2,629,100 subway lines connect residents to the region. An extensive network of interstates, parkways and Queens 2,326,900 Manhattan 1,640,500 Bronx 1,435,600 expressways move vehicular traffic through the borough and the region. Commuter rail service is available on the Metro North Rail line. The Bronx is: 100 miles from Hartford 110 miles from Philadelphia 200 miles from Boston 245 miles from Washington, D.C Staten Island Major Roadways Interstates 87, 95, 278, 295, 678 and 695 Bronx River, Henry Hudson and Hutchinson River parkways Rail Airports JFK International Airport La Guardia Airport Newark Liberty International Airport Commuter - Metro North Rail Subway - New York City Subway 475,600 * Forecast Sources: Marcus & Millichap Research Services; U.S. Census Bureau; Experian

23 ST STPETERS PETERSAVENUE AVENUE BRONX Economy Early in its history, the Bronx was recognized as a key gateway between New The education and health services sector has gained prominence in the local York City and markets on the mainland, chiefly due to its lower costs compared economy, providing more than 44 percent of total employment. Large medical with Manhattan and easy access to the Hudson River Valley. This established the centers such as St. Barnabas and Jacobi hospitals and the New York City borough as a hub of trade and distribution throughout the region. Today, the Department of Education serve the densely populated borough. Bronx is home to roughly 30,000 businesses spread across every employment sector. Anchoring the economy are the services and trade industries, which account for a large portion of total employment. This is due primarily to the role of the Bronx within the greater New York City economy. The Hunts Point Food Processing and Distribution facility and Fulton Fish Market support a concentration of food wholesalers, distributors and food-processing businesses. These facilities supply New York, the Hudson River Valley and beyond. * Forecast Sources: Marcus & Millichap Research Services, Experian. Fortune, U.S. Census Bureau, Moody s Analytics, Bureau of Economic Analysis

24 ST ST PETERS PETERS AVENUE AVENUE 1550 BRONX Labor The Bronx economy provides more than 266,600 jobs and is a vital component of the wider New York City economy. Over the next five years, annual job growth of 1.2 percent is expected, placing the Bronx nearly on par with the national U.S. average growth forecast of 1.3 percent. Due to such a high density of residents, approximately 117,500 people are employed in the education and health services sector. This section, the largest source of Bronx employment, will increase 1.1 percent annually over the next five years to handle increases in the area's population. The trade, transportation and utilities segment accounts for 18.1 percent of the workforce, with around 48,300 workers. Many of these positions are provided by the various retail establishments located throughout the borough. This sector is expected to post annual growth of 0.4 percent over the next five years. Through 2020, all the Bronx s sectors are expected to grow. The professional and business services sector posts the strongest gains, at an annual 3.4 percent, bringing higher-paying jobs to the county. Construction gains are estimated at 2.3 percent, and the information and the leisure and hospitality sectors are each at 2.1 percent for the next five years. * Forecast Sources: Marcus & Millichap Research Services; BLS; Moody s Analytics

25 ST ST PETERS PETERS AVENUE AVENUE 1550 BRONX Employers The Bronx s large employers provide a solid foundation upon which small to medium-size businesses can thrive. The vast majority of the borough s employers are small, private firms; approximately 90 percent of companies have fewer than 20 employees. The dominant employment segment in the Bronx is education and health services. The largest employer in this sector is Montefiore Medical Center, which is part of the Montefiore Health System. The system also contains the Moses Division Hospital, the Children s Hospital at Montefiore, Weiler Division Hospital, Greene Medical Arts Pavilion, Montefiore Medical Park and the Albert Einstein College of Medicine. Montefiore is a major source of economic stability in the Bronx. Another large part of the employment base is Yeshiva University. Yeshiva s main campus is in Manhattan, but this prominent institution maintains three satellite campuses in the Bronx. The Hunts Point Food Processing and Distribution Center provides a significant source of jobs. Facilities that comprise the center include the Hunts Point Cooperative Market, New York City Terminal Market, Fulton Fish Market and Gateway Center. Further highlighting the distribution role of the borough, United Parcel Service (UPS) provides many jobs locally. Major Employers Montefiore Medical Center Bronx-Lebanon Hospital Yeshiva University Fordham University Jacobi Medical Center St. Barnabas Medical Center Veterans Health Administration Wildlife Conservation Society Lincoln Hospital * Forecast Sources: Marcus & Millichap Research Services; BLS; Moody s Analytics; Experian

26 ST STPETERS PETERSAVENUE AVENUE 1550 BRONX Demographics The Bronx population, at more than 1.4 million, will expand by more than 27,400 residents over the next five years, an uptick of 0.6 percent annually. During this time, only the Brooklyn borough will grow at a more rapid pace than the Bronx; Manhattan is also growing at 0.6 percent annually. At $342,000, the median home price in the Bronx is the most affordable among the New York boroughs. Nevertheless, the homeownership rate remains around 19 percent, as many residents do not have the income needed to support ownership. The median household income in the Bronx is just above $35,000 per year, compared with $56,000 per year nationally. As a result, more than 81 percent of households rent. Lower housing costs attract a younger population; the median age of residents in the borough, at 33 years, is well below the national median of 37 years. In addition, many of these younger households have children. Approximately 29 percent of the population in the Bronx is under 20 years old, which is above the average for the country. More than 17 percent of citizens age 25 and older possess a bachelor s degree in the Bronx. Higher education attainment will improve household incomes going forward. Sources: Marcus & Millichap Research Services; Moody s Analytics; U.S. Census Bureau; AGS; Experian

27 ST STPETERS PETERSAVENUE AVENUE 1550 BRONX Quality of Life Ask most people across the country what they think of when asked about the Bronx and many will conjure images of Yankee Stadium. The new stadium opened in 2009 and is one of many features that enhance the quality of life in the borough. The world-famous Bronx Zoo is located on 265 wooded acres and is home to 4,000 animals. The zoo is the largest metropolitan wildlife conservation park in the United States. The New York Botanical Gardens contains 40 acres of New York City s original forest within 250 acres of lush surroundings. Located in the Valentine-Varian House, the Museum of Bronx History offers a glimpse into 18th-century life and the Revolutionary War era. The Bartow-Pell Mansion Museum, the Edgar Allen Poe Cottage and the Derfner Judaica Museum are but a few of the borough s many other attractions. Even though the Bronx is a densely populated area, the borough offers numerous parks and many open spaces, including Van Cortlandt Park and Pelham Bay Park, which houses Orchard Beach. Bronx Terminal Market, a 1 million-square-foot retail center, provides additional big-box shopping opportunities and open space. * Forecast Sources: Marcus & Millichap Research Services; Moody s Analytics; National Association of Realtors ; U.S. Census Bureau

28 1550ST STPETERS PETERSAVENUE AVENUE 1550 NEW YORK CITY METRO AREA Robust Supply Growth Fosters Measured Acquisition Pace Development reaches cycle high as major corporations scoop up space. The New York City office market, 2016 Annual Office Forecast supported by hiring in office-using sectors, is contributing to significant absorption as some of the largest companies in the country expand their footprint in the city. Asking rents have strengthened over the course of the current cycle, encouraging developers to expand the planning pipeline. Deliveries will rise to a cycle high in 1.9% 2016, led by spaces in Manhattan and Brooklyn, which will account for more than three-quarters of increase in total employment development. The brisk construction slate has hampered vacancy improvement as the global economy has slowed as well, which will lead to a moderate rise in the metro vacancy rate by year-end. However, still-tight Employment: New York City organizations will hire 80,000 new workers in 2016, expanding total employment by 1.9 percent. In the previous year, 101,000 jobs were created, a 2.4 percent growth rate. conditions will sponsor average asking rent rises well in excess of the national average. Rent growth has been most robust in Brooklyn as firms travel across the East River in search of more affordable spaces, yet it remains substantial in Manhattan as well, which will lead to a seventh straight year of asking rent improvement. 4.3 million sq. ft. will be completed Construction: Developers will deliver 4.3 million square feet of new office space in the metro this year, with a focus on sites in Manhattan and Brooklyn. Last year, 1.5 million square feet was completed. Infill assets generating significant demand, particularly in Manhattan and Brooklyn. Historically low interest rates and the incredibly infill nature of the New York City metro are generating significant investor allocations to office properties, driving dollar volume over the past year to more than $14 billion. While valuations have reached historic levels in certain neighborhoods of Manhattan, deal flow has remained robust due to the lack of available land for development, limiting the prospects of significant future supply growth. Meanwhile, activity in Brooklyn is rising as buyers seek to allocate toward attractive cash yields that can be 60 basis point increase in vacancy more than 100 basis points above equivalent properties in Manhattan, creating significant incentives for moving Vacancy: Weak net absorption and robust supply growth will trigger a 60basis-point rise in the metro vacancy rate to 10.4 percent in Last year, the metro vacancy rate was unchanged at 9.8 percent as supply injections were roughly in line with net absorption. capital across the East River. Overall, cap rates have trended toward the mid- to high-4 percent range, led by Manhattan buildings that can exchange ownership in the low-4 percent range. While vacancy rates have ticked marginally higher, a gap between buyers and sellers has emerged, lengthening transaction closing times. In 4.3% addition, a more robust delivery schedule will present multiple opportunities for investors seeking to allocate increase in asking rents capital to the market. Rents: The average asking rent will climb 4.3 percent this year to $61.93 per square foot by year-end as newer spaces are being marketed at higher price points. In 2015, the average asking rent vaulted 6.3 percent higher to $59.36 per square foot. 28

29 ST STPETERS PETERSAVENUE AVENUE NEW YORK CITY METRO AREA Economy Over the past four quarters, New York City firms hired 66,800 new workers, a 1.6 percent growth rate. In the previous 12 months, 127,400 jobs were created, a 3.1 percent expansion. Office-using organizations added 10,550 positions during the last year ending in June, a 0.8 percent growth rate driven by the professional and business services, and information technology sectors, where headcounts rose 9,500 and 6,370 places, respectively. The financial activities sector shed 5,300 jobs over the same time period. The education and healthcare sector is booming, adding 26,460 workers over the past year, creating additional office-using positions due to greater space demand in the industries. Outlook: Employers will hire 80,000 workers this year, raising metro employment by 1.9 percent. In 2015, 101,000 jobs were generated. * Forecast Sources: Marcus & Millichap Research Services; Bureau of Labor Statistics; Economy.com Construction New York City developers completed 2.44 million square feet of office space over the last four quarters ending in June, with more than 1.9 million square feet coming to market in Manhattan. The remaining space was primarily concentrated in Queens, where nearly 430,000 square feet was delivered. The office planning pipeline has expanded to more than 3 million square feet with completion dates through The vast majority of the new space will be delivered in Manhattan and Brooklyn, highlighted by the Pioneer Building in Brooklyn at 270,000 square feet and the Jerome L. Greene Science Center at Columbia University in Manhattan at 320,000 square feet. The completion of 10 Hudson Yards accounted for the bulk of new office space over the past year. The Related Companies project, at 49 stories, contains more than 1.7 million square feet, with tenant leases including L Oreal and Coach. Outlook: Nearly 4.3 million square feet of office space will come online in 2016, driven by roughly 2.3 million square feet of projects in Manhattan. * Forecast Sources: Marcus & Millichap Research Services; CoStar Group Inc. 29

30 1550ST STPETERS PETERSAVENUE AVENUE 1550 NEW YORK CITY METRO AREA Vacancy Over the past year ending in June, the metro vacancy rate has remained unchanged at 10.1 percent, following a 40-basis-point decline recorded in the previous four quarters. Deliveries outpaced net absorption by more than 460,000 square feet over this time frame. Demand for Class A office space fell marginally short of supply growth over the past year, leading to a 10-basis-point rise in vacancy to 11.2 percent. Vacancy in Manhattan was unchanged at 11.4 percent but rose 100 basis points to 6.5 percent in Brooklyn. Class B and C properties posted vacancy of 8.9 percent in the second quarter, which was unchanged from one year ago. A 10-basis-point rise in Manhattan to 9 percent was offset by falling vacancy in the outer boroughs. Brooklyn recorded a 40-basis-point decline to 7.6 percent, while Queens registered a 50-basis-point decline to 6.2 percent. Outlook: The metro vacancy rate will rise 60 basis points this year to 10.4 percent as supply growth exceeds net absorption. Last year, vacancy was unchanged. * Forecast Sources: Marcus & Millichap Research Services; CoStar Group Inc. Rents The average asking rent for marketed spaces advanced 5.4 percent to $60.60 per square foot over the past four quarters, representing an acceleration from the previous year, when the average asking rent tacked on 5.1 percent. Asking rent growth was most robust in Brooklyn, where the average vaulted 9.6 percent to $38.24 per square foot. Here, Class B and C properties posted the strongest growth, rising 11.1 percent to $33.97 per square foot. Premier Class A floor plates were marketed at $49.11 per square foot, 6.3 percent above the same period last year. Performance in Manhattan asking rents is beginning to become more dispersed. Marketed spaces in Downtown and Midtown Manhattan advanced 4.6 percent to $51.69 per square foot and 8.0 percent to $68.61 per square foot, respectively. Asking rents declined in the Midtown South and Uptown Manhattan submarkets. Outlook: Although construction will rise moderately, vacancy will remain sufficiently tight to support a mid-single-digit rise in the average asking rent. * Forecast Sources: Sources: Marcus & Millichap Research Services; CoStar Group Inc. 30

31 1550ST STPETERS PETERSAVENUE AVENUE 1550 NEW YORK CITY METRO AREA Sales Trends** Transaction volumes were roughly unchanged over the past year, with activity centered primarily on assets in Manhattan. There was a slight uptick in volume in Brooklyn, while trading in Queens slipped marginally. During the last 12 months, the average price per square foot rose to the low- to mid-$600 range. Properties in Manhattan exchanged ownership above $1,000 per square foot at the high end, while suburban assets in Brooklyn and Queens closed with prices between in the mid-$300 to mid-$400 per square foot band. Cap rates fell 10 basis points to average 4.7 percent over the past four quarters ending in July, driven by several sales in Manhattan in the low-4 percent range. First-year returns extended into the high-5 percent area in Brooklyn and Queens. Outlook: Yield-seeking investors will deploy capital in the outer boroughs, particularly Queens and Brooklyn. Meanwhile, institutional investors and well-capitalized private buyers will focus heavily on Manhattan, seeking capital appreciation over a long-term time frame. ** Trailing 12-month period through 2Q16 Sources: Marcus & Millichap Research Services; CoStar Group, Inc.; Real Capital Analytics Medical Office*** During the past year, developers delivered 145,000 square feet of medical office space, reducing the pace of completions from the prior year, when nearly 400,000 square feet was brought to market. The medical office vacancy rate has risen 90 basis points over the last four quarters to 5.1 percent at the end of June. Net absorption fell short of development during this period by nearly 60,000 square feet. While vacancy ticked higher, the average asking rent vaulted 9.8 percent higher to $40.01 per square foot in the same period. In the previous year, the average asking rents fell 3.6 percent. Medical office deal flow fell more than 50 percent over the past year as dollar volume contracted by roughly the same amount. Rising vacancy, coupled with weak net absorption, has prompted investors to be more cautious in their capital deployment strategies. *** 2Q16 Sources: Marcus & Millichap Research Services; CoStar Group, Inc.; Real Capital Analytics 31

32 ST ST PETERS PETERS AVENUE AVENUE NEW YORK CITY METRO AREA Capital Markets The 10-year U.S. Treasury has been trading lower, closing below 1.7 percent, since the Federal Reserve decided to leave the federal funds rate unchanged in September. Policymakers left the door open for a rate increase before the end of December and proposed how interest rates could rise over the coming years. The S&P 500 Index and other U.S. equity indexes continue to hover around all-time highs. The Federal Open Market Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities and rolling over maturing Treasury securities at auction. It anticipates doing this until normalization of the level of the federal funds rate is well underway. The committee anticipates holding longer-term securities at sizable levels should help maintain accommodative financial conditions. Interest rate volatility has moved over to the commercial loan markets and 10-year fixed-rate loans are now pricing between 3.9 and 4.4 percent. Loan to values range from 60 to 75 percent for commercial properties depending on location, as underwriters remain competitive in an effort to do business. Floating-rate bridge loans for stabilized assets will require LTVs of 70 percent and price with a spread between 275 and 425 basis points over Libor, while repositioning will be underwritten at 80 percent LTV with a 375- to 475-basis-point spread. A Federal Reserve survey of lenders indicates that commercial real estate loan standards tightened in the second quarter. Debt providers are likely seeking to balance risk exposure to commercial real estate and take a more conservative lending approach while the current cycle matures, rather than expressing a bearish outlook on commercial property. Some of the greatest tightening occurred for construction loans, a trend that may potentially prevent some early-stage developments from advancing and ultimately minimize the upward pressure of new supply on vacancy rates. Local Highlights Developer Tishman Speyer has officially filed plans for The Spiral, an office skyscraper at 509 W. 34th Street. The 65-story, 1,005-foot-tall building would include ground-floor retail and more than 2.2 million square feet of office space. Delancey Street Associates is acquiring permitting for a mixed-use building to be part of Essex Crossing on the Lower East Side. Plans call for more than 1,000 housing units and 850,000 square feet of commercial space at the intersection of Suffolk and Clinton streets. The first building at the Domino sugar refinery site in Williamsburg has been delivered. The 16-story, 500-apartment building is the first addition in a mega project that is expected to be completed by next year. Engineering and construction firm AECOM has proposed a massive development project in Red Hook that would be larger than Hudson Yards upon completion if approved. The full project calls for 45 million square feet of development including 11,250 affordable apartments and 100 acres of park space. 32

33 PROPERTY 1550 ST PETERS NAMEAVENUE DEMOGRAPHICS MARKETING TEAM Created on May 2017 POPULATION 2021 Projection Total Population 1 Miles 3 Miles 5 Miles 106, ,744 1,815, Estimate Total Population 103, ,190 1,788, Census Total Population 99, ,487 1,704,576 96, ,095 1,662, Census Total Population Current Daytime Population 92, ,470 1,406,613 HOUSEHOLDS 2021 Projection 1 Miles 3 Miles 5 Miles 41, , , Estimate Total Households Average (Mean) Household Size 39, , , Census Total Households 1 Miles 3 Miles 5 Miles 2016 Estimate Total Population 103, ,190 1,788,612 Under % 27.87% 27.35% 20 to 34 Years 23.79% 23.41% 23.88% 35 to 39 Years 7.22% 6.46% 6.53% 40 to 49 Years 13.65% 13.13% 13.17% 50 to 64 Years 18.71% 17.32% 17.39% Age % 11.80% 11.71% Estimate Population Age , ,844 1,150,709 Elementary (0-8) 8.04% 10.77% 11.51% Some High School (9-11) 12.76% 14.58% 14.29% High School Graduate (12) 28.74% 28.68% 27.40% Some College (13-15) 17.67% 17.85% 16.92% Associate Degree Only 7.96% 7.08% 6.59% Bachelors Degree Only 14.63% 11.96% 12.72% 6.96% 5.82% 7.26% Median Age 2016 Estimate Total Households POPULATION PROFILE Population By Age 38, , ,571 Population 25+ by Education Level Graduate Degree 2000 Census Total Households 37, , ,737 1 Miles 3 Miles 5 Miles $200,000 or More 1.43% 1.38% 2.05% $150,000 - $199, % 2.36% 2.49% $100,000 - $149, % 7.63% 7.74% $75,000 - $99, % 8.63% 8.57% $50,000 - $74, % 15.01% 14.58% $35,000 - $49, % 13.84% 13.45% $25,000 - $34, % 11.55% 11.31% $15,000 - $24, % 14.13% 14.39% Under $15, % 20.13% 20.01% Average Household Income $56,064 $49,815 $52,506 Median Household Income $42,013 $33,955 $33,946 Per Capita Income $21,831 $18,255 $19,008 HOUSEHOLDS BY INCOME 2016 Estimate Source: 2016 Experian 33

34 PROPERTY 1550 ST PETERS NAMEAVENUE DEMOGRAPHICS MARKETING TEAM Created on May 2017 POPULATION BY TRANSPORTATION TO WORK 2016 Estimate Total Population 1 Miles 3 Miles 5 Miles 0.06% 0.26% 0.27% 13.93% 17.66% 15.43% 6.21% 5.68% 6.03% 28.63% 28.25% 24.61% Ferryboat 0.00% 0.01% 0.02% Motorcycle 0.13% 0.09% 0.06% Other Means 0.51% 0.48% 0.57% Railroad 1.78% 1.87% 2.60% Streetcar or Trolley Car 0.35% 0.39% 0.46% 37.21% 34.92% 38.13% Taxicab 0.56% 0.81% 0.85% Walked 8.48% 6.74% 7.68% Worked at Home 2.15% 2.85% 3.31% 1 Miles 3 Miles 5 Miles Under 15 Minutes 12.29% 10.73% 10.60% Minutes 18.08% 18.78% 19.10% Minutes 26.61% 26.01% 28.61% Minutes 26.24% 24.18% 21.23% 90 or More Minutes 5.70% 7.76% 6.95% Worked at Home 2.15% 2.85% 3.31% Bicycle Bus or Trolley Bus Carpooled Drove Alone Subway or Elevated POPULATION BY TRAVEL TIME TO WORK 2016 Estimate Total Population Average Travel Time in Minutes Source: 2016 Experian 34

35 PROPERTY 1550 ST PETERS NAMEAVENUE DEMOGRAPHICS MARKETING TEAM Population Race and Ethnicity In 2016, the population in your selected geography is 103,908. The population has changed by 7.34% since It is estimated that the population in your area will be 106, five years from now, which represents a change of 2.06% from the current year. The current population is 47.30% male and 52.70% female. The median age of the population in your area is 36.18, compare this to the US average which is The population density in your area is 33, people per square mile. The current year racial makeup of your selected area is as follows: 37.31% White, 23.38% Black, 0.06% Native American and 12.36% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. Households Housing There are currently 39,982 households in your selected geography. The number of households has changed by 7.15% since It is estimated that the number of households in your area will be 41,189 five years from now, which represents a change of 3.02% from the current year. The average household size in your area is 2.54 persons. The median housing value in your area was $344,313 in 2016, compare this to the US average of $187,181. In 2000, there were 10,812 owner occupied housing units in your area and there were 26,503 renter occupied housing units in your area. The median rent at the time was $663. Income Employment In 2016, the median household income for your selected geography is $42,013, compare this to the US average which is currently $54,505. The median household income for your area has changed by 16.98% since It is estimated that the median household income in your area will be $45,802 five years from now, which represents a change of 9.02% from the current year. In 2016, there are 37,372 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 62.13% of employees are employed in white-collar occupations in this geography, and 38.19% are employed in blue-collar occupations. In 2016, unemployment in this area is 6.12%. In 2000, the average time traveled to work was minutes. People of Hispanic origin make up 47.09% of the current year population in your selected area. Compare this to the US average of 17.65%. The current year per capita income in your area is $21,831, compare this to the US average, which is $29,962. The current year average household income in your area is $56,064, compare this to the US average which is $78,425. Source: 2016 Experian 35

36 PRESENTED BY J. D. Parker Broker Tel: (212) License: NY 31PA