02 The Opportunity 62 Thomas Street offers the opportunity to acquire a quality, income producing ground floor retail condominium in the sought after South Tribeca area. The current tenant (lease expiring June 30, 2022) is Food Scope NY LLC, AKA Food Scope America, which represents the upscale restaurant at 62 Thomas Street, Megu. Megu is a six-star Japanese Restaurant that has been operating since 2004. Food Scope America s Megu, with 7 worldwide restaurants (Tribeca New York, Midtown New York, Russia, Doha, New Delhi, Switzerland, and Mumbai), was acquired by the publicly traded company Universal Entertainment (6425:TSE). The company is traded on the Tokyo Stock Exchange and is financially responsible for the Megu Restaurant lease at 62 Thomas Street. The rent is guaranteed until 2022 at 3% increases each year, which yields a 5% return.
03 The Opportunity Megu has completely renovated and built-out the space, creating a beautiful bar-area on the upper level and an extraordinary and exclusive restaurant with dramatic high ceilings and an atmosphere that brings in both tourists and chic restaurant-goers. The original listed square footage of the condo is 16,909; however the current square footage has been reduced to 12,500 to accommodate the astounding renovations that make Megu the beautiful and extravagant attraction that it is. Please note that the lease requires that the original square footage be returned upon termination on June, 30 2022. This neighborhood has grown dramatically over the last 10 years due to the influx of movie stars and music producers. The area is now an eclectic mix of restaurants, expensive lofts, and is now world famous for Tribeca s celebritylifestyle. The purchaser of this extraordinary retail condominium will benefit by acquiring a stable income producing asset that will appreciate significantly over the life of Megu s lease.
04 Property Overview Location: Block / Lot: 147 / 1704 Building is on the South Side of Thomas Street between West Broadway and Church Street. Base Rent Income**: $ 875,000 Real Estate Taxes (13/14): $ 115,398 Common Charges: $ 47,076 Lot Size (approx:): 75 x 175 Insurance: $ 5,478 Condo Size (approx): 75 x 100 Total Expenses***: $ 167,952 Total SF (approx.)*: 16,909 Net Operating Income: $ 707,048 Historic District: Zoning: Tribeca South C6-4A * The tenant has made some renovations that decreased the current SF to approx. 12,500 SF and is obligated to restore the space to its original SF at the expiration of the lease June 30, 2022. ** Rent increases 3% per year *** Tenant pays electric, 100% increase in taxes, and water/sewer bill ASKING PRICE: $ 14,200,000 Cap Rate: 5% Price PSF: $840
THOMAS 05 Site Plan W BROADWAY CHURCH DUANE Location: Block: 147 Lot: 1704 62-66 Thomas Street South Side of Thomas between West Broadway and Church
06 Floor Plans Upper Floor Bar Area Diagram only: Interior walls may be different than depicted. Not measurements are approximate. to scale. All
07 Floor Plans - Bar Area Detail Diagram only: Interior walls may be different than depicted. Not measurements are approximate. to scale. All
08 Floor Plans Main Restaurant Level Diagram only: Interior walls may be different than depicted. Not measurements are approximate. to scale. All
09 Megu Pictures
10 Neighborhood Description New York City s Most Cosmopolitan Neighborhood TriBeCa includes the area bounded by Canal Street (north), Vesey Street (south), Lafayette Street (east) and the Hudson River (west). TriBeCa, an acronym for Triangle Below Canal Street, was coined in the mid-1970 s as a result of City Planning studies and the adoption of the Special Lower Manhattan Mixed Use District (LMM). TriBeCa retains much of the Bohemian quality that once characterized the entire complex of cast-iron architecture between Houston and Vesey streets before it went upscale. Because this neighborhood overlaps the City Hall area, with its enormous daytime working population, it has been more successful in resisting the tide of fad enterprise. Art and commerce have, of course, transformed TriBeCa to a certain degree, but they have not overwhelmed it. TriBeCa today is the most sought after residential address in Manhattan. Many of the old historic warehouses and loft buildings have been converted to spectacular apartments. Many of New York City s finest restaurants, antique and craft stores are located in TriBeCa. With easy access to every corner of the island, it remains a sophisticated, cosmopolitan, and glamorous New York neighborhood. TriBeCa South Historic District: The TriBeCa South Historic District, Encompassing 70 buildings and two undeveloped lots, contains cohesive block fronts of the mid-nineteenth century store and loft buildings that extend between Broadway and West Broadway, from Chambers Street on the south to Duane and Thomas Streets on the north. West Broadway, historically a major transportation route, forms the western boundary. Chambers Street, the area s major east-west commercial street, linked Broadway, historically the preeminent mercantile thoroughfare, with West Broadway, the location of the Hudson River Railroad line and its depot which opened in 1851 at Chambers and Hudson Street.
11 Neighborhood Description Cont. The overwhelming majority of the structures in the TriBeCa South Historic District are store and loft buildings; the homogeneity of this predominant building type bestows a particular distinctiveness on the district. While the store and loft buildings in the district display an overall consistency in form and scale, their exteriors vary somewhat in design sophistication and ornamental quality. Some of the ornamental elements, such as sheet- metal cornices, were chosen from catalogs; almost every building was erected with some exposed cast-iron elements that were often selected from manufacturers stock. In general, the buildings in the district were consciously designed to be impressive advertisements for the businesses they housed. In the TriBeCa South Historic District, most of the store and loft buildings are typically five-story structures with facades composed of cast-iron-framed storefronts and upper walls faced in high quality materials: stone in over forty cases, brick in nearly twenty cases, or, more exceptionally, cast iron. Most of the store and loft buildings are in the Italianate style. The TriBeCa South Historic District was shaped by the growth of the transportation network in New York City and commercial pressures that pushed the urban center northward, displacing residential neighborhoods to accommodate New York s burgeoning wholesale dry goods trade. Throughout the seventeenth and eighteenth centuries, what is now the TriBeCa South Historic District was open land. The early history of the district is reflected in the names of most of the streets. In the blocks belonging to Trinity Church, the cross streets were named after prominent parishioners: James Duane, Joseph Reade, and John Chambers, while the streets paralleling Broadway were dubbed Church Street, in honor of Trinity Church, and Chapel Street, in honor of St. Paul s. Later, Chapel Street was widened to relieve congestion on Broadway and renamed West Broadway.
12 Neighborhood Description Cont. Though the area of TriBeCa South Historic District had been mapped in the mid-eighteenth century, the first phase of urbanization in the district did not get underway until the late 1780 s with the construction of brick and frame workshops and two-and-one-half and three-and-one-half story dwellings. In the 1820 s and 1830 s, wealthy New Yorkers displaced by the expansion of banks and other financial institutions in the previously residential Wall Street area, began moving to Broadway and the side streets between Barclay and Chambers Streets, replacing the older houses in the area with Greek Revival town houses. In the 1850 s, the first store and loft buildings were erected, specifically for dry goods wholesalers, along the north side of Chambers Street between Broadway and Church Streets. Store and loft buildings soon began to appear on other blocks in the district. The area of the TriBeCa South Historic District was also home to H.B. Clafin & Co., the most successful wholesale dry goods firm in the country from the 1860 s through the 1880 s, and the largest in the world by the 1890 s.
13 Neighborhood Description Cont. In the first half of the twentieth century, the upper stories of the buildings in the district continued to be used by wholesale businesses, while ground floor stores were frequently converted to retail use. From 1904 to the 1920 s, no new construction took place in the district. However some of the earliest store and loft buildings in the district were refaced in brick. Beginning in the 1970 s, residential tenants began to locate in vacated loft spaces in the district, continuing a trend begun by artists further north in the SoHo area. In 1976 the City Planning Commission proposed a Special Lower Manhattan Mixed Use District (LMM), a zoning designation, which allowed for residential lofts and light manufacturing in the same area. This was followed in the late 1970 s and early 1980 s by the conversion of store and loft buildings to residential cooperatives. The area is now called the TriBeCa Mixed-Use District (TMU). Today, the TriBeCa South Historic District contains a wide range of uses, from traditional businesses, such as several shoe wholesalers on Duane Street, to retail stores and fashionable restaurants, and to a large residential population.
14 Neighborhood Map 62-66 Thomas Street
15 Neighborhood Map Historic District, Tribeca South 62-66 Thomas Street
16 Transportation Description In addition to the diversity of services and amenities located within its parameters, 62 Thomas Street has excellent access to major transportation modes. All four subway lines (the 1, 9; the A, C, E; the N, R; the D, F; and the 6) are within six blocks. The area is also serviced by express and local MTA buses for uptown service along Sixth Avenue and Bowery and downtown service along Varick Street and Broadway. The fare for both the bus and subway lines is two dollars and fifty cents ($2.50). By car, there is easy access to and from SoHo by the Franklin Delano Roosevelt Drive and the West Side Highway. The Holland and Brooklyn Battery Tunnels are less than 5 minutes away and the Manhattan, Brooklyn and Williamsburg Bridges are about 10 minutes away. The highway transportation network connects Manhattan to New Jersey, the three boroughs, and all points north. 62 Thomas Street is close to three major metropolitan airports...laguardia (approximately 20-25 minutes drive), John F. Kennedy (approximately 45-60 minutes drive) located to the east on Long Island, and Newark (approximately 20-25 minutes drive) located to the west. The caliber of quick access from 62 Thomas Street to local and regional business destinations is unusual and definitely enhances the attractiveness of the property.
17 Subway Map 62-66 Thomas Street
62-66 Thomas Street 18 Bus Map
19 Zoning Information 62-66 Thomas Street 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 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 Manufacturing district has Three different classifications. 62 Thomas Street is zoned C6-2A and Lies within the TriBeCa Mixed-Use District (TMU) FAR: 6.02
20 Zoning Information
21 Zoning Information
22 Certificate Of Occupancy
23 DOB Violations *DOB Violations record for entire tax lot 7509. Two open cases for (1) fourth and fifth floor and (2) the roof.
24 Property Tax Assessment
Robert Burton Senior Vice President 212.660.7770 rburton@masseyknakal.com Nick Petkoff Director of Sales 212.660.7766 npetkoff@masseyknakal.com Maurice Suede Associate 212.660.5131 msuede@masseyknakal.com Matthew Colantonio Associate 212.660.7718 mcolantonio@masseyknakal.com Stephanie Mitchell Associate 212.660.7724 smitchell@masseyknakal.com 275 Madison Avenue 3 rd Floor New York, NY 10016 www.masseyknakal.com