Forest Hills Queens, New York
EXECUTIVE SUMMARY 2
EXECUTIVE SUMMARY INTRODUCTION Goldenwood Property Advisors (GPA) is pleased to announce that we have been exclusively retained to arrange the sale of Continental Avenue (a.k.a. 10715-10717 71st Avenue), in Forest Hills, New York ( the Property ). Custom built for Williamsburgh Savings Bank, the Property has housed a bank tenant since its construction in 1974. It is currently tenanted by HSBC Bank USA. RETAIL CORRIDOR The Property offers 50 feet of premier frontage on Continental Avenue (a.k.a. 71st Avenue), a street that sees some of the highest retail rents in all of Queens. This strength is further evidenced by the street s100% occupancy. Financial Institutions Food Apparel Other National Tenants Bank of America Shake Shack Victoria s Secret Allstate TD Bank Boston Market Ann Taylor Loft Rite Aid New York Community Bank Chipotle ALDO Target Chase Bank McDonald s The Children s Place Verizon Wireless CitiBank Starbucks Banana Republic 7 Eleven Popular Community Bank Buffalo Wild Wings Payless CVS Pharmacy Flushing Savings Bank Dunkin Donuts Cohen s Key Food Ridgewood Savings Bank Subway Sephora GameStop 3
PROPERTY INFORMATION Address: Continental Avenue Location: Located on the westerly side of Continental Avenue between Queens Boulevard and Austin Street Neighborhood: Forest Hills, Queens, NY 11375 Lot Dimensions: 50 x 130 Lot Size: 6,500 Year Built: 1974 Block/Lot: 3239/21 BUILDING INFORMATION Building Size 50 x 130 Stories: 1 + Cellar Cellar SF: 2,500 Above Grade SF: 6,500 Gross Square Footage: 9,000 Zoning: TAX INFORMATION C4-4A, FH Assessment (18/19): $3,628,980 Tax Class: 4 Tax Rate: 10.514% Taxes: $381,550 AVAILABLE AT: $16,500,000 PROPERTY OVERVIEW 4
PROPERTY LOCATION 5
FINANCIAL SNAPSHOT IN-PLACE REVENUE Units Lease Year $/SF Monthly Rent Annual Rent HSBC Bank USA 8/1/18-7/31/19 $167.01 $90,465 $1,085,580 ACTUAL EXPENSES Expenses Total: Price/SF: Real Estate Taxes (17/18): Paid By Tenant $0.00 $0.00 Insurance: Actual $7,014.00 $0.78 Water & Sewer: Paid by Tenant $0.00 $0.00 Heat: Paid by Tenant $0.00 $0.00 Electric: Paid by Tenant $0.00 $0.00 Cleaning: Paid by Tenant $0.00 $0.00 TOTAL: $7,014.00 $0.78 NET OPERATING COST Effective Gross Income: $1,085,580 Less Expenses: $7,014 Net Operating Income: $1,078,566 SGI: 0.65% 6
LEASE ABSTRACT Continental Avenue Forest Hills, NY Reviewed By: Mark Pietrogiacomo Lease Type: Bank Building Lease Commencement Date: 8/1/1974 Landlord: R. & E. Property Co. Unit/Suite #: Entire Building Size (SF): 6,500 Tenant: HSBC Bank USA, National Association, successor by merger to HSBC Bank USA, formerly known as Republic Bank of New York, successor by conversion to Republic National Bank of New York and successor by merger to HSBC Bank USA, successor by merger to Republic Bank for Savings, N.A., successor by conversion to Republic Bank for Savings formerly known as Manhattan Savings Bank, Terms: Dates Annl. Base Rent Per SF Dates Annl. Base Rent Per SF 8/1/1974-7/31/1979 $90,000 $13.85 8/1/2012-7/31/2013 $909,148.86 $139.87 8/1/1979-7/31/1994 $95,000 $14.62 8/1/2013-7/31/2014 $936,423.33 $144.07 8/1/1994-7/31/2004 $95,000 $14.62 8/1/2014-7/31/2015 $964,516.03 $148.39 8/1/2004-7/31/2009 $682,500.00 $105.00 8/1/2015-7/31/2016 $993,451.51 $152.84 8/1/2009-7/31/2010 $832,000.00 $128.00 8/1/2016-7/31/2017 $1,023,255.06 $157.42 8/1/2010-7/31/2011 $856,960.00 $131.84 8/1/2017-7/31/2018 $1,053,952.71 $162.15 8/1/2011-7/31/2012 $882,668.80 $135.80 8/1/2018-7/31/2019 $1,085,571.29 $167.01 Option Term: 8/1/2019-7/31/2024 Market Rate Reimbursements: Net Lease: Tenant shall punctually pay and discharge, as additional rent, all real estate taxes, assessments, water rents and charges, cost or charges for installment, replacement or repair of water meters, sewer rents and other governmental impostions, duties and charges of every kind and nature whatsoever which shall or may, during the term of this Lease, be charged, laid, levied, assessed or imposed upon, or become a lien R.E. Taxes: TT pays 100% of all real estate taxes. Has the right to protest and contest any taxes Water and Sewer: TT pays 100% of water and sewer rent or charge. Has the right to protest on contest the charges. Insurance Fire Insurance (Paid by Tenant): Public Liability Insurance Boiler Insurance Utilities: TT shall provide for TT's own utilities and pay for use thereof. Owner has no responsibilty for Heating, Hot Water and Air Conditioning. 7
TENANT PROFILE - HSBC HSBC BANK USA HSBC is a British banking and financial services company and one of the largest financial institutions in the world with over $2.3 trillion in total assets. HSBC USA NA is a credit worthy tenant, with all of the Big Three credit rating agencies designating the North American arm of HSBC to be high grade investment securities. Their creidit worthiness is deemed as An obligor has VERY STRONG capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree. The Property was custom built for WIlliamsburgh Savings Bank in 1974. It has remained a bank building ever since then as the current tenants were acquired by larger and larger financial institutions.
RETAIL MAP 9
INTERIOR PHOTOS 10
INTERIOR PHOTOS 11
INTERIOR PHOTOS - BASEMENT 12
EXTERIOR PHOTOS 13
FLOOR PLAN 14
CERTIFICATE OF OCCUPANCY 15
C4-A4 ZONING OVERVIEW The contextual Quality Housing regulations, which are mandatory in R7A districts, typically produce high lot coverage, seven- to nine- -story apartment buildings, blending with existing buildings in many established neighborhoods. R7A districts are mapped along Prospect Park South and Ocean Parkway in Brooklyn, Jackson Heights in Queens, and in Harlem and along the avenues in the East Village in Manhattan. The floor area ratio (FAR) in R7A districts is 4.0. Above a base height of 40 to 65 feet, or 75 feet if providing a qualifying ground floor, the building must set back to a depth of 10 feet on a wide street and 15 feet on a narrow street before rising to a maximum height of 80 feet, or 85 feet if providing a qualifying ground floor. In order to preserve the traditional streetscape, the street wall of a new building can be no closer to the street line, than any adjacent street wall, but need not be farther than 10 feet. Buildings must have interior amenities for the residents pursuant to the Quality Housing Program. Off-street parking is not allowed in front of a building. Off-street parking is generally required for 50 percent of a building s dwelling units, but requirements are lower for income-restricted housing units (IRHU) and are further modified in certain areas, such as within the Transit Zone and the Manhattan Core, or for lots 10,000 square feet or less. Off-street parking requirements can be waived if 15 or fewer parking spaces are required. 16
FOREST HILLS SPECIAL ZONING DISTRICT The Austin Street and adjacent area in Forest Hills has evolved from an area characterized by local retail uses in the eastern portion and automotive uses in the western portion into a more regional commercial and mixed use character. The current zoning, however, is unchanged since 1961 and the three existing zones - C8-2, C4-2, and R7-1 poorly match current land use characteristics and established development patterns. The C8-2 zone prohibits residential uses and allows automobile service uses inconsistent with a vibrant mix of shopping and residential uses. None of the existing zones have a height limit and they do not closely reflect the change in building scales from the lower buildings along Austin Street to the higher buildings along Queens Boulevard. The Special Forest Hills District (FH) is centered on Austin Street, a vibrant commercial hub that serves the residents of Forest Hills and the surrounding area with a successful mix of shops and restaurants. Bounded by Queens Boulevard, Ascan Avenue, the Long Island Railroad (LIRR) and Yellowstone Boulevard, the district encompasses a 10-block area; its provisions for glazing, retail continuity and sidewalk cafes, as well as restrictions on curb cuts, support an attractive and pedestrian-friendly shopping area. The district supports efficient building floor plates by eliminating the rear yard requirement for commercial and community facility uses on properties along Austin Street adjoining the LIRR. Additional bulk requirements ensure predictable building envelopes and provide a transition in building scale from lower-rise buildings on Austin Street to taller buildings along Queens Boulevard. 17
FOREST HILLS NEIGHBORHOOD CHARACTER Forest Hills is the most sought after, quietly idyllic suburban neighborhood existing in Queens today. It is a transportation hub, an entertainment destination, and a historical district, which gives the upscale neighborhood the cosmopolitan chic that is not often found so far east of Manhattan. The town was given its name for their proximity to Forest Park at the beginning of the twentieth century when the area was mostly farmland. Michael Perlman, a local historian and author of Legendary Locals of Forest Hills and Rego Park, noted that a large portion of the farmland was developed by the Cord Meyer Development Company in the early 1900s. The Russell Sage Foundation bought 142 acres south of today Long Island Rail Road station, from them and developed what is now Forest Hills Gardens, the oldest planned garden district in the U.S. 18
FOREST HILLS NEIGHBORHOOD CHARACTER By late 1940s the area was primarily middle-class Italian and Jewish residents. Over the next 40 years the area became mainly immigrant Asians, Russian Jews, Hispanics, which mingled with Polish, Iranian, Italian, and Germans. When moving south in Forest Hills towards Union Turnpike, the neighborhood throws away the hustle and bustle of the many boutiques, restaurants, bars and bakeries of Queens Boulevard and Austin Street and features the more tree laden streets of Forest Hills Gardens. There the streets are narrow quiet streets with large single family homes, and beautiful landscape architecture. Hidden within this European like community is the West End Tennis Club where the U.S. Open was played until 1979. According to the club s website, tennis stars such as John McEnroe, Arthur Ashe, Billie Jean King, and Jimmy Connors have played there. Inside the tennis club is the Forest Hills Stadium, which has seen the likes of the most iconic musical acts of the last 60 years; The Beatles, Simon and Garfunkel, Jimi Hendrix, Frank Sinatra, The Monkees, Barbara Streisand, Bob Dylan, The Talking Heads, Diana Ross, and The Who have all played to sold-out concerts The stadium closed in the 90s when it became too expensive to keep open, but was re-opened in 2013. The summer of 2016 promises to be their biggest one since their return, with Paul Simon, Bob Dylan, Mumford and Sons, and the New York Pops orchestra playing this summer. Some long-time residents may remember that Paul Simon grew up in Forest Hills and attended Forest Hills High School 19
FOREST HILLS NEIGHBORHOOD CHARACTER One of the most historic buildings on Continental Avenue, the New Corn Exchange Building originally opened in 1921. Now a Boston Market and ALDO, the original building still stands. The iconic architecture transcended a near century and allows Forest Hills to maintain a historic feel, but one with very modern spaces and necessary amenities to suit the needs of it s residents. Published: November 27, 1921 Copyright The New York Times 20
FOREST HILLS NEIGHBORHOOD CHARACTER The historic architecture of Forest Hills, coupled with the distinctly modern atmosphere presents a juxtaposition of the old and new worlds of New York City. National tenants dot the area densely packed into one of the premier shopping locales in Queens. In this neighborhood there is something for everyone, from the hustle and bustle of shoppers on Austin Street and Continental Avenue to the quiet and impressively secluded Forest Hills Gardens; home to some of the most prestigious multi-million dollar homes in Queens. 21
TRANSPORTATION MAP - BUS 22
TRANSPORTATION MAP - SUBWAY 23
CONTACTS Rubin Isak Founding Partner risak@goldenwoodnyc.com 646.992.4595 OFFICE: 212.875.1800 GOLDENWOODNYC.COM 135 EAST 57TH STREET NEW YORK, NY 10022