314-320 Grand Street New York, NY 10002 Commercial Building for Sale Location: Block / Lot: 413 / 51 Lot Dimensions: 87 10 x 87 10 Irr (Approx.) Lot area: 7,621 SF (Approx.) Building Dimensions: 87 10 x 87 10 (Approx.) Existing gross SF: 29,512 SF (Approx.) Stories: 4 Zoning / far: C4-4A far: 4.0 Residential 4.0 Commercial buildable SF: 30,484 SF (Approx.) air rights: 972 SF (Approx.) assessment (13/14): $2,011,900 taxes (13/14): $221,387 On the northern blockfront of Grand between Allen & Orchard Streets 314-320 Grand Street is one of the most architecturally significant and prominent buildings in the Lower East Side. The building is a 4-story commercial building that stretches over 87 across the entire northerly block-front of Grand Street between Allen and Orchard Streets. The property benefits from an incredible amount of both pedestrian and automobile traffic. There are currently four retail tenants which include Bank of America, Howard Sportswear, Zarin Fabrics and The Cast Clothing Store. TD Bank will soon be occupying the entire northeast corner of Allen and Grand Streets becoming a solid anchor for the building and the entire intersection. This property presents a strong investment opportunity for potential investors looking for a property on a bustling Lower East Side and Chinatown Street. ASKING PRICE: $32,000,000 James Nelson Partner 212-696-2500 x7710 jnelson@masseyknakal.com Michael DeCheser First Vice President of Sales 212.660.7772 mdecheser@masseyknakal.com For further information or inspection please contact Exclusive Agents: Mitchell Levine Director of Sales 212.660.7761 mlevine@masseyknakal.com Matthew Nickerson s 212.660.7742 mnickerson@masseyknakal.com Darragh Clarke 212.660.7737 dclarke@masseyknakal.com Mei Ling Wong Associate 212-660-7716 mwong@masseyknakal.com 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 it. All zoning, buildable footages and uses must be independently verified. The value of this 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 HEREIN. 275 275 Madison Madison Avenue Avenue Third Third Floor Floor New New York, York, NY NY 10016 10016 212.696.2500 212.696.2500 Fax Fax 212.696.0333 212.696.0333 2 www.masseyknakal.com www.masseyknakal.com 115 MACDOUGAL STREET THE BRONX BROOKLYN MANHATTAN NASSAU NEW JERSEY QUEENS STATEN ISLAND WESTCHESTER
314-320 Grand Street New York, NY 10002 Commercial Building for Sale COMMERCIAL REVENUE as of 9/1/13 Floor TENANT Frontage SF RPSF Lease Exp. OPTION Monthly Rent Annual Rent Tax Reimbursement Basement Zarin Store N/A 4,000 $7.50 2025 N/A $2,500 $30,000 N/A Grnd. Fl. Zarin (1) Orchard 500 $72.00 2025 N/A $3,000 $36,000 N/A Grnd. Fl. The Cast Orchard 400 $25.50 11/1/2014 None $850 $10,200 $8,855 Grnd. Fl. Bank of America Orchard/Grand 1,500 $130.00 4/30/2018 3 (5yr terms) $16,250 $195,000 $1,705 Grnd. Fl. TD Bank (2) Allen/Grand 4,000 $54.00 2024 3 (5yr terms) $18,000 $216,000 N/A 2nd Fl. Zarin N/A 6,500 (3) $22.08 (3) 12/31/2020 None $11,960 $143,530 $26,566 3rd Fl. Projective N/A 7,200 (3) $27.33 (3) 6/30/2016 1 (5yr) $16,400 $196,800 $4,403 4th Fl. D-Touch N/A 7,200 (3) $27.63 (3) 10/31/2024 1 (5yr) & 1 (5yr 6 months) $16,581 $198,969 $30,994 Roof Sprint N/A N/A N/A 12/31/2015 N/A $3,167 $38,004 N/A Roof T-Mobile N/A N/A N/A Mo-Mo None $2,348 $28,183 N/A Roof Metro PCS N/A N/A N/A 8/29/2017 None $2,955 $35,457 N/A TOTAL: 31,300 $94,011 $1,128,143 $72,524 (1) currently occupied by Howard which will vacate on 7/31/13. (2) reduced rental payments are estimated to begin on 9/1/13, after regulatory approval has been granted, and ownership has delivered the space. (3) Loss factors have not been applied to these floors. If a market rate 27% loss factor was used, these rents would ONLY CUR- RENTLY be in the low $20s/SF. EXPENSES Basis Amount Real Estate Taxes (13/14) Actual $221,387 Insurance Actual $28,000 Fuel Oil Actual $20,000 Electric Actual $8,000 Water & Sewer Actual $13,000 Elevator Actual $3,000 Management Projected @ 3% $33,844 Exterminator Actual $1,300 Super Actual $26,000 Total: $354,531 James Nelson Partner 212-696-2500 x7710 jnelson@masseyknakal.com Michael DeCheser First Vice President of Sales 212.660.7772 mdecheser@masseyknakal.com NET OPERATING INCOME Projected Gross Income: $1,128,143 Less Expenses: ($354,531) RE TAX REIMBURSEMENTS: $72,524 Net Operating Income: $846,136 For further information or inspection please contact Exclusive Agents: Mitchell Levine Director of Sales 212.660.7761 mlevine@masseyknakal.com Matthew Nickerson 212.660.7742 mnickerson@masseyknakal.com Darragh Clarke 212.660.7737 dclarke@masseyknakal.com Mei Ling Wong Associate 212-660-7716 mwong@masseyknakal.com 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 it. All zoning, buildable footages and uses must be independently verified. The value of this 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 HEREIN. 275 275 Madison Madison Avenue Avenue Third Third Floor Floor New New York, York, NY NY 10016 10016 212.696.2500 212.696.2500 Fax Fax 212.696.0333 212.696.0333 3 www.masseyknakal.com www.masseyknakal.com 115 MACDOUGAL STREET THE BRONX BROOKLYN MANHATTAN NASSAU NEW JERSEY QUEENS STATEN ISLAND WESTCHESTER
314-320 Grand Street New York, NY 10002 Commercial Building for Sale COMMERCIAL REVENUE as of 9/1/15 Floor TENANT Frontage SF RPSF Lease Exp. OPTION Monthly Rent Annual Rent Tax Reimbursement Basement Zarin Store N/A 4,000 $7.96 2025 N/A $2,652 $31,827 N/A Grnd. Fl. Zarin Orchard 500 $76.38 2025 N/A $3,183 $38,192 N/A Grnd. Fl. TBD (1) Orchard 400 $106.09 TBD N/A $3,536 $42,436 N/A Grnd. Fl. Bank of America Orchard/Grand 1,500 $149.50 4/30/2018 3 (5yr terms) $18,688 $224,250 $1,756 Grnd. Fl. TD Bank Allen/Grand 4,000 $88.00 2024 3 (5yr terms) $29,333 $351,996 $1,808 2nd Fl. Zarin N/A 6,500 (3) $24.84 (3) 12/31/2020 None $13,454 $161,453 $28,184 3rd Fl. Projective N/A 7,200 (3) $28.72 (3) 6/30/2016 1 (5yr) $17,230 $206,763 $6,291 4th Fl. D-Touch N/A 7,200 (3) $29.89 (3) 10/31/2024 1 (5yr) & 1 (5yr 6 months) $17,934 $215,205 $32,882 Roof Sprint N/A N/A N/A 12/31/2015 N/A $3,360 $40,318 N/A Roof T-Mobile N/A N/A N/A Mo-Mo None $2,540 $30,475 N/A Roof Metro PCS N/A N/A N/A 8/29/2017 None $3,196 $38,354 N/A TOTAL: 31,300 $115,106 $1,381,269 $70,920 (1) Assumes A Current market rent grown 3% annually. (2) Expenses are grown 3% annually from the current Actual Expenses. (3) Loss factors have not been applied to these floors. If a market rate 27% loss factor was used, these rents would ONLY CURRENTLY be in the low $20s/SF. EXPENSES (2) Basis Amount Real Estate Taxes (14/15) Projected $234,869 Insurance Projected $29,705 Management Projected $41,438 Fuel Oil Projected $21,218 Electric Projected $8,487 Water & Sewer Projected $13,792 Elevator Projected $3,183 Exterminator Projected $1,379 Super Projected $27,583 Total: $381,655 NET OPERATING INCOME Projected Gross Income: $1,381,269 Less Expenses: ($381,655) RE TAX REIMBURSEMENTS: $70,920 Net Operating Income: $1,070,537 James Nelson Partner 212-696-2500 x7710 jnelson@masseyknakal.com Michael DeCheser First Vice President of Sales 212.660.7772 mdecheser@masseyknakal.com For further information or inspection please contact Exclusive Agents: Mitchell Levine Director of Sales 212.660.7761 mlevine@masseyknakal.com Matthew Nickerson 212.660.7742 mnickerson@masseyknakal.com Darragh Clarke 212.660.7737 dclarke@masseyknakal.com Mei Ling Wong Associate 212-660-7716 mwong@masseyknakal.com 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 it. All zoning, buildable footages and uses must be independently verified. The value of this 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 HEREIN. 275 275 Madison Madison Avenue Avenue Third Third Floor Floor New New York, York, NY NY 10016 10016 212.696.2500 212.696.2500 Fax Fax 212.696.0333 212.696.0333 4 www.masseyknakal.com www.masseyknakal.com 115 MACDOUGAL STREET THE BRONX BROOKLYN MANHATTAN NASSAU NEW JERSEY QUEENS STATEN ISLAND WESTCHESTER
Broker Confidentiality and Indemnification Agreement Principal: Title: All information for the Company: Purchaser must be filled Address: in or the package cannot be Address: disseminated. Phone/Fax: E-Mail: Salesperson: ( Broker ) Company: Address: Address: Phone/Fax: E-Mail: Re: Confidentiality and Indemnification Agreement To Whom It May Concern: We have advised you that Massey Knakal Realty of Manhattan LLC, ( Agent ) is acting as exclusive agents on behalf of the ownership and their related companies ( Owner ), in connection with the sale of 314 Grand Street, New York, NY (the Property ). You have informed us that _ ( Broker ) is authorized to act on behalf of ( Principal ) and represent that Principal is interested in the possible purchase of the Property, and has the experience and financial capabilities to undertake a transaction of this magnitude. Therefore, you have requested that Agent furnish Principal and Broker information concerning the Property. This information may include, without limitation, the offering memorandum prepared by Agent, various papers, leases, documents, legal instruments, studies, brochures, computer output, and other material, and any discussions or Property visitations which are conducted with Principal and/or Broker concerning the Property (all of the aforementioned information is collectively referred to as Evaluation Material ). In this connection, we are prepared to furnish the Evaluation Material to Principal and Broker only -1-
upon the condition that you agree to treat the Evaluation Material confidentially as hereinafter provided. Therefore as a prerequisite to Agent furnishing this Evaluation Material to Principal and Broker, you hereby agree as follows: 1. All Evaluation Material furnished to Principal and Broker by Agent or Owner will not be used or duplicated by Principal or Broker in any way detrimental to Agent or Owner, or for any purpose other than evaluating a possible purchase of the Property by Principal. Therefore, Principal and Broker agree to keep all Evaluation Material (other than information which is a matter of public record or is provided in other sources readily available to the public other than as a result of disclosure thereof by Broker, Principal or Related Parties) strictly confidential; provided, however, that the Evaluation Material may be disclosed to the directors, officers, and employees of Principal as well as Broker, and to Principal s outside counsel and accounting firm (all of whom are collectively referred to as Related Parties ) who in Principal s reasonable judgment need to know such information for the purpose of evaluating a possible purchase of the Property. These Related Parties shall be informed of the confidential nature of the Evaluation Material and shall be directed to keep all such information in the strictest confidence and use such information only for the purpose of evaluating a possible purchase by Principal. Any disclosure of Evaluation Material by Related Parties shall be deemed made by and be the responsibility of Principal. Principal and Broker will promptly, upon request of Agent or Owner, deliver to Agent all Evaluation Material furnished to them by Agent or Owner, whether furnished before or after the date of this letter, without retaining copies thereof. 2. Principal and Broker agree not to make any of the Evaluation Material available, or disclose any of the contents of Evaluation Material, or disclose either the fact that discussions or negotiations concerning a possible sale of the Property to Principal are taking place or any of the terms, covenants, conditions, or other facts with respect to any such sale, including the status thereof, to any person other than as permitted by the preceding paragraph unless: (i) such person has been identified in writing to Agent and Owner; (ii) Agent and Owner have approved in writing the disclosure of the Evaluation Material to such person; and (iii) such person has entered into a written Confidentiality Agreement with Agent and Owner the provisions of which agreement shall be substantially the same as the provisions of this agreement. The term person as used in this agreement shall be interpreted broadly to include, without limitation, any corporation, partnership, association, limited liability company or partnership or individual. Principal and Broker will direct Related Parties to whom Evaluation Material is made available not to make similar disclosures and any such disclosure shall be deemed made by, and be the responsibility of, Principal. 3. Although we have endeavored to include in the Evaluation Material information which we believe to be relevant to your investigation, Principal and Broker understand and acknowledge that neither Agent nor Owner nor their respective advisors or representatives makes any representation or warranty as to the accuracy or completeness of the Evaluation Material. The financial information and projections contained in the Evaluation Material represent estimates based on assumptions considered reasonable under the circumstances although they have not been independently verified by Agent. Agent and Owner and their respective advisors and representatives make no representations or warranties, expressed or implied, that actual results will conform to such projections. Owner and Agent and their respective advisors and representatives expressly disclaim any and all liability for representations or warranties, express or implied, contained in this Evaluation Material or for omissions from this Evaluation Material, or in any other written or oral communications transmitted or made available to Principal and Broker. Principal and Broker agree that neither Agent nor Owner nor any affiliate or advisor or representative of Agent or Owner shall have any liability to Principal or Broker or any of their representatives or Related Parties resulting from its use of or reliance upon the Evaluation Material. 4. Owner and Agent expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to invest in the Property from Principal, Broker or any other person or entity and/or to terminate discussions with Principal, Broker or any other person or entity at any time with or without notice. Owner shall have no legal commitment or obligation to Principal, Broker, or any other person or entity -2-
reviewing the Evaluation Material or making an offer to purchase the Property unless and until such sale of the Property is approved by Owner on whatever terms deemed desirable by Owner, a written agreement for the purchase of the Property has been fully executed, delivered and approved by Owner and its legal counsel, any conditions to Owner s obligations thereunder have been satisfied or waived, and any conditions to Principal s obligations thereunder have, in the opinion of Owner, been fully satisfied. Any person violating this Agreement shall, in addition to Owner s others rights hereunder, at law or in equity, be disqualified from the bidding process, in Owner s sole and absolute discretion. 5. Principal has been advised that Agent is acting on behalf of Owner on an exclusive basis in connection with the sale of the Property and Owner shall pay Agent only pursuant to the terms of an agreement between Owner and Agent, and only if, as and when closing of the sale of the Property occurs. Agent agrees to pay Broker, and Broker agrees to accept as its full and only commission or other in connection with the sale of the Property to Principal, an amount equal to 50 percent (50%) of the Agent fee as per a separate agreement. Such commission shall be deemed earned and shall be due and payable only if, as and when closing of such sale occurs and once Agent has received the gross commission payable to Agent as a result of the sale of the Property to Principal. Broker shall only be compensated once Agent has been paid in full by Owner. Broker and Principal agree to indemnify and hold harmless Agent and Owner and, their respective affiliates, successors and assigns, employees, officers, members and directors from and against any loss, liability or expense, including reasonable attorney s fees, arising out of any claim or claims by any broker, finder or similar agent (including but not limited to Broker) for commissions, fees or other compensation for bringing about any sale of the Property to Principal if such claim or claims are based in whole or in part on dealings with Broker, Principal or any of their representatives. Broker and Principal each hereby releases Owner from any claim with respect to payment of any commission that Broker may claim is owed to it with respect to any sale of the Property and agrees that it shall not assert any such claim or commence any action against Owner under any circumstances. 6. Principal and Broker shall indemnify, defend and hold harmless Owner and Agent and their respective advisors, representatives, affiliates, successors and assigns, employees, officers, members and directors from and against any loss, liability, damages, claims, costs, cases of action or other matters arising out of, caused by or relating to the Principal s or Broker s or Related Parties breach or violation of the terms and conditions of this Agreement by Broker or Principal or any of the Related Parties. Further, Owner and Agent shall be entitled to enforce this Agreement by injunction or other equitable relief, seeking to prevent the disclosure of the Evaluation Materials and/or to enjoin the violation, or further violation, of this Agreement. 7. Principal and Broker shall not enter upon the Property, inspect the Property (other than drive by inspections), discuss the Property or the possible sale thereof with the employees thereof or of the affiliates of Owner or any of the tenants of the Property, or discuss the possible purchase or lease of the Property with any other person, other than the Related Parties, without the prior written consent of Owner and/or Agent. All access to the Property (including property inspections) shall be made under the supervision of Owner or Agent, and shall be by appointment only, arranged through the Agent. 8. No failure or delay by Agent or Owner in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof or failure to exercise preclude any other or further exercise thereof or the exercise of any right, power or privilege hereunder. 9. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York (without regard to its conflicts of laws principles). Any litigation arising out of this Agreement or -3-
the transactions contemplated hereby shall be brought in the courts of the State of New York and the parties hereto consent to the venue of such courts. 10. This Agreement, which constitutes the entire agreement between the parties, may not be modified unless such modification is in writing and executed by both parties. This Agreement supercedes any previous agreements between the parties whether oral or in writing. 11. This Agreement shall be for a term of two (2) years. If you are in agreement with the foregoing, both Principal and Broker should execute and return a fully executed agreement by mail to Massey Knakal Realty of Manhattan LLC, at 275 Madison Avenue, 3 rd Floor, New York, New York, 10016, Attention: Matt Nickerson MNickerson@masseyknakal.com or by fax at (866) 471-9777. A failure to return this fully executed letter agreement to us within ten (10) business days will render it null and void and of no further force and effect. We will consider forwarding the Evaluation Material to you as soon as we (i) receive the fully executed Confidentiality and Indemnification Agreement and (ii) satisfy ourselves in our sole judgment that Principal has the experience and financial ability to consummate the contemplated sale transaction (including, if we deem necessary, personal interviews, bank reference investigations, and other appropriate financial disclosures). Very truly yours, Massey Knakal Realty of Manhattan LLC By Name: James Nelson Title: Partner ACCEPTED AND AGREED TO: Date: Principal: Signature: Title: (Please Print) Broker: Signature: Title: Dated: (Please Print) -4-