Offering Memorandum 6701 5 th Avenue Brooklyn, New York 11220 Asking Price: $6,000,000 E X C L U S I V E L Y L I S T E D B Y : Maria Barbatsis-Savidis Licensed Real Estate Salesperson Brooklyn Office Tel: (718) 475-4378 Fax: (718) 475-4310 evmorfea.barbatsissavidis@marcusmillichap.com License: NY 10401222529 John Brennan Associate Director National Multi Housing Group Brooklyn Office Tel: (718) 475-4373 Fax: (718) 475-4310 john.brennan@marcusmillichap.com License: NY 10401237299 Bobby Barbatsis Licensed Real Estate Salesperson Brooklyn Office Tel: (718) 475-4356 Fax: (718) 475-4310 haralabos.barbatsis@marcusmillichap.co m License: NY 10401269675
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E Non-Endorsements 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. Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2016 Marcus & Millichap. All rights reserved. 6701 5TH AVE Brooklyn, NY ACT ID Y0340176
FINANCIAL ANALYSIS 3
RENT ROLL DETAIL FINANCIAL ANALYSIS 6701 5th Avenue, Brooklyn, New York 11220 Tenant Unit Status Type Approx. Sq FT Current Rent Current/SF Pro-Forma Pro-Forma/SF Apartment 1A RS 1 BR 513 $1,144.61 $26.78 $1,144.61 $26.78 Apartment 1B RS 1 BR 513 $999.12 $23.38 $999.12 $23.38 Apartment 1C RS 1 BR 513 $1,250.00 $29.25 $1,250.00 $29.25 Apartment 1D RC 1 BR 513 $564.85 $13.22 $564.85 $13.22 Apartment 2A RS 1 BR 513 $1,250.00 $29.25 $1,250.00 $29.25 Apartment 2B RS 1 BR 513 $1,080.00 $25.27 $1,080.00 $25.27 Apartment 2C RS 1 BR 513 $978.41 $22.89 $978.41 $22.89 Apartment 2D RS 1 BR 513 $1,130.25 $26.44 $1,130.25 $26.44 Apartment 2E RS 1 BR 513 $812.98 $19.02 $812.98 $19.02 Apartment 2F RS 2 BR 513 $1,600.00 $37.43 $1,600.00 $37.43 Apartment 2G RS 1 BR 513 $1,068.60 $25.00 $1,068.60 $25.00 Apartment 2H Vacant 1 BR 513 $0.00 $0.00 $1,600.00 $37.43 Apartment 3A RS 1 BR 513 $1,200.00 $28.08 $1,200.00 $28.08 Apartment 3B RS 1 BR 513 $1,153.81 $26.99 $1,153.81 $26.99 Apartment 3C RS 1 BR 513 $544.26 $12.73 $544.26 $12.73 Apartment 3D RS 1 BR 513 $1,205.47 $28.20 $1,205.47 $28.20 Apartment 3E RS/Projected Vacant 1 BR 513 $1,200.00 $28.08 $1,440.00 $33.69 Apartment 3F Super 2 BR 513 $0.00 $0.00 $0.00 $0.00 Apartment 3G Vacant 1 BR 513 $0.00 $0.00 $1,600.00 $37.43 Apartment 3H RS 1 BR 513 $853.95 $19.98 $853.95 $19.98 Apartment 4A RS 1 BR 513 $1,055.96 $24.71 $1,055.96 $24.71 Apartment 4B RS 1 BR 513 $713.54 $16.69 $713.54 $16.69 Apartment 4C RS 1 BR 513 $1,066.08 $24.94 $1,066.08 $24.94 Apartment 4D RS 1 BR 513 $1,013.23 $23.71 $1,013.23 $23.71 Apartment 4E RS 1 BR 513 $1,039.70 $24.33 $1,039.70 $24.33 Apartment 4F RS 2 BR 513 $1,435.00 $33.57 $1,435.00 $33.57 Apartment 4G RS 1 BR 513 $1,062.02 $24.85 $1,062.02 $24.85 Apartment 4H RS 1 BR 513 $1,053.90 $24.66 $1,053.90 $24.66 Apartment Basement RS 1 BR 513 $414.59 $414.59 $406.59 $9.51 Apartment 6705 RS Studio 513 $609.11 $14.25 $609.11 $14.25 Apartment 6707 RS Studio 513 $746.98 $17.48 $746.98 $17.48 Retail N/A 2021 N/A 2,500 $4,303.00 $20.65 $4,303.00 $20.65 Cell Tower N/A Not in Service Nextell N/A $0.00 N/A $1,500.00 N/A Cell Tower N/A Not in Service Sprint N/A $0.00 N/A $1,950.00 N/A Monthly: $32,549.42 Proforma Monthly: $39,431.42 Annual: $390,593.04 Proforma Annual: $473,177.04 4
OPERATING STATEMENT Income Current Year 1 Multifamily Gross Scheduled Rent $338,963 $380,245 All Other Income $0 $0 Vacancy 3.0% ($10,169) 3.0% ($11,407) Effective Gross Income $328,794 $368,838 Total SF: 18,400 Rentable SF: 15,640 Res Units 31 Total Units: 32 Actual FINANCIAL ANALYSIS Pro-Forma Retail Suites Gross Scheduled Rent $51,636 $51,636 Expense Reimbursments $0 $0 All Other Income $0 $41,400 Vacancy 3.0% ($1,549) 3.0% ($1,549) Effective Gross Income $50,087 $91,487 Combined Effective Gross Income (CEGI) $378,875 $460,316 Less: Expenses ($188,044) ($188,951) Net Operating Income $190,831 $271,365 Tenant Improvements $0 $0 Leasing Commissions $0 $0 Capital Expenditures $0 $0 Cash Flow $190,831 $271,365 Debt Service $0 $0 Net Cash Flow After Debt Service 3.18% $190,831 4.52% $271,365 Principal Reduction $0 $0 Total Return 3.18% $190,831 4.52% $271,365 Gross $390,593.04 $431,873.04 Effective $378,875.25 $460,316.85 Taxes $104,494.00 $102,957.00 Fuel $20,000.00 $20,000.00 W&S $15,000.00 $15,000.00 Insurance $14,606.00 $14,606.00 Electric $2,978.00 $2,978.00 Repairs $16,000.00 $16,000.00 Payroll $3,600.00 $3,600.00 Management $11,366.26 $13,809.51 Total $188,044.26 $188,950.51 NOI $190,830.99 $271,366.34 Expense Ratio 49.63% 41.05% 5
CURRENT PRICING FINANCIAL ANALYSIS Price $6,000,000 Price Per Square Foot $326.09 Analysis Period Cap Rate Year 1 4.52% Current 3.18% Review Analysis Net Residual Value Year 1 - Cash on Cash Return 4.52% Year Capitalized 2028 100% Market Financing 1st Loan Interest Rate N/A Amortization Period N/A Months of Interest Only N/A Annual Loan Constant N/A Loan Term N/A Loan to Value N/A Loan Amount $0 Down Payment $6,000,000 DSCR - Year 1 (all loans) N/A 80% 60% 40% 20% 0% Multifamily % GLA % OF EGI Retail Property Detail Current Physical Occupancy 97.41% Number of Apartment Units 31 Asset / Location Class 0 Number of Commercial Suites 1 Asset Type Mixed Use Total Square Feet 18,400 Year of Construction/Renovation 0 Zoning R6B, R4-1, C2-3 Block / Lot 5856 / 21 Built Dimensions 63.42 Ft x 130.58 Ft Residential FAR 2 Facility FAR 2 FAR as built 2.67 Current Proforma Price $ 6,000,000.00 $ 6,000,000.00 Cap Rate 3.18% 4.52% GRM 15.361 13.893 PPU $187,500.00 $187,500.00 PPSF $326.09 $326.09 6
INVESTMENT OVERVIEW 7
PROPERTY OVERVIEW PROPERTY OVERVIEW Marcus and Millichap has been chosen to exclusively represent ownership in the sale of 6701 5th Avenue, a four story corner walk-up mixed-use building comprised of 31 apartments and 1 ground floor retail space. The subject property is located on the corner of 5th Avenue & 67th Street between 67th Street & Senator Street in the Bay Ridge neighborhood of Brooklyn, New York. The subject property totals approximately 18,400 gross square feet, and measures 63.42 feet wide by 130.58 feet deep, on a lot that extends 140 feet deep. The property consists of 30 rent-stabilized apartments and 1 rent-controlled unit. This property is located 3 blocks away from the Bay Ridge Avenue R Train Station providing easy access to Manhattan, and other locations of Brooklyn. Additionally, the property is a few minutes from the Belt Parkway entrance & Gowanus Expressway entrances, providing tenants easy commute feasibility. PROPERTY OVERVIEW Bay Ridge 31 Apartments & 1 Retail Space Corner Building with Roughly 64 Feet of Frontage on 5th Avenue 30 Rent Stabilized & 1 Rent Control Unit Offering Significant Margin of Future Upside 2 Apartments Delivered Vacant Upon Sale Majority of Apartment Rents Below $30/SF in a Submarket Achieving $37-42/SF For Renovated Product 2 Obsolete Cell Towers Offer Legitimate Cash-Flow Boost if Re-Leased at Previous Rents Located on the Cusp of 2 Rapidly Appreciating Investment Markets of Sunset Park & Bay Ridge Directly in Front of Leif Ericson Park, Minutes to the Gowanus Expressway & the Belt Parkway No C Class HPD Violations as of February 2017 8
67 th STREET & 5 TH AVENUE PHOTOS 9
ROOF AND AIR-SHAFT PHOTOS 10
VACANT APARTMENT PHOTOS 11
COMMON AREAS 12
MECHANICALS & MAILBOXES 13
LOCAL MAP 14
AERIAL PHOTO 15