87 graham ave package

OFFERING MEMORANDUM

BROOKLYN, NY

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.

BROOKLYN, NY

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS

BROOKLYN, NY

PRICING AND FINANCIAL ANALYSIS

1

PRICING AND FINANCIAL ANALYSIS87 Graham AvenueBROOKLYN, NY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties,expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer mustverify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a servicemark of Marcus & Millichap Real Estate Investment Services of New York, Inc. © 2013 Marcus & Millichap

RENT ROLL

2

PRICING AND FINANCIAL ANALYSIS87 Graham AvenueBROOKLYN, NY


INCOME/EXPENSES

87 Graham Avenue

brooklyn, NY 11206

Price $7,500,000

Down Payment 100% /

Total Rentable Square Feet 15,200

Price/Square Foot $493.42

CAP Rate - Current 5.63%

CAP Rate- Pro Forma 10.31%

Year Built 1931

Lot Size 50x75

Type of Ownership Fee Simple

3

Annualized Operating Data

Income Current Pro FormaApartments - Gross Potential Rent $394,500 $596,412Retail - Gross Potential Rent $176,688 $176,688Combined Gross Potential Rent $571,188 $773,100Gross Potential Income $571,188 $773,100Effective Gross Income $571,188 $773,100Less: Combined Expenses $148,669

Net Operating Income $422,519 $773,100

Net Cash Flow After Debt Service 5.63% / $422,519 10.31% / $773,100Total Return 5.63% / $422,519 10.31% / $773,100

PRICING AND FINANCIAL ANALYSIS

Location

87 Graham AvenueBROOKLYN, NY

ExpensesReal Estate Taxes $67,288

Insurance $11,045

Fuel $32,000

Repairs & Maintenance $10,000

Water & Sewer $18,736

Electric $4,800On-Site Payroll $4,800

TOTAL EXPENSES $148,669

EXPENSES/SF $10

% of EGI 26.0%


FINANCIAL OVERVIEW

BROOKLYN, NY

PROPERTY DESCRIPTION

The subject property is a six story walk up corner building located on Graham Ave and Siegel street in East Williamsburg Brooklyn.The building is built 50x67.25 sitting on a 50 x 75 lot, contaning 24 apartments with 3 retail stores. There are 4 one bedrooms, 19 two bedrooms and 1 three bedroom.

The seller successfully bought 11 tenants out and the potential buyer can possibly negotiate with the rest 13 tenants which can increase the rents to 773K.

5

Investment Highlights

PROPERTY DESCRIPTION87 Graham AvenueBROOKLYN, NY

■ Prime location on Graham Ave & Siegel Street

■ 11 Gut renovated apartments

■ 13 Tenents can be possibly bought out

■ Market rate: $2,200 for one bedroom, $2,700 for 2bedroom

■ Extremely fast gentrifying area


INVESTMENT OVERVIEW

The OfferingProperty Address 87 Graham Avenue

brooklyn, NY 11206

Site Description

Year Built 1931Total Rentable Square Feet 15,200

6



PROPERTY SUMMARY

Construction

Features

7



PROPERTY FEATURES

8



PROPERTY PHOTOS

Local Map Regional Map

9



AREA MAPS

10This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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 Real Estate Investment Services is aservice mark of Marcus & Millichap Real Estate Investment Services of New York, Inc. © 2013 Marcus & Millichap

87 Graham AvenueBROOKLYN, NY PROPERTY DESCRIPTION

SITE PLAN

11This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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 Real Estate Investment Services is aservice mark of Marcus & Millichap Real Estate Investment Services of New York, Inc. © 2013 Marcus & Millichap

87 Graham AvenueBROOKLYN, NY PROPERTY DESCRIPTION

PLOT MAP

12



AERIAL PHOTO

BROOKLYN, NY

DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

1990 Population 143,504 1,064,749 2,750,965

2000 Population 144,288 1,097,714 2,930,805

2010 Population 163,387 1,130,267 2,999,443

2012 Population 166,896 1,147,445 3,035,952

2017 Population 174,681 1,185,695 3,117,180

1990 Households 44,649 393,351 1,113,495

2000 Households 46,225 414,787 1,178,955

2010 Households 56,505 447,716 1,238,592

2012 Households 57,641 458,507 1,271,610

2017 Households 60,447 482,366 1,340,298

2012 Average Household Size 2.86 2.45 2.33

2012 Daytime Population 41,606 404,966 2,529,674

1990 Median Housing Value $121,238 $176,567 $189,499

2000 Median Housing Value $172,212 $202,563 $207,418

2000 Owner Occupied Housing Units 10.56% 17.00% 22.50%

2000 Renter Occupied Housing Units 82.46% 76.59% 71.23%

2000 Vacant 6.98% 6.41% 6.27%



2012 Vacant 6.62% 7.32% 7.51%



2017 Vacant 5.79% 6.11% 5.57%

$ 0 - $14,999 27.9% 20.5% 15.7%

$ 15,000 - $24,999 15.6% 11.6% 9.9%

$ 25,000 - $34,999 9.9% 9.6% 8.9%

$ 35,000 - $49,999 12.6% 12.4% 11.7%

$ 50,000 - $74,999 14.8% 15.8% 15.8%

$ 75,000 - $99,999 8.2% 10.3% 10.9%

$100,000 - $124,999 4.6% 6.5% 7.4%

$125,000 - $149,999 2.9% 3.9% 4.8%

$150,000 - $199,999 1.3% 2.8% 4.1%

$200,000 - $249,999 0.4% 1.2% 1.9%

$250,000 + 1.8% 5.4% 8.8%

2012 Median Household Income $31,520 $44,703 $55,385

2012 Per Capita Income $15,326 $28,405 $39,275

2012 Average Household Income $43,705 $69,185 $91,498

Demographic data © 2010 by Experian/Applied Geographic Solutions.

14

DEMOGRAPHIC ANALYSIS87 Graham AvenueBROOKLYN, NY


DEMOGRAPHIC REPORT

Geography: 5 Miles

Population

In 2012, the population in your selected geography was 3,035,952 . The population has changed by 3.58% since 2000. It is estimatedthat the population in your area will be 3,117,180 five years from now, which represents a change of 2.67% from the current year. Thecurrent population is 47.5% male and 52.4% female. The median age of the population in your area is 35.3 , compare this to the U.S.average which is 36.9. The population density in your area is 38,591.23 people per square mile.

HouseholdsThere are currently 1,271,610 households in your selected geography. The number of households has changed by 7.85% since 2000.It is estimated that the number of households in your area will be 1,340,298 five years from now, which represents a change of 5.40%from the current year. The average household size in your area is 2.33 persons.

Income

In 2012, the median household income for your selected geography is $55,385 , compare this to the U.S. average which is currently$53,620. The median household income for your area has changed by 40.25% since 2000. It is estimated that the median householdincome in your area will be $62,920 five years from now, which represents a change of 13.60% from the current year.

The current year per capita income in your area is $39,275 , compare this to the U.S. average, which is $28,713. The current yearaverage household income in your area is $91,498 , compare this to the U.S. average which is $73,458.

Race & EthnicityThe current year racial makeup of your selected area is as follows: 44.70% White, 27.73% African American, 0.83% Native Americanand 10.70% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.40% White, 12.60% African American, 0.95%Native American and 4.93% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 24.46% of the current year populationin your selected area. Compare this to the U.S. average of 16.90%.

HousingThe median housing value in your area was $207,418 in 2000, compare this to the U.S. average of $110,796 for the same year. In2000, there were 283,052 owner occupied housing units in your area and there were 895,922 renter occupied housing units in yourarea. The median rent at the time was $691 .

Employment

In 2012, there are 2,529,674 employees in your selected area, this is also known as the daytime population. The 2000 Censusrevealed that 65.9% of employees are employed in white-collar occupations in this geography, and 34.0% are employed in blue-collaroccupations. In 2012, unemployment in this area is 7.78% . In 2000, the median time traveled to work was 33.3 minutes.


15



SUMMARY REPORT

Number of people living in a given area per square mile.


16



POPULATION DENSITY

The number of people employed in a given area per square mile.


17



EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying a single housing unit.


18



AVERAGE HOUSEHOLD INCOME

Two-way, average daily traffic volumes.Traffic Count data © 2010 by TrafficMetrix. All rights reserved.

19



TRAFFIC COUNTS

BROOKLYN, NY

87 Graham Avenue

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87 graham ave package