A Free-Market Bedford-Stuyvesant Eight Family Apartment Building CONFIDENTIAL OFFERING MEMORANDUM OFFERING MEMORANDUM 970 Greene

A Free-Market Bedford-Stuyvesant Eight Family Apartment BuildingC O N F I D E N T I A L O F F E R I N G M E M O R A N D U M

OFFERING MEMORANDUM

www.newyorkmultifamily.com

970 Greene Ave

M A R K E T I N G T E A M

Thomas ShihadehAssociate Associate270 MADISON AVENUETel: 718.475.4380Fax: [email protected]

Shaun RineyVice President of Investments16 COURT STREETTel: (718) 475-4369Fax: (646) [email protected]

Dan Greenblatt16 COURT STREETTel: (718) 475-4357Fax: (718) [email protected]

Andrew Dansker, Financing InquiriesLicensed Sales Associate270 MADISON AVENUETel: 212-430-5168Fax: [email protected]

970 Greene Ave

FINANCIAL ANALYSIS

970 Greene Ave

PRICING +

Rent Roll

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Pricing + Financial Analysis

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 must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 Marcus & MillichapActivity ID Number

* DHCR order substantiating free-market status through substantial rehabilitation to be provided. Please see listing agent for copy.

** Pro forma rents are based on minor cosmetic upgrades, please contact listing agent to discuss current layouts and condition of apartments. Kitchens and bathrooms in the middle of each unit.

RESIDENTIAL

UNIT# LEASE STATUS NOTES BEDROOMS ROOMS EXPIRATION ACTUAL PRO FORMA $/PSF1A FM 3 Bedroom 5 MTM $1,500 $2,550 $36

1B FM 3 Bedroom 5 MTM $1,500 $2,550 $36

2A FM 3 Bedroom 5 MTM $1,800 $2,550 $36

2B FM Section 8 3 Bedroom 5 MTM $1,400 $2,550 $36

3A FM 3 Bedroom 5 MTM $1,800 $2,550 $36

3B FM Program 3 Bedroom 5 MTM $1,500 $2,550 $36

4A FM 4 Bedroom 6 MTM $1,850 $2,550 $36

4B FM 1 Bedroom 3 Feb-16 $1,900 $2,550 $36

Monthly Residential Revenue 23 39 $13,250 $20,400

Annual Residential Revenue $159,000 $244,800

Total Annual Revenue $159,000 $244,800

There are 0 Vacant units currently in the building

The super lives off site

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Cash Flow

Building Size (SF) 8,115 Commercial Units 0

Number of Units 8 Residential Units 8

INCOME ACTUAL PRO FORMAGross Potential Income %EGI $/Unit / $/SF %EGI $/Unit / $/SF

Gross Potential Residential Rent $159,000 100.00% $19,875 $244,800 100.00% $30,600Gross Potential Commercial Rent $0 0% $0 $0 0% $0

Vacancy / Collection Loss ($4,770) 3% ($596) ($7,344) 3% ($918)

Other Income $0 $0 $0 $0Effective Gross Income $154,230 $19,279 $237,456 $29,682

Average Residential Rent/Month/Unit $1,656 $2,550

EXPENSESProperty Taxes Tax Class: 2B $6,595 4% $824 $6,595 3% $824Fuel $0 0% $0 $0 0% $0Insurance $4,000 3% $500 $4,000 2% $500Water and Sewer $7,200 5% $900 $7,200 3% $900Repairs and Maintenance $4,000 3% $500 $4,000 2% $500Common Electric (PSF) $2,029 1% $0 $2,029 1% $0Super Salary $2,400 2% $300 $2,400 1% $300Management Fee $6,169 4% $771 $9,498 4% $1,187

Total Expenses $32,393 21% $4,049 $35,722 15% $4,465

Net Operating Income $121,837 $201,734

* Property de-stabilized through substantial rehabilitation. DHCR order in place.** Each tenant has separate boiler and is responsible for heat and hot water.

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Financial Overview

INCOME CURRENT PRO FORMA PRICING METRICSGross Potential Residential Rent $159,000 $244,800 OFFERING PRICE $3,075,000

Gross Potential Commercial Rent $0 $0 Number of Units 8

Vacancy / Collection Loss ($4,770) ($7,344) Price/Unit $384,375

Other Income $0 $0 Gross Square Feet 8,115

Effective Gross Income $154,230 $237,456 Price / SF $379

Current Cap Rate 4.0%

EXPENSES Current GRM 19.9

Property Taxes $6,595 $6,595 Pro Forma Cap Rate 6.56%

Fuel Separate Boilers $0 $0 Pro Forma GRM 12.6

Insurance $4,000 $4,000 Pro Forma Cash On Cash Return N/A

Water and Sewer $7,200 $7,200

Repairs and Maintenance $4,000 $4,000 PROPOSED FINANCING*Common Electric (PSF) $2,029 $2,029 Loan Amount $0

Super Salary $2,400 $2,400 Interest Rate 0.00%

Management Fee $6,169 $9,498 Amortization 0Elevator Contract $0 $0 Annual Debt Service N/A

Legal & Miscellaneous $0 $0

SCRIE $0 $0

Other $0 $0

Total Expenses $32,393 $35,722

Net Operating Income $121,837 $201,734 SCHEDULE OF INCOMEUnit Breakdown Total % Rent

PROPOSED DEBT ANALYSIS Total RS Units 0 0% $0

Debt Service N/A Total RC Units 0 0% $0

Debt Coverage Ratio N/A Total FM Units 8 100% $13,250

Net Cash Flow After Debt Service N/A Total Commercial 0 0% $0

Cash on Cash Return N/A Total Units 8 100% $13,250

EXPENSES BY TYPE GROSS POTENTIAL INCOME BY TYPE

Resi.100%

Comm.0%

Other0%

21%

0%

12%

22%12%

6%

8%

19%

0%0%0%0%Property Taxes

Fuel

Insurance

Water and Sewer

Repairs and Maintenance

Common Electric (PSF)

Super Salary

Management Fee

Elevator Contract

Legal & Miscellaneous

SCRIE

Other

DESCRIPTION

970 Greene Ave

PROPERTY

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Address: 970 Greene Avei

City: Brooklyni

State: New York

Block & Lot: 1622 / 28i

Lot Dimensions: 26.42 ft. x 110 ft.i

Lot SF: 2,906i

Building Dimensions: 26.42ft. x 80ft.i

Building SF: i8,115

Zoning: R6Bi

Max FAR: 2.00i

Available Air Rights: 5,812i

Landmark District: Nonei

Historic District: Nonei

Annual Tax Bill: $6,595i

Tax Class: 2Bi

Property Description

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970 Greene AveSUBJECT PROPERTY


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Property Description Exteriors

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Property Description Interiors

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Property Description Interiors

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OVERVIEW

970 Greene Ave

MARKET

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Market Overview

Brooklyn.OVERVIEW

The borough we know today as “Brooklyn” was named by Dutch colonists after a village in the Netherlands called “Breuckelen.” Brooklyn is home to over 2.6 million residents who are part of a much larger population system;

the New York City metropolitan area is the largest in the United States, with more than 19 million inhabitants in three states.

New York City consists of five boroughs with about 8.4 million people. Brooklyn, also goes by the name Kings County and the “Borough of Homes and Churches.” Brooklyn is the 7th most populous county in the United States behind such major cities as Los Angeles and San Diego. While physically located on the island, Brooklyn is not considered a part of Long Island.

TRANSPORTATION

About 66 percent of Brooklyn's population take public transit to get to and from work daily. They spend an average of 43 minutes traveling to work.

• 45% take the subway to work • 22% drive to work• 10% take the bus• 9% walk to work • 8% carpool• 2% work at home

Public transportation is easily accessible with the subway and bus systems. The vast majority of current subway lines in Brooklyn trace their lineage back to the Brooklyn–Manhattan Transit (BMT) and Brooklyn Rapid Transit (BRT). Subway lines include but are not limited to:

D, N, R, F, A, C, B, Q, 2, 3, L, G, S, J, M, Z, 4, 5

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Market Overview

ARTS & CULTURE

Brooklyn has played a major role in various aspects of American culture including literature, cinema and theater. Brooklyn hosts the world-renowned Brooklyn Academy of Music, the Brooklyn Philharmonic, and the second largest public art collection in the United States, housed in the Brooklyn Museum. Brooklyn has roughly 700 arts and cultural institutions and about 30 miles of waterfront.

Brooklyn is also made up of some of New York's prominent Universities and Colleges. Some of the more popular and well respected include:

• Brooklyn College• Polytechnic Institute• Packer Collegiate Institute• St. Joseph’s College• St. Francis College • Brooklyn Law School.

DEMOGRAPHICS

The median age of a Brooklyn resident is 34.7 years. 38 percent of Brooklyn's population are foreign born. Families make up 64 percent of Brooklyn households. In 2006, the U.S. Census Bureau calculates Brooklyn's population at 2,508,820.

Brooklyn remains the most populous of the city's five boroughs.• 2,230,722 in Queens• 1,585,873 in Manhattan• 1,385,108 in The Bronx• 468,730 in Staten Island

7.1% (7.5%) are under the age of 5 years 23.7% (25.1%) are under the age of 18 11.5% (12.3%) are age 65 or older The median age of females in Brooklyn is 35.7 (36.5) years old. For males, it's 32.4 (32.7) years.

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NEIGHBORHOODS

Brooklyn is an international brand, cultural hub, culinary capital, and real estate juggernaut. Its streets are full of diversity, interesting people, and things to do. For more New York City arrivals than ever, for long-time New Yorkers looking for an easier life, for first-time homeowners and long-term renters, it has become the first choice of where to live and where to lay down their roots.

Neighborhoods are why. “Brownstone Brooklyn” contains row after row of magnificent homes. Downtown has become a perfect mixed-use neighborhood, containing a vibrant mélange of residential lofts, top retail, and commercial creativity. Williamsburg has emerged as one of the best neighborhoods for adults and families in the world.

Don’t forget the charm. Park Slope rivals the West Village and Upper West Side for New Yorkers seeking good schools and park-front living. Brooklyn Heights, Fort Greene and Clinton Hill are blessed by some of the most beautiful urban streets anywhere. Manhattan Beach offers coastal living in a neighborhood lined with trees.

There are breathtaking mansions in Prospect Lefferts Gardens, Midwood, and Ditmas Park. Prospect Heights has an arch like Paris and edifices that resemble life on Europe’s grandest boulevards.

The only way to truly understand Brooklyn is to walk its streets, see its homes, meet its people, and understand its ebb and flow. Never before, has looking for a home in Brooklyn been this exciting. One of the best places to start is here.

Brooklyn.

Market Overview

M A R K E T I N G T E A M

970 Greene Ave

Tom Shihadeh270 MADISON AVENUETel: 718.475.4380Fax:[email protected]

Shaun RineyVice President of Investments16 COURT STREETTel: (718) 475-4369Fax: (646) [email protected]

Dan Greenblatt16 COURT STREETTel: (718) 475-4357Fax: (718) [email protected]

Andrew Dansker, Financing InquiriesLicensed Sales Associate270 MADISON AVENUETel: 212-430-5168Fax: [email protected]

Documents

A Free-Market Bedford-Stuyvesant Eight Family Apartment Building CONFIDENTIAL OFFERING MEMORANDUM OFFERING MEMORANDUM 970 Greene