PRIME CORNER • SUBWAY ANCHORED • 10 MINUTES TO MANHATTAN

Astoria

34-39 31 Street

Steve Lysohir

President Direct: (718) 880-3980 Mobile: (516) 633-6160 Steve.Lysohir@vassgroup.com

Peter Vassiliou

President Direct: (718) 880-3987 Mobile: (917) 674-8571 Peter.Vassiliou@vassgroup.com

Property Snapshot ...................................... 1Opportunity Summary................................. 2Existing Property ........................................ 2Location/Retail Map ................................... 3Bulls Eye..................................................... 4Executive Summary.................................... 4Disclosure ................................................... 5

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34-39 31 Street, AstoriaP R O P E R T Y S N A P S H O T

Address | 34-39 31 Street

Cross Street | 31st Street & 35th Avenue

Zip Code | 11106 Block / Lot | 00608-005

Property Type | Commercial Building

Year Built | 1956

Roof Height | 19’ Zoning | R5

Lot Area (SF) | 17,836 SF

Lot Dimensions | 220’ X 80’

Building Size (SF) | 16,000 SF

Commercial Units | 3

1

The Vass Stevens Group is pleased to present an opportunity to invest in a transit anchored, 16,000 square foot, corner property located on a major mixed use artery on the border of Astoria and Long Island City. The existing property is a single story retail and warehouse building with high ceilings, 200 feet of frontage on the busy 31st street corridor and 80 feet of frontage on 35th avenue. This building includes 3 commercial spaces (16,000 square feet) and a small parking lot (2,000 square feet).

The subject property is located one block from the 36th Avenue N & W subway station providing direct access to Queensboro Plaza and Manhattan. The property is surrounded by restaurants, schools, cafes, retail, and nightlife. The corner of 35th Avenue directly ties to Kaufman Astoria Studios, the Museum of the Moving Image, We Work and multiple destination shopping and dining venues. Take a quick commute via the subway or bus to Manhattan and Long Island City.

The opportunity allows an investor to take advantage of a great corner location with existing income and an underutilized building that lends itself to become quality retail in a quickly growing market and location. An immediate renovation to level the floor, partition the existing large spaces into smaller, more marketable spaces, and to add quality retail storefronts will drive the retail rents to more than double. As 31 Street continues to mature rents will achieve levels of other more mature retail arteries in Astoria commanding anywhere from $65 to $125 per square foot further enhancing profit. Based on conservative assumptions investors can achieve low to mid teen returns in an investment in an existing building in a thriving and growing market with limited execution risk.

Existing Property

• 34-39 31 Street in Astoria, Queens

• Corner of 31st Street & 35th Avenue

• 17,836 Square Foot Lot (220’ x 80’)

• 16,000 Square Foot Building (200.83’ x 80.83’)

• R5 Zoning District (C/O allows retail)

• Year Built 1956 / Altered 2005

• 19’ Ceiling Heights

• 3 Commercial Units

• 2,000 square foot undeveloped lot used for parking

• Brick Façade

• Basement: None

• Tenants: Restaurant Supply, and Dollar Store

• Electric: 1000 Amps

• Heat: Gas

• Water: Separately Metered

• HVAC: Blowers located within individual spaces

Opportunity Summary

2

3

PROPERTY

• Prime corner location on major artery in desirable Astoria demographic

• Located on a major artery with vehicle, pedestrian, and mass transit present

• One block from the 36 Street N & Q Train stop

• Easy access to Manhattan and LIC

• Trade area in high demand from residential and commercial renters

• Trade area is still in its infancy and currently seeing tremendous growth

• 18,000 SF corner lot including a 16,000 SF corner brick building with a 2,000 SF lot

• Rectangular building with high ceilings partially converted to retail

• 3 Commercial tenants currently month to month

STRATEGY

• Complete upgrade and convert the warehouse into quality street retail by Year 2

• Lease retail to local tenants on a 5 year lease or 5 year lease with option at market value

• Refinance a large portion of equity out in year 2 or 3

• Allow market to continue to mature while rents increase during 5 year lease terms

• Work on a rezoning effort while market continues to mature allowing for residential rentals

• When 5 Year leases expire (year 7 of investment) release spaces at substantial rent increases

• Assess potential to sell or develop if rezoning is successful

FINANCIAL

• Projected total returns of 13% under

base case (conservative) scenario

• Total equity required to purchase of

approximately $4,500,000

• Equity required to renovate of

approximately $2,500,000 in Year 1/2

• Refinancing in Year 2/3 ( Phase I

stabilization) returns approximately

50% of invested equity

• Full equity returned + $10 Million

profit upon final resale

Executive Summary

4

PROSPECTIVE INVESTORS SHOULD CAREFULLY CONSIDER THE SPECIFIC FACTORS SET FORTH BELOW AS WELL AS THE OTHER INFOR-MATION INCLUDED ELSEWHERE IN THIS MEMORANDUM AND OTHER DOCUMENTS IN CONNECTION WITH THIS OFFERING BEFORE DECIDING TO INVEST IN THE INTERESTS OFFERED HEREBY.

Real Estate, Economic and Certain Other Conditions: The real estate industry is cyclical and is sensitive to changes in general economic conditions nationwide, or on a local level in New York, NY such as levels of employment, consumer confidence, income and certain other factors hereafter discussed. The timing of the completion of a development in New York City may be delayed for various reasons, including regulations, inspections and force majeure events.

Vacancies at Market Place: Vacancies can be expected to occur from time to time in the operation of any real estate asset, and significant vacancies could cause the cash available for distribution to investors to decrease.

Projected Vacancies: The Sponsor’s financial projections are based in part on achieving certain market rents upon initial lease up as well as future releasing of the vacant space. Ability to achieve such rates is highly dependent on conditions in the market which can change quickly. If conditions deteriorate this could have a material adverse effect on the Property’s projected cash flow and valuation of the property.

Tenant Default or Bankruptcy: If a significant number of tenants or an anchor tenant is unable to meet its obligations to the property owner, the cash receipts and cash available for distribution to investors will decrease. At any time, a tenant at the property may seek the protection of bankruptcy laws, which could result in the rejection and termination of their lease. Any tenant that has filed for bankruptcy protection may not continue making payments under its lease, or may not make such payments in a timely manner.

Competition: The real estate industry is highly competitive and fragmented. Real estate owners compete not only for tenants, but also for desirable properties, financings, purchasers and management. The property owner competes with other local, regional and national real estate owners, some of which have longer operating histories and greater financial, marketing and sales resources than the property owner. Further, any tenant (s) at the property may compete with other area tenants for business in their respective industries.

Environmental Matters: The property owner cannot assure that there are no potential environmental liabilities, that no environmental liabilities may develop, that no prior owner created any material environmental condition not known to the property owner, or that future uses or conditions, including, without limitation, changes in applicable environmental laws and regulations, will not result in liability for the property owner. The costs of any required remediation removal of environmentally hazardous substances may be substantial, and such liability could exceed their fair value of the property and/or the property owner’s aggregate assets. The presence of, or the failure to properly re-mediate substances when released may adversely affect the property owner’s ability to sell the affected real estate or to borrow using the real estate as collateral.

Dependence on Management Personnel: The success of the property owner depends to a significant degree on the efforts of the property owner’s management, which is provided by an affiliate of the Sponsor, and on the efforts of the Property’s management. The property owner’s operations may be adversely affected if one or more members of senior management of the managing member cease to be active in the property. Cash Flows May Not be Distributed: There is no guarantee that the property owner will have sufficient cash available in any given quarter to make distributions to investors.

Lack of Liquidity and Public Market Interest for the Interests: The interests are restricted and have not been registered pursuant to the Securities Act of 1933, as amended, or any states securities law. Also the interests will be subject to restrictions on transfer, assignment and resale and may not be transferred, assigned or resold unless they are registered under appropriate federal and/or state laws, or unless exemptions from such registration requirements are available. The operating agreement restricts the transfer of membership interests. Investors should be prepared to hold their interests indefinitely.

Conflicts of Interest: The property owner is subject to potential conflicts of interest arising out of the relationship between the Sponsor and cert ain affiliated entities. These potential conflicts of interest will not be resolved through arms-length negotiations, but through the exercise of the managing member’s judgement.

No Control by Investors: The sponsor has sole control over the business of the Company. Investors purchasing interests will have no voice in the day -to-day management or other decisions of the Company or the property owner’s business. Accordingly, no person should purchase interests unless he or she is willing to entrust virtually all aspects of management of the property owner and the company to sponsor.

Important Disclosure

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35-37 36 Street, 2nd Floor Astoria, NY 11106(718) 880-3980

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