CONFIDENTIAL FINANCING MEMORANDUM · The first floor contains a large room with light and air on multiple exposures, large windows, 17 foot ceilings, a large entry closet and powder

CONFIDENTIAL FINANCING

MEMORANDUM

EXECUTIVE SUMMARYEXECUTIVE SUMMARY

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74 FRANKLIN STREETTRIBECA, MANHATTANBOUTIQUE LOFT MIXED-USE BUILDING

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Meridian Investment Sales is pleased topresent for sale 74 Franklin Street – a mixed-use, free market, loft building situated in theheart of Tribeca. This six story buildingcontains four spacious residences with high-end finishes and a retail unit which spans theground floor and basement. Investors benefitfrom existing cash flow and significant futureupside by renting the prime retail unit andvacant residence.

74 FRANKLIN STREETTRIBECA, NYC

BOUTIQUE MIXED-USE LOFT BUILDING

FULLY OCCUPIED & 100% FREE MARKET

EXECUTIVE SUMMARY

INVESTMENT OVERVIEW

EXCELLENT LOCATIONThe property is located in the heart of Tribeca, oneof the most desirable residential enclaves in NYCand home to many celebrities. The neighborhood ischaracterized by cast-iron loft buildings, cobblestonestreets, views of the Hudson River, high-end dining,and luxury boutique shops.

RETAIL PRESENCEThe property features a 4,000 square foot retailspace which includes 2,200 SF on the ground floorplus a finished 1,800 SF selling basement. Theground floor has an open layout with high ceilings.The lower level finished basement features an openspace with a gourmet kitchen. ChArt (art gallery)has just signed a 10-year lease paying $20,000 permonth.

FREE MARKET & LOW OPERATING COSTSWith four units, the property is not subject to rentstabilization giving the investor the opportunity tolive in a unit as well. Units have individual gasheating systems and tenants are responsible fortheir own heat and electric. In addition, with aprotected tax class 2A, the increases in assessedvalue are limited to 8% annually and 30% over five

years.

CONVENIENT ACCESSConvenient access to mass transportation, withmany train lines just a five minute walk from thebuilding (Franklin Street 1 station, Canal Street J, Zstation, Canal Street N, Q, R, W station, CanalStreet A, C, E station).

PROPERTY OVERVIEW

Address 74 Franklin Street

Neighborhood Tribeca Historic District

Cross Streets Church & Broadway

Description Mixed-Use Loft Building

Block / Lot 175 / 2

Year Built / Renovated 1915 / 1999

Lot / Built Dimensions 26.17' x 100'

Lot Area 2,621 SF

Stories 6

Gross SF / Rentable SF 14,600 SF / 12,600 SF

Apartments 4

Retail Units 1

Zoning C6-2A

FAR: Built / Allowed 4.88 / 6.02

Air Rights 2,978 +/- SF

ASKING PRICE $16,995,000

PSF $1,164

Cap Rate 3.7%

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INCOME & EXPENSES

Residential - In-Place $556,200

Retail – In-Place $240,000

GROSS INCOME $796,200

EXPENSES

Real Estate Taxes $140,000

Insurance $7,000

Water & Sewer $3,000

Payroll $5,000

Gas (Hot Water) $2,500

Electric $1,000

Repairs & Maintenance $3,000

TOTAL EXPENSES $161,500

NOI $634,700

REAL ESTATE TAXES

Exemptions / Abatements None

Tax Class 2A

Tax Rate 12.612%

2018/2019 AV $1,058,677

2019/2020 Taxes $139,961

EXECUTIVE SUMMARY

INCOME & EXPENSES




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RESIDENTIAL RENT ROLL

UNIT STATUS BEDS BATHS ROOMS LXP IN-PLACE PSF SF STATUS NOTES

1 Occupied 5 2 7 5/24/20 $11,000 $68 1,950 FMNew tenant signed a 16 month lease

2 Occupied Loft 1 3 2/28/21 $5,600 $56 1,200 FM

3 Occupied 3 2 5 6/30/22 $12,250 $70 2,100 FM

3% annual rent increases; Tenant termination option in 2020; Private

terrace

4 Occupied 4 4.5 8.5 5/20/20 $17,500 $63 3,350 FMPrivate roof terrace & balcony off of the

master bedroom

TOTAL MONTHLY 23.5 $46,350 8,600

TOTAL ANNUAL $556,200 $65

COMMERCIAL RENT ROLL

UNIT TENANT SF PROJECTED RENT PSF* LXP NOTES

Retail ChArt (Art Gallery) 4,000 $20,000 $77 1/20/2029

4,000 SF (2,200 -ground level plus an 1,800 SF finished selling basement. 3% Annual Increases; Tax Reimbursements: 25% over BY (Tax Year 2018-19)

TOTAL MONTHLY $20,000

TOTAL ANNUAL $240,000 $77

*Price PSF is calculated using 2,200 SF of ground level retail and 900 SF of the basement space (1,800 SF *50%) for a total of 3,100 SF.

EXECUTIVE SUMMARY

RENT ROLL




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NAME ADDRESS SF YEAR RENT PSF

Altone Lane 7-9 Harrison Street 1,600 2017 $128

Art Gallery 60 Lispenard Street 3,200 2018 $94

Beverly Hills Apothecary 138 West Broadway 1,183 2018 $137

Bortolami 39 Walker Street 9,000 2016 $50

Greenwich Street Jewelers 93 Reade Street 1,360 2017 $147

Il Mulino 361 Greenwich Street 3,200 2017 $83

Kiddie Academy 72 Reade Street 5,251 2017 $117

Le Du's Wines 112 Hudson Street 1,234 2017 $138

Martin Kesselman Design 96-104 Lafayette Street 1,685 2017 $125

Paul Nicklen Gallery 347 Broadway 2,200 2017 $200

Paul Ruggeri Gymnastics 356 Broadway 2,832 2018 $115

Starbucks 108 Chambers Street 600 2018 $360

Church Street School for Music and Art 41 White Street 2,400 2017 $125

EXECUTIVE SUMMARY

RECENT TRIBECA RETAIL LEASES




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EXECUTIVE SUMMARY

RECENT TRIBECA RETAIL LEASE MAP

PAUL RUGGERI GYMNASTICS356 BROADWAY

$115

STARBUCKS108 CHAMBERS STREET

$360

GREENWICH STREET JEWELERS93 READE STREET

$147 PSF

KIDDIE ACADEMY72 READE STREET

$117

BEVERLY HILLS APOTHECARY138 WEST BROADWAY

$137 PSF

ALTONE LANE7-9 HARRISON STREET

$128 PSF

IL MULINO361 GREENWICH STREET

$83 PSF

LE DU'S WINES112 HUDSON STRRET

$138 PSF

CHURCH STREET SCHOOL 41 WHITE STREET

$125 PSF

BORTOLAMI39 WALKER STREET

$50 PSF

ART GALLERY60 LISPENARD STREET

$94 PSF

MARTIN KESSELMAN DESIGN96 - 104 LAFAYETTE STREET

$125

PAUL NICKLEN GALLERY347 BROADWAY

$200




EXECUTIVE SUMMARYPROPERTY OVERVIEW

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APARTMENT #1 (SECOND FLOOR)

Apartment #1 is located on the second floor of the building, spanning 1,950 +/- rentable square feet. Thenewly renovated loft residence features an abundance of living space along with five bedrooms and twobathrooms. The apartment features wooden floors and ceilings, stainless steel appliances and an in-unitwasher/dryer. Large windows result in an abundance of natural light and air. The apartment is currently leasedfor $11,000/month ($68 per square foot).

APARTMENT #2 (THIRD FLOOR)

Apartment #2 is located on the third floor of the building, and spans 1,200 +/- rentable square feet. Theresidence features an open floor plan with high ceilings, exposed brick, in-unit washer/dryer, one bedroom, andone bathroom. The apartment is currently rented for $4,750/month ($48 per square foot), significantly belowmarket rent in Tribeca which is +/- $80 per square foot.

APARTMENT #3 TRIPLEX (THIRD, FOURTH & FIFTH FLOORS)

Apartment #3 is a triplex loft located on the third through fifth floors, spanning 2,100 +/- rentable square feet.The residence features three bedrooms and two bathrooms, six large windows, and exposed brick, in additionto a private 400 square foot terrace. The kitchen contains granite countertops and stainless steel appliances,there is an in-unit washer/dryer, and the bathrooms are newly renovated. The apartment is currently rented for$12,250/month ($70 per square foot).

APARTMENT #4 TRIPLEX (THIRD, FOURTH & FIFTH FLOORS)

Apartment #4 is a triplex loft located on the third through fifth floors, spanning 3,350 +/- rentable square feet.The residence features four bedrooms and four and a half bathrooms. The first floor contains a large room withlight and air on multiple exposures, large windows, 17 foot ceilings, a large entry closet and powder room, anda newly renovated kitchen featuring a Sub-Zero refrigerator and Wolf appliances. There is an in unitwasher/dryer, central air, and video security system. The second floor mezzanine is accessible from thehallways and bedrooms and includes a full bath and wet bar. The third floor contains three large bedrooms withon-suite bathrooms, and the master bedroom contains direct access to a 170 square foot rooftop terrace. Theapartment is currently rented for $17,500/month ($63 per square foot).

PROPERTY OVERVIEW

APARTMENT SUMMARY




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PROPERTY OVERVIEW

STACKING PLAN

UN

IT 3

TRIP

LEX &

U

NIT

4 T

RIP

LEX

Roof Deck / Open Space

6TH FLOOR – 1,950 GROSS SF [2,350 SF less: 300 SF (open space overlooking Apt 3 Deck), 100 SF (Deck

off Master Bedroom for Apt 4)]

5TH FLOOR - 1,450 GROSS SF [2,350 SF less: 600 SF (open space in apt 4), 300 SF (Deck for Apt 3)]

4TH FLOOR - 2,350 GROSS SF(Built full less 250 SF cut out)

3RD FLOOR - 2,350 Gross SF (Built full less 250 SF cut out)

2ND FLOOR – 2,350 Gross SF (Built full less 250 SF cut out)

GROUND FLOOR - 2,350 Gross SF (Built full less 250 SF cut out)

MECHANICALS RETAIL / SELLING BASEMENT1,800 Gross SF

Roof Deck

UN

IT 2

UN

IT 1

RETAIL

DU

PLEX




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PROPERTY OVERVIEW

APARTMENT 4 TRIPLEX FLOOR PLAN




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PROPERTY OVERVIEW

APARTMENT 4 INTERIOR PHOTOS




EXECUTIVE SUMMARYLOCATION OVERVIEW

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LOCATION OVERVIEW

NEIGHBORHOOD MAP




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LOCATION OVERVIEW

NEIGHBORHOOD




CONTACT INFORMATIONMERIDIAN INVESTMENT

SALES

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IMPORTANT LEGAL DISCLAIMER

All information regarding a property for sale is

from sources deemed reliable. Meridian makes

no representation as to the accuracy thereof,

and such information is subject to errors,

omissions, changes, or withdrawal without

notice.

Photos and/or drawings may not represent the

real estate fully or complete. Some or all of the

renderings, floor plans and depictions of

residences, buildings, facilities or improvements

in these materials are illustrative and/or artists’

conceptual drawings and will vary from the

actual plans, residences, buildings, facilities and

improvements as built. The availability of certain

options may be subject to construction status

and schedule.

Site plans, community maps, aerial photos,

community photos and/or computer generated

or enhanced depictions of communities

(collectively “Illustrations”) may be posted on

this site for illustration purposes only. All site

plans, community maps and computer

generated or enhanced depictions shown are

conceptual in nature and are merely an artist’s

rendition, and may not accurately represent the

actual condition of the item being represented.

All photos/videos shown depict the property as

of the date taken. All Illustrations are solely for

illustrative purposes and should not be relied

upon.

Square footage numbers are approximate and

may vary from the square footage as built.

Hardscape, landscape, and other items shown

may be decorator suggestions that are not

included in the purchase price and availability

may vary.

Past, present, future or proposed roads,

easements, land uses, conditions, plat maps, lot

sizes or layouts, zoning, utilities, drainage, land

conditions, or development of any type

whatsoever, whether reflected on the

illustrations, or whether inside or outside the

boundaries of the illustrations, may not be

shown or may be incomplete or inaccurate.

The present, future or proposed roads,

easements, land uses, conditions, plat maps, lot

sizes or layouts, zoning, drainage, land

conditions, or development of any type may or

may not change in the future. It is not

uncommon that any of the foregoing can

change without notice to you.

Meridian reserves the right to make changes to

any of the foregoing at any time, without notice.

Please contact us if we can address any questions. We look forward to working with you on this exciting opportunity.

AMIT DOSHISENIOR EXECUTIVE MANAGING [email protected]

SHALLINI B. MEHRAMANAGING [email protected]

IMPORTANT LEGAL DISCLAIMER

This is a confidential document intended solely

for your limited use and benefit in determining

whether you desire to express any further

interest in the proposed sale of the real property

(or interests therein) described herein (the

“Property”). This document contains selected

information pertaining to the Property and does

not purport to be all-inclusive or to contain all of

the information that a prospective purchaser,

mortgagee, investor, lender, or lessee may

desire. Neither Owner, Meridian Capital Group,

LLC (“MCG”) nor any of their respective officers,

directors, partners, agents, brokers or

employees have made any representation or

warranty, expressed or implied, as to the

accuracy or completeness of this document or

any of its contents, and no legal commitments or

obligations shall arise by reason of this

document or any of its contents. Unless

specifically agreed to by MCG in writing to the

contrary, MCG will not share its commission

earned in connection with the Property with any

broker, finder or agent

Documents

CONFIDENTIAL FINANCING MEMORANDUM · The first floor contains a large room with light and air on multiple exposures, large windows, 17 foot ceilings, a large entry closet and powder