Download For Sale Building 108 East 60 th Street, New York, NY

Investment Opportunity
Yielding 80% CAP Rate
Summary: Manhattan > Park Avenue> East 60th Street
Retail Building> New> Delivered Vacant> $35,000,000
Market Rental Price $35 Mill to $26 Mill
CAP RATE 80%
Initial investment $15 Mill
Read on for details.
For additional information please contact
Strauss Cassel – 1-917-653-7887 – [email protected]
108 East 60th Street. Retail Space in Manhattan has
become even more scarce and prices for rents and
well as sales have broken all records, and will
continue to do so.
Why?
Globalization has tacitly reached New York.
The number of Tourists has exploded as well as the
amount of money they spend.
One simple example can be found by visiting the US
Census Bureau website.
From 2011 to 2014 there has been a tripling of both
numbers of visitor to New York City and spending.
• In 2014 visitors amounted to 56.4 Million and spending by this group tripled to
60 Billion USD.
• Lastly, Manhattan is 22.4 square miles in all, and the area South of 96th Street to
the End of Manhattan corresponds to the more affluent area and where large
corporations are located.
• This physical arrangement then is just a little more that 10 square miles, and this
is the area where 60 Billion USD are spent.
• Now, because of this enormous affluence of affluent people, New York is also
experiencing a building BOOM. New Technology in construction now makes it
economically viable to erect structures that reach in many instances 89 stories.
This building height is a new occurrence that is enabling builders to sell
apartments for as much as $220 Million Dollars and a great number in the $80
Million Range and an even greeter number in the $40 and $20 Million Dollar
Range.
• As a consequence the fabric of the population is also changing. The Mega Uber
Wealthy Billionaires have arrived as well.
• With the largest concentration of these buyers living and owning residences,
along Central Park South, East and West 57th Streets.
•
Now, these extremely outsized purchasing power, is concentrated in the area north
of 57th Street, along two corridors:
• Madison Avenue and Lexington Avenues from 57th Street to 62nd Street, along
Lexington Avenue, and from 57th Street to 78th Street, along Madison Avenue.
• However the actual street that packs the most shopping power is 60th Street,
between Park Avenue and Lexington Avenue.
• Why?
• 60th Street is the corridor used by millions of shoppers every years to go to and
from the largest and most upscale Department Stores in Manhattan, Barney’s at
61st Street and Madison Avenue to Bloomingdale’s at 60th Street and Lexington
Avenue.
• These shoppers shopping the area in discussion are responsible for the bulk of
the 60 Billion USD spending, and they pass in front of 60th Street and Park
Avenue, at a rate of 12,500 every hour. Armed with credit cards and cash,
visiting New York with wife, girlfriend, and children and bound to shop for
garments that they don’t find back home.
• 108 East 60th Street, New York, NY – is a retail building in the absolute epicenter
of this activity.
• An illustrative reference is to 108 East 60th Street as the Massai Mara River, and
the millions of shoppers as the annual largest herd migration in the World.
In other words, a retailer’s paradise. And by Association a Landlord’s Paradise.
• The numbers are easy to follow.
• Asking Price: $35,000,000.
• Real Estate Taxes: $152,000 annually.
• 13,700 SQFT of retail space to rent.
• Rental values that have reached $3,890 per SQFT allow this building ample room
to maneuver.
• If a tenant was to pay $2,500 per SQFT that would bring in $34 Million in rents.
• If the Tenant was to pay bellow market, example, $1,900 per SQFT it would
bring in $26 Million in rental income per year.
• And valuation for this building once fully rented, would skyrocket.
• Please do your calculations.
• Manhattan deals with CAP Rates of 4% are very desirable here.
• The conversion to a new price is derived from a CAP rate of 4%
• In this example, if net revenue is 34 Million to 26 Million then divided any one of
these numbers by 4 and multiply by 100 and you get the new theoretical price
Therefore in scenario 1 rent at 34 Million
(divided by .04) = $850,000,00
• And in scenario 2 rent at 26 Million
(divided by .04) = $650,000,000
The following additional data is
available for review by request:
1. Detailed retail analysis report.
2. The following documents are
• Of course only the market can tell you
available:
the clearing price, but without
3. Title Report
question, an investor looking or yield,
would gladly pay a price that is much 4. Recent Sales
more than the current asking.
5. Recent Rentals
• What has not been calculated yet is
additional income that comes from a 6. Retail Analysis
% of retail gross sales as additional
7. Demographic Date
rent.
Please call: Michael Strauss-Cassel
• Many landlords, especially those that
1-917-653-7887
have what is termed a Tourist Trap
Retailing Model, do charge a
Email: [email protected]
percentage of sales as additional rent.
• An “inefficient” retailer in this location
can experience gross sales over $221
Million. An “EFICIENT” one would do
much better.
The Benefits for a Retailer – The Tenant
• An opportunity to create A BRANDED BUILDING in a location seen by the entire
world (remember, enormous density, the highest in the world)
• A Location that has the most buying power of any location in the World (think:
60 Billion USD spent in 11 square miles)
• A location with a TOURIST TRAP RETAILING MODEL (look at the definition
Google it, you will understand what it means).
• AFFTACHED PLEASE FIND THE ORIFINAL BROCHURE.
• THE BUILDING is being delivered vacant (ideal for a branded building, with a
branded façade, like the “FAMOUS” Prada Building in Tokyo).
• New Construction (All done, the additional work is almost all cosmetic).
• Visiting the building is by appointment only, you are free to visit the 60th Street
to make your own assessment, or use Google.com/maps.
• All projections are approximations, based on gathered data from: the US Census
Bureau, Google researching for key words “Retail Rents, Manhattan, record
breaking”, and retail analysis conducted by Strauss Cassel, Inc. (SC5W.com)
108 EAST 60TH STREET (off Park Avenue), New York, NY
For Sale Building
108 East 60th Street,
New York, NY
FOR SALE: Retail Building
ASKING: $35,000,000
TAXES: $146,905 per year
Retail Sqft.: 13,870 approx.
Contact: Michael Strauss-Cassel
Tel.
1-917-653-7887
Email:
[email protected]
New building, completed in 2005, features 20’x100’ floor plates with 15’ high ceilings, new elevator, a/c and gas heating.
Steps from Bergdorf & Goodman, Barney’s, Bloomingdales, Chopard, Van Cliff & Arpel, Bulgari, Dior, and Hermes. An unbeatable location
at the center of this incredibly active retail world. The building can serve up to 500 shoppers at the same time. The ideal location for any
retailer, from appealer, to jewelry, to specialty gourmet foods. Make this your next mini Harrod’s.
Visibility: Visibility is out of the charts, your retail operations will be seen by millions of people with the most enviable purchasing power
in the world. You should know that in 2014, 56.4 million people visited New York and they spent $60 Billion USD shopping. New York City
is barely 22 square miles, and retail space in Manhattan rents for the loftiest prices.
Location, Location, Location
Surrounded by Prada, Hermes, Dior, Chopard,
Fendi, and all the other super luxury brands.
Between the major luxury brand department
stores, Bergdorf & Goodman, Barney’s and
Bloomingdale’s
The Building for Sale
Park Ave and 60th St.
Armani
Hermes
Prada
Dolce & Gabbana
The arrow points to the sector with the highest
Shopping spending power in New York.
This is where the very high end retailers are.
And the building for sale at the center of this incredible
Shopping district. In 2014, 56.4 Million people visited
NY, and they spent $60 Billion USD, shopping.
For additional information, please contact Michael Strauss-Cassel Tel.: 1-212-702-4027 – Email: [email protected]
REAL ESTATE LISTING FOR SALE:
Entire Building and Land
LOCATION:
Park Avenue and East 60th Street, New York, NY 10022
TYPE OF PROPERTY:
SIZE:
RETAIL LEVELS:
LOT SIZE:
ASKING PRICE:
Zoning C5 commercial /retail, most permissive code.
13,870 SQUARE FEET APPROXIMATELY.
Seven (7) retail levels.
20’ (feet) by 109’ (feet) built full plus extension possible.
$35,000,000 (Thirty-Five Million USD).
REAL ESTATE TAXES:
Ideal use, Retail. Delivered Vacant
$152,000.00 per year.
Park Ave and 60th St., is the most profitable retail location in New York.
It lays on the road to and from two of the most successful retail department stores, Barney’s and Bloomindale’s. Rents
for prime retail space in NYC run from $3,980 x SQFT to $$1,300 per SQFT for raw space.
Please call for more information: Michael Strauss-Cassel 1-212-702-4027 / 1-917-653-7887
Projected Income
INCOME:
Rental Income
Rental Income
Rental Income
Rental Income
Rental Income
Rental Income
Rental Income
Special Note:
Market
less than market
less than market
less than market
below market
way below market
way way below market
Income
Rentable Sqft
$ 34,675,000.00
13870
$ 31,207,500.00
13870
$ 27,740,000.00
13870
$ 24,272,500.00
13870
$ 20,805,000.00
13870
$ 13,870,000.00
13870
$ 11,096,000.00
13870
Rent per Sqft
2500
2250
2000
1750
1500
1000
800
NOI
$ 34,511,000.00
$ 31,207,500.00
$ 27,576,000.00
$ 24,108,500.00
$ 20,641,000.00
$ 13,706,000.00
$ 10,932,000.00
NOI
The building is a single user owner, and it will be delivered vacant. Buyers need to make their own
calclations with regards to income. The projections above are more than fair as retail rents in Manhattan
have reached $3,870 per SqFt in prime locations, such as where this building is.
Net Operating cost is computed are rents minus costs, or rent minus total expenses
CAP RATE
CAP RATE, Capitalization rate computed as Net Operating Profit divided by the Purchase Price
CAP RATE
98.60%
89.16%
78.79%
68.88%
58.97%
39.16%
31.23%
As you will see, this building is a unique opportunity to
own a branded retail Building
The Prada Building
Tokyo, Japan
The Tod’s Building
The famous Dior Building
Prada, Tod’s and Dior have branded buildings that are extensions of their respective
brands. This offering at Park Ave and 60th St, has the potential of becoming a
branded building that will be seen by millions of pedestrian traffic and the
wealthiest tourism in the world.
For additional information, please contact Michael Strauss-Cassel Tel.: 1-917-653-7887 – Email: [email protected]
The orange arrow
points to the building.
Notice that the
building is recessed
from the lot line?
Well, a glass curtain
can be constructed to
encapsulate the front
façade and project it
to the lot line, in line
with the farthest
building abutting this
building. This
alteration will brand
the building and
transform it into a
retail icon, similarly to
what Prada, Dior and
others have done.
Your design options are limitless, from glass, to cement to ornate, you decided. The perfect
place to be seen, and best of all, a new steel structure in place able to support high loads with
15’ high ceilings. A blank canvas where you can build a masterpiece and expose it to the world
from New York City.
ATRIUM
5TH FLOOR
4TH FLOOR
3RD FLOOR
2ND FLOOR
1ST FLOOR
SUB-LEVEL
Park Avenue at East
60th St. as it currently
stands, is a new
building, with 15’ high
ceilings, a commercial
elevator, a new highbearing-load structure
that can easily serve
500 shoppers
simultaneously.
A glass façade is an
inexpensive cosmetic
alteration.
The building can be fully
rented and producing in
no time.
Atrium:
5th floor
4th floor
3rd floor
2nd floor
1st floor
Sub-level
Note: a second sub-level and 3rd could be excavated to increase The retail working levels.
We are currently investigating the possibility. At this level of investment, construction costs
are secondary to increasing profitability. Excavating and reinforcing the structure is not a complicated
Issue.
Real Estate Business Proposal
108 East 60th Street, New York, NY – Sale of The building and the Land.
Summary
Asking Price: $35 Million USD.
Real Estate Taxes: $152,000 per year.
Financing: Available at 4% interest only for up to 70% of the purchase price. Total Carrying Costs:
$92,000 per month (including real estate taxes, insurance, water and electric).
Rental Income Potential: $34 million for market rent to $15 Million for rent well below market (See
calculations that follow). This building is a great investment that will yield returns from day one.
Rentable Space: 13,870 SqFt., approximate rentable space subject to minor alternations, costing
approx, $425,000.
CAP Factor (Capitalization Rate): 89% to 60% (Cap rate defined as, Net Operating Income divided
by the Purchase Price of the building) for running the building as a landlord. As a retailer the rental
income is used in lieu of Rents to calculate CAP Rate, and the numbers are way higher at 628% or
6.285 times the purchase price. This numbers are realistic, please see the model for calculations.
Retail Gross Sales Annually: $221 Million USD estimated, see calculations.
POS (Point of Sale Transaction): $700 estimated in model, see calculations.
As a retailer, we have calculate gross sales for an average retailer to come in at $221 Million USD
annually.
CAPACITY: The building can serve 500 clients simultaneously.
INTRINSIC VALUE: Visibility and branding are measured using the approach that advertising internet
companies use, such as impressions or page views, in this instance traffic (pedestrian an motorized)
can be measured and quantified, as the ability to brand the building. See assumptions and
calculations in the modeling section.
Please see the analysis section outlining calculation methods to derive these estimates.
The location is ideal for retailers of all classes. This building is located on 60th Street, less than
75’ from Park Avenue.
59th and 60th St., at Lexington Avenue is the second most important transportation hub in
Manhattan, with the 4, 5, 6, 6x, N, Q, and R subway lines and the BxM1, M101, M102, and M103
bus lines also connecting here. The hub provides transportation for millions of people working
and living in the area.
The area also hosts three major retail department stores, Bloomingdale’s on 60th Street and
Lexington and Barneys is on 60th Street and Madison. Barney’s and Bloomindale’s are direct
competitors of Bergdorf and Goodman, and the immediate area is also the most affluent retail
sector in the country, with Hermes, Chopard, Armani, Valentino, Prada, Gucci, Tiffany, Bulgary,
Van Cleef and Arpels, just to name a few.
More Information on Retail Sales for this Area
STRAUSS-CASSEL, Inc. conducted a retail market study for this area that revealed the following
information:
Apple: We believe Apple is experiencing annual gross sales of more than $700 Million at the 5th Ave.,
store, and $350 and $400 Million at the two downtown locations.
Hermes: We believe that Hermes with two locations across from each other on Madison and 62nd St is
comfortably experiencing sales in the $700 Million USD.
As a side note Chopard a relatively new entrant in Manhattan, sells two (2) karat engagement diamond
rings for $1,089,000, yes this information is correct, walk in the store and see for yourself.
Pricing of merchandise is lofty and selling briskly. Hermes sells ladies’ purse from $15,000 to more than
$60,000, Fendi, Dior, Chanel have average POS (Point of Sale, amount paid at the register) dollars well
over $4,000 with conversion rates that exceed 50%.
We believe that this building offering is an excellent investment based on the information we have
collected.
Retail space in NYC is at a premium and it will not come down, because as everyone knows, the
number of tourists visiting NYC has trippled since 2011 and the amount of spending has also tripples.
In 2014 NY received 56.4 Million people that spent $60 Billion USD. Manhattan is 22 square miles, and
the premium shopping district is without question Park Avenue at 60th Street.
Please contact STRAUSS-CASSEL at 917-653-7887 or email [email protected]
108 East 60th St.
The district is home to the best hotels, The Plaza, The
Pierre, Plaza Athenee, and St. Regis.
The super-luxury shopping district.
The Plaza District
Manhattan Central Park
This area is the preferred area of wealthy
shoppers.
STRAUSS CASSEL
STRAUSS-CASSEL.COM / SC5W.COM
TELEPHONE: 917-653-7887
EMAIL: [email protected]
THE INFORMATION PRESENTED HEREIN IS FROM SOURCES DEEMED RELIABLE AND IS SUBJECT TO CHANGE IN PRICE, RENTAL,
COMMISSION OR OTHER CONDITIONS, PRIOR SALE, LEASE OR FINANCING OR WITHDRAWAL FROM THE MARKET WITHOUT PRIOR
NOTICE. NO REPRESENTATION IS MADE AS TO THE ACCURACY THEREOF. ALL MEASUREMENTS AND SQUARE FOOTAGE ARE
APPROXIMATE. ALL RIGHTS TO CONTENT, PHOTOGRAPHS AND GRAPHICS ARE RESERVED. NOTHING HEREIN SHALL CONSTITUTE AN
OFFER OR SOLICITATION WITH RESPECT TO THE PURCHASE OR SALE OF ANY PROPERTY IN ANY JURISDICTION IN WHICH SUCH
OFFER OR SOLICITATION IS NOT AUTHORIZED OR TO ANY PERSON TO WHOM IT WOULD BE UNLAWFUL TO MAKE AN OFFER OR
SOLICITATION. INVESTMENT. THIS DOCUMENT IS FOR INFORMATION AND ILLUSTRATIVE PURPOSES ONLY AND DOES NOT PURPORT
TO SHOW ACTUAL RESULTS. IT IS NOT, AND SHOULD NOT BE REGARDED AS INVESTMENT ADVICE OR AS A RECOMMENDATION
REGARDING ANY PARTICULAR SECURITY OR COURSE OF ACTION. ALL INVESTMENTS ENTAIL RISKS. THERE IS NO GUARANTEE THAT
INVESTMENT STRATEGIES WILL ACHIEVE THE DESIRED RESULTS UNDER ALL MARKET CONDITIONS AND EACH INVESTOR SHOULD
EVALUATE ITS ABILITY TO INVEST FOR A LONG TERM ESPECIALLY DURING PERIODS OF MARKET VOLATILITY. NO REPRESENTATION IS
BEING MADE THAT ANY ACCOUNT, PRODUCT, OR STRATEGY WILL OR IS LIKELY TO ACHIEVE PROFITS, LOSSES, OR RESULTS SIMILAR
TO THOSE DISCUSSED, IF ANY. NO PART OF THIS DOCUMENT MAY BE REPRODUCED IN ANY MANNER, IN WHOLE OR IN PART,
WITHOUT, PROPER CITATION OR PRIOR WRITTEN PERMISSION OF STRAUSS CASSEL GROUP, OTHER THAN TO YOUR EMPLOYEES.