Opinion of Value Overview 2 Saint Ann's Avenue (Fresh ...
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Opinion of Value Overview
2 Saint Ann's Avenue (Fresh Direct Site)
DEVELOPMENT VALUE:
COMPARABLE SALES VALUE:
RECONCILED VALUE:
The value of the property based upon recent sales of similar properties.
Our opinion of the most likely value to be obtained based upon this analysis.
The price affixed to the propery based on a development analysis and a lease to a user
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Property Description
2 Saint Ann's Avenue (Fresh Direct Site)
Property Information
Location: Southeast corner of Saint Ann's Avenue and East 132nd Street
Address: 2 Saint Ann's Avenue
Block / Lot: 2543 / 1
Lot Dimensions: (Approx.) 895.7' x 753.5' Irr. (Denoted In Plans-Does Not Use Entire HRY)
Lot SF: (Approx.) 548,856 (12.6 Acres)
Building Information
Building Size: (Approx.) 865.7' x 750' Irr. (Proposed)
Gross SF: (Approx.) 424,000 (Proposed)
Facility Make-Up:
Freezer Storage: 20,000 (Proposed)
Refrigerated & Dry Storage: 234,000 (Proposed)
Food Production: 40,000 (Proposed)
Receving/Shipping: 50,000 (Proposed)
Offices/Employee Amenities: 80,000 (Proposed)
Stories: 5 (Proposed)
Zoning: M3-1
Historic District: No
FAR:
Commercial: 2.00
Residential: 2.00
Total Buildable SF: (Approx.) 548,856
Proposed SF: 424,000
Potential Air Rights: 124,856
Assessment (13/14): TBD
RE Taxes (13/14): TBD
Description: The subject property is a 12.6 acre industrial site located at the intersection of St. Ann's Avenue and
East 132nd Street in the South Bronx. It is situated within the Harlem River Yards Transportation and
Distribution Center (HRY) and benefits from excellent access to I-87 and I-95. Other facilites located
in the HRY are occupied by FedEx, Waste Management, the New York Post, and the New York Power
Authority.
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Renderings & Tax Map
2 Saint Ann's Avenue (Fresh Direct Site)
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2 Saint Ann's Avenue (Fresh Direct Site)
Building Make Up
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Square Feet
Lot Size (Acres): 12.60
Land SF: 548,856
Proposed SF: 424,000
Net Annual Net Income
Industrial Space Square Feet RPSF Revenue* 85% of Gross
Industrial Facility 424,000 $70 29,527,258$ $25,098,170
Capitalization Rate : 6.95%
Industrial Value : $361,124,743*5% Premium Added For Superior Location and Specific Tenant Buildout
Hard Costs (As Per HRY Budget Plans): $/Sq. Ft. Costs
Sitework: $14.11 $5,981,000
Concrete: $20.50 $8,692,000
Masonry: $2.95 $1,250,000
Steel: $17.15 $7,273,000
Thermal & Moisture: $24.10 $10,218,000
Doors & Windows: $5.75 $2,439,000
Finishes: $19.42 $8,234,000
Specialties: $0.40 $168,000
Elevators/Lifts: $2.98 $1,264,000
Mechanical: $36.07 $15,294,000
Electrical: $33.79 $14,328,000
Refrigeration: $23.58 $10,000,000
Lighting: $3.54 $1,500,000
Non-Trade Labor $22.27 $9,441,000
Allowances: $8.14 $3,450,000
Project Management: $14.95 $6,340,000
Construction Management: $6.19 $2,625,000
Contingencies: $53.61 $22,730,000
Total Hard Costs: $309.50 $131,227,000
Development Soft Costs (As Per HRY Budget Plans): $/Sq. Ft. = Costs
Architects: $2.36 $1,000,000
Engineers: $3.77 $1,600,000
Permits & Fees: $0.59 $250,000
Insurance: $4.87 $2,063,000
Construction Interests: $21.99 $9,323,000
Commissions: $1.63 $690,000
Financing Origination Costs $5.54 $2,349,000
Legal Fees: $1.18 $500,000
Total Soft Costs: $17,775,000
$85,000,000 2.0 4.50% $7,650,000
Total Construction & Development Costs: $156,652,000
Construction & Development Costs per Gross BSF: $369
Residual Land Value (Total Sellout Value less Const. & Dev. Costs): $204,472,743(Assuming carrying 65% of balance) Say: $204,500,000
(3) Based on equity of: Price Per Planned Buildable Square Foot: $373
(2) Average Industrial Cap Rate Within 15 Miles of Major City,
Defined by Top 15 U.S. Cities in GDP is 6.95%
(1) See Comparable Lease Opportunities
Debt Service:
Development Value
2 Saint Ann's Avenue (Fresh Direct Site)
Fresh Direct Center
Use
(2)
(2)
(1)
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Building Comparable Sales
2 Saint Ann's Avenue (Fresh Direct Site)
I. BUILDING VALUE:
Address Date Description Sale Price SF Location Premium $/SF
636 Pierce Avenue-Somerset, NJ Mar-14 Single Tenant-Bank Of NY Data Center, Recently Built $40,000,000 180,000 50.00% $333
30 Superior Drive-Natick, MA (Refi) Feb-14 Single Tenant-FedEx, Built in 2013 $46,900,000 178,000 50.00% $395
399 Jefferson Road-Parsippany, NJ (Refi) Dec-13 Single Tenant-Pinnacle Foods, Renovated in 2011 $48,100,000 206,000 50.00% $350
30 Independence Blvd.-Warren, NJ Oct-13 Single Tenant-Verizon, Distribution Center, Long Term Lease $40,000,000 211,000 50.00% $284
AVERAGE: $341
PRICE PER SQUARE FOOT ANALYSIS:
SUBJECT'S PROPOSED SF 424,000
ADJUSTED AVERAGE $/SF $341
= $144,495,062
SAY: $144,500,000
II. ADJUSTED DEVELOPMENT RIGHTS VALUE:
Address Date Zoning Sale Price $/BSF
1110 Oak Point Avenue High-Offer M3-1 $20,000,000 $46
921 East 149th Street Aug-12 M3-1 $6,500,000 $36
2505 Bruckner Boulevard May-12 C8-1 $30,000,000 $36
3400 Putnam Avenue Aug-11 M1-2 $18,250,000 $37
AVERAGE: $39
PRICE PER BUILDABLE SQUARE FOOT ANALYSIS:
SUBJECT'S DEVELOPMENT RIGHTS 124,856
AVERAGE $/BSF $39
= $4,827,464
SAY: $4,850,000
COMBINED VALUE: = $149,350,000
SAY: $149,350,000
ON-MARKET LEASE COMPARABLES FIT FOR SIMILAR USE TO SUBJECT PROPERTY:
Address Date Description Annual Asking Rent $/SF
2601 Port Covington Drive-Baltimore, MD On-Market Former Sam's Club, Production & Distribution $9,795,000 $75
201 Bay Avenue-Elizabeth, NJ On-Market Newly Constructed, Great Access To Transportation $15,000,000 $47
1 Jebara Way-Monroe, NJ On-Market Newly Constructed, Great Access To Transportation $7,600,000 $60
2060 Ninth Avenue-Ronkonkoma, NY On-Market Newly Constructed, Will Build Facility To Tenant's Specs. $8,800,000 $99
1200 Route 523-Flemington, NJ On-Market Newly Constructed, Will Build Facility To Tenant's Specs. $30,000,000 $35
8410 Kelso Drive-White Marsh, MD On-Market Newly Constructed, Great Access To Transportation $7,750,000 $64
4612 Navistar Drive-Frederick, MD On-Market Newly Constructed, Warehouse, Offices, & Distribution $17,225,000 $84
AVERAGE: $66
INDUSTRIAL CAP RATE EXPLANATION:
Data Compiled From:
851,705
205,085
BSF
437,342
182,193
829,300
492,250
120,940
380,000
126,474
89,000
In order to study the market and determine a value based upon comparable sales, we have analyzed all Grade A Industrial Building sales occurring in the eastern
United States. Each sale has been broken down into a price per quare foot basis to allow for comparison. Below is a breakdown of these sales.
INDUSTRIAL BUILDING SALES COMPS
COMPARABLE LEASE OPPORTUNITIES
LAND & DEVELOPMENT SALE COMPS
SF
130,595
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PRICE $/SF $/ BSF $/ACRE
COMPARABLE SALES VALUE:
BUILDING VALUE: $144,500,000 $341 $263 $11,468,254
ADDITIONAL DEVELOPMENT VALUE: $4,850,000 - - -
COMBINED VALUE: $149,350,000 $352 $272 $11,853,175
DEVELOPMENT VALUE: $204,500,000 $482 $373 $16,230,159
RECONCILED VALUE: $204,500,000 $482 $373 $16,230,159
Opinion of Value Summary
2 Saint Ann's Avenue (Fresh Direct Site)
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