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951MADISONSTREET

2 B6 REAL ESTATE ADVISORS

B6 Real Estate Advisors has been retained on an exclusive basis to arrange the sale of 951 Madison Street, a newly developed luxury mixed-use building, consisting of 37 residential units, and 2 retail spaces, in the Brooklyn neighborhood of Bushwick.

This seven-story building was completed in 2018 and offers 80 feet of residential frontage on Madison Street. The single-story retail space extends 50 feet to Broadway, providing a convenient setback for the residential building and adding 130 feet of corner retail frontage to the property. The building is efficiently designed to maximize window counts and light exposure, allowing for increased bedroom counts and refreshing layouts. There is a 6,800 SF basement, of which 3,500 SF is being used for tenant storage and will eventually be offered to the retail tenant for their planned expansion. In addition to mechanical space, the remaining 3,300 SF has been designed to offer a unique amenity package to the residential tenants. In total, the building offers 31,000 SF of residential SF, 10,000 SF of retail, and 6,800 SF of amenity, storage, and mechanical space. Parking for residential tenants is available off-site per the parking easement represented in the certificate of occupancy.

The building offers a full package of amenities and has been meticulously designed to offer a sense of community and comfort. The most updated management technologies have been leveraged to enhance the tenant experience, including building-wide Wi-Fi, virtual doorman, video intercom system, internet connected locks, Bluetooth sound systems, and cell phone boosters. In addition to these technological amenities, generous space has been allocated to a gym, laundry room, and common great room, where tenants can host events and enjoy additional living space separate from their individual units. A system of tiered roofs offers an outdoor package rare to the neighborhood, with multiple gardens, barbecue grills, outdoor lounges, and a greenhouse available for community use.

The residential unit mix consists of 13 four-bedrooms, 8 two-bedrooms, and 16 one-bedrooms, offering a total of 84 bedrooms across the building. The four-bedroom layouts were designed to attract young professional roommates, a high demand tenancy pool in Bushwick, while the one and two-bedroom units were designed to attract individuals or couples looking for a larger and more sophisticated living space. Each unit hosts high-end appliances and fixtures, as well as private temperature controls and video intercoms. Many units include private patios and terraces, further increasing the building’s marketability to tenants.

Two retail tenants are currently paying rent. Betances Health Center is fully operational and occupies 8,300 SF, including frontage on Broadway, as well as the entire ground floor retail space beneath the residential units. Betances is an established and reputable community facility operator, which was approved for a $1.4M federal grant to build out their space. They have the option, and will likely execute their right, to occupy the available basement space at a per-determined rate of $25 per SF, further increasing the profitability of the property to a new owner. The corner 1,400 SF retail space on Broadway is occupied by David’s Check Cashing, which has the exclusive right to operate a check cashing business within this zone. Each store front has recently undergone improvements, increasing the visibility and attractiveness of the corner.

The property is perfectly positioned just off the Broadway corridor where tenants have access to countless retail options. The J/Z subway entrance is 3 blocks away at Gates Avenue and Broadway, providing quick and convenient access to Williamsburg in 8-10 minutes and Manhattan in 15-20 minutes. As result of the L Train shutdown, the city will be increasing service to the J/Z Train, which will improve commute times and further encourage tenants to live along this subway line.

In 2017, there were only 4 sales in Brooklyn for newly developed buildings of 20 units or more. This is a truly unique and rare opportunity to purchase a brand-new building of scale in a naturally maturing neighborhood.

THE OPPORTUNITY

3951 MADISON STREET

PROPERTY INFORMATION

Address 951 Madison Street, Brooklyn, NY 11221

Location On the northwest corner of Madison Street and Broadway.

Block & Lot 3357 / 4 & 65

Lot Size 137.5' x 80' + ext.

Lot SF 11,370

Ground Floor Size 137.5' x 80'

2nd Floor Size 85' x 80' - less courtyard

Stories 7

Total Gross SF 47,780 (Approx)

Above-Grade SF 41,006 (Approx)

Residential SF 31,262 (Approx)

Commercial SF 9,744 (Approx)

Basement SF 6,774 (Approx)

Total Units 39

Commercial Units 2

Residential Units 37

Zoning R6 / C1-3

Abated R.E. Taxes $16,144

STATION DISTANCE FROM PROPERTY

TRAIN LINE STATION WALKING DISTANCE

J Z Gates Avenue 2 blocks / 2 minutes

L M Myrtle - Wyckoff Avenue 1 mile / 20 minutes

TRAVEL TIMES ESTIMATED BY GOOGLE MAPS

INCOME AND EXPENSE SUMMARY

Gross Annual Income $1,760,079

Vacancy & Credit Loss @ 3% $52,802

Effective Gross Income $1,707,276

Less Total Expenses $182,412

Projected Net Operating Income $1,524,864

4 B6 REAL ESTATE ADVISORS

■ Construction completed in 2018 with residential leases commencing in September.

■ 47,780 SF total, 31,262 SF of residential, 9,744 SF for commercial and 6,774 SF for amenity.

■ 37 Residential units and 2 Retail. (13 x 4BR, 8 x 2BR,16 x 1BR, 84 units total)

■ 6,774 SF basement, ~3,500 allocated to commercial, ~3,300 for residential and amenity use.

■ $1,760,000 in projected net rents, $1,525,000 in projected NOI.

■ Approved for the 35 year Affordable NY tax abatement. (30% of units at 130% AMI)

■ Tenants are billed for utilities, including heating and cooling, water, and laundry expenses.

■ 3 blocks to J/Z train at Gates Avenue, access to Manhattan in under 20 minutes.

■ Multiple retail options nearby, including restaurants like City Bear, located around the corner.

■ Community Facility tenant has option to lease remaining basement space for $25 per SF.

INVESTMENT HIGHLIGHTS

5951 MADISON STREET

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6 B6 REAL ESTATE ADVISORS

OUTDOOR AMENITIES ■ A system of tiered roofs offer garden space managed by

Brooklyn Grange.

■ Multiple outdoor seating areas and barbeque grills for outdoor entertaining.

■ A greenhouse on the roof offers a unique indoor/outdoor space to tenants.

INDOOR AMENITIES ■ A large lounge, brings the community together, offering a

theatre, dining table, and games.

■ A private Gym has been installed with internet accessible equipment, including a Peloton Bike.

■ Building owned laundry room with 4 credit card enabled washer and dryers, plus room to expand if needed.

■ Complimentary tenant self-storage available. Retail tenant has option to lease for $25 per SF.

7951 MADISON STREET

TECHNOLOGICAL AMENITIES ■ A Carson virtual doorman offers an interactive doorman

experience for tenants.

■ SMARTair electric and internet connected locks provide access the building using a cell phone.

■ SONOS surround sound can be controlled via WiFi in most common areas.

■ Cell phone boosters have been installed to ensure excellent service across the building.

INDIVIDUAL UNIT AMENITIES ■ ABB video intercoms allows tenants to view and grant access to

guest at the front door.

■ Each room comes with a Mitsubishi VRF Mini Split with remote control of heating and cooling.

■ Stainless steel appliances and high-end cabinetry offer a sleek and durable kitchen.

■ 3/4 inch hard oak wood floors and solid 8-foot-tall core doors present a clean and open layout.

8 B6 REAL ESTATE ADVISORS

RESIDENTIAL REVENUE

UNIT STATUS BEDS BATH FLEX OUTDOOR SPACE UNIT SF LEASE START LEASE EXP. GROSS RENT $ / SF GROSS ANNUAL

2A Free Market 1 1 -- -- 543 $2,733 $60 $32,796

2B Free Market 4 1 Yes -- 949 $4,145 $52 $49,744

2C Free Market 4 1 Yes Terrace 907 9/1/18 8/31/19 $4,527 $60 $54,325

2D Free Market 4 1 Yes Terrace 840 9/1/18 8/31/19 $4,254 $61 $51,053

2E Affordable - RS 1 1 -- -- 585 11/1/18 10/31/18 $2,150 $44 $25,800

2F Affordable - RS 1 1 -- -- 499 11/1/18 10/31/18 $2,150 $52 $25,800

2G Affordable - RS 2 1 -- -- 730 11/1/18 10/31/18 $2,600 $43 $31,200

3A Free Market 1 1 -- -- 543 10/1/18 9/30/19 $2,733 $60 $32,796

3B Free Market 4 1 Yes -- 949 $4,527 $57 $54,325

3C Free Market 4 1 Yes Balcony 907 9/1/18 8/31/19 $4,663 $62 $55,962

3D Affordable - RS 2 1 Yes Terrace 840 11/1/18 10/31/18 $2,600 $37 $31,200

3E Affordable - RS 1 1 -- -- 585 11/1/18 10/31/18 $2,150 $44 $25,800

3F Affordable - RS 1 1 -- -- 499 11/1/18 10/31/18 $2,150 $52 $25,800

3G Affordable - RS 2 1 -- -- 730 11/1/18 10/31/18 $2,600 $43 $31,200

4A Free Market 1 1 -- -- 543 $2,733 $60 $32,796

4B Free Market 4 1 Yes -- 949 $4,609 $58 $55,307

4C Free Market 4 1 Yes Balcony 907 9/1/18 8/31/19 $4,718 $62 $56,616

4D Free Market 4 1 Yes Balcony 840 $4,473 $64 $53,671

4E Affordable - RS 1 1 -- -- 585 11/1/18 10/31/18 $2,150 $44 $25,800

4F Affordable - RS 1 1 -- -- 499 11/1/18 10/31/18 $2,150 $52 $25,800

4G Affordable - RS 2 1 -- -- 730 11/1/18 10/31/18 $2,600 $43 $31,200

5A Free Market 1 1 -- -- 543 $2,733 $60 $32,796

5B Free Market 2 1 -- Terrace 647 8/31/18 8/31/19 $3,000 $56 $35,999

5C Free Market 4 1 Yes Balcony 893 $4,800 $64 $57,598

5D Free Market 4 1 Yes Balcony 838 $4,554 $65 $54,653

5E Free Market 1 1 -- -- 575 9/1/18 8/31/19 $2,782 $58 $33,381

5F Free Market 1 1 -- -- 487 10/1/18 9/30/19 $2,733 $67 $32,796

5G Affordable - RS 2 1 -- -- 718 11/1/18 10/31/18 $2,600 $43 $31,200

6A Free Market 1 1 -- Terrace 591 $2,945 $60 $35,344

6D Free Market 4 1 Yes -- 840 $4,636 $66 $55,634

6E Free Market 1 1 -- -- 575 11/1/18 10/31/18 $2,836 $59 $34,035

6F Free Market 1 1 -- -- 487 $2,782 $69 $33,381

6G Affordable - RS 2 1 -- -- 714 11/1/18 10/31/18 $2,600 $44 $31,200

7A Free Market 1 1 -- Terrace 654 $2,891 $53 $34,690

7D Free Market 4 1 Yes Balcony 840 11/1/18 10/31/18 $4,718 $67 $56,616

7E Free Market 4 1 Yes -- 840 10/1/18 9/30/19 $4,609 $66 $55,307

7F Free Market 2 1 -- Terrace 579 9/1/18 8/31/19 $3,049 $63 $36,588

Total 84 37 25,980 $121,684 $56 $1,460,207

9951 MADISON STREET

COMMERCIAL REVENUE

UNIT TYPE TENANT SPACE SF MONTHLY RENT $ / SF ANNUAL

Corner Retail David's Check Cashing 1,412 $6,159 $52 $73,902

Broadway Community Facility Betances Healthcare 8,331 $17,400 $25 $208,799

Basement Laundry Property Owned 150 $1,431 $114 $17,170

9,893 $24,989 $30 $299,871

PROJECTED EXPENSES

Annual $ / SF $ / Unit

Real Estate Taxes $16,144 $0.39 $414

Insurance $15,000 $0.37 $385

Staff $50,000 $1.22 $1,282

421-A Compliance $6,000 $0.15 $154

Maintenance Materials $8,000 $0.20 $205

Gas -- -- --

Water & Sewer -- -- --

Common Area Electric $12,000 $0.29 $308

Carson Virtual Doorman $4,400 $0.11 $113

Internet $4,246 $0.10 $109

Alarm Monitoring $2,820 $0.07 $72

Misc. and Supplies $2,000 $0.05 $51

Elevator Maintenance $4,000 $0.10 $103

Legal and Accounting $5,000 $0.12 $128

Property Management Fee (3%) $52,802 $1.29 $1,354

Total Exp. Ratio: 10.36% $182,412 $4.45 $4,930

INCOME MIX

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20%$342,000

80%$1,418,000

B6 REAL ESTATE ADVISORS1040 Avenue of the Americas, 8th FloorNew York, NY 10018

FOR MORE INFORMATION, PLEASE CONTACT ONE THE FOLLOWING INDIVIDUALS

DJ JohnstonPartner, Sr. Managing Director646 933 2619 [email protected]

William ChengDirector 646 933 [email protected]

Bryan KirkDirector646 933 [email protected]

Michael MurphyAssociate646 933 [email protected]

FOR QUESTIONS ABOUT FINANCING, PLEASE CALL

Steven SperandioPartner, Senior Managing DirectorD [email protected]