www.CBRCD.com Prepared by For Sale Park Slope Development Site - 7,020 SF 55 4th Avenue - For Sale $2,750,000 | Brooklyn, NY 11217 Joseph T. Hamdan, NYS Licensed Broker (718)921-3100 x105 [email protected]Juan Martes (718)921-3100 x139 [email protected]Coldwell Banker Reliable (718)921-3100
Coldwell Banker Reliable Commercial Division is pleased to offer a 7,020 SF development site in the Park Slope section of Brooklyn. The site situated on a 20 x 58.5 lot zoned C2-4/R8A allows for both residential and commercial development with a Floor Area Ratio of 6. Centrally located on Fourth Avenue with close proximity to public transportation, roads, shopping, the Barclays Center and minutes to Manhattan. Suitable development uses include but are not limited to commercial buildings with a mix of retail and professional space, mixed-use buildings encompassing ground floor retail and residential units above or a residential condo building. Cost of development is projected at $250 PSF or $1,755,000. The total cost of acquisition and development is projected at $4,505,000 allowing for a capitalization rate of return of 5.9% in year one after development. An alternate scenario allows for the property to be delivered as a condo development.
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www.CBRCD.com
Prepared by
For Sale
Park Slope Development Site - 7,020 SF55 4th Avenue - For Sale $2,750,000 | Brooklyn, NY 11217
Joseph T. Hamdan, NYS Licensed Broker(718)921-3100 [email protected]
Property Photos55 4th Avenue, Brooklyn NY - Park Slope Development
Property Description
Park Slope Development Site - 7,020 SF Buildable55 4th Avenue, Brooklyn, NY
Coldwell Banker Reliable Commercial Division is pleased to offer a 7,020 SF development site in the Park Slope section of Brooklyn. The site situated on a 20 x 58.5 lot zoned C2-4/R8A allows for both residential and commercial development with a Floor Area Ratio of 6. Centrally located on Fourth Avenue with close proximity to public transportation, roads, shopping, the Barclays Center and minutes to Manhattan. Suitable development uses include but are not limited to commercial buildings with a mix of retail and professional space, mixed-use
buildings encompassing ground floor retail and residential units above or a residential condo building. Cost of development is projected at $250 PSF or $1,755,000. The total cost of acquisition and development is projected at $4,505,000 allowing for a capitalization rate of return of 5.9% in year one after development. An alternate scenario allows for the property to be delivered as a condo development. Please review our condo project scenario on page thirteen of the offering memorandum which projects a 22-25% return on investment. The rendering illustrated in this offering is proposed but not approved. For additional information please contact Exclusive Broker Coldwell Banker Reliable Commercial Division.
Park Slope is a neighborhood in northwest Brooklyn, New York City. Park Slope is roughlybounded by Prospect Park and Prospect Park West to the east, Fourth Avenue to the west, FlatbushAvenue to the north, and Prospect Expressway to the south.
Real Estate Investment Details
ANALYSIS
Analysis Date March 2015
PROPERTY
Property Park Slope Development Site - 7,020 SFProperty Address 55 4th Avenue - For Sale $2,750,000
Brooklyn, NY 11217Year Built 1920
FINANCIAL INFORMATION
All Cash
PURCHASE INFORMATION
Property Type CommercialPurchase Price $2,750,000Tenants 6Total Rentable Sq. Ft.Resale Valuation
7,0205.9% (capitalization of noi) after development
LOANS
Debt Term Amortization Rate Payment LO CostsAll Cash
INCOME & EXPENSES
Gross Operating Income $300,595Monthly GOI $25,050Total Annual Expenses ($28,000)Monthly Expenses ($2,333)
CONTACT INFORMATION
Joseph T. Hamdan, NYS Licensed Broker(718)921-3100 [email protected]
Purchase Price, Points and Closing Costs $2,750,000Investment - Cash $4,505,000
INVESTMENT INFORMATION
$2,750,000$458,333
Purchase Price Price per Tenant Price Per buildable Sq. Ft. $391.74
INCOME, EXPENSES & CASH FLOW
Gross Scheduled Income $300,595Total Vacancy and Credits $0Operating Expenses ($28,000)Net Operating Income $272,595Debt Service $0Capital Expenses and Costs ($4,505,000)Expended Reserves $4,505,000Cash Flow Before Taxes $272,595
FINANCIAL INDICATORS
Cash on Cash Return Before Taxes 6.05%
Debt Coverage Ratio N/ACapitalization Rate 5.9%Gross Income / Square Feet $42.82Gross Expenses / Square Feet ($3.99)Operating Expense Ratio 9.31%
Footnotes: a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating IncomeReversion = Amount received from the resale; Net Return on Investment = Cash Flow (a/t To Date) + Net Proceeds from Resale - Invested Capital.
Investment Return Analysis
Description Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Cash Flow - To Date $3,512,450 $3,873,718 $4,234,589 $4,595,054 $4,955,105 $5,314,734 $5,673,932 $6,032,691 $6,391,002 $6,748,856
Footnotes: a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating IncomeReversion = Amount received from the resale; Net Return on Investment = Cash Flow (a/t To Date) + Net Proceeds from Resale - Invested Capital.
Cash Flow Analysis
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Park slope Section of Brooklyn 55 4th Avenue, Brooklyn, NY — 7,020 SF Buildable
Condo Unit Mix
Six Units: Total sellable value of $5,737,500 representing a 22%-25%
projected gross rate of return on the entire project.
Unit Mix
Unit Mix Projected Value
900 SF Grd FL Retail $765,000 / $850 PSF
5.9% Cap leased at $50 PSF
1,170 SF Second Floor Apt. $994,500 / $850 PSF
1,170 SF Third Floor Apt. $994,500 / $850 PSF
1,170 SF Fourth Floor Apt. $994,500 / $850 PSF
1,170 SF Fifth Floor Apt. $994,500 / $850 PSF
Cost of Acquisition & Development
Cost of Acquisition: $2,750,000
Cost of Development: $1,755,000 / $250 / Per Buildable SF
1,170 SF Sixth Floor Apt. $994,500 / $850 PSF
Property Details
Internal Rate of Return Analysis
BEFORE TAX IRR
Time Future Cash Flows
Initial Investment ($4,505,000)End of Year 1 $272,595 End of Year 11 $361,659End of Year 2 $281,293 End of Year 12 $361,269End of Year 3 $290,255 End of Year 13 $360,871End of Year 4 $299,489 End of Year 14 $360,465End of Year 5 $309,004 End of Year 15 $360,051End of Year 6 $318,807 End of Year 16 $359,629End of Year 7 $328,908 End of Year 17 $359,198End of Year 8 $339,315 End of Year 18 $358,759End of Year 9 $350,038 End of Year 19 $358,311End of Year 10 $361,087 End of Year 20* $6,423,172
IRR = 7.98% * ($357,854 + $6,065,318)
AFTER TAX IRR
Time Future Cash Flows
Initial Investment ($4,505,000)End of Year 1 $272,595 End of Year 11 $361,659End of Year 2 $281,293 End of Year 12 $361,269End of Year 3 $290,255 End of Year 13 $360,871End of Year 4 $299,489 End of Year 14 $360,465End of Year 5 $309,004 End of Year 15 $360,051End of Year 6 $318,807 End of Year 16 $359,629End of Year 7 $328,908 End of Year 17 $359,198End of Year 8 $339,315 End of Year 18 $358,759End of Year 9 $350,038 End of Year 19 $358,311End of Year 10 $361,087 End of Year 20* $5,791,949
IRR = 7.69% * ($357,854 + $5,434,096)
Financial Indicators
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
NET OPERATING INCOME $361,659 $361,269 $360,871 $360,465 $360,051 $359,629 $359,198 $358,759 $358,311 $357,854
Tenant Mix Report
TENANTMIXES
Suite Tenants Approx. SqFt Avg. Rents Monthly Mkt Rents MonthlyRetail Retail 900 $4 $4 $4 $42nd Flr One or two units 1170 $4,875 $4,875 $4,875 $4,8753rd Flr One or two units 1170 $4,875 $4,875 $4,875 $4,8754th Flr One or two units 1170 $4,875 $4,875 $4,875 $4,8755th Flr One or two units 1170 $4,875 $4,875 $4,875 $4,8756th Flr One or two units 1170 $4,875 $4,875 $4,875 $4,8756 6,750 $24,379 $24,379
TENANTMIX TENANTMIX SQUARE FEET
● Retail● One or two units● One or two units● One or two units● One or two units● One or two units
● Retail● One or two units● One or two units● One or two units● One or two units● One or two units
TENANTMIX INCOME TENANTMIXMARKET INCOME
● Retail● One or two units● One or two units● One or two units● One or two units● One or two units
● Retail● One or two units● One or two units● One or two units● One or two units● One or two units