234_E_46th_Street_OM.. - MHP Real Estate Services

234 E 46 ST
NEW YORK, NEW YORK
C O N F I D E N T IA L O F F E R I N G M E M O R A N D U M
234 E 46 ST
NEW YORK, NY
TA B L E O F C O N T E N T S
I.
Executive Summary....................................................1
II.
Property Description. . ............................................... 17
III.
Market Overview...................................................... 27
IV.
Area Overview. . ........................................................ 41
Additional information may be obtained from the Seller’s exclusive representative:
40 West 57th Street, New York, NY 10019
Adam J. Spies
Senior Managing Director
(212) 315-7317
[email protected]
Jean Celestin, Jr.
Managing Director
(212) 315-7322
[email protected]
Douglas L. Harmon
Senior Managing Director
(212) 315-7243
[email protected]
Adam G. Doneger
Director
(212) 315-7346
[email protected]
Daniel J. O’Brien
Vice President
(212) 315-7417
[email protected]
Jordan M. Bargas
Analyst
(212) 315-7209
[email protected]
FINANCING INQUIRIES
Philip G. McKnight
Managing Director
(212) 315-7477
[email protected]
The information contained herein, including any pro forma income and expense information (collectively, the “Information”) is based upon assumption and projections
and has been compiled or modeled from sources we consider reliable and is based on the best available information at the time the brochure was issued. However,
the Information is subject to change and is not guaranteed as to completeness or accuracy. While we have no reason to believe that the Information set forth in this
brochure, underwriting, cash flows, valuation and other financial information (or any Information that is subsequently provided or made available to you) contains any
material inaccuracies, no representations or warranties, express or implied, are made with respect to the accuracy or completeness of the Information. Independent estimates of pro forma income and expenses should be developed before any decision is made on whether to invest in the property. Summaries of any documents are not
intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual document
to which they relate. You understand that the Information is confidential and is furnished solely for the purpose of your review in connection with a potential investment
in the property. You further understand that the Information is not to be used for any other purpose or made available to any other person without the express written
consent of Eastdil Secured. This offering is subject to prior placement and withdrawal, cancellation or modification without notice. ES: TTF4
© Eastdil Secured, L.L.C.
February 2014
EXECUTIVE SUMMARY
234 E 46 ST
8
234 E 46 ST
Eastdil Secured has been retained as the Owner’s exclusive advisor to offer for sale an
unencumbered 100% fee simple interest in 234 East 46th Street (the “Property”). 234 East 46th
Street is being offered to a select group of qualified investors. All inquiries should be directed to
Eastdil Secured.
The Property, built in 1986 and renovated in 2004, is a 95-unit, 20-story, boutique luxury residential building
with only five units per floor and a total of 82,829 square feet. Located on 46th Street between Second
and Third Avenues, the Property is prominently situated in the UN Plaza District neighborhood of Manhattan,
less than two blocks away from the United Nations and just three blocks east of Grand Central Terminal.
The Property is currently operating as the AKA United Nations, a luxury corporate extended stay facility.
However, at the time of sale, the Property can be delivered vacant, unencumbered of any apartment leases.
The Property is not subject to any rent regulation, ground lease or tax abatement and is truly “free
market”, offering an investor the opportunity to immediately execute on a “value-add” vision.
EXECUTIVE SUMMARY
THE OFFERING
PROPERTY OVERVIEW SUMMARY
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Unique Value-Add opportunity
Ideal condominium conversion
Free market property with no rent regulation
Zoned R10, allowing for as-of-right residential use
Premier location just two blocks from the United Nations and three blocks east of Grand
Central Terminal
Highly sought after neighborhood / walk-to-work location
Institutionally owned / maintained over the past decade
Excellent light and air with northern and southern exposure
Leading New York City rental market
Exceptionally strong residential condominium market
PROPERTY AMENITIES
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24/7 doorman service
Individual outdoor patios or terraces for 85 units
Lushly landscaped and furnished courtyard
State of the art health and fitness center includes cardio and strength equipment
Units feature oversized windows which allow for maximum light and air
Ability to create a luxury rooftop amenity
Spectacular expansive views of Manhattan’s cityscape and select views of the East River
Laundry room
Conference room and lounge
AREA HIGHLIGHTS
»» Proximity to mass transit infrastructure
»» Variety of world-class retail and dining options within walking distance of the Property
»» Fortune 500 companies in immediate vicinity include: Colgate-Palmolive, JP Morgan, Wells
Fargo, among others
»» Surrounded by some of the most high profile luxury condominiums and co-ops in New York City
1
EXECUTIVE SUMMARY
234 E 46 ST
Unique Value-Add Opportunity
234 East 46th Street represents an exceedingly rare opportunity for a sophisticated investor to purchase
a well located, vacant multifamily asset that offers significant upside through multiple value enhancement
strategies. A new investor will be able to quickly implement a capital expenditure program, in order to
execute on their unique vision for this exceptional asset.
The Property, as currently configured, contains 95 one-bedroom apartments with approximately 63,750 net
rentable square feet. Surrounded by a plethora of corporate and leisure demand generators, the Property
provides for an abundance of alternative uses and configurations that an investor may pursue in
order to maximize value.
»» Family Sized Condominium Units – Through unit combinations, a new investor will be able to create
two and three-bedroom apartments that appeal to growing New York City families.
»» Pied-A-Terre Condominium Units – Located around the corner from the United Nations, and currently
configured as 95 one-bedroom apartments, the Property is ideally positioned to attract international
condominium buyers looking for an efficient second home.
»» Branded Time-Share Units – The strength of domestic tourism has buoyed the timeshare market in
New York City. Subject to a zoning variance, a time-share concept would allow for an investor to team
up with one of the leading hospitality brands in order to convert the Property into fractional ownership
units.
»» Multifamily Rental Building – With minimal capital investment, an investor can lease the property asis, and take advantage of the robust demand for New York City rental apartments.
»» Luxury Extended Stay – The Property is already a successful extended-stay luxury property. A
new investor can continue with this business plan and add value through efficent management and
improved operations.
Furthermore, an investor may implement specific capital improvements such as a rooftop lounge, which will
help drive value for the Property. Whether re-developed as a residential condominium, time-share,
rental or alternative use, 234 East 46th Street offers an investor the ability to immediately execute
a business plan.
PROPOSED FLOOR LAYOUT
2
234 E 46 ST
EXECUTIVE SUMMARY
Unencumbered Blank Canvas Opportunity
Currently operated as the AKA United Nations, a luxury corporate extended stay housing facility, 234 East
46th Street can be delivered vacant at the time of the sale. Additionally, unlike most multifamily offerings
in Manhattan, the Property is 100% free market. There is no ground lease, no legacy rent stabilized
tenants, bonds or bond regulatory agreements, nor any real estate tax abatement and associated rent
regulations that encumber the Property. The unencumbered nature of the Offering provides for a clean and
simple structure that will allow a new investor to immediately employ a repositioning strategy.
3
EXECUTIVE SUMMARY
234 E 46 ST
Surging New York City Condominium Market
Driven by record low inventory levels, the New York City condominium market has been surging, with current
Manhattan-wide average pricing for new developments improving 19% year-over-year. In addition,
condominium inventory has been declining steadily over the past few years, falling by 20% year-over-year,
representing the 12th straight quarter of year-over-year declines. Inventory is now at its lowest level
since 2005, and 54% below its recent peak in Q1 2009. While new development has increased since
the economic downturn, supply still falls short of the surging demand. There are 10,000 units scheduled
to come on line over the next three years, or approximately 3,300 per year. This is only a fraction of the
more than the 8,000 units that came online during 2007 alone. Given the free market, vacant nature of the
Property, an investor can immediately begin the process of converting the Property to condominiums in order
to capitalize on the historically low supply and robust demand for New York City residential condominiums.
Manhattan Inventory and Price Per Square Foot
$1,250
12,000
Total Listing
New Listing
Avg. Price PSF
$1,200
10,000
$1,150
8,000
$1,100
6,000
$1,050
4,000
$1,000
2,000
$950
$900
0
Q3’09 Q4’09 Q1’10 Q2’10 Q3’10 Q4’10 Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13
Source: CitiHabitats
Dearth of Entry level and Moderately Priced
Condominium Product
The for-sale housing supply deficit is even more apparent within the entry and mid-level priced condominium
market. Driven by the recent success of projects such as One57 and 432 Park Avenue, the vast majority of
condominium projects in the planning or construction stage have been conceived as luxury or ultra-luxury
developments. A recent study of the New York City condominium market by the Real Deal concluded that
over 79% of Manhattan condominium developments that came on to the market in 2013 had an asking
price that averaged over $2,000 per square foot. The recent rise of ultra-luxury development has resulted
in a severe deficit of moderately priced condominiums and this trend is projected to persist. Over the
next few years, less than 30% of the approximately 10,000 units projected to come on line in Manhattan will
have an average asking price of less than $2,000 per square foot. The lack of newly developed moderately
priced residential product will benefit 234 East 46th Street as it affords investors the ability to capitalize on
the supply and demand imbalance.
4
E 57 ST
IDEAL CONDOMINIUM CONVERSION
234 E 46 ST
234 East 46th Street offers an investor the opportunity to
maximize value through a condominium conversion. The vacant
unencumbered nature of the Property combined with surging
EXECUTIVE SUMMARY
condominium prices and the lack of moderately priced for-
sale supply makes 234 East 46th Street an ideal condominium
conversion candidate. Located within the United Nations Plaza
BUILT
THE VENETTO
250 East 53rd Street
2007 UNITS
137
BDRM COUNT AVG SF AVG PRICE PSF
1
7
961
$1,631
2
11
1,426
$1,595
3
5
1,883
$1,496
THREE TEN
310 East 53rd Street
2006 UNITS
88
District submarket the property is surrounded by numerous upscale
BDRM COUNT AVG SF AVG PRICE PSF
1
3
1,699
$1,137
2
9
1,646
$1,548
3
4
2,169
$1,752
Property upon the completion of a condo conversion. The map
BUILT
condominium developments that will support robust pricing for the
below outlines recent sales pricing for comparable condominium
projects within the United Nations Plaza District submarket.
E 53 ST
E 52 ST
E 51 ST
HALCYON
305 East 51st Street
2013 UNITS
123
BEEKMAN PL
E 49 ST
BUILT
FIRST AVE
E 50 ST
SECOND AVE
PARK AVE
BDRM COUNT AVG SF AVG PRICE PSF
1
2
611
$1,456
2
4
1,218
$1,850
THIRD AVE
BUILT
THE PANTHEON
216 East 52nd Street
1900 UNITS
N/A
BDRM COUNT AVG SF AVG PRICE PSF
1
18
918
$1,757
2
16
1,542
$1,739
3
11
2,129
$1,889
E 49 ST
E 48 ST
E 48 ST
E 47 ST
BUILT
THE ALEXANDER
250 East 49th Street
2009 UNITS
75
TRUMP WORLD TOWER
845 United Nations Plaza
BUILT 2001 UNITS
370
E 46 ST
BDRM COUNT AVG SF AVG PRICE PSF
1
5
656
$1,609
2
2
1,314
$1,338
3
5
2,086
$1,692
BDRM COUNT AVG SF AVG PRICE PSF
1
19
1,134
$1,497
2
33
1,910
$1,842
3
26
2,643
$2,078
E 45 ST
UNITED
NATIONS
E 44 ST
LEXINGTON AVE
BDRM COUNT AVG SF AVG PRICE PSF
1
6
1,147
$2,084
2
6
1,546
$2,587
3
2
2,807
$2,989
*Property began sales in October 2013. All prices
are asking.
E 42 ST
E 41 ST
TUDOR CITY PL
50 United Nations Plaza*
345 East 46th Street
BUILT 2013 UNITS
88
E 43 ST
5
EXECUTIVE SUMMARY
234 E 46 ST
Institutionally Maintained Asset
With Significant Recent Capital Improvements
234 East 46th Street features a desirable combination of modern design, popular amenities and plentiful
outdoor space in the heart of one of Manhattan’s most desirable submarkets. Built in 1986, the Property
went through a renovation and repositioning in 2004 when it was converted from a rental apartment building
into the AKA United Nations. Since that time, Ownership has proactively spent capital to retain the
Property’s luxury appeal. Over the past five years, over $3.0 million has been spent on the renovation and
re-design of the lobby, installation of a modern gym, and the replacement of floors, appliances and bathroom
fixtures in the apartments on floors 18-20. Furthermore, the Property features an abundance of outdoor space
including a renovated courtyard and 85 private balconies. The Property’s luxury atmosphere, in conjunction
with its convenient location and unique desirable attributes, will benefit an investor as they reposition the asset
and maximize value.
Historical Capital Expenditures
Building Improvements
Back of House
Furniture, Fixtures, Equipment
Total
6
2009
2010
2011
2012
2013
Total
$549,504
$110,772
$128,482
$727,561
$667,789
$2,184,108
12,293
22,736
8,972
18,111
10,731
72,842
86,413
43,614
90,248
198,099
366,597
784,971
$648,210
$177,122
$227,702
$943,771
$1,045,117
$3,041,922
234 E 46 ST
EXECUTIVE SUMMARY
7
EXECUTIVE SUMMARY
234 E 46 ST
Diverse and Exceptional Submarket
The Property, conveniently located in the UN Plaza District submarket, is surrounded by numerous
corporate headquarters and leisure amenities as well as robust transportation infrastructure, providing
for a plethora of distinct demand generators. 234 East 46th Street is ideally located two blocks from the
United Nations, the international governmental organization home to delegates from 192 countries and a
permanent staff of more than 5,000. Furthermore, Grand Central Terminal, New York’s busiest railroad
terminal serving over 700,000 commuters daily, is located just three blocks to the west of the Property.
The most coveted Manhattan residential locations are within walking distance of the major office districts.
234 East 46th Street is ideally positioned within walking distance to the prominent Grand Central,
Herald Square and Plaza District office submarkets. Employees of such major companies as Citibank,
Colgate-Palmolive, JP Morgan, A&E and Wells Fargo strive to be in and around the UN Plaza District in order
to benefit from the ultimate New York City luxury: a quick walk to work.
LIST OF LEADING EMPLOYERS WITHIN WALKING DISTANCE OF 234 EAST 46TH STREET
Company
8
Building
Industry
Distance
A&E Network
235 45th Street
Media
1 block
Advance Magazine Publishers
485 Lexington Avenue
Publishing
2 blocks
Allianz Real Estate of America
One Grand Central Place
Real Estate
6 blocks
Blackstone
345 Park Avenue
Financial Services
6 blocks
Canadian Imperial Bank
425 Lexington Avenue
Financial Services
3 blocks
Citibank
485 Lexington Avenue
Financial Services
2 blocks
Gerson Lehrman Group
One Grand Central Place
Research
6 blocks
Grey Advertising
777 3rd Avenue
Advertising
3 blocks
Morgan Stanley
101 Park Avenue
Financial Services
6 blocks
Novantas
485 Lexington Avenue
Consulting
2 blocks
Sumitomo
300 Madison Avenue
Trading
8 blocks
The Schonbraun McCann Group/ FTI
750 Third Avenue
Real Estate Consulting
1 block
Tiger Management
101 Park Avenue
Financial Services
7 blocks
Traveler’s Insurance
485 Lexington Avenue
Financial Services
2 blocks
Wells Fargo
150 East 42nd Street
Financial Services
4 blocks
Winston & Strawn
200 Park Avenue
Legal
4 blocks
TIMES
SQUARE
CHRYSLER
BUILDING
MIDTOWN
WEST
277
PARK AVE
WALDORF
ASTORIA
230
PARK AVE
GRAND
CENTRAL
TERMINAL
MILLENIUM
UN PLAZA
EXECUTIVE SUMMARY
200
PARK AVE
234 E 46 ST
50
UN PLAZA
UNITED
NATIONS
9
EXECUTIVE SUMMARY
234 E 46 ST
10
VIEW OVERLOOKING EAST RIVER
234 E 46 ST
New York City, the financial, corporate, media and intellectual capital of the world, is home to more Fortune
500 companies than any other city in the world. New York City has recovered faster from the downturn than
any other city in America. As of the end of 2013, 191% of the New York City jobs that were lost in the
recession have been replaced, compared to the National average of only 80%. Furthermore, New York
City employment hit 4.04 million in December 2013, an employment milestone not seen since 1969. With
its diverse base of business, cultural, recreational, entertainment and other resources, New York City will
continue to reach new economic heights. As New York City continues to prosper, demand for housing
will intensify as residents have the necessary financial resources and desire to live in neighborhoods like
the UN Plaza District.
EXECUTIVE SUMMARY
Resilient and Growing New York City Economy
Premier Tourism Market
New York City is among the most exciting, dynamic and diverse cities in the world and is the country’s
leading tourist destination. Featuring incomparable cultural amenities, New York hosted a record 54.3 million
tourists in 2013. This represents a 4.4% increase year-over-year and an incredible 54% increase in tourism
since 2001. Given its popularity, New York City is far and away the most expensive lodging market
in the United States. In 2013, the average daily rate for hotel rooms in New York City grew 3.0% to $258,
24% higher than the second most expensive city in the country, Oahu Island, Hawaii. The incredible strength
of the Hotel market has given rise to the popularity of time share product within the city. Tourists hoping to
avoid paying New York City’s expensive room rates have flocked to time-share offerings within the city. Given
the Property’s convenient location and efficient layouts, it is extremely well positioned for conversion to
a branded time-share property.
Unencumbered of Debt
Unlike several offerings in today’s market, 234 East 46th Street will be offered free and clear of
indebtedness, which avoids mark to market issues and allows investors to take advantage of the robust
capital markets. Coupled with historically low interest rates and the current capital markets, this offering will
attract interest from a wide spectrum of lenders.
11
VIEWS
STUDY
EXECUTIVE SUMMARY
234 E 46 ST
NORTHEAST VIEW
12
WEST VIEW
VIEW OF PARK AVENUE TOWERS
234 E 46 ST
EXECUTIVE SUMMARY
DAYLIGHT VIEW LOOKING NORTH
DUSK VIEW LOOKING NORTH
VIEW OVERLOOKING EAST RIVER
VIEW OF CHRYSLER BUILDING
VIEW TOWARDS TIMES SQUARE
13
PROPERTY DESCRIPTION
234 E 46 ST
16
234 E 46 ST
PROPERTY DESCRIPTION
PROPERTY Description
Address
234-36 East 46th Street
New York, New York 10017
Cross Streets
46th Street between Second and Third Avenues
Lot Area (SF)
7,537 SF (0.17 Acres)
Built / Renovated
1986 / 2004-2013
Zoning
R10, residential
Stories
20 plus basement
Gross Square Feet
82,829
Rentable Square Feet
63,750
Unit Count
95
Street Frontage (46th Street)
75 feet
Amenities
Fitness center, café, business center, Zen garden and laundry room
Ceiling Heights
15 feet (lobby) / 10 feet (Floors 20-21) / 8.5 feet (Floors 2-19)
LOCATION DESCRIPTION
234 East 46th Street is located on the south side of 46th Street between 2nd and 3rd Avenues in the heart
of the UN Plaza District, one of New York City’s most desirable submarkets. The Property’s location benefits
from its proximity to the United Nations headquarters and Grand Central, both of which are just blocks away.
As one of New York City’s most dynamic neighborhoods, Midtown has long been one of Manhattan’s most
coveted locations to live due to its proximity to numerous museums, renowned restaurants, flagship retail
destinations, elite schools and, perhaps most importantly, convenient access to the Midtown office market.
The Property offers investors a rare opportunity to acquire and reposition a 20-story tower in one of New
York City’s most exclusive mixed-use locations.
SITE
E 47TH STREET
Situated on Block 1319 Lot 34, the Property lot covers approximately 7,537 square feet, or 0.17 acres.
3RD AVENUE
2ND AVENUE
E 46TH STREET
E 45TH STREET
17
234 E 46 ST
1
2
W 103 ST
3
UPSTATE NY, CONNECTICUT
E 103 ST
4
A
York Ave
First Ave
Second Ave
Third Ave
Park Ave
Lexington Ave
Fifth Ave
Jacqueline
Onassis Kennedy
Reservoir
Madison Ave
Central Park W
Broadway
DGE
E 96 ST
Columbus Ave
Amsterdam Ave
West End Ave
Riverside Drive
BRI
6
W 96 ST
ACCESSIBILITY
RFK
5
C
West Side
land
The Property is just a few blocks away from Grand Central Terminal, New York’s most famous transportation
E 86 ST
W 86 ST
hub. Grand Central Terminal provides
access to the S, 4, 5, 6 and 7 subway lines, as well as the Metro North
B
D
train lines. The Property is serviced
by a number of bus routes, including the M101, M102, M103, M42 and
M50. In addition, the Property’s
proximity
to the Midtown Tunnel and
W 79 ST
E 79 STQueensboro Bridge provides access
Central
Upper
to Long Island and Queens.
Upper
Park
Roosevelt
Is
East Side
Furthermore, 234 East W46th
Street will benefit from the 2nd AvenueE 72subway,
which is expected to
come on
QUEENS
ST
72 ST
line in 2016. The new subway
line will connect commuters to the Upper East Side, Gramercy, East Village
1
2
and Downtown Manhattan.3
E 66 ST
F
N
Q
W 57 ST
WEEHAWKEN
7 S
7 line extension
TUNNEL
D
Walking Time
L
1 minute
West
Village
Type
Bus
W HOUSTON ST
Bryant Park
1
15 minutes
3
H
E HOUS
Amtrak
Harsimus Cove
MTA NYC Buses EXCHANGE PL.
J
Train
E
N
WORLD TRADE CENTER
I V
GROVE ST.
R
Essex Street
E
PAULUS HOOK
Z M
Z
1
Financial
District
B
D
HA
TT
BROO
KLYN in U.S. and Canada
To destinations
SEAPORT
BRID
G
E
M4, M10, M16,
M20 and M34
A
C
FULTON LANDING
To areas of Northern New Jersey
PIER 11
3
2
R
BROOKLYN
SOUTH FERRY
BR
TU
BA OOKL
NN
TT YN
ER
EL
Y
Q
BR
AN
IDG destinations
To various New Jersey
E
HELI
SLIP 6
N
Serving most areasMAof
Long Island
N F
Bus/Light Rail
Train
Lower
East Side
1, 2, 3, 7, N, Q and R
Chinatown
Bus
R
Exchange Place
D, F, M and 7 DELANCEY ST J
A, C and E
Train
O
Pavonia Newport
Subway
Brookfield Place
S
New Jersey Transit
MB,
GRAND ST
Tribeca
D
NEWPORT
LIBERTY HARBOR
4, 5, 6, 7TOand
S
N ST
F
Subway
20 minutes
U
NEWPORT
MTA Long
Island Rail Road
18
Subway
Noho
6
Little
CANAL Subway
ST Italy
ST
ICH
ENW
ST
ST
WE
42nd Street at Broadway and 7th Avenue
EL
TUNN
GRE
ND (Port Authority)
42nd Street and 8th HAvenue
OLLA
Jersey Avenue
Soho
2
Times Square
Marin Boulevard
East Village
M1, M2, M3, M4, M42, M101, M102 and M103
4
10 minutes
42nd Street and 6th Avenue
Train
Serving NY State, Westchester and Connecticut
E 8 ST
5
Grand Central - 42nd StreetPIER 45
Harborside
PATH
Financial Center
Lines/Routes
Greenwich
VillageTrain
CHRISTOPHER ST.
MTA NYC Buses
JERSEY CITY
Gramercy
E 14 ST
14 ST.
Metro-North Railroad
Penn Station
R
M
MANHATTAN
E
23 ST.
W 14 ST
Grand Central Terminal
Hoboken Terminal
3RD AVE
LEXINGTON AVE
6TH AVE
5TH AVE
MADISON AVE
8TH AVE
9TH AVE
10TH AVE
11TH AVE
7TH AVE
B
F
234 East 46th Street - Easily Accessible
Public Transportation
E
Location
HELI
I V
A
LIRR
HUNTERS POINT
E 34 ST
E 23 ST
W 23 ST
C
HOBOKEN 14 ST.
LONG ISLAND CITY
R
PIER 63
EAST 34 STREET
T
LINCOLN HARBOR
WN
L
S
High Line
33 ST.
S-MIDTO
TUNNE
A
Chelsea
LIRR
HUNTERS POINT
QUEEN
E
W 34 ST
PENN
STATION
LIRR
GRAND
CENTRAL
1ST AVE
NORTH
completion 2014
HELI
M
2ND AVE
Theater
District
W 42 ST
LINCOLN
N
R
Midtown
Clinton
(Hell’s Kitchen)
PIER 79
Q
BRIDGE
E
M
F
PIER 84
QUEENSBORO
R
E 57 ST
2ND AVE SUBWAY LINE
Y
PROPERTY DESCRIPTION
EDGEWATER
4
5
WILLIAMSBURG
BRIDGE
234 E 46 ST
PROPERTY DESCRIPTION
19
PROPERTY DESCRIPTION
234 E 46 ST
20
234 E 46 ST
234 East 46th currently features 95 one-bedroom units. Each unit has a living room with a kitchen, a bedroom
and a bathroom. Interior finishes consist of painted drywall and ceilings with hardwood flooring through the
living rooms, dining rooms, kitchens, hallways and bedrooms. The bathrooms utilize marble flooring and
shower alcove walls. The kitchens are furnished with cherry wood cabinets, granite countertops, granite
floors and stainless steel fixtures and equipment.
Typical Lowrise Floor Plan
PROPERTY DESCRIPTION
PROPERTY DESCRIPTION
Typical Highrise Floor Plan
21
PROPERTY DESCRIPTION
234 E 46 ST
22
CONSTRUCTION DETAILS
Foundation / Frame The foundation is poured concrete and the frame is constructed of steel reinforcing
bars and poured in place reinforced concrete.
Façade / Exterior
Exterior walls are constructed of steel framing and reinforced concrete. Exterior walls
are finished with a brick masonry veneer and ornamental masonry. Unit windows are
double-glazed sliding aluminum with a painted finish.
Roof
The roof consists of a ballasted built-up asphaltic flat roofing system. The existing
roofing system has a slight taper to direct surface water to the roof mounted
drainage inlets.
Fire Protection
System
Each unit is currently equipped with centrally located direct hardwired surface
mounted smoke detectors and carbon monoxide detectors.
HVAC
The dwelling units are equipped with two individually controlled wall mounted HVAC
heat exchangers, which receive steam heat from the central boilers. Heating and
cooling at the ground floor lobby level area is provided by two basement level
ceiling suspended 50,000 BTU package units. The two boilers were manufactured
by Federal and Phoenix Energy and have a rated input capacity of 1,560 MBH and
2,400 lb. /hr., respectively. The building currently utilizes rooftop mounted exhaust
fans to provide common corridor ventilation.
Electric / Gas
Service
Main electric service is brought in at below grade into main disconnects via an
underground transformer. Apartments are individually metered. The main service is
three phase, four wire, 120/240 volts of alternating current. The wiring material is
aluminum on the main service, copper on the general lighting, and copper on the
general receptacle circuits in each dwelling unit.
Plumbing
The building is supplied by an underground domestic water distribution system with
a main service connection entering each building from below grade. The interior
plumbing supply lines are copper piping. A water tank is located on the rooftop
level, above the elevator penthouse
Hot Water
Hot water is supplied to the Property by internal heat exchangers at the
heating boilers.
Elevators
Vertical transportation from the cellar through roof levels is provided by two overhead
traction passenger elevators manufactured by Westinghouse. The elevator hoist
motor and controller are located within an elevator machine room located on the
roof. The elevator cab walls are finished with a laminate material.
Stairwells
Stairs are constructed with reinforced concrete with steel pipe handrails mounted
on the adjacent walls. The building has two main interior stairwells providing access
to all floors of the building.
234 E 46 ST
Real Estate in the City of New York is reassessed annually, on a fiscal year basis ending June 30th, to
determine the fair market value of the land and improvements. The City is permitted to classify real property
by type and to assess classifications at different fractions of their market values. The New York City
Department of Finance determines the assessed value of real estate using the standard appraisal methods
of income and expenses, comparable sales, and replacement cost less depreciation, and relies on income
and expense statements submitted annually by real property owners. The methodology of estimating market
value by the assessor involves direct capitalization, using rates that are applied to properties based upon
geography and age. A Transitional Value is calculated based on the annual phase-in of the increases and
incorporates an accumulation of increases in the Actual Assessed Value from the prior five-year period.
In addition, assessment increases may be physical, as a result of alterations or improvements made to a
Property; such increases in assessed value are not phased in. Taxes are then calculated by applying the tax
percentage rate to the lower of either the Actual or Transitional Value. Property taxes are due in two equal
installments on July 1 and January 1 of the following year; however, a 1% discount is applied if fully paid
in July.
PROPERTY DESCRIPTION
REAL ESTATE TAXES
As real estate tax estimates are subjective in nature, investors are advised to perform independent analyses
and reach their own conclusions.
234 East 46th Street Real Estate Taxes
2010/2011
2011/2012
2012/2013
2013/2014
Actual Assessed Value
$17,415,000
$7,051,050
$8,280,000
$10,896,300
Transitional Value
$13,302,000
$13,137,210
$11,162,210
$9,924,670
10.3120%
10.1520%
10.2880%
10.3230%
$1,371,702
$715,823
$851,846
$1,024,524
Tax Rate
Annual Property Tax
23
MARKET OVERVIEW
234 E 46 ST
26
234 E 46 ST
The Manhattan residential market is home to the most desirable real estate in the world, and is the strongestperforming residential market in the United States. Commanding the highest residential rental rates and
condominium pricing in the nation, Manhattan’s consistently strong market fundamentals are founded in the
City’s high quality of life and employment opportunities. New York City also benefits from its favored status
as a safe haven for global capital investment. Driven by recent economic uncertainty in Europe and relative
affordability as compared to other global capital cities, foreign demand for New York City real estate is at an
all-time high. With numerous global, national and local factors driving demand, the supply of housing has
been declining steadily over the past few years.
MARKET OVERVIEW
Manhattan Residential Market
Manhattan Condominium Market
Pent up demand and limited inventory continue to drive price increases with year-over-year gains in average
price per square foot and median sales price in Manhattan. Total inventory fell by 20% year-over-year,
representing the 12th straight quarter of year-over-year declines. At just 5,717 listed available for-sale
residences, inventory is now at its lowest level since 2005 and is 54% below its recent peak in Q1 2009.
There were 4,113 sales in Q4 2013, 11% higher than the number of sales in Q4 2012 and the third
consecutive quarter of sales activity above the five-year quarterly average. The number of sales in 2013
represents the highest fourth quarter total in at least 25 years. While condo inventory increased by 5.0%
compared to Q3 2013, to 2,481 listings due to an uptick in new development entering the market, Q4 2013
inventory still remains 3.0% below Q4 2012. As a result of this dearth in supply, the monthly absorption rate
fell to a near record pace of 3.8 months, and is expected to continue to improve in 2014.
Q4 2013 experienced an increase of 11.2% and 3.4% in average price per square foot and median condo
price, respectively, compared to Q4 2012.
Manhattan Inventory and Price Per Square Foot
$1,250
12,000
Total Listing
New Listing
Avg. Price PSF
$1,200
10,000
$1,150
8,000
$1,100
6,000
$1,050
4,000
$1,000
2,000
$950
$900
0
Q3’09 Q4’09 Q1’10 Q2’10 Q3’10 Q4’10 Q1’11 Q2’11 Q3’11 Q4’11 Q1’12 Q2’12 Q3’12 Q4’12 Q1’13 Q2’13 Q3’13 Q4’13
Source: CitiHabitats
27
MARKET OVERVIEW
234 E 46 ST
MANHATTAN’S NEW DEVELOPMENT OUTLOOK
Driven by robust demand and lack of supply, new development condominium pricing continued its positive
momentum in 2013. Since Q4 2012, median sale price gained 32% and average price per square foot
increased approximately 19%. The absorption rate of new development condominiums is equally impressive,
as it currently stands at a 5-year high, with an average sales period of just 3.8 months, a 3.6% improvement
since Q4 2012.
Over the last 24 months, Manhattan’s luxury condominium market has reached unprecedented heights.
Driven by an improving domestic economy and robust foreign demand, the pipeline of luxury and ultra-luxury
condominiums coming to market is reaching record levels. A recent study of the NYC condominium market
by the Real Deal concluded that nearly 47% of Manhattan condominium developments that came on to the
market in 2013 had an asking price that averaged over $3,000 per square foot. Corcoran Sunshine defines
a luxury condominium as a unit that has an asking price of more than $2,000 per square foot. Based on that
definition, over 79% of the new condo developments in 2013 were considered luxury.
While new development has increased since the economic downturn, supply still falls short of the surging
demand. There are 10,000 units scheduled to come on line over the next three years, or approximately
3,300 per year, this is only a fraction of the more than the 8,000 units that came online during 2007 alone.
This supply deficit is even more apparent within the entry and mid-level condominium market, as the recent
rise of ultra-luxury development has resulted in a severe deficit of moderately priced condominiums. Over the
next few years, less than 30% of the approximately 10,000 units projected to come on line in Manhattan will
have an average asking price of less than $2,000 per square foot. The lack of newly developed moderately
priced residential product will benefit 234 East 46th Street, as it affords investors the ability to capitalize on
this sharp supply and demand imbalance.
Manhattan New Development Price PSF and Median Sale Price
$1,800,000
Median Price
$1,600
Avg. Price PSF
$1,600,000
$1,400
$1,400,000
$1,200
$1,200,000
$1,000
$1,000,000
$800
$800,000
$600
$600,000
$400
$400,000
$200
$200,000
$0
$0
Q1’10
Source: CitiHabitats
28
Q2’10
Q3’10
Q4’10
Q1’11
Q2’11
Q3’11
Q4’11
Q1’12
Q2’12
Q3’12
Q4’12
Q1’13
Q2’13
Q3’13
Q4’13
234 E 46 ST
MARKET OVERVIEW
29
MARKET OVERVIEW
234 E 46 ST
30
234 E 46 ST
Despite surging prices, New York City still represents a relative discount to other global cities, ranking eighth
among the most expensive cities for residential real estate on a global basis. The City’s relative discount has
fueled feverish demand from international buyers for apartments throughout the City.
With sustained European fiscal uncertainty, global buyers will continue to look to the United States and
specifically New York as a safe haven for capital investment. As local and foreign buyers compete for limited
inventory, outstanding condominium properties are selling out at record prices and at record pace before
they are even completed, setting the stage for a condominium conversion at 234 East 46th Street.
MARKET OVERVIEW
SAFE HAVEN FOR FOREIGN CAPITAL
The Worlds Most Expensive Cities
$6,000
Avg. $/SF (Luxury Apt)
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Monaco
Hong Kong
London
Geneva
Paris
Singapore
New York
Moscow
Source: Knight Frank
STRONG MANHATTAN MULTIFAMILY MARKET FUNDAMENTALS
The New York City rental market is equally as strong as the for-sale condo market and perennially the strongest
in the nation. The astonishing demand for rental housing, especially in New York City, has suppressed rental
vacancy rates, elevated market rents, and provided excess demand for apartments. Some market highlights
include:
»» Vacancy Rates: The supply and demand imbalance has resulted in consistently low market-wide
vacancy rates, currently at 1.74% (Q4 2013).
»» Rental Rates: Demand pressures have resulted in significantly increased rental rates. Manhattan
properties (including doorman and non-doorman buildings) have experienced market rental rate
increases in the past year, with average rental price per square foot increasing 5% year-over-year to
$52.36, and Class A doorman buildings exceeding $80 per square foot.
Manhattan Rental Market Matrix (December 2014)
Average Rental Price
Number of New Rentals
Dec-13
Nov-13
% Chg
Dec-12
% Chg
$4,009
$3,890
3.1%
$3,973
0.9%
2,109
2,385
(11.6%)
2,901
(27.3%)
10.2%
Days on Market (from Original List Date)
54
49
Listing Discount (from Original List Price)
5.1%
4.8%
Listing Inventory
6,409
6,127
4.6%
57
(5.3%)
5.8%
(12.1%)
5,007
28.0%
Source: Miller Samuel, Inc.
31
MARKET OVERVIEW
234 E 46 ST
MIDTOWN MANHATTAN RESIDENTIAL MARKET OVERVIEW
Situated within easy walking distance of Grand Central Terminal and Park Avenue, 234 East 46th Street is
ideally located within the Midtown Manhattan residential market. Midtown is the busiest single commercial
district in the United States, as well as one of the densest real estate markets in the world. Hundreds of
thousands of people commute to Midtown each day and tourists visit some of Manhattan’s most famous
destinations. Midtown is also home to some of the city’s most desirable residential corridors, such as Sutton
Place, Beekman Place and 57th street.
The Midtown residential market continued its strong performance in 2013. The condominium market
experienced a 10% increase in average price per square foot and was home to 15% of Manhattan’s closings
in Q4 2013, demonstrating strong buyer demand in the neighborhood. The rental market also demonstrated
strength, as the average rent for a one-bedroom apartment grew 8.5% year over year.
There are several major amenities driving demand for Midtown’s residential market, including spacious parks
and new schools. Perhaps the most important is its proximity to the Midtown CBD, providing residents
with the ultimate New York luxury, a walk-to-work apartment. The Midtown office infrastructure brings many
employees, and with it residents who want to live proximate to work.
MIDTOWN NEW DEVELOPMENT PRICING
Year-over-year median price and average price per square foot for new condominium developments within
Midtown have increased 75% and 61%, respectively. Median price and average price per square foot for
both resale co-ops and condos have also increased over Q4 2012.
The average sales price per square foot is $2,500 for a newly developed unit in Midtown, the highest of all
Manhattan submarkets, and well above the Manhattan average. The submarket’s average sales price per
square foot indicates a prevalence of luxury development in the area. 234 East 46th Street will benefit from
this over-saturation of luxury product and the limited supply of mid-tier apartments.
Manhattan Submarkets - New Developments Price Per Square Foot
$3,000
Q3
Q4
$2,500
$2,000
$1,500
$1,000
$500
$0
Manhattan
Source: CitiHabitats
32
East Side
West Side
Midtown
Downtown
FIDI & Battery Park City
Uptown
234 E 46 ST
MARKET OVERVIEW
33
MARKET OVERVIEW
234 E 46 ST
UN PLAZA DISTRICT RESIDENTIAL SUBMARKET
Within the Midtown residential market, 234 East 46th Street is located within the UN Plaza District submarket.
The submarket offers some of the most favorable fundamentals for a new residential development in the City,
and features some of the most expensive real estate in New York. 234 East 46th Street is within blocks of
several of the city’s most high profile luxury condominiums and co-operatives, including Trump World Plaza,
Halcyon and 50 UN Plaza.
Trump World Plaza (845 United Nations Plaza) is currently selling condos at nearly $2,000 per square foot.
The recently developed Halcyon (305 East 51st Street) is achieving average sell out prices of $1,800 per
square foot. 50 UN Plaza (345 East 46th Street) is currently selling ultra-luxury one to three-bedroom units
with asking prices of approximately $2,750 per square foot.
Property
Year Built
Units
Halcyon
2013
123
305 East 51st Street
Trump World Tower
2001
370
845 United Nations Plaza
The Veneto
2007
137
250 East 53rd Street
The Alexander
2009
75
250 East 49th Street
Three Ten
2006
88
310 East 53rd Street
The Pantheon
1900
N/A
216 East 52nd Street
50 United Nations Plaza*
345 East 46th Street
*Property began sales in 2013. All prices are asking.
34
2013
88
Unit Type
Count
Avg. SF
Avg. Price PSF
1 bed
18
918
$1,757
2 beds
16
1,542
$1,739
3 beds
11
2,129
$1,889
1 bed
19
1,134
$1,497
2 beds
33
1,910
$1,842
3 beds
26
2,643
$2,078
1 bed
7
961
$1,613
2 beds
11
1,426
$1,595
3 beds
2
1,780
$1,375
1 bed
5
656
$1,609
2 beds
2
1,314
$1,338
3 beds
5
2,086
$1,692
1 bed
3
1,699
$1,137
2 beds
9
1,646
$1,548
3 beds
4
2,169
$1,752
1 bed
2
611
$1,456
2 beds
4
1,218
$1,850
1 bed
6
1,147
$2,084
2 beds
6
1,546
$2,587
3 beds
2
2,807
$2,989
234 E 46 ST
MARKET OVERVIEW
35
MARKET OVERVIEW
234 E 46 ST
THRIVING UN PLAZA DISTRICT RENTAL MARKET
The rental market in the UN Plaza District has consistently generated
high demand, boasting a median rent of $3,774 per month for
one-bedroom apartments and Q4 2013 vacancy rate of 1.81%, slightly
below the Manhattan average of 1.82%.
With limited developable land and demand expected to outpace supply
for the foreseeable future, occupancy rates are projected to remain
strong and rental rates are expected to continue to rise.
234 East 46th Street is a recently renovated, institutional-quality
multifamily asset in the coveted and convenient UN Plaza District. Further
enhancing the attractiveness of the Property is the non-regulated nature
of the building’s 95 units, providing the ability for an investor to lease the
building up at market rental rates.
Average Vacancy Rate:
December 2013
Location
Financial District
Chelsea
East Village
Gramercy
UN Plaza District
Midtown West
Murray Hill
SoHo/Tribeca
Upper East Side
Upper West Side
West Village
Manhattan Average
Vacancy
Rate
1.72%
2.45%
2.57%
1.28%
1.81%
1.89%
1.42%
1.29%
1.86%
1.57%
2.40%
1.82%
PRIMARY COMPARABLE PROPERTIES OVERVIEW
The primary comparable rental buildings to 234 East 46th Street consist of properties located in the UN
Plaza District submarket, built between 1990 and 2008, which command market-leading rents with modern
improvements and amenities. The chart below lists 234 East 46th Street’s potential competitive set, as well
as the characteristic attributes of each.
Property
Built
Units
Unit
Type
Average
Unit Size (SF)
Average
Market Rent
Average Annual
Market Rent PSF
Dag Hammarskjold Towers
240 East 47th Street
1982
231
1 bed
849
$3,650
$52
2 beds
1,229
$6,033
$59
The Metropolis
150 East 44th Street
2001
1 bed
767
$3,909
$61
2 beds
1,021
$5,495
$65
The Cosmopolitan
145 East 48th Street
1985
1 bed
705
$3,553
$60
2 beds
873
$4,683
$64
150 East 57th Street
1997
1 bed
868
$4,196
$58
2 beds
1,061
$5,023
$57
3 beds
1,820
$11,867
$78
4 beds
2,533
$15,917
$75
1 bed
832
$3,533
$51
2 beds
1,389
$6,138
$53
3 beds
2,131
$14,000
$79
4 beds
3,200
$17,500
$66
100 United Nations Plaza
Source: Street Easy
36
1984
360
207
144
244
E 57 ST
234 E 46 ST
MARKET OVERVIEW
150 East 57th Street
E 53 ST
E 52 ST
E 51 ST
BEEKMAN PL
E 49 ST
FIRST AVE
E 50 ST
SECOND AVE
THIRD AVE
PARK AVE
The Cosmopolitan
145 East 48th Street
100 United Nations Plaza
E 48 ST
E 48 ST
E 47 ST
E 46 ST
Dag Hammarskjold Towers
240 East 47th Street
E 45 ST
UNITED
NATIONS
E 44 ST
LEXINGTON AVE
E 43 ST
E 42 ST
TUDOR CITY PL
E 41 ST
The Metropolis
150 East 44th Street
37
AREA OVERVIEW
234 E 46 ST
40
234 E 46 ST
»» New York City is the largest Metropolitan Statistical Area in the nation with an estimated
population of 8.3 million people.
»» A record-breaking 54.3 million tourists visited the City last year, making 2013 its most
successful year in history.
»» The City is home to 52 Fortune 500 Companies, providing an unmatched employment base.
»» Total visitor spending estimated to be $39.4 billion in 2013, up from $36.9 billion in 2012.
»» New York City’s private sector employment levels rose by 96,100, or 2.8% in 2013.
AREA OVERVIEW
New York City Highlights
New York City overview
New York City is one of the most exciting, dynamic and diverse cities in the world. New York is the international
capital of finance, with more Fortune 500 Company headquarters than any other city in the world. Also
referred to as the “The Big Apple,” the City is the center of advertising, technology, fashion, publishing and
radio broadcasting in the U.S., and is also home to the United Nations Headquarters. Located in the heart
of the thriving northeast corridor of the United States, New York is easily accessible from all major North
American, South American, European and Asian market centers. Additionally, the port of New York is one
of the foremost in the world and ranks as the largest port complex on the East Coast. World-renowned for
its cultural activities, restaurants, entertainment and shopping, New York City is recognized as the premier
tourist destination in the United States.
Anchored by robust job growth and a strong tourism market in 2013, New York City has endured the
economic downturn and begun to experience a marked rebound. In fact, New York has already recovered
190% of jobs lost since the downturn as compared to the U.S. average of only 80% recovered. In 2013,
New York City’s private sector growth rate of 2.8% was above the state’s and nation’s growth rate of 1.5%
2.0%, respectively.
The five boroughs of New York, Manhattan, Queens, Brooklyn, the Bronx and Staten Island, form the nation’s
largest city in terms of both population and employment. New York City currently accounts for 3.0% of the
entire U.S. job market, the highest share since 1994. This recovery has not only been fueled by the rebound
of New York’s traditional financial service firms, but also by a new wave of technology, media and creative
companies. The expansion of these industries is penetrating every submarket, increasing the diversity of the
landscape of Manhattan and strengthening the City’s economy.
MANHATTAN
An island sixteen miles long and two-and-a-half miles wide, Manhattan is bound by the Hudson River to
the west, the Harlem River to the north, the East River to the east, and the Upper New York Bay to the
south. The physical separation formed by these bodies of water is responsible for Manhattan’s fixed land
availability, and consequently its tremendous land values and the scrutiny placed upon its uses. New York
City is recognized as one of the greatest cities in the world due primarily to the social, intellectual, artistic,
architectural, commercial and financial influence of Manhattan.
41
AREA OVERVIEW
234 E 46 ST
42
234 E 46 ST
AREA OVERVIEW
ECONOMY
Top New York City Fortune 500 Companies
New York City is a global hub of international business and
Corporation
Industry
commerce and is one of three “command centers” for the
American
International
Group
Insurance
world economy (along with London and Tokyo). The City’s
American Express
Commercial Bank
economy benefits greatly from the breadth of its corporate
Citigroup
Commercial Bank
base and the related service industries by which it is
catered. The City is widely regarded as America’s foremost
Goldman Sachs
Commercial Bank
commercial center due to the synergies created by the
JP Morgan Chase
Commercial Bank
large concentration of corporations and service firms that
Hess
Petroleum
complement primary goods producers. In the period since
MetLife
Insurance
September 11, 2001, the unparalleled advantages of
Morgan Stanley
Commercial Bank
being located in New York have been reaffirmed by the
News Corporation
Entertainment
unwavering commitment of companies to remain in the
New York Life Insurance
Insurance
City. New York City serves as headquarters to 52 Fortune
Pfizer
Pharmaceuticals
500 corporations – more than double the number in any
TIAA-CREF
Insurance
other city. Notable Fortune 500 corporations include
Philip Morris International
Tobacco
J.P. Morgan Chase & Co. (18), Citigroup (26), Verizon
Time Warner
Entertainment
Communications (16), AIG (38), Pfizer (48), MetLife (40),
CBS
Entertainment
Morgan Stanley (96) and News Corp. (91). As the financial
Verizon Communications
Telecom
capital of the world, New York City has continued to benefit
from the robust economy over the past few years and leads the country in economic growth following the
economic recession. New York remains one of the world’s most robust economic centers as evidenced
by the 2013 estimated Gross Metro Product (GMP) of $1.38 trillion, which is more than several countries
including Sweden, Norway and Belgium. As of December 2013, New York City had a civilian labor force of
4.0 million workers and an unemployment rate of 8.1%.
43
AREA OVERVIEW
234 E 46 ST
CORPORATE COMMITMENT
New York City’s economy benefits greatly from the breadth of its corporate base and the related services
industries that cater to it. The City is widely regarded as America’s foremost commercial center due to the
synergies created by the large concentration of corporations and service firms that complement primary
goods producers. The unparalleled advantages of being located in New York have made it the financial
center of the world. Financial and professional services have been traditionally strong industries in New York
City. The significant income derived from these industries has primed the economy and initiates spending
on apartments and various luxury items and activities. However, the City’s growth and leadership is also
sustained by smaller companies in the non-profit, media, legal, education and health industries.
EMPLOYMENT
Manhattan, the foremost employment center for metropolitan area residents, attracts daily commuters from
as far as 100 miles away. The City’s economic diversity protects the area’s growth from the impact of cyclical
downturns in any particular sector. While all major business sectors are represented in New York, high-tech and
media oriented corporations such as Google, Microsoft, Fox, Bertelsmann, Viacom, CBS, General Electric,
NBC, Disney, ABC and Time Warner have joined the City’s traditional financial service and professional service
firms over the last several years. Despite the slow economic recovery currently taking place across the United
States, New York City has once again exhibited unmatched resilience, proving to be heavily insulated from
the greater uncertainty in the current marketplace. In 2013, New York City experienced impressive job growth,
increasing 2.8% over 2012 levels. New York City alone accounted for more than 4% of jobs added in the US.
44
234 E 46 ST
AREA OVERVIEW
POPULATION
New York City is the focal point of the 23-county Tri-State Consolidated Metropolitan Statistical Area (New
York City CMSA), which comprises counties in New York, New Jersey and Connecticut. According to 2013
U.S. Census estimates, the New York City CMSA has a population of nearly 21 million people, which is
approximately 1 in 15 Americans. New York City covers more than 300 square miles and consists of five
boroughs: Manhattan, Brooklyn, Queens, Staten Island and the Bronx.
Today, New York City has the highest population density in the country, with approximately 27,750 persons
per square mile. New York City’s population is projected to continue to increase for the remainder of the
decade, bringing with it a constant flow of ideas, industry and innovation.
PERSONAL INCOME
The New York City MSA is one of the United States’ most affluent and influential regions, with an aggregate
annual income of approximately $398.5 billion. This represents a demographic concentration of wealth
unmatched by any other city in the U.S. Manhattan’s average household income was approximately $93,300
in 2013, making the borough one of the United States’ most affluent and influential regions, and approximately
31% more than the national average of $71,320. Since the 1980s, the City’s population has become
increasingly wealthy, with personal income rising over 35% during that time.
45
AREA OVERVIEW
234 E 46 ST
46
234 E 46 ST
As New York’s largest central business district, Midtown Manhattan is the busiest single commercial district
in the United States, and among the most dense pieces of real estate in the world. The majority of New
York City’s skyscrapers, including its tallest hotels and apartment towers, lie within Midtown. The area hosts
commuters and residents working in its offices, hotels and retail establishments, as well as many tourists,
visiting residents and students populating the district.
Manhattan’s UN Plaza District submarket within Midtown features many of New York City’s acclaimed
locations, including the United Nations headquarters, the historic Mitchell Place and NYU Medical Center.
AREA OVERVIEW
MIDTOWN MANHATTAN OVERVIEW
OFFICE EMPLOYMENT BASE
With the support of billions of dollars in public
funding devoted to various Midtown projects and
numerous business incentives, Midtown continues
to evolve as a business community and an attractive
place to visit, work, play and live. With a total office
inventory of 242.7 million square feet, the Midtown
office submarket is the largest Central Business
District (CBD) in the United States and represents
61% of the combined 395.3 million square foot
Manhattan office market overall.
Major Midtown Employers
A&E Television
Hess Corporation
Bloomberg L.P
McGraw-Hill
Calvin Klein
MetLife
Ernst & Young
Morgan Stanley
Cantor Fitzgerald
NBC Universal
CBS
New York Times
Citigroup
Pfizer
Colgate-Palmolive
Polo Ralph Lauren
Deloitte
Thomson Reuters
Estée Lauder
Time Warner
Wells Fargo
Univision
JP Morgan
Viacom
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AREA OVERVIEW
234 E 46 ST
UNMATCHED LIFESTYLE AMENITIES
APPLE STORE
CAPITAL GRILLE
OYSTER BAR & RESTAURANT
The UN Plaza District, once only open for lunch
catering to the commuting crowd, has developed
into a restaurant scene worthy of its status as an
elite residential locale. Dining choices range from
upscale eateries such as Tao, Smith & Wollensky,
The Palm, Capital Grille, Le Bernardin and La
Grenouille to more casual options like neighborhood
stalwarts The Smith, Dos Caminos, Fig & Olive and
Hillstone. In addition, there is a plethora of cafes and
restaurants throughout the area, serving everything
from deli sandwiches to haute cuisine.
234 East 46th Street is conveniently situated a short
distance from the main retail corridor along Fifth
Avenue, offering convenient access to the many
high-end retail stores located there. Fifth Avenue is
home to a number of the world’s most successful
luxury boutiques and flagship stores, generating
over $3 billion of annual retail sales and catering
to over 50 million shoppers annually. In addition,
numerous lifestyle retailers, including Equinox,
Whole Foods, Bed Bath & Beyond, The Container
Store, Starbucks and Soul Cycle have established
stores within walking distance of 234 East
46th Street.
Dining Choices
Capital Grille
Le Bernardin
Fig & Olive
The Palm
La Grenouille
Oyster Bar and Restaurant
Tao
La Fonda del Sol
Dos Caminos
Smith & Wollensky
Hillstones
The Smith
SONY STORE
Lifestyle Retail
LE BERNARDIN
48
Apple
J Crew
Barnes & Noble
Sony Store
Bed, Bath & Beyond
Soul Cycle
Clarks
Starbucks
Container Store
Walgreens
Equinox
Whole Foods
234 E 46 ST
AREA OVERVIEW
49
1
150
E 57
687
Lex
686
Lex
425
Park
3
Tower
56
AREA OVERVIEW
641 Lex.
5
610
Lex.
Park Ave 375
Tower Park
101
E 52
226
E
54
250
E 54
3
211 E 53
Hawthorne
400
E 56
300 E 56
875
Third
866 Third
Courtyard
3 NY
Midtown East
16
10
150 E 52
8
360
E 55
321
E 54
10
12
311
E 53
6
346
E 54
320
E 54
11
4
8
Green
Acres
Park
P
6
Hungary
830
Third
320
E 52
17
350
E 52
335
E 51
Laos
8
8
10
Mint
Rest
11
12
Sierre
Leone
Bebe
21
780
Third
12
Beekman Pl
255
E 49
309
E 49
16
333
E 49
17
10 Mitchell Pl
E 49 ST
Turtle Bay Gardens
Seo
Japanese
Restaurant
330
E 49
301
E 48
Turtle
Bay House
860 UN Plaza
100 UN
Plaza
Libya
E 48 ST
JP Morgan Chase
277 Park
10
22
14
230
E 48
767
Third
245 Park
E 46 ST
237 Park
29
815
Second
Episcopal
Church
India Ctr
235
E 43
E 43 ST
Sushi
Yasuda
801
Second
675
Third
219
E 42
235
E 42
E 42 ST
32
150 E 42
Sinigual
Contemporary
Mexican
Cuisine
Turtle Bay
Tower
333
E 45
11
820
Second
Beaux Arts
Apts
31
UNICEF
360
Lex
369
Lex
355
Lex
Public
House
622
Third
630
Third
633
Third
United
Nations
Headquarters
UN Secretariat
350
E 43
Goodburger
800
Second
45
TCP
Ford
Foundation
UN Library
42nd St
220 E 42
News Bldg.
19
304
E 42
Tudor
Park
325
E 41
240
E 41
Vanderbilt
777
UN Plaza
333 E 43
E 41 ST
370
Lex
20
100
UN Plaza
Kuwait
321 E 43
T
18
655
Third
335
E 45
Beaux Arts
Apts
303
E 43
809
First
336
Uganda E 795
45 First
2
UN Plaza
304 E 45
828
Second
28
305
E 40
2 Tudor City
Place
TUDOR CITY PL
101
Park
32
205
E 42
31
S
122
E 42
222
E 44
685
Third
33
30
42nd St /
Grand Central
7
666
Third
405 Lexington
Chrysler
Building
29
279
E 44
230
E 44
Ambassador East
330 E 46
FIRST AVE
Naya
Express
27
Palm
Restaurant
E 44 ST
310
E 46
300
E 46
SECOND AVE
425
Lexington
144
Chipotle
E Mexican Grill
44
28
711
Third
THIRD AVE
LEXINGTON AVE
17
706
Third Le Pain
Quotidien
16
E 45 ST
228
E 45
246
E 46
26
235
E 45
25
Comfort 216
Diner E 45
15
30
26
25
733
Third
333 Venezuelan
E 46 Mission 823 UN Plaza
to the UN
305
E 46
27
Aburiya
Kinnosuke
140
E 45
450
Lexington Ave
415 Lexington Ave
Patroon
730
Third
147
E 45
24
420
Lexington Ave
23
Japan
Holy
Family Society
866
Second
22
Joy Curry &
Tandoori
140 E 46
Park Ave
Atrium
865 19
UN
Plaza 1
305
E 47
E 47 ST
750
Third
485
Lexington
21
18
870 UN Plaza
E 48 ST
Karaoke
Duet 48
301
E 47
24
20
American Brands
Building
885
Second
757
Third
155
E 47
23
Tunisia
20
Beekman
Pl
Niger
Yama
777
Third
155
E
Avra 48
MiddleTown
20
420 E 51
14
230
E 50
ISE
13
13
311
E 50
E 49 ST
518
Lexington
415 E 51
12
Crystal
Pavilion
15
931 First
340
E 51
Ann Taylor
800
Third
9
11
434
E 52
400
E 52
BEEKMAN PL
7
Amma
825
Third
E 50 ST
50
435
E 52
River House
251
E 51
9
20
6
19
125
Park
429 E 52
River Court
Sutton House
5
Turtle
Bay
Music
School
Sutton
Place
Synagogue
18
7
5
560 Lex.
6
60 Sutton Pl South
420
E 54
River
House 13
411
E 53
14
320
E 53
15
E 51 ST
570
Lex.
St. Bartholomew
Church
5
50
Sutton Pl
South
425
E 54
405
E 54
400
E 54
333
E 53
7
9
6
845
Third
850
Third
575
Lex.
Camera Land
51st St
4
36
Sutton Pl
South
E 52 ST
4
299
Park
20
Sutton Pl
South
440
E 56
E 53 ST
E M
599
Lex.
240
E 55
220
E 54
5
7
Angelos
Pizzeria
E 54 ST
880
Third
Lexington Av /
53rd St
Brasserie
E 55 ST
885
Third
601 Lex.
455
E 56
T
909
Third
Citicorp Center
3
1011
First
55th St
4
6
2
399
Park
433
E 56
FIRST AVE
2
900
Third
345
E 56
228
E 56
SECOND AVE
Korea
Palace
Cafe Joul
333 E 56
919
Third
THIRD AVE
401
Park
135
E 54
2
2
Sutton
Pl
South
410
Sofrito E 57
Neary's
Mr Chow
E 56 ST
1
155 E 55
Shun Lee
Palace
141
E 55
LEXINGTON AVE
110
E 55
4
160
E 56
136
E 56
320
E 57
1075
Second
227
E 56
936
Third
234 E 46 ST
1
9
2
209
E 56
155
E 56
Lombardy
PARK AVE
l
110
E 57
445
Park
25
TCP
708
Second First
Avenue Subway
(under construction)
1 Sutton
Pl South
25 Sutton
Pl South
Restaurants
1
Trump World Plaza
1
Montebello Ristorante Italiano
2
Carvi Hotel
2
Bobby Van’s Steakhouse
3
Courtyard NY Midtown East
3
Dishes
4
Four Seasons
4
5
Double Tree Metropolitan
6
Retail
234 E 46 ST
1
Kenneth Cole
2
BoConcept
3
Staples
Outback Steakhouse
4
Stefano Ricci
5
Wolfgang’s Steak House
5
Golfsmith
Benjamin Hotel
6
Jubilee French Restaurant
6
Barnes & Noble
7
The Kimberly Hotel
7
Al Bustan
7
Manhattan Art & Antiques Center
8
Affinia 50 Hotel
8
Solera
8
LensCrafters
9
The Pod Hotel
9
Ariyoshi Japanese Restaurants
9
Whole Foods
10
Waldorf Astoria
10
Le Relais de Venise L’Entrecote
10
Cigar Inn
11
W Hotel
11
Cornerstone Tavern
11
Ambassador Wines & Spirits
12
San Carlos Hotel
12
Blockheads Burritos
12
GNC
13
Marriott East Side
13
Deux Amis
13
Newel
14
Roger Smith Hotel
14
Lasagna Restaurant
14
Birdcamp
15
The Alex
15
Smith & Wollensky
15
Walgreens
16
Fitzpatrick Grand Central
16
Matisse
16
Edible Arrangements
17
Grand Hyatt
17
II Postino
17
Buttercup Bake Shop
18
The New York Helmsley Hotel
18
Nino’s Positano
18
Sports Authority
19
Hilton Manhattan East
19
Megu Midtown
19
Godiva
20
Millennium UN Plaza Hotel
20
Conolly’s Pub & Restaurant
20
Super Runners Shop
21
At Vermilion
21
Bebe
22
Tulsi Restaurant
22
Beekman Liquors
Entertainment
1
Tutuma Social Club
23
Aretsky’s Patroon
23
The World of Golf
2
The York Theatre Company
24
Menchanko-Tei
24
Ekavi
3
Lexicon Night Club
25
Sparks Steak House
25
Ralph Lauren
4
Copia
26
Grifone Restaurant
26
Men’s Wearhouse
5
Traffic Bar
27
Ali Baba Terrace
27
Unlimited Jeans
6
SOMETHIN’ Jazz Club
28
Alcala
28
Amish Market
7
Haven New York
29
Palm Restaurant
29
Bath & Body Works
8
Upstairs
30
le Pain Quotidien
30
Aerosoles
9
Whiskey Blue
31
Padre Figlio
31
Ann Taylor Loft
10
LQ
32
Sakagura
32
Gap
11
Keats Bar
33
The Capital Grille
4
10
15
1
AREA OVERVIEW
45 Sutton
Pl South
Hotels
2
9
51
5
15
19
6
25
32
AREA OVERVIEW
234 E 46 ST
52
GRAND CENTRAL TERMINAL
Grand Central Terminal, which is a short distance from 234 East 46th Street, is the world’s largest railway
station by number of platforms, and is a major commuter hub for those traveling from Connecticut and
several New York counties via Metro North Railroad service. The historic Grand Central Terminal at 42nd
Street and Park Avenue opened in 1913, and quickly attracted a number of hotels and office developments
to the area. Today, Grand Central provides access for commuters travelling on the Metro-North Railroad
to Westchester County in New York State, and Fairfield County in Connecticut. The Terminal houses five
restaurants and cocktail lounges, a dining concourse, and over 50 shops including a newly opened Apple
Store. The historic train station is also the site of a number of art and cultural exhibits and other events, which
are featured throughout the year.
234 E 46 ST
AREA OVERVIEW
THE UNITED NATIONS
The Property is located steps away from the United Nations headquarters, which employs more than 30,000
people and has nearly a million visitors annually. As a result of 234 East 46th Street’s proximity to the United
Nations campus and countless international missions, the Property has a rich history of serving the dining and
lodging needs of world leaders, representatives and diplomats from around the world, lending the Property an
international flair that is the envy of many of the City’s premier residences.
In May 2008, the United Nations began a $1.9 billion renovation of the United Nations Plaza. The five-stage
renovation plan is centered on the complete rehabilitation of the historic 39-story Secretariat office tower, the
General Assembly Building and the United Nations Library. Over 4,000 United Nations employees have since
relocated to off-site swing space in the submarket and will stay displaced for the duration of the comprehensive
redevelopment. The United Nations’ recent long-term commitment to the area, as demonstrated by their
investment of $1.9 billion, reinforces the inherent long term value in 234 East 46th Street.
53
AREA OVERVIEW
234 E 46 ST
ENTERTAINMENT ATTRACTIONS
RADIO CITY MUSIC HALL
Central Park – Designated a National Historic
Landmark in 1963, Central Park is one of the City’s
most impressive sights. Spanning over 840 acres,
the Park was designed by the renowned architect
and landscape designer, Calvert Vaux, and provides
visitors a sprawling campus of nature, walking
paths, and scenery in the midst of the Manhattan’s
skyscrapers. Approximately 38 million people visit
Central Park each year.
Radio City Music Hall – One of New York City’s
top attractions and landmarks, Radio City Music Hall
promotes and provides live entertainment events
year round.
ROCKEFELLER CENTER
Rockefeller Center – Rockefeller Center is one of
New York’s central gathering spots for visitors and New
Yorkers alike. Visitors can take tours of Rockefeller
Center’s art and architecture, NBC Studios, Radio
City Music Hall, and tour the Rockefeller observation
deck which offers impressive unobstructed,
360-degree views of the city from 70 stories high.
Museum of Modern Art – Founded in 1929 as an
educational institution, The Museum of Modern Art
is one of the foremost museums of modern art in
the world.
MUSEUM OF MODERN ART
BROADWAY THEATRE DISTRICT
54
Broadway Theatre District – The stretch of
Broadway known as “The Great White Way” runs
through the midtown theater district, where millions
of people come every year to see classic Broadway
theater performances as well as a variety of brand
new shows introduced every season.
The New York Public Library – The landmark
building on Fifth Avenue and 42nd Street houses
a rare and irreplaceable research collection. The
origins of the institution date back to the second half
of the 19th century when New York was emerging
as one the world’s great centers of urban culture.
One of the earliest benefactors was prominent onetime Governor Samuel J. Tilden (1814 - 1866), who
donated the bulk of his fortune upon his death to
establish what today has become the New York
Public Library.
234 E 46 ST
AREA OVERVIEW
55
ADAM J. SPIES
SENIOR Managing Director
(212) 315-7317
[email protected]
Douglas L. Harmon
Senior Managing Director
(212) 315-7243
[email protected]
Jean Celestin, Jr.
Managing Director
(212) 315-7322
[email protected]
adam G. doneger
Director
(212) 315-7346
[email protected]
DANIEL J. O’BRIEN
VICE PRESIDENT
(212) 315-7417
[email protected]
JORDAN M. BARGAS
ANALYST
(212) 315-7209
[email protected]
FINANCING INQUIRIES
Philip G. McKnight
Managing Director
(212) 315-7477
[email protected]
40 West 57th Street, 22nd Floor
New York, NY 10019
Tel 212 315 7200 Fax 212 315 3602