Interior Design Building

The Interior Design Building (the “Property”), is located at 306 East 61st Street, and was acquired on June 22, 2010, for approximately $32 million, resulting in an 8% cap rate. The Property is centrally located between Manhattan’s Midtown and Upper East Side neighborhoods, and contains 65,100 square feet of gross leasable area on seven fl oors. The building caters to tenants in the interior design industry such as art and antique galleries as well as furniture and lighting stores. The Property is 100% leased to 18 tenants and contains no leases that comprise more than 15.4% of the total leasable space. Lease maturities range from 1 year to 7 years.

Bleecker Street Retail Portfolio

American Realty Capital New York Recovery REIT, Inc. (“NYRR”) has acquired a portfolio of five retail condominiums (the “Portfolio”) at a purchase price of $34 million and an average cap rate of 7.2%. The Portfolio is located on Bleecker Street (between West 11th and Charles Street) in the Greenwich Village neighborhood of Manhattan, and is 100% leased to a roster of high-end fashion tenants, including: A.P.C., Burberry, Marc Jacobs, Michael Kors and Mulberry. Lease terms for the properties range from approximately 6 to 12 years and all include annual rent increases of 3%. The retail condominiums are situated in three separate buildings on Bleecker Street. This three block area is also home to many prestigious retailers, including Coach, Ralph Lauren, Brooks Brothers, Jack Spade, Bonpoint, Robert Marc, Juicy Couture, Tommy Hilfiger and Brunello Cucinelli.

Foot Locker Building

The Foot Locker building (the “Property”) was acquired in April 18, 2011, for $6.17 million at an average capitalization rate of 7.39%. The three story, 6,100 square foot building is located on the 86th Street retail corridor in the Bensonhurst neighborhood of Brooklyn, New York. The Property is 100% leased to Foot Locker Retail, Inc., for 15 years with 10% contractual rent increases every three years and one five year renewal option. As the most populous of New York City’s five boroughs, Brooklyn is home to nearly 2.6 million residents living in dozens of neighborhoods. As the second most densely populated county in the United States, Brooklyn provides a prime market for retailers. Foot Locker operates more than 2,500 stores in the U.S. alone, with an additional 1,000
stores in Europe and Asia. Its Athletic Stores segment offers footwear and apparel through Foot Locker, Lady Foot Locker, Kids Foot locker, Champs Sports and Footaction.

Centurion Parking Garage

Centurion Parking Garage (the “Property”), is located at the base of the newly developed, luxury condominium designed by the legendary architect I.M. Pei, called “The Centurion.” The Property is located on West 56th Street in the Midtown neighborhood of Manhattan, New York, was acquired on June 30, 2011, for $5.4 million, exclusive of closing costs, and at an average capitalization rate of 7.5%. The Property consists of 12,856 square feet of gross leasable area encompassing 76 parking spaces. The Property is 100% leased to Regal Car Park, LLC, a parking management company specializing in New York City, for a term of 23 years. The lease contains contractual rental escalations of 3% every two years. Regal Car Park, LLC is owned and operated by a family that manages twenty garages in Manhattan and provides a variety of services to its clientele, including valet and detailing.

Duane Reade pharmacy

The Duane Reade Pharmacy (the “Property”) was acquired on October 5, 2011, for $14 million, exclusive of closing costs, and at an average capitalization rate of 6.9%. The Property in located in the Howard Beach neighborhood of Queens and consists of a one-story building totaling approximately 9,767 rentable square feet. The Property is 100% leased, since October 2008, to Duane Reade, which operates a chain of over 253 pharmacies in commercial and residential neighborhoods throughout New York. The lease has an initial term of 20 years and contains contractual rental escalations of 3% in year six (or 2014) and 12% in years eleven and sixteen (or 2019 and 2024). The lease also includes one 10-year renewal option.

 

WASHINGTON STREET PORTFOLIO

416-424 Washington Street, (the “Portfolio”), consists of four retail condominiums located on Washington street in the exclusive Tribeca neighborhood of Manhattan, New York. The Portfolio was acquired on November 3, 2011, for $9.86 million, exclusive of closing costs. The Portfolio is 100% leased to Empire Parking, Vestry Wines, John Allan’s Men’s Salon and Basile Builders with lease maturities ranging from 2015 to 2030. The Portfolio totals 24,068 square feet including a 15,055 square foot parking garage and a 1,762 square foot basement serving as storage space for Vestry Wines.

Empire Parking is a parking, transportation and car wash provider servicing in the New York area at locations in Manhattan, Brooklyn, Long Island and the Bronx. Vestry Wines is a New York wine shop specializing in providing wine from small producers from Italy, France and California and prides itself on serving the local Tribeca neighborhood with same-day delivery and complimentary in-store tastings. John Allan’s is a man’s lifestyle club with amenities including a Billiards lounge, clubroom, café and a display of art for sale. Basile Builders is a real estate development company that focuses mainly on projects in the New York City metropolitan area. It has developed a number of buildings throughout New York City, including several luxury condominium conversions in Tribeca.

ONE JACKSON SQUARE

One Jackson Square Retail  (the “Property”), is located at the base of a newly developed, 30-unit ultra-luxury residential condominium building  known as “One Jackson Square”. The Property, located at 122 Greenwich Avenue in the Greenwich Village neighborhood of Manhattan, New York, was acquired on November 18, 2011, for approximately $22.5 million, exclusive of closing costs. The acquisition consists of ten commercial condominium units totaling 8,709 square feet, including 4 ground floor retail units, 4 below grade storage units as well as 2 small community facility units which are non-rent paying. The Property’s retail units are 78%1 leased with long-term leases to two investment grade tenants--Starbucks Corporation and TD Bank, N.A. There is upside potential from leasing the remaining vacant retail space and storage space. The lease contains contractual rental escalations of 3% in year six and 12% in years eleven and sixteen. The lease also includes one 10-year renewal option.

Retail Unit A is leased for 10 years to Starbucks Corporation, (NASDAQ: SBUX; S&P rated BBB+) Rent commenced on August 1, 2011 with a 10% bump in the fifth year. With over 17,000 stores in 49 countries, including over 11,000 in the United States, nearly 1,000 in Canada and more than 800 in Japan Starbuck is the largest coffeehouse company in the world.

Retail Units B and C are leased for 20 years with a 10% bump every five years to TD Bank, N.A., (NYSE: TD; S&P rated AA-). One of the 10 largest commercial banks in the U.S., with over 25,000 employees. The Bank offers a broad array of banking products and services to more than 6.5 million customers through its extensive network of more than 1,250 convenient locations throughout the  the Carolinas and Florida.TD Bank is a member of TD Bank Financial Group of Toronto, Canada, a top 10 financial services company in North America and one of a few banks in the world rated Aaa by Moody’s.