305 w 29 om 11-7-2016
TRANSCRIPT
305West 29th Street
OFFERING MEMORANDUM
MHP Real Estate Services LLC (“MHP” or Advisor”) has been exclusively retained by Ohio Wesleyan University (the “Seller” or the “Owner”) to market and sell 305 West 29th Street (the
“Offering” or the “Property”), a 5,260- square-foot building located in the Chelsea District of New York City.
Accordingly, Advisor is making available to the Recipient and/or Reader (each the “Recipient”) certain information or material (“Material”) in connection with the proposed sale of the
Property. As a condition to the receipt of such information, you agree, and each recipient agrees subject to terms hereof to treat confidentially and information furnished to you by Advisor
or Seller regarding the Property, whether furnished before or after the date of the duly executed confidentiality agreement together with the marketing materials prepared by the Advisor,
analysis, compilations, studies or other documents or records prepared by you or directors, officers, employees, advisors or representatives and financing sources (collectively,
“Representatives”) of yours, to the extent that such marketing materials, analysis, compilations, studies, documents or records contain or otherwise reflect or are generated from such
information (collectively, “Material”).
As recipient, you have signed a copy of the Sellers form of Confidentiality Agreement (the “Agreement”) and, as such, you hereby agree that the Material shall be used solely for the
purpose of evaluating the proposed sale of the Property, and that such Material shall be kept confidential by you and your Representatives; provided, however, that any of the Material
may be disclosed to you and your Representatives who need to know the information contained herein for the purpose described above, it being understood that: (a) such Representatives
shall be informed by you of the confidential nature of such information and you shall cause such Representatives to treat such information confidentially: and (b) you shall maintain a list of
those persons to whom such information has been disclosed, which list shall be presented to Seller upon request.
Advisor will cooperate with a prospective buyer’s representative, broker, or agent. If you are working with an outside broker or agent, you agree, by receipt of this Confidential Information
Memorandum, that neither the Seller nor Advisor is responsible for any expenses, fees or commissions to your representative broker, or agent in connection with the sale of the Property.
You shall, promptly upon the request of the Advisor or the Seller, destroy all documents furnished by Advisor or the Seller or their agents to you or your Representative constituting
Material, without retaining a copy thereof. Notwithstanding the destruction of the Material, you shall continue to be bound by your obligation of confidentiality and your other obligations
hereunder.
Although the Seller and its agents have endeavored to include, in the Material, information known to them which they believe to be relevant for the purpose of your evaluations, you
understand that neither Advisor nor the Seller makes any representation or warranty as to the accuracy or completeness of any Material or any portion thereof, and you may not rely on
same. You agree that neither Advisor nor the Seller nor any of the respective officers, directors, employees or representatives shall have any liability to you or any of your Representatives
resulting from the use of the Material by you or your Representatives.
It is further understood and agreed that money damages would not be sufficient remedy for any breach of the Agreement and that the Seller shall be entitled to specific performance and
injunctive or other equitable relief as a remedy for any such breach. Such remedy shall not be deemed to be the exclusive remedy for breach of this Agreement but shall be in addition to all
other remedies available at law or in equity to the Seller. The parties agree that all disputes hereunder shall be subject to the exclusive jurisdiction of the state and federal courts located in
the City, County and the State of New York. You expressly agree that the Seller is a third party beneficiary hereunder and all of the terms and conditions herein shall insure to the benefit of
the Seller.
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Confidentiality and notice to the Recipient and/or Reader
Exclusive Representation
MHP Real Estate Services has been retained as the exclusive advisor and broker on behalf of the owner. All communications, inquiries and requests should be addressed
to the Team listed below. The management of the property should not be contacted directly.
Property Tours
Qualified investors are invited to tour the property prior to the submission of an offer. In order to minimize disruption to the current property operators, all property
tours and site visits must be scheduled in advance with one of the Team representatives listed below.
Offers
305 West 29th Street is being offered on an “All Cash” basis to the qualified purchasers. The Owner reserves the right to accept an offer at any time during the
marketing period. The owner expressly reserves the right, in its sole and absolute discretion, to reject any and all proposals or expressions of interest in the Property, to
terminate discussion with any party at any time, or to extend the deadlines set forth in the time schedule. Offers should be in writing in the form of a non-binding
Letter of Intent. The Letter of Intent should contain the purchase price and general business terms including but not limited to: due diligence and closing period;
earnest money including the amount that is non-refundable, source of funds for the acquisition; and summary of closed transactions and references.
Co-Broker Commission
No brokerage commission or finders fee shall be payable to any broker, agent or person representing a Purchaser. Any broker representing a Purchaser must look to
such Purchaser for compensation.
Contacts
Brian Fennelly, CPA
Managing Director
(212) 763 – 4401 (w)
(347) 573 – 1918 (m)
Jennifer Schwartzman
Senior Managing Director
NGKF Capital Markets
(212) 372 - 2205 (w)
David L. Noonan
Senior Managing Director
NGKF Capital Markets
(212) 372 – 2268 (w)
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Transaction ProceduresTransaction Procedures
Executive Summary
The Offering
Investment Highlights
Location
Local Economy
Property Overview
General Property Information
Building Systems
Improvements since 2010
Floor Plans
Location Overview
Surrounding Amenities
Transportation
Surrounding Residential Market
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The Offering
MHP Real Estate Services has been retained as the exclusive sales broker for 305 West 29th Street
in Manhattan. The Property is located on the north side of 29th Street, between Eighth and Ninth
Avenues.
The existing structure is a 5,260 square foot, 5-story building within the R8B zoning district of
Manhattan Community District 4.
305 West 29th Street is currently utilized as a university dormitory.
The property will be delivered vacant, or with a short term lease in place, and will yield
approximately 9,084 buildable square feet on a 2,271 square foot lot.
Building expansion not restricted by any area Landmark Historic District designation.
Investment Highlights
• Development Opportunity
The property can be repositioned for any residential use, consistent with the R8B zoning
district
• Building Size 5,260 SF (approximate)
• Lot Size 23’ along 29th Street x 98.75’ deep
• Maximum FAR 9,084 SF
• Block/Lot 753/33
• Zoning R8B
• Asking Price $6.25M
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Executive Summary
Location
• Desirable Neighborhood
The property is located in the Chelsea neighborhood on the West Side of Manhattan - one of
NYC’s most vibrant and desirable neighborhoods. The High Line, Chelsea Gallery District, Javits
Center, Hudson Yards and a multitude of public parks and recreation centers are within a short
walk.
• Accessible Location
2 blocks from Penn Station Subway Lines: A, C, E, 1, 2, 3, 7, Fashion Institute of Technology,
popular and widely used 100 years old Chelsea Park, 4 blocks from Herald Square Station
Subway Lines: B, D, F, M, N, Q, R
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Executive Summary
Location
The Property faces green space across the street and is a short walk from Chelsea Park, Penn
Station/Madison Square Garden, The High Line and Chelsea Piers.
Also a short walk from Hudson Yards, which will include 17 million square feet of commercial and
residential space, more than 100 shops and restaurants, 14 acres of public open space, a new 750-
seat public school and a 200-room Equinox-branded luxury hotel.
Major employers within the Hudson Yards complex will include: Coach, Inc., L'Oréal USA, SAP, Vayner
Media, Neiman Marcus, Time Warner, Inc., HBO, CNN, Turner Broadcasting, Boies, Schiller & Flexner,
KKR & Co., DNB ASA, The Boston Consulting Group and Wells Fargo Securities.
Pennsylvania Station, one of the busiest transit halls in the Western Hemisphere is located two blocks
from the Property. Recently, the governor of NY unveiled plans for a $1.6B project to redevelop Penn
Station and the James A. Farley Post Office.
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Executive Summary
A Thriving, Diverse Local Economy
New York City is the largest regional urban economy in the country and a leading job hub for banking,
communications, law, technology and insurance.
New York City’s economy is rapidly transforming: the internet, mobile technologies, social media and Big Data have
created thousands of start ups to juxtapose with traditional industries which all move into the 21st century global
economy.
New York City’s tech ecosystem accounts for over 291,000 jobs and over $124.7 billion in economic output.
New York City’s 7,500+ technology firms raised over $4.5 billion in venture funding in 2014, second only to Silicon
Valley.
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Executive Summary
General Property Information
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Property Overview
Building Systems
Fire protection: sprinkler system throughout as well as standpipe maintained by Modern
Sprinkler, inspected up to code.
Fire Alarm System: 4Q2016 upgrade to the fire alarm panel, installed and maintained by
Tyco.
Fire escapes in front and back of building. Emergency exits ground floor front and back
door. Roof access on the top floor.
Building heated by gas with boiler in the basement and steam heat radiators. Central air for
downstairs offices and window AC units for bedrooms. Boiler and HVAC Inspected and up
to code by All Systems Mechanical.
Improvements since 2010
Front
• Lintel above front door repaired
• Entrance knee wall repaired and painted
• Front fire escape repaired and painted
• Front trap door replaced
Rear
• Fire escape repaired and painted
• Back basement trap door replaced
Roof
• Two chimneys resealed and painted
Interior Changes• Office central air conditioner replaced
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Property Overview
Floor Plans
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Property Overview
Floor Plans
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Property Overview
Location overview
Chelsea is one of Manhattan’s most vibrant neighborhoods.
Encompassing Sixth Avenue to the Hudson River, and 14th
Street to 30th Street, the area derives its name from British
Major Thomas Clarke, a veteran of the French and Indian
wars, who purchased 94 acres of land in the area and dubbed
it, “Chelsea”, after an English veterans’ hospital and old
soldiers’ home, in honor of his comrades across the Atlantic.
Combining the traditional charm of Chelsea Historic District
townhomes with cutting-edge architecture along the High
Line designed by the likes of Jean Nouvel, Shigeru Ban, Zaha
Hadid and Frank Gehry, residents can work up an appetite at
Chelsea Piers, the city’s premier athletic complex, and then
satisfy it at culinary venues like Chelsea Market – the place
that started the city’s food hall craze.
Long-established as the center of Manhattan’s art scene, in
recent years Chelsea has witnessed a burgeoning tech
industry presence, sometimes referred to with the metonym,
“Silicon Alley”, and led by global tech giants Google and IAC
Interactive.
Connecting with the high-end fashion boutiques of the
Meatpacking District at its lower boundary, Chelsea connects
at its upper boundary with Hudson Yards, Manhattan’s largest
new office, residential and public parks development.
Cultural attractions include the Joyce Theater (specializing in
dance) and the Rubin Museum of Art. Educational institutions
include the Fashion Institute of Technology, the General
Theological Seminary, and Avenues: The World School, an
elite private school.
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Location Overview
Surrounding Amenities
Neighbors:
A diverse community of artists and professionals.
Chelsea is home to a large number of professionals drawn to the neighborhood’s prime
location, as well as its fun and laid-back options for going out.
Entertainment:
Entertainment comes easy in Chelsea. The neighborhood has a wealth of bars and restaurants
that cater to nightlife enthusiasts across the city.
Chelsea also has a thriving dining scene with a variety of upscale and low-key options across a
range of cuisines.
For foodies there’s Chelsea Market, which carries everything from live lobsters to gourmet
cheeses.
Great nightlife and an easy commute to anywhere in Manhattan.
Westside Hub for Art & Culture:
Gallery openings, outdoor lounging, and a new place to discover around every corner.
Chelsea is home to numerous galleries, with the epicenter of the art scene out on 10th and
11th avenues. (see map)
Chelsea has consistently served as the setting for iconic pop culture moments with artists like
Andy Warhol and Patti Smith living and working in the neighborhood. Now, Chelsea is home to
world-famous retrofit architecture and some of the finest art galleries in the city.
A few blocks west, entertainment-seekers will find the Hudson Yards amenities, including: 6-
acre public plaza featuring gardens and a monumental work of public art; 7-level retail
complex, anchored by Neiman Marcus; 200-room Equinox-branded luxury hotel; The Shed –
NYC’s new center for artistic expression. An assortment of restaurants ranging from classic
traditional New York City fare to world-renowned chefs José Andres and Costas Spiliadis.
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Location Overview
Transportation
• Accessible Location
2 blocks from Penn Station
Subway Lines: A, C, E, 1, 2, 3, 7,
LIRR
4 blocks from Herald Square
Station Subway Lines: B, D, F, M,
N, Q, R, PATH
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Location Overview
West Chelsea Property Sales
4Q2015 to 4Q2016
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Location Overview
Address Sales Price Building Size Price PSF
309-313 West 30th Street $29,806,320 31,512 SF $945
337 West 30th Street $22,450,272 24,617 SF $911
345 West 30th Street $22,887,413 25,657 SF $892
307 West 29th Street $6,500,000 7,267 SF $895
309 West 29th Street $3,600,000 4,455 SF $808
313 West 29th Street $6,000,000 5,039 SF $1,191
Surrounding Residential Market
305 West 29th Street is NOT located within an LPC historic district, although much of the West Chelsea
neighborhood is a historic district, scattered with turn-of-the-century townhouses, more than 200 contemporary
art galleries, an abundance of restaurants, markets and an enormous concentration of parks and sports recreational
facilities.
The 1,600-seat Avenues: The World School, which opened in 2012, serves pre-K to 9th grade and is located at 26th
Street and Tenth Avenue.
Apartment Building Asking Rents - West Chelsea (4Q2016)
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Location Overview
Building Address Studio 1 Bedroom 2 Bedroom 3 Bedroom
Beatrice Apartments 105 West 29th Street $3,415/Mo $4,675/Mo
Abington House 505 West 29th Street $3,650/Mo $4,550/Mo $6,080/Mo
The Olivia 315 Wet 33rd Street $2,733/Mo $3,373/Mo $5,151/Mo
The Continental 885 Sixth Avenue $3,495/Mo $4,295/Mo $7,425/Mo
+Art 540 West 28th Street $4,000/Mo $5,700/Mo $13,500/Mo
The Epic 125 West 31st Street $3,550/Mo $3,850/Mo $6,450/Mo
AVA High Line 525 West 28th Street $3,050/Mo $3,700/Mo $6,600/Mo
Avalon West Chelsea 282 Eleventh Avenue $2,900/Mo $3,950/Mo $6,250/Mo
Port 10 303 Tenth Avenue $2,995/Mo $4,050/Mo $4,995/Mo $6,995/Mo
The Davos 143 West 30th Street $3,500/Mo
Notable Condominium Projects in the West Chelsea Neighborhood
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Location Overview
Zaha Hadid’s - 520 West 28th Street Asking Price
2 Bedroom $4.9M-$5.9M
3 Bedroom $7.25M-$8.9M
4 Bedroom $12M-$25M
5 Bedroom $14M-$50M
15 Hudson Yards – 501 West 30th Street Asking Price
2 Bedroom $3.7M-$7.9M
3 Bedroom $6.3M-$9.4M
4 Bedroom $11.8M-$13.8M
Blended average pricing for all units: $3,255 PSF
Select West Chelsea Condominiums Units on the Market – 4Q2016
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Location Overview
Address Bedrooms Asking Price Price PSF
$514 West 24th Street - The Fitzroy 4BD $16,500,000 $3,657
263 Ninth Avenue 4BD $8,745,000 $2,796
527 West 27th Street 2BD $7,550,000 $2,670
231 Tenth Avenue – Vesta 24 2BD $6,500,000 $2,595
527 West 27th Street 1BD $1,970,000 $2,585
245 Seventh Avenue – Chelsea Atelier 3BD $9,850,000 $2,526
540 Wet 28th Street - +ART 2BD $2,950,000 $2,396
Select West Chelsea Condominiums Units on the Market – 4Q2016
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Location Overview
Address Bedrooms Asking Price Price PSF
252 Seventh Avenue – Chelsea Mercantile 3BD $4,995,000 $2,286
261 West 28th Street 2BD $2,200,000 $1,739
151 West 28th Street – Groff Studios 2BD $2,900,000 $1,611
308 West 30th Street – Irvin House 1BD $875,000 $1,557
252 West 30th Street 3BD $2,395,000 $1,497
40 West 28th Street Townhouse $15,500,000 $1,476
249 West 29th Street 2BD $1,995,000 $1,247
Contacts
Brian Fennelly, CPA
Managing Director
(212) 763 – 4401 (w)
(347) 573 – 1918 (m)
Jennifer Schwartzman
Senior Managing Director
NGKF Capital Markets
(212) 372 – 2205 (w)
David L. Noonan
Senior Managing Director
NGKF Capital Markets
(212) 372 – 2268 (w)