opinion of value overview 2 saint ann's avenue (fresh

Opinion of Value Overview

2 Saint Ann's Avenue (Fresh Direct Site)

DEVELOPMENT VALUE:

COMPARABLE SALES VALUE:

RECONCILED VALUE:

The value of the property based upon recent sales of similar properties.

Our opinion of the most likely value to be obtained based upon this analysis.

The price affixed to the propery based on a development analysis and a lease to a user

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Property Description


Property Information

Location: Southeast corner of Saint Ann's Avenue and East 132nd Street

Address: 2 Saint Ann's Avenue

Block / Lot: 2543 / 1

Lot Dimensions: (Approx.) 895.7' x 753.5' Irr. (Denoted In Plans-Does Not Use Entire HRY)

Lot SF: (Approx.) 548,856 (12.6 Acres)

Building Information

Building Size: (Approx.) 865.7' x 750' Irr. (Proposed)

Gross SF: (Approx.) 424,000 (Proposed)

Facility Make-Up:

Freezer Storage: 20,000 (Proposed)

Refrigerated & Dry Storage: 234,000 (Proposed)

Food Production: 40,000 (Proposed)

Receving/Shipping: 50,000 (Proposed)

Offices/Employee Amenities: 80,000 (Proposed)

Stories: 5 (Proposed)

Zoning: M3-1

Historic District: No

FAR:

Commercial: 2.00

Residential: 2.00

Total Buildable SF: (Approx.) 548,856

Proposed SF: 424,000

Potential Air Rights: 124,856

Assessment (13/14): TBD

RE Taxes (13/14): TBD

Description: The subject property is a 12.6 acre industrial site located at the intersection of St. Ann's Avenue and

East 132nd Street in the South Bronx. It is situated within the Harlem River Yards Transportation and

Distribution Center (HRY) and benefits from excellent access to I-87 and I-95. Other facilites located

in the HRY are occupied by FedEx, Waste Management, the New York Post, and the New York Power

Authority.

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Renderings & Tax Map


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Building Make Up

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Square Feet

Lot Size (Acres): 12.60

Land SF: 548,856

Proposed SF: 424,000

Net Annual Net Income

Industrial Space Square Feet RPSF Revenue* 85% of Gross

Industrial Facility 424,000 $70 29,527,258$ $25,098,170

Capitalization Rate : 6.95%

Industrial Value : $361,124,743*5% Premium Added For Superior Location and Specific Tenant Buildout

Hard Costs (As Per HRY Budget Plans): $/Sq. Ft. Costs

Sitework: $14.11 $5,981,000

Concrete: $20.50 $8,692,000

Masonry: $2.95 $1,250,000

Steel: $17.15 $7,273,000

Thermal & Moisture: $24.10 $10,218,000

Doors & Windows: $5.75 $2,439,000

Finishes: $19.42 $8,234,000

Specialties: $0.40 $168,000

Elevators/Lifts: $2.98 $1,264,000

Mechanical: $36.07 $15,294,000

Electrical: $33.79 $14,328,000

Refrigeration: $23.58 $10,000,000

Lighting: $3.54 $1,500,000

Non-Trade Labor $22.27 $9,441,000

Allowances: $8.14 $3,450,000

Project Management: $14.95 $6,340,000

Construction Management: $6.19 $2,625,000

Contingencies: $53.61 $22,730,000

Total Hard Costs: $309.50 $131,227,000

Development Soft Costs (As Per HRY Budget Plans): $/Sq. Ft. = Costs

Architects: $2.36 $1,000,000

Engineers: $3.77 $1,600,000

Permits & Fees: $0.59 $250,000

Insurance: $4.87 $2,063,000

Construction Interests: $21.99 $9,323,000

Commissions: $1.63 $690,000

Financing Origination Costs $5.54 $2,349,000

Legal Fees: $1.18 $500,000

Total Soft Costs: $17,775,000

$85,000,000 2.0 4.50% $7,650,000

Total Construction & Development Costs: $156,652,000

Construction & Development Costs per Gross BSF: $369

Residual Land Value (Total Sellout Value less Const. & Dev. Costs): $204,472,743(Assuming carrying 65% of balance) Say: $204,500,000

(3) Based on equity of: Price Per Planned Buildable Square Foot: $373

(2) Average Industrial Cap Rate Within 15 Miles of Major City,

Defined by Top 15 U.S. Cities in GDP is 6.95%

(1) See Comparable Lease Opportunities

Debt Service:

Development Value


Fresh Direct Center

Use

(2)

(2)

(1)

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Building Comparable Sales


I. BUILDING VALUE:

Address Date Description Sale Price SF Location Premium $/SF

636 Pierce Avenue-Somerset, NJ Mar-14 Single Tenant-Bank Of NY Data Center, Recently Built $40,000,000 180,000 50.00% $333

30 Superior Drive-Natick, MA (Refi) Feb-14 Single Tenant-FedEx, Built in 2013 $46,900,000 178,000 50.00% $395

399 Jefferson Road-Parsippany, NJ (Refi) Dec-13 Single Tenant-Pinnacle Foods, Renovated in 2011 $48,100,000 206,000 50.00% $350

30 Independence Blvd.-Warren, NJ Oct-13 Single Tenant-Verizon, Distribution Center, Long Term Lease $40,000,000 211,000 50.00% $284

AVERAGE: $341

PRICE PER SQUARE FOOT ANALYSIS:

SUBJECT'S PROPOSED SF 424,000

ADJUSTED AVERAGE $/SF $341

= $144,495,062

SAY: $144,500,000

II. ADJUSTED DEVELOPMENT RIGHTS VALUE:

Address Date Zoning Sale Price $/BSF

1110 Oak Point Avenue High-Offer M3-1 $20,000,000 $46

921 East 149th Street Aug-12 M3-1 $6,500,000 $36

2505 Bruckner Boulevard May-12 C8-1 $30,000,000 $36

3400 Putnam Avenue Aug-11 M1-2 $18,250,000 $37

AVERAGE: $39

PRICE PER BUILDABLE SQUARE FOOT ANALYSIS:

SUBJECT'S DEVELOPMENT RIGHTS 124,856

AVERAGE $/BSF $39

= $4,827,464

SAY: $4,850,000

COMBINED VALUE: = $149,350,000

SAY: $149,350,000

ON-MARKET LEASE COMPARABLES FIT FOR SIMILAR USE TO SUBJECT PROPERTY:

Address Date Description Annual Asking Rent $/SF

2601 Port Covington Drive-Baltimore, MD On-Market Former Sam's Club, Production & Distribution $9,795,000 $75

201 Bay Avenue-Elizabeth, NJ On-Market Newly Constructed, Great Access To Transportation $15,000,000 $47

1 Jebara Way-Monroe, NJ On-Market Newly Constructed, Great Access To Transportation $7,600,000 $60

2060 Ninth Avenue-Ronkonkoma, NY On-Market Newly Constructed, Will Build Facility To Tenant's Specs. $8,800,000 $99

1200 Route 523-Flemington, NJ On-Market Newly Constructed, Will Build Facility To Tenant's Specs. $30,000,000 $35

8410 Kelso Drive-White Marsh, MD On-Market Newly Constructed, Great Access To Transportation $7,750,000 $64

4612 Navistar Drive-Frederick, MD On-Market Newly Constructed, Warehouse, Offices, & Distribution $17,225,000 $84

AVERAGE: $66

INDUSTRIAL CAP RATE EXPLANATION:

Data Compiled From:

851,705

205,085

BSF

437,342

182,193

829,300

492,250

120,940

380,000

126,474

89,000

In order to study the market and determine a value based upon comparable sales, we have analyzed all Grade A Industrial Building sales occurring in the eastern

United States. Each sale has been broken down into a price per quare foot basis to allow for comparison. Below is a breakdown of these sales.

INDUSTRIAL BUILDING SALES COMPS

COMPARABLE LEASE OPPORTUNITIES

LAND & DEVELOPMENT SALE COMPS

SF

130,595

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PRICE $/SF $/ BSF $/ACRE

COMPARABLE SALES VALUE:

BUILDING VALUE: $144,500,000 $341 $263 $11,468,254

ADDITIONAL DEVELOPMENT VALUE: $4,850,000 - - -

COMBINED VALUE: $149,350,000 $352 $272 $11,853,175

DEVELOPMENT VALUE: $204,500,000 $482 $373 $16,230,159

RECONCILED VALUE: $204,500,000 $482 $373 $16,230,159

Opinion of Value Summary


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opinion of value overview 2 saint ann's avenue (fresh

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