columbus circle - massey...

6 COLUMBUSCIRCLE

Address 6 Columbus Circle (aka 308-310 West 58th Street)

LocationSouth side of West 58th St on Columbus Circle between Eighth and Ninth Avenues

Block / Lot 1048 /39

Lot Dimensions 42.17’ x 100.42’

Zoning C6-6 (Special Midtown District)

Base ZFA 15.00

Lot SF 4,234

Total Buildable SF 63,510

Existing SF 44,480

Additional Air Rights 19,030

Existing Hotel Features

Year Built 1903

Stories 12

Hotel Keys 88

Gross SF 44,480

Full Assessment $9,566,540 (15/16)

Full Taxes* $947,472 (15/16)

6 Columbus Circle

*Includes ICIP benefit which runs until 2019

Rendering of retail concept

Cushman & Wakefield has been retained on an exclusive basis to arrange for the sale of 6 Columbus Circle, a luxury hotel and world-class development opportunity located at the heart of Columbus Circle. The property is situated with 42’ of valuable frontage along one of Manhattan’s most recognized corridors known for its world-class shopping, fine-dining and notable cultural amenities. These features have translated into a prestigious residential and commercial enclave that features some of the world’s most exclusive properties. The existing luxury hotel generates significant revenue and given its premier location adjacent to “Billionaire’s Row”, 6 Columbus Circle represents a tremendous mixed-use development opportunity that will undoubtedly receive unprecedented residential and retail demand.

THE OPPORTUNITY

PROPERTY FEATURES

Asking Price: Ownership Requests Proposals

Not only is the subject offering situated in a highly desirable location, it is positioned within the C6-6 Special Midtown Zoning District that contains some of the City’s most flexible zoning regulations. The site supports up to approximately 63,510 buildable square feet above grade plus has the capacity to include sellable below grade space given the expansive footprint spanning approximately 42’ by 100’. The lack of both landmarks designation and height restriction along Columbus Circle paves the way for the construction of an iconic mixed-use tower that will offer breathtaking views of Central Park.

Comparable projects in the area that boast similar features to 6 Columbus Circle continue to shatter records across the Manhattan condominium market and there continues to be insatiable demand from a

global audience for these residences, which bodes extremely well for future development at the subject property.

6 Columbus Circle also offers the opportunity to create a highly visible, multi-level retail component within a world-class shopping corridor that commands some of New York City’s highest rents due to the neighborhood’s wealthy demographics and tremendous foot traffic. Its prime location directly across from The Shops at Columbus Circle Time Warner Center and the 59th Street Columbus Circle subway station, which serves over 23.5 million individuals annually, 6 Columbus Circle is ideally positioned to provide a retailer with approximately 42’ of frontage for signage and an incredible branding opportunity.

MIXED-USE DEVELOPMENT POTENTIAL

TIME WARNER CENTER

CENTRAL PARK

6 COLUMBUSCIRCLE

6 Columbus CircleAsking Price: Ownership Requests Proposals

Ownership has proposed plans for an illustrative development concept adhering to all zoning regulations applicable to 6 Columbus Circle. Their initial design portrays an elegant, mixed-use tower that would rise 700’ above street level. The vertical retail concept of approximately 17,952 square feet spans 6 total floors (5 floors above grade) and features soaring ceiling heights from 16’ to 20’, which would provide exceptional selling space throughout. The 53,492 square foot residential component begins on the 6th floor at 117’, and at this level, offers residents sweeping views of Central Park, the Hudson River and Manhattan. The gracious 12’ to 16’ ceiling heights would provide an abundance of natural light in each residential unit. Residents will also enjoy white glove concierge service and first-class amenities.

The scarcity of remaining, unencumbered land in the prestigious neighborhood positions 6 Columbus Avenue as a truly unique development opportunity in Manhattan’s strongest residential submarket. There are countless development strategies for 6 Columbus Circle and developers are by no means limited to the referenced proposal.

PROPOSED CONCEPT

Rendering

Rendering


For investors with a long-term investment horizon, continued operation of the existing hotel presents an attractive strategy. As New York City has welcomed a record 56.4 million visitors in 2014, 6 Columbus offers luxurious hospitality located at the heart of a tourism mecca. Investors will benefit from tremendous demand as the hotel has averaged an 86% occupancy rate through the third quarter of 2015, higher than Manhattan’s average rate of 84% for the same period.

In its present state, the 44,480 square foot hotel stands 12 stories and features 88 stunning guest rooms ranging from 175 square foot rooms to expansive 1,200 square foot duplex suites. Visitors are greeted at the elegant lobby entrance and are welcome to enjoy Blue Ribbon Sushi Bar & Grill on the ground floor as well as Above 6, an exclusive rooftop lounge overlooking Central Park.

The hotel has performed exceptionally well since conception and this trend stands to continue given New York City’s unprecedented tourism activity, robust Midtown office market and prestigious residential neighborhood. In 2016, the hotel is expected to generate over $10.2 million in gross revenue with a net operating income of approximately $2.65 million. This figure is projected to grow to over $4.3 million by the end of 2018 due to record demand for first-class hotel offerings.

6 Columbus represents a truly remarkable turn-key hotel in Manhattan’s most sought after hospitality submarket that does not require future ownership to implement a large capital improvement campaign upon closing. The property also benefits from approximately 19,030 square feet of unused air rights for further expansion of the existing hotel, thus providing a potentially more cost efficient strategy to mass the entire site. The stable cash-flow allows prospective developers to offset carrying costs during the planning and permitting stages prior to future construction.

CONT’D HOTEL OPERATIONExisting Hotel

Existing Hotel Lobby


6COLUMBUSCIRCLE

Cushman & Wakefield Copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

ROBERT KNAKALChairman, NY Investment Sales

(212) 660 [email protected]

JONATHAN HAGEMANDirector


FOR MORE INFORMATION,CONTACT EXCLUSIVE AGENTS:

MICHAEL O’NEILLSenior Director of Leasing


PATRICK YANNOTTASenior Associate(212) 660 7791

[email protected]

ANDREW POSIL Director


Principal Confidentiality and Indemnification Agreement (the “Agreement”)

6 Columbus Circle, New York, NY 10019

Principal: ________________________________ (“Potential Purchaser”)

Title: ________________________________

Company: ________________________________

Address: ________________________________

Address: ________________________________

Phone/Fax: ________________________________

E-Mail: ________________________________

Re: Confidentiality and Indemnification Agreement

Cushman & Wakefield Realty of Manhattan LLC, (“Broker”) has been retained by the owners (“Owner”)

to market the property 6 Columbus Circle, New York, NY (the “Property”) for sale. The Potential Purchaser has requested certain information (the "Confidential Information") concerning the Property. Broker may make such Confidential Information available to Potential Purchaser upon execution of this Confidentiality Letter. The Confidential Information is intended solely for Potential Purchaser’s limited use in evaluating the Property. This is not an agreement to sell the Property or any interest therein. No agreement binding upon Owner, or any of its associated or affiliated companies, to sell the Property shall be deemed to exist, at law or equity, until Owner enters into a formal binding agreement, fully executed and delivered by all parties thereto. Broker has no authority to bind Owner in connection with the sale of the Properties or otherwise.

The Confidential Information contains brief, selected information pertaining to the Property and the business and affairs of Owner. It does not purport to be all inclusive or to contain all the information which Potential Purchaser or a prospective purchaser or lender may desire. Neither Owner nor Broker makes any representation or warranty, expressed or implied, as to the accuracy or the completeness of the Confidential Information and no legal liability is assumed or to be implied with respect thereto.

Broker has informed Potential Purchaser that it is of utmost importance that all discussions concerning the proposed transaction (including, without limitation, the fact that any discussions have taken or are taking place) be kept in strict confidence. Accordingly, Potential Purchaser hereby agrees that the Confidential Information will be used only in connection with the proposed transaction and its consideration thereof, and that all discussions concerning the transaction, as well as all Confidential Information, will be kept confidential by Potential Purchaser and its partners, officers, members, agents, employees, contractors, and consultants, and shall not, except as hereinafter provided, be disclosed in any manner whatsoever without the prior written consent of Owner, which may be granted or withheld in Owner’s sole and absolute discretion. Information concerning the transaction and the Confidential Information shall be submitted only to those partners, officers, members, agents, employees, contractors and consultants who need to know such information for the purpose of evaluating the transaction and who shall (i) be advised by Potential Purchaser of the confidential nature of the information and (ii) shall be instructed by Potential Purchaser to treat such information confidentially. Potential Purchaser will be responsible for any such persons to comply with such instruction.

Owner expressly reserves the right to reject any or all proposals or expressions of interest to purchase the Property, to consummate the sale of the Property to a party other than Potential Purchaser, and to terminate discussions at any time with or without notice. If Potential Purchaser does not wish to pursue negotiations, or such negotiations are undertaken but a transaction fails to be consummated with Potential Purchaser, Potential Purchaser hereby agrees to promptly return the Confidential Information to Broker.

Potential Purchaser understands and foresees that any violation of this Confidentiality Letter would damage Owner and Broker and their respective successors. Potential Purchaser hereby agrees to indemnify, defend and hold harmless Owner and Broker and their respective members, directors, officers, employees, agents, representatives, successors and assigns from and against any and all liability, claim, demand, loss, cost, damage, expense or cause of action (including without limitation, reasonable attorneys' fees and expenses) in connection with any breach or alleged breach of the confidentiality provisions of this Agreement. In addition, Potential Purchaser agrees that Owner and Broker will have no adequate remedy at law if Potential Purchaser violates any of the terms of this Confidentiality Letter. In such event, Owner and/or Broker will have the right, in addition to any other right Owner and Broker may have, to seek injunctive relief to restrain any breach or threatened breach by Potential Purchaser or specific enforcement of such terms.

Potential Purchaser understands and agrees that the Confidential Information does not purport to be complete and accurate, and that Potential Purchaser will rely entirely on its own due diligence with regard to all matters. No representations or warranties are implied by the submission of the Confidential Information and none is given unless Owner subsequently elects to make specific, limited representations and warranties in a final, fully executed and delivered, sale agreement definitive in form and scope. Potential Purchaser agrees (except as may be provided in definitive written agreements for the contemplated transaction or for willful misrepresentations) that neither Owner nor Broker shall have any liability to Potential Purchaser as a result of its use of the Confidential Information and it is understood that Potential Purchaser is expected to perform and be responsible for such due diligence investigations and inspections of the Properties, including investigation of any environmental conditions, as Potential Purchaser deems necessary or desirable and as permitted by agreement with Owner.

The Agreement (including the riders attached hereto) contains the entire agreement between the parties concerning the treatment of Confidential Information and this Agreement may not be amended, assigned or modified except by a written agreement executed by each of the parties hereto.

The parties acknowledge that certain information may be provided through access to an electronic workspace (the “Workspace”), which may contain additional terms and conditions purporting to relate to such information (“Electronic Confidential Provisions”). The parties intend that the provisions of the Agreement shall govern in lieu of any such Electronic Confidentiality Provisions, and the parties agree that no such Electronic Confidentially Provisions shall be of any force or effect, notwithstanding any “click-through agreement” to the contrary in connection with accessing the Workspace.

The term “Confidential Information” does not include (and the provisions of this Agreement do not apply to) information which:

a. is or becomes available to the public other than a result of a disclosure by the Potential Purchaser or its Representatives in breach of their obligations hereunder;

b. was available to the Potential Purchaser or its Representatives prior to its being furnished to the Potential Purchaser by or on behalf of the party providing information under this Agreement (the “Information Provider”);

c. becomes available to the Potential Purchaser or its Representatives from a source other than the Information Provider; provided that the source of such information was not known by the Potential Purchaser to be bound by a confidentiality agreement with, or other contractual, legal or fiduciary obligation of confidentiality to, the Information Provider with regard to such information;

d. is or becomes independently developed by the Potential Purchaser or its Representatives without violation Potential Purchaser’s obligations hereunder; or

e. is required or deemed (by Potential Purchaser or its applicable Representative) to be necessary to be disclosed under applicable law, rule, regulation, the requirement or request of a governmental authority, stock exchange or rating agency or in connection with a legal or regulatory proceeding or an investigation of arbitration (collectively, “Legal Requirements”); Provided that Potential Purchaser or its Representatives, as applicable, shall, except if disclosed pursuant to routine banking regulatory oversight, notify Owner of such requested or required disclosure, and shall exercise commercially reasonable efforts to preserve the confidentiality of the Confidential Information , including, without limitation, reasonably cooperating with Owner to obtain and appropriate order or other reliable assurance that confidential treatment will be accorded such Confidential Information and shall disclose only that portion of the Confidential Information which it is required by Law to disclose.

Notwithstanding anything to the contrary, nothing herein will require Potential Purchaser or any of its

Representatives to face or potentially face criminal, regulatory or civil liability.

Notwithstanding anything to the contrary, Information Provider, on behalf of itself and its agents, (a) acknowledges that the information provided or stored electronically may not be readily destroyed and Potential Purchaser and its Representatives need only use reasonable efforts to do so (which efforts will not be required to include destroying electronic files created pursuant to automatic archiving and back-up procedure), and (b) further agrees that each of Potential Purchaser and its Representatives may retain copies of the information provided in its files for defense, compliance and/or legal or regulatory purposes, but shall make no further use of any Confidential Information except in accordance with such policies or procedures and shall keep the Confidential Information in accordance with this Confidentiality Letter. Furthermore, any claim for damages hereunder shall be limited to actual damages and losses and shall not include punitive, consequential, special or indirect damages.

Nothing herein will be deemed to require any party to pursue or engage in any discussions or truncations whatsoever with any other party whomsoever or to refrain from doing so. Each of Owner and Broker agree not to disclose (other than to its Representatives or pursuant to Legal Requirements) that any discussions with Potential Purchaser regarding the Property are taking Place or any of the terms thereof without prior written consent of Potential Purchaser, which may be granted or withheld in Potential Purchaser’s sole and absolute discretion.

By providing the information contemplated herein, the Information Provider (on behalf of itself and the parties whom it represents) acknowledges and agree to the terms hereof and by accepting to Confidential Information, Potential Purchaser and its Representatives acknowledge and agree to the term hereof.

This Agreement and all obligations thereunder will expire upon the earlier of (a) the date of execution of definitive written documents for the contemplated transactions and (b) two years from the date hereof.

This Confidentiality Letter shall be governed by the laws of the State of New York without regard to the conflict of laws provisions thereof. The parties hereto agree that any action or proceeding with respect to this Confidentiality Letter shall be brought in the federal or state courts located in the City of New York, Sate of New York and each party consents to and waives any objection to venue in any such court.

This Confidentiality Letter embodies the entire understanding and agreement between the parties with

respect to the Confidential Information and supersedes any prior understandings and agreements relating thereto and no modification of this Agreement or waiver of the terms and conditions hereof shall be binding upon either party, unless approved in writing by each party, which writing shall refer specifically to this Agreement.

If any portion of this Confidentiality Letter is found invalid by a court of competent jurisdiction, such

portion shall be deemed automatically omitted from this Confidentiality Letter, and the remainder shall continue to be fully enforceable. In the case of any such invalidity, illegality or unenforceability, a suitable and equitable

provision will be substituted therefore in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provisions.

Any assignment of this Confidentiality Letter by Potential Purchaser without the prior written consent

of Owner will be void. For the convenience of the parties, signatures to this Confidentiality Letter may be delivered by PDF or

other electronic transmission and/or in any number of counterparts, each of which shall be deemed an original and all of such counterparts, when taken together, shall constitute but one and the same document.

Very truly yours,

CUSHMAN & WAKEFIELD, Agent By_____________________

Name: Robert A. Knakal Title: Chairman

ACCEPTED AND AGREED TO: Principal: ______________________ (Please Print)

Signature: ______________________

Title: ______________________

Dated: ___________________, 2015

Please Email or Fax a Fully Executed Agreement to Leica Meliton at [email protected] or (347) 402-7572

mailto:[email protected]

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