investment property for sale - cushman & wakefield ... clients to retain qualified environmental...
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Gravesend
1845 McDonald Avenue - Page 1
1845 McDonald Avenue1845 McDonald Avenue
Brooklyn, NY 11223Brooklyn, NY 11223
Investment Property For SaleInvestment Property For Sale
Gravesend
1845 McDonald Avenue - Page 2
1845 McDonald Avenue1845 McDonald Avenue
GravesendGravesend
Brooklyn, NY 11223Brooklyn, NY 11223
Brian R. HansonDirector Of Sales
718-606-7069
Alex SamusevichAssociate
718-606-7062
Offering Price: $4,695,000Offering Price: $4,695,000
$7.67% Capitalization Rate$7.67% Capitalization Rate
For Further Information For Further Information
Please Contact Exclusive Agents:Please Contact Exclusive Agents:
Gravesend
1845 McDonald Avenue - Page 3
This is a confidential brochure intended solely for your limited use and benefit in determining whether you desire to express any further interest in the purchase of the property at 1845 McDonald Avenue located in Brooklyn, New York 11223 Block: 6633 Lot:60 (the “Property”).
By receiving this, you acknowledge that this is not a boiler plate Confidentiality and Indemnification Agreement. Agent makes no representations or warranties in regard to any marketing material that we may provide you. All information related to 1845 McDonald Avenue is for informational purposes only and should be independently verified and confirmed. Prospective Purchasers should understand that neither Agent nor Seller nor any affiliate of Agent or Seller shall have any liability to Prospective Purchaser or any of their representatives or Related Parties resulting from use of or reliance upon the Evaluation Material. Furthermore, prospective purchasers shall indemnify, defend and hold harmless Seller and Agent from and against any loss, liability, damages, claims, costs, cases of action or other matters arising out of, caused by or relating to the Prospective Purchaser's use of said material.
This brochure was prepared by Massey Knakal Realty Services, Inc. (“Massey Knakal” or “MKRS”) and has been reviewed by representatives of Ownership. It contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information which prospective purchasers may desire. It should be noted that all financial projections are provided for general reference purposes only in that they are based on assumptions relating to the general economy, competition, and other factors beyond the control of MKRS or Owner and, therefore, are subject to material variation. Additional information and an opportunity to inspect the Property and plans will be made available to interested and qualified investors. Neither Owner, MKRS or any of their respective officers nor employees, have made any representation or warranty, expressed or implied, as to the accuracy or completeness of this brochure or any of its contents, and no legal commitments or obligations shall arise by reason of this brochure or any of its contents. All square footage measurements must be independently verified.
Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligation to any entity reviewing this brochure or making an offer to purchase the Property unless and until a written agreement satisfactory to Owner has been fully executed, delivered, and approved by Owner and any conditions to Owner obligations there under have been satisfied or waived.By receipt of this brochure, you agree that this brochure and its contents are of a confidential nature, that you hold and treat it in the strictest confidence, and that you will not disclose this brochure or any of its contents to any other entity without the prior written authorization of Owner nor will you use this brochure or any of its contents in any fashion or manner detrimental to the interest of Owner or MKRS.
It is essential that all parties to real estate transactions be aware of the health, liability and economic impact of environmental factors on real estate. MKRS does not conduct investigations or analysis of environmental matters and, accordingly, urges its clients to retain qualified environmental professionals to determine whether hazardous or toxic wastes or substances (such as asbestos, PCB’s and other contaminant's or petrochemical products stored in underground tanks) or other undesirable materials or conditions, are present at the Property and, if so, whether any health danger or other liability exists. Such substances may have been used in the construction or operation of buildings or may be present as a result of previous activities at the Property.
Confidentiality and ConditionsConfidentiality and Conditions
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Various laws and regulations have been enacted at the federal, state and local levels dealing with the use, storage,
handling, removal, transport and disposal of toxic or hazardous wastes and substances. Depending upon past, current and proposeduses of the Property, it may be prudent to retain an environmental expert to conduct a site investigation and/or building inspection. If such substances exist or are contemplated to be used at the Property, special governmental approvals or permits may be required. In addition, the cost of removal and disposal of such materials may be substantial. Consequently, legal counsel and technical experts should be consulted where these substances are or may be present.
While this brochure contains physical description information, there are no references to condition. Neither Owner nor MKRS make any representation as to the physical condition of the property. Prospective purchasers should conduct their own independent engineering report to verify property condition.
In this brochure, certain documents, including leases and other materials, are described in summary form. The summaries do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they purport to constitute a legal analysis of the provisions of the documents. Interested parties are expected to review independently all relevant documents.
The terms and conditions stated in this section will relate to all of the sections of the brochure as if stated independently therein. If, after reviewing this brochure, you have no further interest in purchasing the Property at this time, kindly return this brochure to MKRS at your earliest possible convenience. Photocopying or other duplication is not authorized. This brochure shall not be deemed an indication of the state of affairs of Owner, nor constitute an indication that there has been no change in the business or affairs of Owner since the date of preparation of this brochure.
Confidentiality and ConditionsConfidentiality and Conditions
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TABLE OF CONTENTS
II. Property Information…………………………………………….……………
Property Summary
Lease Abstract
Property Photos
Tax Map
Survey
Building Class Information
Zoning Information
III. Neighborhood Information……………………………………………….…...
Neighborhood Map
Subway & Bus Map
Demographic Data
IV. Due Diligence………………………………..…………………………….……
DOB Overview
DOB Violations
Certificate of Occupancy
V. About Massey Knakal………………………………………..………..….……
I. Executive Summary…………………………………………………………….
Executive Summary
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Executive Summary
Gravesend originally included an enormous expanse of land: it
encompassed Coney Island, Sheepshead Bay, Bensonhurst, Brighton
Beach, and Manhattan Beach. Settled in 1643 (chartered 1645) by a
group of English Anabaptists led by Lady Deborah Moody, the
neighborhood was a haven for religious dissenters. Lady Moody, a
wealthy widow with a baronetcy inherited from her husband, left England
in about 1639 and moved to New England. But the New Englanders did
not welcome her radical Protestantism, so in 1643 she moved to New
Amsterdam, founded Gravesend, and became the first woman to charter
land in the New World. The only English settlement of Brooklyn,
Gravesend was organized under a Dutch rule that allowed freedom of
worship and self-government. By the 1650s Gravesend was also known
as a refuge for Quakers.
The name Gravesend rightly blends the two influences, Dutch and
English, that shaped its early development. Probably named by the Dutch
authorities from the Dutch words Grafes and Ande, which together mean
“end of the grove,” or “count’s beach,” it is likely that Lady Moody’s
wishes were also consulted: Gravesend is a city at the mouth of the
Thames River.
During the American Revolution the invading British came ashore at
Gravesend from Staten Island on August 22, 1776, and legend has it that
Lady Moody’s house – which still stands at 27 Gravesend Neck Road –
was used as a hospital during the Battle of Brooklyn.
Introduction:
Massey Knakal Realty Services (“Massey Knakal”) has been retained by
the owner of 1845 McDonald Avenue located in Brooklyn, New York
11229 Block: 6633 Lot:60 (the “Property”).
The Process:
Showings will be granted based on prior scheduled appointments with
Brian Hanson or Alex Samusevich. Agents can be reached at 718-606-
7069 or 718-606-7062. Please do not attempt to inspect the building
independently; access will not be granted.
Property Description: This sale represents a one story building with an
elevator-accessed finished basement, two driveways, and a 20-space
parking lot. The building is occupied by the Nephrology Foundation of
Brooklyn’s South Unit, a private dialysis center with three locations in
Brooklyn. The building consists of a central treatment area, reception,
offices, and storage, waste, and mechanical facilities. The lot is zoned R5
and has an additional 33,350 S.F. of community use air rights (approx.).
The nearby major thoroughfares are McDonald Avenue, Avenue P,
Ocean Parkway and King Highway. Local transportation includes the F
subway lines at Avenue P & the B82 bus.
Neighborhood Description:
Gravesend, one of the original six towns of Brooklyn, is a neighborhood
where faintly visible remnants of the past underlie the shapes of future
dreams. Strolling toward the neighborhood’s original center, at the
intersection of McDonald Avenue and Gravesend Neck Road, you can
discern the outlines of the initial four-square, 16-acre town plan, created
by Lady Moody, Gravesend’s pioneering founder. Chinese restaurants,
which have popped up near Caribbean ice stands and Italian bakeries,
inhabit buildings that echo with the voices of Italian owners of
salumerias, delicatessens, and pastry shops, which once flourished in a
more homogenous neighborhood. And houses that were subdivided
during the Depression are being restored to their original single-family
luster by enthusiastic new home owners.
Gravesend
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SECTION II SECTION II ––
Property InformationProperty Information
Gravesend
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Property Information
Location: On the east side of McDonald Avenue
between Avenue P and Quentin Road.
Block / Lot: 6633 / 60
Dimensions: Building: 66’ x 165’ – (Approx.)
Lot: 203’ x 107’ (Approx)
Zoning: R5 in Ocean Parkway District
F.A.R.: Residential – 1.25 Community Use – 2.0
Lot Size: 21,675 square feet (Approx.)
Taxes (2008): $156,890 (Paid By Tenant)
Lease Details: See page 10
Capitalization Rate: 7.67% (Based on Asking Price)
Description: This sale represents a one story building with an elevator-accessed finished
basement, two driveways, and a 20-space parking lot. The building is occupied
by the Nephrology Foundation of Brooklyn’s South Unit, a private dialysis
center with three locations in Brooklyn. The building consists of a central
treatment area, reception, offices, and storage, waste, and mechanical facilities.
The lot is zoned R5 and has an additional 33,350 S.F. of community use air
rights (approx.). The nearby major thoroughfares are McDonald Avenue,
Avenue P, Ocean Parkway and King Highway. Local transportation includes the
F subway lines at Avenue P & the B82 bus.
Property Summary
Gravesend
1845 McDonald Avenue - Page 10
Lease Abstract
Lease Commencement Upon Sale
Lease Term 10 Years
Actual PPM $30,000
Actual PPY $360,000
Renewal Option 5 year optionEscalations 8% after years 3,6,10, &13
Security Deposit $360,000
Utilities Tenant's Expense
Water/Sewer Tenant's Expense
Interior Maintenance & Repair Tenant's Expense
R.E. Taxes Tenant's Expense
Notes: Landlord shall be responsible for building, roof, and underground utilities. Tenant to maintain all
mechanical systems and undertake all interior repairs. Tenant will be resposible for fire insurance. Tenant will
carry appropriate liability insurance naming Landlord as co-insured. Security deposit to be held in eskrow with
tenant as beneficiary of interest payments. Security deposit principle to be "stepped down" by $30,000 after
each 12 month period in good standing until a balance of $60,000 reamains.
Expenses
Nephrology Foundation of Brooklyn
PPM PPY
$30,000.00 $360,000.00
$32,400.00 $388,800.00
$34,992.00 $419,904.00
$37,791.36 $453,496.32$40,814.67 $489,776.03
Years 7-10
Years 11-13Years 14-15
Rent Schedule Escalations
Lease Period
Years 1-3
Years 4-6
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Property Photos
Front of Building Facing North Parking Lot Rear
South Entrance Reception
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Property Photos
Hallway
Electrical BoardFreight Elevator
Main Elevator
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1845 McDonald Avenue - Page 13
Property Photos
Equipment #1 Equipment #2
Storage Phone/Computer
Gravesend
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Zoning Information
• R5 Zoning: Low-Denisty General Residential District
• Maximum Residential FAR: 1.25 (2.0 w/ Community Use Bonus)
• No commercial overlay
• Ocean Parkway Special District
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Transportation Map - Subway
• Subway Map: The property is located near the F subway line at the Avenue P station.
Gravesend
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Due Diligence – DOB Overview
Block 6633 Lot 60 –Violation In Process of Dismissal
Gravesend
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Due Diligence – DOB Overview
DOB Violations
* Violation In Process of Dismissal
Gravesend
1845 McDonald Avenue - Page 31
Due Diligence – Building Documentation
Certificate of Occupancy
Gravesend
1845 McDonald Avenue - Page 32
SECTION V SECTION V ––
About Massey KnakalAbout Massey Knakal
Gravesend
1845 McDonald Avenue - Page 33
About Massey Knakal
In 1988, two real estate agents at Coldwell Banker Commercial (now CB Richard Ellis) in New York City had a business idea they thought might
revolutionize the industry.
Paul J. Massey, Jr. and Robert A. Knakal wanted to branch out on their own and do something that hadn’t been done before, but made perfect sense. Why
not slice up New York City into geographic territories and create a real estate brokerage firm full of “territory experts?”
Today that brainstorm has come to fruition, and then some. With 200 employees and coverage of Manhattan, Queens, Brooklyn, the Bronx, Staten Island,
Nassau County and Westchester County. Massey Knakal Realty Services has taken over and dominated the New York City building sales marketplace.
Massey Knakal is a full service property sales company specializing in the sale of investment and user properties. After running Massey Knakal for about
a decade, it became clear that Manhattan was not the only place to sell real estate. In 1998, Massey Knakal opened an office in Queens, and in 2002, an
office in Brooklyn.
Massey Knakal brokers each work in a specific territory with the idea that the city is far too big for one person to know everything about every inch of
New York City. By focusing on one small geographic territory, the broker is able to become a market expert in that territory by knowing who’s buying,
who’s selling, what prices are and how best to maximize the sale price of a property.
This focus allows Massey Knakal agents to be the best possible advocate for the seller, giving them the ability to convince buyers to pay higher prices. In
fact, the company is so focused on this approach that it only represents sellers. This way, Massey Knakal keeps its objectives completely aligned with the
seller’s, which avoids conflicts of interest completely.
This approach to the New York City marketplace has paid off. In the 18 years the firm has been in existence, over 3,000 transactions have been closed
with an aggregate value of over $9 billion. In 2005, Massey Knakal was ranked #1 by Co-Star for the 5th year in a row as the top building sales firm in
New York City. The same year the firm outsold its nearest competitor 4 to 1! An independent market study, conducted by Miller Cicero, of NYC
property sales over the past 2 years, concluded that MK receives a sales price premium of 21% as compared to the rest of the market. The MK
Premium is the direct result of MK’s Marketing Program, our Agent’s territory knowledge, and our reputation in the NYC market place.
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About Massey Knakal
Massey Knakal handles many different product types within New York City and the region including investment properties, vacant owner-occupied
buildings, multi-family apartment buildings, office buildings, retail centers, commercial warehouses and large portfolios that have sold for more than
$100,000,000. Massey Knakal also has expertise in selling institutional vacant properties for uses such as schools, non-profit organizations and foreign
governments.
Massey Knakal grows each year and now consists of some of the most highly regarded building sales professionals in the industry. This steady growth,
exemplified by the number of sales, aggregate dollar volume of sales and market share, particularly through the recessionary period of 1990-1993, are
accomplishments the firm is very proud of. Although the majority of Massey Knakal sales are of properties under $20,000,000, the firm has sold properties
as large as 2,000,000 square feet and for as much as $179,000,000.
New York City is the toughest place in the world to do business. Massey Knakal is proud to know that on a daily basis, the people in this company prove
that the nice person can finish first.
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Disclosure
Note:
The information contained herein is derived from sources deemed reliable. However, there can be no guarantee that the
enclosed information is accurate or that the subject property will sell for the suggested asking price. The estimates and
assumptions provided herein are based on the subject property containing no environmental contamination.