Académique Documents
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Eastern Consolidated
355 Lexington Avenue
New York, NY 10017
Telephone 212.499.7700
Facsimile 212.499.7718
info@easternconsolidated.com
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
Contents
05 Executive Summary
07 Plot Plan
08 Survey
09 Loan Summary
10 Zoning Opinion
15 Property Detail
17 Rent Rolls
18 Location Description
19 Confidentiality/Disclaimer
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
Executive Summary
Eastern Consolidated is the exclusive agent in the sale of the $25,053,750 par-value first mortgage
(the “Loan”) secured by three adjacent 5-story walk-up apartment buildings located at 272‐276 West
86th Street (the “Properties”) in the Upper West Side neighborhood of Manhattan. The Loan proceeds
were used to refinance 272 West 86th Street (“272”), acquire 274 West 86th Street (“274”) and 276
West 86th Street (“276”), and fund tenant buyouts and pre-development costs.
Address 272-276 West 86th Street, New York, NY 10024
Location The Properties are located on the south side of West 86th Street, mid‐block between Broadway and West
End Avenue
Street Smart Realty (the “Sponsor”) planned to demolish 272 and 274 and combine the air rights from
the three lots to develop an 18-story luxury condominium tower totaling 53,785 gross square feet (refer
to Zoning Opinion section). 276 was to remain a rental property to facilitate the relocation of tenants from
274.
The Sponsor proposed numerous development schemes throughout 2007 and early 2008 before default-
ing on the Loan. Petra Mortgage Capital Corp. (the “Lender”) initiated foreclosure proceedings in early
2009 and has received summary judgment, however the Sponsor has filed an appeal to the summary
judgment.
Each five-story walk-up contains 10 units, for a total of 30 units. 272 and 276 will be delivered vacant.
Three rent stabilized apartments and one apartment believed to be deregulated remain in 274. The com-
mercial tenant in 274, a dog grooming business that occupies the basement and ground floor, sued the
Sponsor for defaulting on a buyout agreement and has placed a lien on 274. Per the Lender, the lien
should be removed by the foreclosure proceeding. However, the tenant contends it is entitled to operate
rent-free until the Sponsor delivers the buyout payment.
It appears the Sponsor did not file unit registrations with the Department of Housing and Community
Renewal for 2008. The Lender cannot obtain DHCR records without title. Documents related to the rental
apartments as well as the tenant and foreclosure lawsuits are public information and prospective purchas-
ers are advised to conduct thorough due diligence.
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
Zoning The R10A zone has a maximum as-of-right FAR of 10.0. The Properties are located outside of the Upper
West Side Historic District and are not subject to any landmark restrictions.
However, the proposed development is subject to Section 23-692 of the zoning code, which is known as
the “Sliver” law. Under this rule, the height of a building constructed on a lot of less than 45 feet cannot
exceed 100 feet. Furthermore, each floor height is restricted to 10 feet.
The proposed development was designed to avoid this height limitation by cantilevering approximately
five feet above 276. A zoning counsel opinion from Kramer Levin Nastalis & Frankel LLP states that the
cantilevered tower would not be subject to the “Sliver” law height limitation.
Peter Hauspurg
Eastern Consolidated
355 Lexington Avenue
New York, NY 10011
Facsimile 212.499.7718
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
Plot Plan
West 87th Street
Amsterdam Avenue
West End Avenue
Broadway
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
Survey
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
Loan Summary
1
Comments Refinance 272 West 86th Street (“272”), acquire 274 West 86th Street (“274”) and 276 West 86th Street
(“276”).
2
Tenant Buyout Reserve: $700,000. Cost over runs in relation to the tenant buyout reserve were the sole
responsibility of the principals.
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
Zoning Opinion
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
Property Detail
Overview
General Description The Properties consists of three adjacent 5-story walk-up apartment buildings. The eastern two buildings
(272-274 West 86th Street) were scheduled to be demolished and redeveloped with an 18-story, 18-unit
luxury condominium containing a net sellable residential area of 48,756 square feet. The above grade build-
ing area was to be approximately 54,000 square feet. The western most building (276) was to remain a
multi-family rental investment property.
Facade and Exterior walls - masonry columns. The fenestration design incorporates over-sized double-height windows.
Exterior Overall, the design incorporates high levels of architectural detailing to conform to the architectural style of
the surrounding areas.
Apartments 18 full floor apartments containing 48,756 square feet of sellable area. The proposed unit mix is illustrated in
the following table.
Floor No. Unit Area (Sq. Ft.) Total Unit Area (Sq. Ft.)
G-5 5 2,550 12,750
6-12 7 2,982 20,874
13-18 6 2,522 15,132
Total/Average 18 2,709 48,756
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
Apartments The initial tentative floor plans for apartments on floors 6 through 12 indicate units with 4 bedrooms and 4.5
continued... bathrooms.
Heating, The HVAC system for the condominium building has not been provided. However, it is assumed that the
Ventilation and Air building would be heated either by basement level boilers or steam heat provided by a local utility company.
Conditioning (HVAC)
Amenities 24 / 7 doorman.
Structural System The foundation appears to consist of cast in place reinforced concrete foundations and brick bearing walls.
Façade and The exterior walls are of standard masonry construction with steel frame window openings and plaster work
Exterior on the windows lintels. The entrance is located along the south side of West 86th Street and is accessed
by 2 sets of double glass doors in the wooden frame.
Common Area The first floor is comprised of the lobby which contains the mailboxes, the main staircase, and 2 apartments.
The lobby is finished with marble floors, and painted sheetrock, wood paneled, and exposed brick walls. Il-
lumination is provided by a circular ceiling-mounted light fixture. The staircase consists of marble steps and
wood railing. A non-functioning fireplace is located in the main foyer of the 2nd floor.
Roof The main roof is set-aside as outdoor terrace space for the 2 top floor apartments.
Heating, The property is heated by a gas-fired boiler manufactured by H. B. Smith Company. Heat is provided by
Ventilation and Air steam radiators located throughout the building. Air conditioning is via tenant-provided window units.
Conditioning (HVAC)
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
Rent Rolls
274 West 86th Street Rent Roll
(1)
Sponsor did not file DHCR registrations for 2008
(2)
The commercial tenant has alleged it is not required to pay rent
due to Sponsor default on a buyout agreement. A supporting court
decision is under appeal, and is a matter that should be subject to
due diligence by any prospective purchaser.
1A Market
1B Stabilized
2A Stabilized
2B Stabilized
3A Stabilized
3B Controlled
4A Market
4B Market
PHA Market
PHB Market
(3)
Lender does not have access to DHCR rent-registrations for 272
and 276. The 276 designations, based on a 2007 rent roll, are un-
confirmed. The two buildings contain a total of 20 residential units.
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
Location Overview
Extending from Columbus Circle at 59th Street to Columbia University at 116th Street and nestled be-
tween Central Park and Riverside Park, the Upper West Side offers a residential haven containing many
of Manhattan’s most vibrant cultural resources and retail destinations.
Elegant, pre-war buildings along the avenues are intersected Subway service for the No. 1 train in the Upper West Side
by quiet residential side streets lined with brownstones and can be found along Broadway at West 59th, West 66th, West
elevatored apartment buildings. The neighborhood’s restored 72nd, West 79th, West 86th, West 96th, and West 103rd
townhouses, condominium and co-operative apartments are Streets, with the Nos. 2 and 3 express trains stopping at West
coveted by young professionals, families, artists and celebri- 72nd and West 96th Streets. Subway service for the B and C
ties alike. trains in the Upper West Side can be found along Central Park
West at West 59th, West 72nd, West 81st, West 86th, West
The Upper West Side is home to a quarter of a million people 96th, West 103rd, and West 110th Streets. MTA buses serve
and more than three thousand stores and restaurants. Neigh- the area along the major arteries and cross streets.
borhood residents and visitors stroll the neighborhood’s av-
enues to investigate the mix of unique boutiques, national re-
tailers, myriad restaurants and bars, and specialty food stores
including favorites such as Fairway, Zabar’s, and Citarella.
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272-276 WEST 86TH STREET, NEW YORK, NY Real estate investment services
Confidentiality and
Disclaimer
This Offering Memorandum has been prepared exclusively by Eastern Consolidated (“Eastern Consolidated”)
on behalf of the Petra Mortgage Capital Corp. (“Lender”), regarding the purchase of the property described herein
at 272-276 West 86th Street, New York, NY (the “Property”). The materials and information contained in this Offer-
ing Memorandum do not purport to be all-inclusive or to contain all of the information which prospective investors
may need or desire. All materials have been developed by Eastern Consolidated, the Lender and other sources
and are subject to variation.
No representation is made by Eastern Consolidated or the Lender as to the accuracy or completeness of the infor-
mation contained herein and nothing contained herein is or shall be relied on as a promise or representation as to
the future performance of the property. Although the information contained herein is believed to be correct, Eastern
Consolidated and the Lender and their employees disclaim any responsibility for inaccuracies and
expect prospective purchasers to exercise independent due diligence in verifying all such information.
Further, Eastern Consolidated, the Lender and their employees disclaim any and all liability for representations
and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other
written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not
constitute a representation that there has been no change in the business or affairs of the Property or the Lender
since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained
in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and an
opportunity to inspect the Property will be made available upon request to interested and qualified investors.
The Lender and Eastern Consolidated each expressly reserve the right, in their sole discretion, to reject any and
all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time
with or without notice. The Lender shall have no legal commitment or obligation to any entity reviewing the Offering
Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase
of the properties has been fully executed, delivered and approved by the Lender and its legal counsel and any
conditions to the Lender’s obligations thereunder have been satisfied or waived. Eastern Consolidated is not
authorized to make any representations or agreements on behalf of the Lender.
This Offering Memorandum and its contents, except such information which is a matter of public record or is
provided in sources available to the public (such contents as so limited herein called the “Contents”) are of a
confidential nature. By accepting the Offering Memorandum, you agree (i) to hold and treat it in the strictest
confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the Offering Memorandum or any of its contents
to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether
or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior
written authorization of the Lender or Eastern Consolidated, (iv) not to use the Offering Memorandum or any of
its contents in any fashion or manner detrimental to the interest of the Lender or Eastern Consolidated, and (v) to
return it to Eastern Consolidated immediately upon request of Eastern Consolidated or the Lender.
If you have no further interest in the Property, please return the Offering Memorandum forthwith.
No inspections of the Property are permitted unless accompanied by the Lender or a representative
from Eastern Consolidated.
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Eastern Consolidated
355 Lexington Avenue
New York, NY 10017
Telephone 212.499.7700
Facsimile 212.499.7718
info@easternconsolidated.com