EX NO.
`850273/2018
`INDEX NO. 850273/2018
`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`
` ITIJLEHD: IJEWV ERDFUKI CKDEHHGTY (ZIJEFUK ()4 fl52019 06:35 P
`
` VYSC
`
`NYSC 3F DOC. No, 131
` filvd D
` 3F;
`
`04/26/2019
`NYSCEF DOC. NO. 131
`RECEIVED NYSCEF: 04/26/2019
`
`EXHIBIT
`
`
`
`E
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`BBG
`
`APPRAISA
`
`L REP O RT
`
`Conversion
`
`Proposed
`Dormitory
`10th Street
`350 East
`a.k.a.
`605 East
`9th Street
`New York, NY 10009
`
`REQUESTED
`
`B Y
`
`Mr. Gregg
`90' & 100'
`186 West
`New York,
`
`Singer
`
`LLC
`
`Street,
`80""
`Street,
`10024
`
`NY
`
`4"'
`
`Floor
`
`PREPARED
`
`BY
`
`Inc.
`BBG,
`112 Madison
`New York,
`
`Avenue,
`New York
`
`11th Floor
`10016
`
`DATE
`
`OF VALUE
`
`ESTIMATE
`
`As
`
`Is - September
`
`15, 2018
`
`As Completed/Stabilized
`
`- September
`
`1, 2020
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`BBG
`
`October
`
`29, 2018
`
`Mr. Gregg
`9d' & 100'
`186 West
`New York,
`
`Singer
`
`LLC
`
`Street,
`8001
`Street,
`10024
`
`NY
`
`46' Floor
`
`Re:
`
`#0118009749
`Conversion
`
`File
`
`BBG Appraisal
`Proposed
`Dormitory
`350 East
`10th Street
`a.k.a.
`605 East 9th Street
`New York, NY 10009
`
`Dear Mr.
`
`Singer:
`
`As
`requested,
`captioned
`property:
`leased
`property.
`housing.
`
`property
`the
`"as
`1)
`interest
`is also
`
`It
`
`Therefore,
`
`fee
`
`the undersigned
`have
`purpose
`for
`the
`estimating
`is"
`the
`fee simple
`value
`market
`and
`stabilized
`upon
`completion
`based
`on similar
`noted
`that
`we have
`presented
`values
`
`prepared
`of
`of
`
`an appraisal
`the
`
`report
`
`following
`interest,
`
`projects,
`with
`full
`
`occupancy
`the property
`may
`taxes
`and exempt
`
`of
`of
`
`format
`in narrative
`values
`market
`the prospective
`and 2)
`as a state-of-the-art
`exempt
`be tax
`taxes.
`
`the above-
`the
`subject
`value
`of
`the
`
`dormitory
`as student
`
`subject
`The
`frontage
`on
`10th
`York.
`
`Street,
`The
`
`between
`on a block-through
`is situated
`property
`of
`150
`feet
`side
`of East
`and
`9th Street
`the
`north
`frontage,
`of Manhattan,
`in
`the East
`Village
`section
`the Borough
`of
`a.k.a.
`is 350 East
`10th Street,
`street
`of
`the property
`address
`
`Avenues
`
`of
`150 feet
`B and C, with
`side
`of East
`south
`on the
`of New
`State
`and
`9th Street.
`
`City
`605 East
`
`of a six-story,
`college
`student
`dormitory
`proposed
`beds.
`The
`and
`quad
`
`former
`
`school
`
`rooms,
`
`with
`
`housing
`dormitory
`along
`contains
`currently
`a gross
`contain
`1, 2019
`March
`of September
`
`building,
`facility,
`contain
`will
`common
`a gross
`
`originally
`which
`six-
`
`area
`
`of
`
`building
`area
`building
`is projected
`and
`Several
`1, 2020.
`the Cooper
`Union
`place
`for
`196
`beds.
`although
`numerous
`
`conversion
`is the proposed
`property
`into
`a state-of-the-art
`circa
`1906,
`a total
`of 95 units
`with
`535
`rentable
`a mezzanine
`level
`with
`triple
`commensurate
`with
`The
`110,848+/-
`feet
`square
`feet. Construction
`square
`with
`a proposed
`18 months,
`to take
`universities
`have
`colleges
`area
`and
`College
`and
`Adelphi
`due
`to delays,
`However,
`remain
`colleges/universities
`
`double,
`life.
`
`dormitory
`and,
`
`University,
`any
`previously
`interested.
`
`subject
`The
`constructed
`will
`contain
`stories
`plus
`amenities
`area
`of
`114,552+/-
`
`tIEW YORK
`
`P * 212662 6300
`F + 2f2682 2233
`112MADiSONAVENUE+ it*
`NEWYORK.NY 10010
`
`FLOOR
`
`building
`will
`upon
`completion,
`is anticipated
`to commence
`completion/stabilization
`date
`in
`expressed
`interest
`leasing,
`who
`had
`each
`a negotiated
`negotiated
`leases
`are
`
`including
`lease
`in
`in place,
`
`not
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`Mr. Gregg
`Page
`2
`October
`
`Singer
`
`29, 2018
`
`common
`The
`study/computer
`
`room,
`
`laundry
`Additionally,
`
`area
`
`room,
`outdoor
`the
`
`building
`
`will
`amenities
`TV/media
`terrace
`will
`
`include
`
`room,
`practice
`
`a fitness
`music
`lounge,
`bicycle
`spaces,
`have
`full
`contain
`
`storage,
`time
`
`group
`security.
`
`yoga
`
`art
`
`studio,
`studios,
`café,
`vending
`and
`rooms,
`
`game
`machine
`a health
`
`room,
`study
`
`room,
`area,
`center.
`
`upon
`of
`is a
`design
`This
`the
`the
`
`of
`
`subject
`The
`property
`a deed
`restriction,
`the
`subject
`property
`"Landmark
`Building",
`character.
`The
`highest
`conclusion
`is based
`subject's
`property.
`
`location,
`
`whereby
`and
`best
`upon
`the
`the
`current
`
`zoning,
`
`is within
`R8B
`zoned
`a split
`of which
`a copy
`be found
`can
`is limited
`to community
`facility
`its exterior
`façade
`use of
`the
`subject
`physical
`characteristics
`the
`deed
`
`property
`of
`
`restriction,
`
`and R7A
`residential
`of
`in the Addenda
`uses.
`Additionally,
`to conform
`is restricted
`is for
`conversion
`the
`subject
`and
`
`this
`
`Based
`district.
`zoning
`development
`appraisal,
`the
`subject
`building
`to its original
`to a dormitory.
`the
`nature
`trends
`
`affecting
`
`property,
`general
`
`Our
`analyses,
`conformance
`American
`Practice
`
`were
`conclusions
`and
`opinions
`with
`the Standards
`of Professional
`Institute
`of Real
`Estate
`Appraisers,
`and
`(with
`Title
`XI
`(USPAP),
`amendments)
`and Enforcement
`Act
`of 1989
`(FIRREA).
`
`developed,
`Practice
`the Uniform
`
`Recovery
`
`and
`been
`has
`report
`this
`of Professional
`and Code
`of Professional
`Standard
`the
`Financial
`Institutions
`
`of
`
`in
`the
`
`prepared,
`Ethics
`of
`Appraisal
`
`Reform,
`
`on
`
`inspection
`
`subject
`
`all
`it
`
`Based
`appraiser's
`the
`information
`available
`concerning
`is the opinion
`of
`the appraisers
`
`the
`of
`subject
`the
`the market
`
`that
`
`property
`values
`
`and
`after
`property
`all
`apparent
`and
`the subject
`of
`
`carefully
`factors
`
`considering
`value,
`affecting
`are as follows:
`
`property
`
`Conclusions
`
`Full Taxes
`
`with
`
`with Exempt
`
`Taxes
`
`of Value
`Summary
`Stabilized"
`"As
`"As Stabilized"
`is" Residual
`"As
`Is"
`Residual
`
`"As
`
`Value
`
`Value
`
`with
`
`Full Taxes
`
`with Exempt
`
`Taxes
`
`e of Value
`
`September
`
`September
`
`September
`
`September
`
`1, 2020
`1, 2020
`15, 2018
`15, 2018
`
`Values
`
`$216,900,000
`
`$247,400,000
`
`$103,200,000
`
`$126,800,000
`
`The
`
`opinions
`
`conditions,
`
`value
`of
`and all other
`
`expressed
`information
`
`are
`herein
`contained
`
`to the
`subject
`in the following
`
`certification,
`written
`
`assumptions
`appraisal
`report.
`
`and
`
`limiting
`
`William
`G. Freda
`Appraiser
`Senior
`State Certified
`682-2864
`
`(212)
`bfreda@bbgressom
`
`General
`
`Appraiser
`
`#46-51249
`
`MAÍ
`Jon DiPietra,
`Director
`Managing
`State Certified
`General
`
`Appraiser
`
`#46-46386
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`SUMMARY
`
`OF FACTS
`
`AND CONCLUSIONS
`
`SUBJECT
`
`PROPERTY:
`
`LOCATION:
`
`Conversion
`
`Proposed
`Dormitory
`10th Street
`350 East
`a.k.a.
`605 East
`9th Street
`New York, NY 10009
`
`The
`subject
`property
`B and C, with
`Avenues
`of East
`9th Street
`and
`of
`East
`10th
`Street,
`Borough
`of Manhattan,
`
`is situated
`between
`on a block-through
`150 feet
`of
`frontage
`on the north
`side
`on the south
`150 feet
`of
`side
`frontage,
`section
`of
`in
`East
`the
`the
`Village
`of New York.
`and State
`
`City
`
`TAX MAP NUMBER:
`
`Manhattan,
`
`Block
`
`392,
`
`Lot
`
`10
`
`is
`
`the
`
`proposed
`
`of
`
`a six-
`circa
`
`dormitory
`with
`double,
`area
`amenities
`
`currently
`square
`
`conversion
`constructed
`student
`dormitory
`95 units
`with
`of
`six-
`contain
`will
`quad
`and
`triple
`commensurate
`contains
`a gross
`feet
`upon
`and,
`114,552+/-
`of
`area
`a gross
`building
`to commence
`is anticipated
`March
`with
`a proposed
`to take
`18 months,
`date
`of September
`Several
`1, 2020.
`universities
`have
`in
`expressed
`interest
`the Cooper
`had
`Union
`and
`who
`Adelphi,
`in place
`due
`lease
`for
`196 beds.
`However,
`are
`negotiated
`leases
`not
`in place,
`previously
`any
`numerous
`colleges/universities
`remain
`interested.
`
`subject
`former
`into
`
`a
`
`PROPERTY
`
`DESCRIPTION:
`
`The
`
`rooms,
`with
`
`property
`school
`story,
`building,
`originally
`state-of-the-art
`college
`1906,
`contain
`a total
`which
`will
`facility,
`housing
`The
`proposed
`rentable
`beds.
`535
`stories
`plus
`a mezzanine
`level
`with
`common
`along
`life.
`The
`building
`dormitory
`110,848+/-
`of
`area
`building
`contain
`will
`completion,
`Construction
`square
`feet.
`is projected
`1, 2019
`and
`completion/stabilization
`colleges
`and
`area
`
`leasing,
`including
`each
`a negotiated
`to delays,
`although
`
`YEAR BUILT:
`
`1906
`
`Projected
`2019
`with
`anticipated
`
`construction/conversion
`a 15 month
`construction
`for September
`1, 2020.
`
`commencement
`period
`and
`
`March
`completion
`
`1,
`
`SITE
`
`AREA:
`
`ZONING:
`
`27,681±
`
`square
`
`feet
`
`Split-zoned
`
`R8B
`
`and R7A Residential
`
`a deed
`Based
`upon
`in the Addenda
`of
`is limited
`
`property
`
`restriction,
`this
`appraisal,
`to community
`
`of which
`a copy
`development
`uses.
`
`facility
`
`be found
`can
`of
`the subject
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`HIGHEST
`
`AND BEST
`
`USE:
`
`Conversion
`
`facility,
`
`into
`a state-of-the-art
`as proposed.
`
`college
`
`student
`
`dormitory
`
`FLOOD
`
`ZONE:
`
`Zone
`flood
`
`Community
`
`X - Area
`insurance
`Panel
`
`to moderate
`of minimal
`required
`is
`not
`#360497-0201F
`
`dated
`
`flood
`
`according
`September
`
`hazard
`to
`
`where
`FIRM
`5, 2007.
`
`DATE OF INSPECTION:
`
`September
`
`15, 2018
`
`PROPERTY
`APPRAISED:
`
`RIGHTS
`
`Fee simple
`
`(as is) and leased
`
`fee (as stabilized)
`
`PURPOSE
`
`OF APPRAISAL:
`
`estimate
`To
`stabilized"
`
`the
`market
`
`is"
`
`"as
`value
`
`value
`market
`of
`the subject
`
`"as
`and
`property.
`
`completed
`
`and
`
`"As Stabilized"
`"As Stabilized"
`Is" Residual
`"As
`Is" Residual
`"As
`
`Full Taxes
`with
`with Exempt
`Value
`with
`
`Value
`
`Taxes
`Full Taxes
`with Exempt
`Taxes
`
`Date
`
`September
`September
`September
`
`September
`
`of Value
`1, 2020
`1, 2020
`15, 2018
`15, 2018
`
`Values
`
`$216,900,000
`$247,400,000
`$103,200,000
`
`$126
`
`800,000
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`FILED: NEW YORK COUNTY CLERK 04m2019 06:35 P
`
`NYSC3F DOC. NO. 131
`NYSCEF DOC. NO. 131
`
`IND
`EX NO.
`850273/2018
`INDEX NO. 850273/2018
`
` VYSC
`
` fiIV fiD
` 3F:
`
`04/26/2019
`RECEIVED NYSCEF: 04/26/2019
`
`PHOTO
`AERIAL
`AER1AL PHOTO
`
`DORMITORY
`
`UPON COMPLETION
`
`RENDERING
`
`OF PROPOSED
`
`
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`TABLE
`
`OF CONTENTS
`
`INTRODUCTION
`
`........................................................................................................................1
`
`IDENTIFICATION
`
`OF THE
`
`SUBJECT
`
`PROPERTY
`
`............................................................1
`
`LEGAL
`
`DESCRIPTION........................................................................................................2
`
`PURPOSE
`
`OF THE
`
`APPRAISAL.................................................................,.....,.................2
`
`FUNCTION
`
`OF THE
`
`APPRAISAL/INTENDED
`
`USER.............-...........................................2
`
`PROPERTY
`
`RIGHTS
`
`APPRAISED
`
`..,..................................................................................2
`
`DATES
`
`OF VALUE
`
`ESTIMATE............................................................................................3
`
`SUBJECT
`
`PROPERTY
`
`HISTORY
`
`.................................................,..,..,.......,....................,..3
`
`DEFINITION
`
`OF MARKET
`
`VALUE
`
`...........................,,,.......................................................4
`
`EXPOSURE
`
`TIME................................................................................................................4
`
`ESTIMATE
`
`OF REASONABLE
`
`MARKETING
`
`TIME............................................................5
`
`EXTRAORDINARY
`
`ASSUMPTIONS
`
`AND HYPOTHETICAL
`
`CONDITIONS......................5
`
`SCOPE
`
`OF THE APPRAISAL..............................................................................................6
`
`CURRENT
`
`ECONOMIC
`
`CONDITIONS.......................................................................................8
`
`MANHATTAN
`
`REGIONAL
`
`ANALYSIS......................................................................................19
`
`NEIGHBORHOOD
`
`DESCRIPTION...............................................................,,....................-.....31
`
`DEMOGRAPHIC
`
`OVERVIEW............................................................................................35
`
`STUDENT
`
`HOUSING
`
`MARKET...........................................,,....,,..,..........................................42
`
`MACRO ANALYSIS............................................................................................................42
`
`LOCAL
`
`STUDENT
`
`HOUSING............................................................................................50
`
`ZONING
`
`ANALYSIS
`
`.................................................................................................................62
`
`ASSESSED
`
`VALUE
`
`AND REAL
`
`ESTATE
`
`TAXES..................,.................................................66
`
`SITE
`
`DESCRIPTION
`
`................................................................................................................69
`
`SUBJECT
`
`BUILDING
`
`PHOTOGRAPHS.....................................................................................................71
`
`DESCRIPTION...............................................................,........................................83
`
`HIGHEST
`
`AND BEST
`
`USE........................,..............................................................................90
`
`APPRAISAL
`
`VALUATION
`
`PROCESS.......................................................................................93
`
`INCOME
`
`APPROACH...............................................................................................................94
`
`OPERATING
`
`EXPENSE
`
`ANALYSIS.......................................................,........................106
`
`INCOME
`
`INDICATED
`
`CAPITALIZATION.........................,.,.................................................................113
`IS"
`
`VALUE.............................................................................................117
`
`"AS
`
`SALES
`
`COMPARISON
`
`APPROACH
`
`..............................................................,.......................119
`
`SHELL
`
`SALES
`
`DESCRIPTION........................................................................................121
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`COST
`
`APPROACH......................................................,..................,.......................................127
`
`RECONCILIATION
`
`AND FINAL
`
`VALUE
`
`ESTIMATE...............................................................128
`
`A D D E N D A........................................................................................................................129
`
`DEVELOPMENT
`
`BUDGET
`
`PROVIDED
`
`BY DEVELOPER..............................................130
`
`ZONING
`
`ANALYSIS.........................................................................................................131
`
`DEED RESTRICTION......................................................................................................139
`
`LANDMARK
`
`DESIGNATION..............,.............................................................,...............142
`
`FLOOR
`
`PLANS................................................................................................................143
`
`CONTINGENT
`
`AND LIMITING
`
`CONDITIONS.................................................................151
`
`CERTIFICATION..............................................................................................................155
`
`QUALIFICATIONS
`
`...........................................................................................................156
`
`APPRAISAL
`
`LICENSE
`
`.....................................................................................................158
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`INTRODUCTION
`
`INTRODUCTION
`
`IDENTIFICATION
`
`OF THE SUBJECT
`
`PROPERTY
`
`between
`on a block-through
`is situated
`subject
`The
`property
`side
`of East
`frontage
`on the
`north
`150
`feet
`9th Street
`and
`10th
`in
`the East
`Village
`the Borough
`section
`of
`York.
`
`Street,
`
`Avenues
`
`of
`frontage,
`of Manhattan,
`
`B and C, with
`on the
`south
`and
`
`of
`150 feet
`side
`of East
`of New
`State
`
`City
`
`subject
`The
`R7A residential
`street
`address
`
`site
`
`of
`
`a land
`has
`The
`zone.
`the property
`
`27,681±
`of
`area
`site
`is identified
`is 350 East
`
`and
`feet
`square
`on the Manhattan
`10th Street
`a.k.a.
`
`in a split
`is situated
`tax maps
`as Block
`605 East
`9th Street.
`
`zoned
`Lot
`
`392,
`
`R8B
`10.
`
`and
`The
`
`subject
`The
`constructed
`will
`contain
`stories
`plus
`amenities
`area
`of
`114,552+/-
`
`square
`18 months,
`to take
`area
`colleges
`and
`who
`had
`negotiated
`
`Adelphi,
`previously
`interested.
`
`is the
`property
`into
`circa
`1906,
`of 95 units
`a total
`a mezzanine
`level
`commensurate
`with
`110,848+/-
`feet
`square
`feet. Construction
`with
`a proposed
`universities
`have
`each
`a negotiated
`leases
`are
`
`double,
`life.
`
`dormitory
`and,
`
`not
`
`place,
`
`of a six-story,
`conversion
`proposed
`a state-of-the-art
`college
`student
`dormitory
`beds.
`with
`proposed
`The
`535
`rentable
`with
`triple
`and
`quad
`The
`
`former
`
`school
`
`originally
`which
`six-
`
`building,
`facility,
`will
`contain
`common
`a gross
`
`with
`
`area
`
`of
`
`housing
`dormitory
`rooms,
`along
`contains
`currently
`building
`area
`a gross
`contain
`building
`is projected
`and
`1, 2019
`March
`Several
`of September
`1, 2020.
`the Cooper
`Union
`and
`including
`due
`to delays,
`However,
`any
`colleges/universities
`remain
`
`building
`will
`upon
`completion,
`is anticipated
`to commence
`completion/stabilization
`date
`expressed
`in leasing,
`interest
`lease
`in place
`for
`196
`beds.
`in
`although
`numerous
`
`SUBJECT PROPERTY BED AND ROOM TYPE BREAKDOWN
`
`Unit
`One Bed/Room
`Two-Bed/Rooms
`(Doubles)
`Three-Beds/Room
`(Triples)
`Four-Beds/Rooms
`(Quads)
`Totals
`(The One/Bed/Room
`
`# Beds
`1
`266
`249
`20
`536
`for Staff/Non-Rentable)
`
`Unit
`
`# Rooins
`1
`133
`83
`5
`222
`
`SUBJECT PROPERTY SUrrE/UNIT
`UnitSize
`3-Bed Unit
`Unit
`4-Bed
`5-Bed Unit
`6-Bed
`Unit
`7-Bed Unit
`8-Bed Unit
`Mgmt. Units
`(non-income)
`Total
`Units
`
`Income-Generating
`
`Units
`
`SJ2E BREAKDOWN
`# Units
`1
`10
`45
`5
`27
`6
`1
`95
`94
`
`# Baths/.Unit
`1
`1
`2
`2
`2
`2
`1
`Extra
`
`133+45
`
`Sinks
`
`BBG
`0118009749
`
`1
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`
`
`.......... ........................................__............._........................................ ... . ..
`
`
`
`
`
`.....
`
`.
`
`.
`
`NTRODUCTION
`
`. .....
`
`.
`
`.....
`
`. .
`
`.
`
`. . ..
`
`plot,
`
`LEGAL
`DESCRIPTION
`THAT
`CERTAIN
`ALL
`improvements
`thereon
`Manhattan,
`, County
`Tax
`10
`3 9 2
`Lot
`the
`also
`said
`premises
`are
`P.C.
`Fehringer,
`
`City
`on
`
`P.L.S.,
`
`piece
`erected,
`State
`and
`the
`of
`Map
`described
`dated
`5/4/99
`
`parcel
`or
`aituate,
`of
`City
`pursuant
`as
`
`follows:
`
`of
`land,
`and
`lying
`New York,
`known
`of
`New York,
`to
`a
`survey
`
`with
`being
`and
`as
`
`buildings
`the
`and
`of
`the
`Borough
`in
`designated
`as Block
`same
`now
`sts
`and
`exi
`williarn
`F.
`made
`by
`
`BEGINNING
`feet
`93
`side
`of
`
`at
`easterly
`Avenúe
`
`a
`
`point
`from
`and
`
`"B"
`
`on
`the
`the
`
`the
`
`northerly
`corner
`northerly
`
`of
`
`of
`side
`Bast
`intersection
`of
`East
`
`9th
`
`the
`side
`
`9th
`
`Street
`formed
`Street;
`
`being
`the
`
`by
`
`distant
`easterly
`
`RUNNING
`distance
`street
`10th
`intersection
`East
`10th
`
`THENCE
`of
`184
`which
`of
`street;
`
`northerly
`feet
`is
`
`the
`
`and
`1/2
`6
`distant
`easterly
`
`parallel
`inches
`93
`side
`
`feet
`
`to
`
`of
`
`the
`
`with
`point
`a
`easterly
`Avenue
`
`easterly
`on
`the
`from
`"B"
`
`with
`
`of
`
`Avenue
`side
`side
`southerly
`formed
`corner
`the
`Boutherly
`
`the
`
`a
`
`"B"
`East
`the
`of
`
`of
`
`by
`side
`
`RUNNING
`feet;
`
`RUNNING
`distance
`
`THENCE
`
`easterly
`
`along
`
`the
`
`southerly
`
`side
`
`of
`
`East
`
`10th
`
`Street,
`
`150
`
`of
`
`"B"
`
`a
`
`THENCH
`of
`184
`
`southerly
`feet
`
`and
`parallel
`inches
`
`to
`
`6 1/2
`
`with
`the
`
`the
`northerly
`
`easterly
`side
`
`side
`of
`East
`
`Avenue
`9th
`Street;
`
`RUNNING
`distance
`
`THENCE
`of
`150
`
`westerly
`feet
`
`to
`
`and
`the
`
`along
`point
`
`the
`place
`
`northerly
`of
`
`side
`BEGINNINO
`
`or
`
`of
`
`.
`
`Bast
`
`9th
`
`St
`
`reet
`
`a
`
`PURPOSEOFTHEAPPRAISAL
`
`appraisal
`the
`simple
`It
`is also
`
`of
`purpose
`The
`fee
`of
`the
`value
`property.
`subject
`housing.
`student
`Therefore,
`The market
`taxes.
`exempt
`and market
`concept
`value
`this
`appraisal.
`
`is to estimate
`and
`the
`estate,
`2)
`noted
`that
`based
`the
`client's
`at
`values
`are
`definition
`and
`
`request,
`estimated
`are subject
`
`in
`
`extraordinary
`
`the
`following
`completed
`"as
`on similar
`
`market
`and
`
`values:
`stabilized"
`
`is"
`
`"as
`the
`market
`1)
`of
`the
`market
`value
`be tax
`exempt
`the property
`as
`projects,
`may
`presented
`we
`have
`values
`with
`full
`taxes
`and
`accordance
`with
`the
`highest
`and
`best
`use
`to the
`assumptions
`defined
`in
`
`FUNCTION
`
`OF THE APPRAISAL/lNTENDED
`
`USER
`
`The
`asset
`
`function
`valuation.
`
`of
`
`the appraisal
`The
`intended
`
`report
`user
`
`is to assist
`90' & 10"'
`is
`
`in the analysis
`LLC
`
`Street,
`
`of
`and/or
`
`the subject
`its affiliates.
`
`property
`
`for
`
`internal
`
`PROPERTY
`
`RIGHTs
`
`APPRAISED
`
`in the subject
`property
`is
`that
`a fee
`of
`the
`Appraisal
`other
`
`The
`and
`
`interest
`Stabilized"
`
`appraised
`values
`published
`unencumbered
`
`APPRAISAL,
`
`ownership
`eminent
`
`BBG
`0118009749
`
`domain,
`
`escheat,
`
`by
`
`by
`police
`
`any
`power,
`
`at both
`to arrive
`DICTIONARY
`simple
`estate.
`THE
`defines
`a fee
`simple
`subject
`
`the"Asls"
`
`or
`
`estate;
`
`only
`
`Institute,
`interest
`and taxation."
`
`and
`
`Complete
`"As
`the
`OF REAL
`ESTATE
`interest
`as
`"absolute
`to
`the
`limitations
`
`of
`
`2
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`.
`
`......_. .. .............._.
`
`.
`
`.
`
`. .
`
`...................................................................... ................ .......... .
`
`.
`
`.
`
`.
`
`..
`
`...
`
`..
`
`.INTRODUCTION
`
`DATEs
`
`OF VALUE
`
`ESTIMATE
`
`The
`"as
`
`subject
`on September
`inspected
`was
`property
`is"
`valuation
`is September
`15, 2018.
`
`15, 2018
`
`by William
`
`G. Freda.
`
`The
`
`date
`
`of our
`
`Our
`is
`value
`prospective
`estimate
`1, 2020. We project
`September
`that
`commencement
`of
`the Fall
`Semester
`
`SUBJECT
`
`PROPERTY
`
`HISTORY
`
`upon
`
`the
`
`based
`stabilized
`occupancy
`of
`the 2020/2021
`school
`
`construction
`completion
`projected
`coincide
`with
`would
`as a dormitory
`or as of September
`1, 2020.
`year,
`
`of
`
`by
`the
`
`According
`currently
`There
`
`have
`
`the New York
`to records
`held
`by
`by 9th & 10th
`St.
`owned
`LLC.
`been
`no transfers
`of
`the property
`
`City
`They
`over
`
`Department
`purchased
`the past
`
`the
`five
`
`of Finance,
`property
`years.
`
`subject
`the
`1999
`for
`
`in
`
`property
`$3,150,000.
`
`is
`
`of
`
`this
`
`appraisal,
`
`Based
`upon
`development
`
`a deed
`restriction,
`of
`the subject
`
`a copy
`of which
`is limited
`property
`
`be found
`can
`to community
`
`in the Addenda
`uses
`
`facility
`
`subject
`The
`conform
`to
`requirements
`
`is
`
`building
`its
`original
`to the subject's
`
`a "Landmark
`design
`character.
`
`ownership
`
`Building",
`whereby
`restriction
`This
`forward,
`
`going
`
`its
`also
`
`exterior
`imposes
`
`is
`
`facade
`façade
`
`restricted
`maintenance
`
`to
`
`is anticipated
`Construction
`a proposed
`(and
`completion
`been
`provided
`to us by
`has
`A detailed
`foot.
`of
`the
`copy
`Addenda
`of
`this
`reporL
`
`to commence
`
`stabilization)
`the property
`development
`
`March
`date
`developer
`budget
`
`and
`1, 2019
`of September
`and
`totals
`and
`hard
`
`is projected
`1, 2020.
`$64,107,452
`cost
`breakdown
`
`18 months
`to take
`The
`construction
`per
`or $559.64
`be found
`can
`
`with
`budget
`square
`in the
`
`Gross
`Building
`Hard Costs
`Soft Costs
`Total Construction
`
`Area
`
`(SF)
`
`Costs
`
`$40,380,000
`$23,727,452
`$64,107,452
`
`1M 552|
`$352.50
`$207J3
`
`$559.64]
`
`several
`with
`school,
`each.
`196 beds,
`However,
`Cooper
`schools
`including
`for
`several
`with
`students,
`and NY Institute
`of Technology
`St. John's
`University-Manhattan,
`in full
`schools
`local
`floors
`interested
`with
`a few law firms
`discussions
`summer
`to the
`programs
`
`in discussions
`has been
`developer
`The
`from Cooper
`Union
`and Adelphi
`for
`are now expired.
`local
`Nonetheless,
`blocks
`interested
`in leasing
`of
`rooms
`New School,
`Baruch
`College
`SVA,
`of
`the complex;
`and other
`schools
`including
`Kings
`as examples
`of
`College,
`College,
`has
`The
`developer
`also
`had
`also will
`and
`market
`and music.
`
`preliminary
`summer
`
`housing
`
`housing
`dance
`
`BBG
`0118009749
`
`local
`
`and at one time,
`due to approval
`Units
`and Adelphi
`larger
`schools
`interested
`
`including
`in leasing
`Manhattan,
`or blocks
`summer
`to the
`
`for
`related
`
`signed
`these
`
`leases
`leases
`
`had
`
`delays,
`remain
`
`extremely
`the
`NYU,
`or all
`part
`FFf, UM
`of
`rooms.
`
`internship
`fine
`arts,
`
`3
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`INTRODUCTION
`
`DEFINITION
`
`OF MARKET
`
`VALUE
`
`1
`
`a property
`price which
`probable
`the most
`"Market
`the buyer
`to a fair
`requisite
`conditions
`open market
`sale,
`affected
`price
`is not
`the
`and
`and
`knowledgeably,
`assuming
`date
`definition
`is the consum.mation
`of a sale as of a specified
`buyer
`condition
`whereby:
`
`Value"
`
`means
`all
`under
`
`under
`
`in a competitive
`should
`bring
`each
`and seller
`undue
`stimulus.
`by
`and the passing
`of
`
`and
`
`prudently
`acting
`in this
`Implicit
`from seller
`to
`
`title
`
`l.
`
`2.
`
`3.
`
`4,
`
`5.
`
`buyer
`
`and seller
`
`are typically
`
`motivated;
`
`both
`parties
`consider
`their
`
`are well
`own
`best
`
`informed
`
`interests;
`
`or well
`
`advised,
`
`and
`
`acting
`
`in what
`
`they
`
`a reasonable
`
`time
`
`is allowed
`
`for exposure
`
`in the open market;
`
`payment
`arrangements
`
`in
`is made
`terms
`comparable
`
`of
`
`thereto;
`
`cash
`and
`
`in U.S.
`
`dollars
`
`or
`
`in
`
`terms
`
`of
`
`financial
`
`the normal
`represents
`or
`creative
`with
`the sale.
`
`financing
`
`consideration
`sales
`or
`
`for
`sold
`the property
`concessions
`granted
`
`unaffected
`anyone
`
`by
`
`the price
`special
`by
`associated
`
`"Real
`
`estate-related
`
`financial
`
`transaction"
`
`means
`
`any
`
`transaction
`
`involving:
`
`1.
`
`2.
`
`3.
`
`the sale,
`interests
`
`purchase,
`lease,
`or
`in property,
`
`investment
`the financing
`
`in or exchange
`or
`
`thereof;
`
`of
`
`real property,
`
`including
`
`the refinancing
`
`of
`
`real property
`
`or
`
`interests
`
`in real property;
`
`or
`
`the
`
`use
`
`of
`
`investment,
`
`real
`
`interests
`or
`property
`mortgage-backed
`including
`
`in
`property
`securities.
`
`as
`
`security
`
`for
`
`a loan
`
`or
`
`EXPOSURE
`
`TIME
`
`Exposure
`would
`value
`
`assuming
`
`time
`of
`length
`as the estimated
`defined
`has been
`time
`hypothetical
`in the market
`have
`been
`offered
`prior
`to the
`of appraisal;
`on the effective
`a retrospective
`estimate
`date
`and open market.
`a competitive
`
`appraised
`interest
`the real
`property
`of a sale at market
`consummation
`of past events
`based
`on an analysis
`
`Exposure
`normal
`interviews
`verification
`
`is always
`time
`time
`exposure
`brokers
`with
`process.
`The
`
`to precede
`presumed
`for
`the
`subject
`and
`other
`real
`value
`reported
`
`property
`estate
`herein
`
`date
`the effective
`is
`12 months.
`sources
`such
`
`industry
`presumes
`
`It
`of appraisal.
`This
`conclusion
`and
`on
`information
`an exposure
`time.
`
`is our opinion
`is predicated
`obtained
`
`that a
`on
`in the
`
`Real Estate_;1ppn aisal Standards Amendments
`'Federal Reserve Bank of New York. The Federal Regtger:
`and Y Final Rule (New York, Federal Reserve Bank of New York, 1990), page 2.
`
`to Regulation li
`
`BBG
`0118009749
`
`4
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`INTRODUCTION
`
`ESTIMATE
`
`OF REASONABLE
`
`MARKETING
`
`TIME
`
`Given
`estimate
`
`the subject's
`the marketing
`
`location
`time
`
`and the marketing
`for
`the subject
`
`times
`to be within
`
`for
`
`similar
`one year.
`
`apartment
`
`properties
`
`in the area, we
`
`EXTRAORDINARY
`
`ASSUMPTIONS
`
`AND HYPOTHETICAL
`
`CONDITIONS
`
`Information,
`obtained
`
`responsibility
`
`from
`
`estimates
`sources
`for accuracy
`
`opinions
`and
`considered
`of such
`
`furnished
`reliable
`items
`
`and
`furnished
`
`appraiser
`to the
`believed
`to
`the appraiser
`
`be
`
`Extraordinary
`
`Assumptions
`
`in the
`and
`contained
`and
`correct.
`true
`can be assumed
`
`report
`
`were
`no
`
`However,
`by the appraiser.
`
`Appraisal
`of Professional
`Standards
`by the Unifonn
`is defined
`assumption
`An extraordinary
`Practice
`as "an assumption,
`found
`to be
`if
`related
`to a specific
`assignment,
`which,
`directly
`assumptions
`could
`alter
`eppraiser's
`conclusions.
`the
`opinions
`or
`false,
`Extraordinary
`or
`economic
`presume
`as
`fact
`Otherwise
`uncertain
`information
`about
`legal
`physical,
`such as
`characteristics
`of
`the subject
`or about
`corrditicas
`extemal
`to the property,
`property;
`analysis."
`market
`conditions
`or trends;
`or about
`the integrity
`of data used in an
`
`This
`
`appraisal
`
`is subject
`
`to the following
`
`extraordinary
`
`assumptions:
`
`appraisal
`This
`constructed
`developer
`proposed
`
`according
`described
`and
`development
`
`extraordinary
`specifications
`change
`impact
`
`that
`assumption
`and
`construction
`the
`construction
`in
`the values
`stated
`
`proposed
`the
`costs
`provided
`cost
`report.
`
`quality,
`within
`this
`
`conversion
`to us by
`size
`of
`
`or
`
`is
`the
`the
`
`is
`
`the
`
`to
`subject
`to the
`plans,
`herein.
`would
`
`Any
`materially
`
`Hypothetical
`
`Conditions
`
`condition
`A hypothetical
`Practice
`as "that which
`Hypsthetical
`conditions
`economic
`characteristics
`such
`as market
`property,
`analysis."
`
`Stañdards
`by the Uniform
`is defined
`is supposed
`to what exists
`is contrary
`but
`to known
`assume
`conditions
`contrary
`or
`about
`of
`the
`subject
`property;
`conditions
`or
`or about
`the
`trends;
`
`Appraisal
`of Professional
`of analysis.
`for
`the purpose
`or
`facts
`about
`physical,
`legal,
`the
`conditions
`external
`to
`in an
`of data
`used
`integrity
`
`This
`
`appraisal
`
`is not
`
`subject
`
`to any
`
`hypothetical
`
`conditions.
`
`BBG
`0118009749
`
`5
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`lNTRODUCTlON
`
`SCOPE OF THE APPRAISAL
`
`has been
`
`Inc.
`BBG,
`conclusions
`regarding
`estate
`brokers,
`appraisers,
`assignment
`the following
`
`retained
`the
`
`to prepare
`subject
`
`a market
`are
`and
`
`valuation
`
`based,
`government
`
`of
`Our
`property.
`the subject
`interviews
`on
`in part,
`conducted
`Within
`officials.
`the
`course
`
`analysis
`with
`of
`
`and
`real
`this
`
`property
`developers,
`were
`prepared:
`
`Inspected
`
`the interior
`
`and exterior
`
`of
`
`the subject
`
`property.
`
`Determined
`all
`relevant
`
`the highest
`factors.
`
`and
`
`best
`
`use of
`
`the subject
`
`property
`
`based
`
`on an analysis
`
`of
`
`Researched
`development
`
`investigated
`and
`patterns.
`
`the subject's
`
`location
`
`in terms
`
`of
`
`its economic
`
`activity,
`
`Conducted
`of similar
`
`a market
`student
`
`survey
`housing
`
`of dormitory
`facilities.
`
`rent
`
`levels,
`
`vacancy
`
`levels,
`
`and
`
`expenses
`
`Projected
`applied
`
`the subject's
`a market-derived
`
`net operating
`income
`capitalization
`income
`
`upon
`rate.
`
`completion
`
`and
`
`stabilization
`
`and
`
`Determined
`stabilized
`at
`the "as
`
`the
`
`occupancy
`is'
`value
`
`for
`
`prospective
`subject's
`projected
`to occur
`the subject
`
`property
`
`value
`completion
`upon
`1, 2020.
`September
`Additionally,
`thru
`a residual
`technique.
`
`of
`
`and
`construction
`we arrive
`
`Included
`
`full
`
`tax-
`
`and tax-exempt
`
`value
`
`scenarios,
`
`as completed
`
`and stabilized.
`
`Researched
`is"
`market
`Approach
`
`and
`value
`Residual
`
`ascertained
`estimate
`Technique.
`
`comparable
`for
`the
`
`shell
`subject
`
`building
`property
`
`sales
`arrived
`
`in supporting
`at
`in
`our
`
`"as
`the
`Income
`
`BBG
`0118009749
`
`6
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`ECONOMIC OUTLOOK
`
`AREAMAP
`
`j
`
`Moptcm
`
`Mthv
`
`"
`
`.
`
`pd N
`
`k
`
`C
`
`.
`
`ahúI
`
`E a eth
`
`u
`
`yS am
`
`N
`
`tenmem
`
`DnLESEX
`
`A t
`
`I a n t
`
`) c
`
`BBG
`0118009749
`
`7
`
`

`

`FILED: NEW YORK COUNTY CLERK 04/26/2019 06:35 PM
`NYSCEF DOC. NO. 131
`
`INDEX NO. 850273/2018
`
`RECEIVED NYSCEF: 04/26/2019
`
`ECONOMic OUTLOOK
`
`CURRENT
`
`ECONOMIC
`
`CONDITIONS
`
`- GDP growth
`quarter
`second
`in the
`accelerated
`U.S.
`Eca;wmy
`tariff
`of
`ahead
`demand
`from
`and
`a rebound
`deadlines
`China,
`investment
`and
`quarter.
`Non-residential
`business
`sluggish
`first
`robust.
`to growth
`while
`the national
`labor market
`remained
`The
`which
`was
`a drag
`on first
`second
`quarter
`growth.
`
`and
`
`due to strong
`of
`consumption
`government
`
`only wavering
`
`agricultural
`
`export
`from
`spending
`added
`also
`spending
`sector
`is housing,
`
`a
`
`only
`recently
`the
`including
`Wall
`Street
`
`hikes
`
`and
`
`has
`
`approaching
`The
`also
`Fed
`
`Fin an cial Markets
`their
`prior
`surpassed
`tiscal
`stimulus
`and
`profits
`were
`
`-
`
`Equity
`highs
`set
`tax
`
`markets
`in February.
`However,
`corporate
`profits,
`half
`of
`the year.
`
`struggled
`
`second
`the
`through
`fundamentals
`and
`record
`
`and
`quarter
`remain
`positive
`share
`buybacks.
`
`cut,
`strong
`in the first
`
`up strongly
`
`Monetary
`begun
`inflation
`announced
`
`Policy
`trimming
`target.
`that
`
`& Inflation
`its
`balance
`higher
`The
`all banks
`
`nearly
`
`- The
`sheet,
`short-term
`passed
`
`Fed
`
`citing
`
`to tighten
`continued
`a strengthening
`rates
`resulted
`the annual
`stress
`
`with measured
`labor
`market
`a flatter
`yield
`in
`test exercise.
`
`rate
`and
`an
`curve,
`
`York
`Nerv
`City
`slowed
`has
`pace
`the
`labor
`and
`lows
`the new jobs
`this
`
`- While
`Market
`Labor
`half
`of
`first
`in the
`participation
`force
`year
`have
`come
`
`the City's
`the
`year.
`rate
`has
`in education
`
`continued
`labor market
`unemployment
`Although
`the
`wage
`growth
`and professional
`
`increased,
`& health
`
`to grow
`rate
`
`the
`moderately,
`records
`is near
`Most
`muted.
`remains
`& business
`services.
`
`of
`
`Residential
`York
`Nerv
`City
`year with
`condo
`of
`the
`half
`rates
`climbed
`half
`mortgage
`at
`the end of 2017
`but
`have
`
`- Activity
`Market
`prices
`and
`sales
`a percentage
`rebounded
`
`modestly
`
`in the
`dropping.
`point
`in 2018.
`year.
`this
`
`residential
`
`Financing
`The
`
`downshifted
`market
`has
`become
`more
`growth
`of City
`rental
`
`in the
`expensive
`rates
`slowed
`
`first
`as
`
`Nerv
`
`leasing
`deals
`World
`
`York
`totals
`signed
`Trade
`
`- The
`Office
`for
`Market
`demand
`City
`M.idtown
`of 2017.
`tirst
`up from the
`half
`and
`by Pfizer
`JPMorgan.
`Downtown
`a million
`and a half
`Center
`added
`over
`
`remained
`
`robust
`
`with
`
`off