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OFFERING MEMORANDUM
O F F E R I N G M E M O R A N D U M
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other per-son or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compli-ance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
All property showings are by appointment only.
N O N - E N D O R S E M E N T N O T I C E
C O N F I D E N T I A L I T Y A N D D I S C L A I M E R
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must
verify theinformation and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment p. 2 Services of New York, Inc. © 2016 Marcus & Millichap. Activity ID: Y0330946. All rights reserved.
M A N H A T T A N , N E W Y O R K
SQUARE FEETL O C A T E D I N H A R L E M
6,000
TABLE of CONTENTS
O V E R V I E W O F P R O P E R T Y
P R I C I N G A N D F I N A N C I A L A N A L Y S I S
M A R K E T O V E R V I E W
T H E A D V A N T A G E O F O U R A P P R O A C H
A D V I S O R Q U A L I F I C A T I O N S
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of the PROPERTYL O C A T E D I N H A R L E M
O V E RV I E W 1
I N V E S T M E N T H I G H L I G H T S
38 West 126th Street is a residential development opportunity one block off of 125th Street between Lenox and FifthAvenues. It is within walking distance of a number of prime amenities, including We Work Harlem location at therecently completed mixed-use building at 6-8 West 126th Street / 5 West 125th Street. There are a plethora of retailoptions including Harlem’s first Whole Foods supermarket around the corner at 125th Street and Lenox Avenue, andother national brands including Bed Bath and Beyond, Burlington Coat Factory, Olive Garden, TD Bank, M&T
Bank, Marshall’s, New York and Company, T.J. Maxx, and Starbucks. Local institutions including Red Rooster, Corner Social, and Sylvia’s, all within feet of subject development site, provide an authentic taste of prime central Harlem. Equally important, express 2/3 train service at 125th Street and Lenox Avenue provides access to Midtown and Lower Manhattan, the Bronx, and Brooklyn, with connections to the LIRR and Metro North trains. Subject site provides the opportunity for a premier residential development at the center of all the best Harlem and New York City have to offer.
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Residential development opportunity
We Work Harlem
Whole Foods
Bed Bath and Beyond
TD Bank
Red Rooster
Express 2/3 Train Service
Prime Central Harlem
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P R O P E R T Y P H O T O S
and FINANCIAL ANALYSIS
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Value Indicators
Price Lot Size (SF) Buildable Square FeetPrice/BSFNumber of Lots Lot DimensionsType of Ownership Fee Assessor’s Parcel NumberZoning Taxes Tax Year Frontage
$2,000,0002,0006,000$333.33120 ft x 100 ftSimple01723-053R6A, 125$11,638201720 feet
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1)2)3)38 West 126th Street416 Lenox Avenue246 West 125th Street261 West 126th Street
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38 West 126th Street
416 Lenox Avenue
246 West 125th Street
261 West 126th Street
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Avg. $362.99
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38 West 126th StreetNew York, NY 10027
Sale Price:
Zoning:
$2,000,000
R6A, 125
416 Lenox AvenueNew York, NY 10037
Close of Escrow:
Sale Price:
Zoning:
07/13/2016
$2,300,000
R7-2, C2-4
246 West 125th StreetNew York, NY 10027
Close of Escrow:
Sale Price:
Zoning:
02/13/2017
$17,800,000
C6-3, 125
Buildable (BSF):
Price/BSF:
Lot Dimensions:
6,000
$333.33
20 ft x 100ft
Buildable (BSF):
Price/BSF:
Lot Dimensions:
7,310
$314.64
25 ft x 85 ft
Buildable (BSF):
Price/BSF:
Lot Dimensions:
37,946
$469.09
50 ft x 95 ft
Subject Property
CommentsLot size is 2,125 sf
CommentsLot size is 5,046 sf
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261 West 126th StreetNew York, NY 10027
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Sale Price:
Zoning:
06/28/2016
$2,100,000
R7-2
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Price/BSF:
Lot Dimensions:
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$305.23
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OVERVIEWM A R K E T3 L O C A T E D
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M A N H A T T A N
G E O G R A P H Y
Large populationManhattan has a population of more than 1.6 million residents.
Top address for corporate headquartersNearly 50 Fortune 500 companies call New York City home.
High barriers to developmentFew parcels of developable land and high costs limitnew construction.
The Borough of Manhattan
Manhattan, one of New York City’s five boroughs, is an island approximately 13 miles long and 2 miles wide. Solid bedrock provides a firm foundation for the highrise buildings that dominate the skyline. Manhattan’s deepwater port and proximity to the nation’s interior bolster its position as a global economic powerhouse. Manhattan also contains Central Park, which encompasses 843 acres in the center of the island and isconsidered one of the nation’s premier public spaces.
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Manhattan is home to more than 1.6 million residents who are part of a much bigger population system; the New York City metropolitan area is the largest in the United States, with approximately 20 million inhabitants in three states. New York City consists of five boroughs with more than 8.5 million people.
*ForecastSources: Marcus & Millichap Research Services, U.S. CensusBureau, Experian
New York City has an extensive mass-transportation network. Subway and bus systems serve virtually every area in the five boroughs. There are more than 450 stations in the New York City subway system, including approxi-mately 150 stations in Manhattan. Grand Central Terminal and Penn Station, both located in Midtown Manhattan, provide rail service to the suburbs and long-distance connections, while three international airports offer flights to most global destinations.
The island of Manhattan is linked to the other boroughs and New Jersey by 11 bridges and four tunnels for vehicular traffic, with numerous additional tunnels for subway and rail lines. Highways along the borough’s eastern and western edges connect to freeways throughout the five boroughs.
New York Harbor contains docks for freight and passenger ships and provides ferry service to New Jersey and around the city.
International AirportsJohn F. Kennedy International AirportLaGuardia AirportNewark-Liberty International Airport
Major RoadwaysFranklin Roosevelt Drive, Henry Hudson Parkway, 9A and Harlem River Drive
RailCommuter Long Island Rail Road, Metro- North Rail Road, New Jersey Transit
Subway New York City Subway, PortAuthority Trans-Hudson Rail and Bus
PortNew York Harbor
The Borough of Manhattan is:100 miles from Philadelphia210 miles from Boston230 miles from Washington, D.C.790 miles from Chicago
New York City Population By Borough
Brooklyn
Queens
Manhattan
Bronx
Staten
2,629,100
2,326,900
1,640,500
1,435,600
475,600
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E C O N O M Y
New York City is home to 49 Fortune 500 companies,more than any other metro in the country, and most arelocated in Manhattan. The city serves as the epicenterfor a wide variety of industries, making the performanceof its local economy integral to the nation.
New York City is one of the leading financial centers inthe world, with many international banks and financialfirms maintaining offices in the city. Wall Street is amajor driver of the local economy, as a significantnumber of people are employed directly in the securitiesindustry. The city is a hub for the media,communications and publishing industries. The majortelevision networks have substantial operations inManhattan, while hundreds of newspapers andmagazines and several music-recording companies areheadquartered in the city. In addition, New York City isthe advertising capital of the United States and has agrowing presence in the Internet/new media field. Theentertainment and tourism industries are crucial to theManhattan economy, with numerous theaters andattractions drawing billions of dollars each year.
Manhattan is also an important location for manyretailers, both national and local. Retail sales in theborough typically grow faster than the U.S. rate; thisyear, Manhattan will exceed the national sales growthaverage with a rate of 9.3 percent. In addition, manymajor technology firms are expanding in the borough.
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Manhattan draws its labor pool from a wide geographic area. It provides more than 2.6 million jobs, nearly double its working age population. The majority of these are white-collar positions that generally offer higher wages, helping to maintain a high median income level borough-wide. After outpacing the average rate of national job growth for the previous five years, employment gains in Manhattan, at 0.9 percent annually through 2020, are now expected to lag the U.S. expansion rate.
Professional and business services is the largest provider of jobs in Manhattan, making up more than 560,300 posi-tions, or 21 percent of total metro employment. The gov-ernment sector holds the next largest share of employment, comprising 17 percent of all area jobs. The presence of Wall Street in Manhattan’s financial district provides a robust financial activities sector. This segment is represented by some 367,900 workers, or 14 percent of total employment. The education and health services sector; the trade, trans-portation and utilities sector; and the leisure and hospitality sector all hold a share of metro employment exceeding 10 percent.
In the coming five years, most sectors of the Manhattan economy will post impressive employment growth. The fast-est-growing sector will be professional and business services, which is expected to average 2.6 percent annual growth, respectively, through 2020. Additionally, the borough’s con-struction sector is forecast to expand payrolls by 1.5 percent per year, on average.
*ForecastSources: Marcus & Millichap Research Services, BLS, Moody’s Analytics
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More than half of Manhattan’s labor market is involved in financial activities and services sectors. This is because New York City is the headquarters of some of the largest U.S.-based consulting businesses, accounting offices, insurance companies and legal firms, as well as the United Nations. In addition, Manhattan is the financial center of the country and home to the New York Stock Exchange. Many of the world’s top banks and securities firms are located here. Major employers in the finance industry based in Manhattan include Goldman Sachs, JPMorgan Chase and Morgan Stanley.
Media conglomerate Time Warner is the largest company in the information sector, employing thousands of people in Manhattan from its headquarters at the Time Warner Center in Midtown. Google also has thousands of workers on payroll, and other large media employers are Viacom and Verizon.
The education and health services sector accounts for 13 percent of jobs in Manhattan. Large employers include New York University, Columbia University, New York- Presbyterian Healthcare, Mount Sinai Hospital and Continuum Health Partners Inc.
Major Employers
New York-Presbyterian Healthcare
Wellchoice Inc.
United Nations
Verizon Communications Inc.
Continuum Health Partners Inc.
Mount Sinai Hospital
New York University
Columbia University
Viacom
Time Warner
*ForecastSources: Marcus & Millichap Research Services, BLS, Moody’s Analytics
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Demographics
New York City is the largest city in the United States,with more than 8.5 million residents. Among the fiveboroughs, Manhattan, with a population of more than1.6 million, is third largest behind Brooklyn andQueens. Manhattan has grown 6.7 percent since 2000and is expected to grow by another 2.1 percent total inthe coming five years.
Manhattan’s residents tend to be well educated. Theshare of Manhattanites older than age 25 with at least abachelor’s degree is 59.3 percent, far above the nationalaverage of 28.8 percent. Additionally, 28 percent of theborough residents older than age 25 have a graduatedegree, well above the 10.7 percent nationally.
There are some major differences between the borough’sdemographic profile and the profile of the nation. Inparticular, residents ages 25 to 39 years comprise 30.4percent of the local population, far above the nationalaverage of 18.7 percent. Further, more than 73 percentof all Manhattan residents are in their working years.
Although Manhattan’s median household incomestands at a healthy $79,800 annually, the borough alsohas one of the highest housing costs in the country, witha median home price of nearly $1.3 million. Theprecludes many residents from owning a home. Thehomeownership rate rests at 23 percent.
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*ForecastSources: Marcus & Millichap Research Services, BLS, Moody’s Analytics
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Quality of Life
Manhattan offers a quality of life unique even withinthe nation’s largest cities. Although housing costs areamong the most expensive in the country, the boroughprovides a plethora of cultural, entertainment andemployment opportunities. The area is one of the fewplaces in the United States where a person can livewithout a car and rely completely on mass transit. Youcan get anywhere easily by taking the subway, buses ortaxicabs, while rail terminals and airports make long-distancetravel accessible.
An endless array of entertainment options are availableto residents, including Broadway shows, first-run filmsand famous nightlife venues. There are two MLB teams,two NFL teams, three NHL teams and two NBA teamswithin the greater New York region. New York City hasan extensive public park system, the jewel of which isCentral Park in Manhattan. Central Park offers naturalareas, lawns, playing fields, running trails, bike paths,boating facilities and the Central Park Zoo. Manhattan’s world-class art museums include the Metropolitan Museum of Art, the Guggenheim and the Museum of Modern Art. The city’s international flavor is displayed in the more than 5,000 restaurants featuring cuisine from around the world.
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*ForecastSources: Marcus & Millichap Research Services, Experian,National Association of Realtors®, Moody’s Analytics
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N E W Y O R K C I T Y
Development activity spreads beyond Manhattan and Brooklyn as operations tighten. An expansionary mindsetamong the largest corporations in the world is driving the local economy, sponsoring a virtuous cycle of risingmultifamily rental demand. Operations are strengthening rapidly as net absorption hits the highest rate of thecurrent cycle, encouraging builders to accelerate plans for future projects. As a result, the pace of deliveries willmore than triple last year’s levels, indicating confidence among builders in the solidity of local demand. WhileManhattan will still receive the majority of new supply, Brooklyn is quickly gaining steam as renters seek out moreaffordable options along the East River in locales such as Williamsburg and Greenpoint. Meanwhile, real estatevalues have risen enough to support construction in Queens, the Bronx and Staten Island. Planned completions inthe outer boroughs will surpass the prior peak as the outward shift gains more traction. While the robust pace ofdeliveries is likely to soften operations over the coming year as new rentals lease up, it will be unable to halt arental rate increase above the rate of inflation.
Value-add and repositioning buyers dominate in effort to boost returns. Historically low interest rates andabundant access to commercial credit are motivating investors to deploy capital in search of yield. Dollar volumeand transactions are rising, with more than $9.2 billion in closed deals in 2015, as buyers seek out both capitalappreciation and attractive NOIs. While institutions will overwhelmingly favor Manhattan assets, the focus isbeginning to transition toward Brooklyn, where cap rates can be up to 60 basis points higher. Meanwhile, privatebuyers are seeking out properties with value-add opportunities, particularly in Manhattan. Typical assets in thisstrategy will include outdated rentals in need of cosmetic updates, which give a quick boost to cash flow whileproviding a more conservative approach as real estate values continue to ascend. Cap rates will fall below 4 percentat the high end, while outlying and suburban locations will exchange ownership in the mid-5 percent range,providing multiple opportunities for investors to purchase assets. Greater realized sales prices may promptadditional sellers into the market, expanding deal flow in the year ahead.
Employment: Local New York City organizations will hire 90,000 new workers thisyear, expanding total payrolls by 2.1 percent. Over the last 12 months, 101,000 newpositions were created, a 2.4 percent improvement year over year.
Construction: Developers will complete more than 30,000 new apartments this year,dramatically increasing the pace of deliveries from last year, with the majority of newstock targeting Manhattan and Brooklyn. In the previous year, 13,000 rentals werebrought to market.
Vacancy: The largest supply growth of the current cycle will foster a transitory shiftupward in vacancy to 2 percent, up 30 basis points from 2015. In the prior fourquarters, vacancy rates declined 40 basis points as the pace of construction slowed.
Rents: Strong growth in net migration and new household formation will ensuresufficient demand to promote average effective rent growth of 2.5 percent to $4,123per month. Last year, average effective rents tacked on 4.0 percent.
2.1% increasein total employment
30,000 unitswill be completed
30 basis pointincrease in vacancy
2.5% increasein effective rents
Corporate Expansion Boosts Multifamily Demand; Buyers Shifting to Outer Suburbs
2016 Multifamily Forecast
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Economy
Housing and Demographics
• Over the past year, New York City organizations created 101,000 positions, expanding total employment by 2.4 percent. In the preceding 12 months, 137,500 workers were hired, a 3.4 percent boost to payrolls.• During the prior four quarters, the education and health services sector outperformed the broader economy, with job creation reaching more than 28,100 places. Professional services and hospitality businesses also produced robust growth, adding 31,500 and 12,700 positions, respectively.• Retail offerings are swelling, too, as Neiman Marcus, Nordstrom and Tesla are all opening more storefronts.
The locations offer residents easier access to shopping options throughout the city. In particularly, Tesla’sstorefront will be the first of its kind in Brooklyn, generating excitement as old neighborhood warehousestransition to stores targeting the local higher-income consumers.
• Outlook: In the coming year, local organizations will create 90,000 new jobs, advancing payrolls 2.1 percent asbroad strength in tourism and retail spending promotes a healthy labor environment.
• Over the coming year, the five boroughs will add more than 37,000 new households, along with more than111,000 residents through net migration, boosting demand for both single-family housing and multifamilyliving options.
• The median price for a single-family home rose 2 percent to more than $475,000 over the past four quarters.During this same period, median household incomes lifted 3.1 percent to more than $64,300 per year.
• After considering costs for a downpayment, taxes and insurance, the average mortgage payment in the metro ismore than $2,460 per month, while the average rent is above $4,000 per month. However, minimumqualifying incomes for mortgages are nearly $110,000, indicating that most metro inhabitants will likely belifelong renters.
• Outlook: Despite the relative affordability of a mortgage payment in comparison to average metro rents, the size of the downpayment
*ForecastSources: Marcus & Millichap Research Services; BLS; Economy.com; NAR
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Construction
Vacancy
• In 2015, builders completed more than 13,000 apartments, with development centered mostly in theManhattan and Brooklyn boroughs. However, construction firms are showing an increasing desire to deliverprojects in the Bronx and Queens, with activity up dramatically from 2014 levels.
• Incredibly tight operations in the multifamily sector have encouraged builders to expand the pipeline to morethan 70,000 units with completions scheduled through 2018. The majority of the deliveries this year will targetsubmarkets seeing robust occupancy gains, such as Williamsburg and Dumbo in Brooklyn and Midtown andthe Flatiron District in Manhattan.
• Topping this year’s expected completions is JDS Development Group’s 626 First Avenue in MidtownManhattan along the East River. Containing nearly 800 luxury rentals, the two-tower structure will also boastan amenities package that includes an indoor lap pool, sky bridge lounge and fitness center.
• Outlook: Builders will complete more than 30,000 units this year, with more than 21,000 apartments set forcompletion in Manhattan and Brooklyn.
• Soaring demand for rentals is continuing to pressure the metro vacancy rate, which fell 40 basis points over thelast 12 months to just 1.7 percent. In the previous year, vacancy remained unchanged.
• While the vast majority of Manhattan posted occupancy gains during the last year, the Financial District andthe Lower East Side are outperforming. Vacancy rates in the two neighborhoods fell to 1.4 percent and 0.5percent, respectively. Midtown West was the only submarket to record an uptick of 50 basis points in vacancyto 3.1 percent, largely due to increased construction.
• Building on the incredible momentum in Manhattan, Brooklyn posted a vacancy decline of 30 basis points to3.5 percent, led by waterfront properties in Greenpoint and Williamsburg.
• Outlook: The delivery of more than 30,000 rentals this year will prompt a 30-basis-point rise in the metrovacancy rate to 2 percent as new units lease up.
*ForecastSources: Marcus & Millichap Research Services; MPF Research
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Rents
Vacancy
• Robust net absorption well above development prompted a 4 percent lift in average effective rents to more than$4,000 per month, with all boroughs recording strong gains.
• Boosted by tight occupancy and limited new supply, rents in Manhattan are more than $800 above the nexthighest borough at more than $4,300 per month. The Financial District and the Lower East Side appreciatedthe most, climbing 8.6 percent to $3,979 per month and 10.2 percent to $4,900 per month, respectively.
• Tenants seeking more affordable offerings are shifting toward Staten Island, where average rents popped 7.6percent to $1,356 per month. Meanwhile, Brooklyn is benefiting from occupant demand crossing the EastRiver from Manhattan, registering a 4.5 percent swell to $3,694 per month.
• Outlook: While the intense pace of construction will cause temporary dislocations in operations this year,average effective rents will move up 2.5 percent to $4,123 per month.
• Thriving operations in New York City encouraged investors to boost their capital allocations in the metro,pushing closed transactions up 18.2 percent as dollar volume topped $9 billion. The majority of trades were inManhattan, while buyer appetite was most improved in Brooklyn.
• Average prices paid over the past year reached $384,000 per unit, led by several deals in Manhattan that closedabove $750,000 per unit. Meanwhile, valuations continue to move upward in Brooklyn, where average pricesper unit are now above $440,000.
• First-year yields have fallen into the mid- to low-4 percent range, with outer borough deals closing above 5percent, particularly in the Bronx and Queens. Top-tier Manhattan assets can exchange ownership below 4percent, while similar stock in Brooklyn will trade in the mid-4 percent range.
• Outlook: Despite a robust delivery schedule for 2016, a lack of available inventory for sale will limit transactionvelocity, prompting an intense bidding environment as investors attempt to deploy capital. An abundance ofcheap credit will provide plenty of incentive for additional buyers to enter the market.
*ForecastSources: Marcus & Millichap Research Services; MPF Research; CoStar Group, Inc.; Real Capital Analytics
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Vacancy
• Following the first interest rate increase since 2008, the Federal Reserve has promised a measured, patientapproach to future rate hikes. Recently, the mixed picture of U.S. economic data has given several members ofthe bank’s monetary policy committee reason to pause. Robust labor market indicators present positiveevidence of continued expansion, while manufacturing and inflation expectations have weakened due to thestronger dollar. As a result, the central bank will likely weigh the balance of data over the coming monthsbefore enacting additional rate hikes.
• Multifamily housing trends have continued to accelerate over the past year, with the national vacancy ratefalling 40 basis points to 4.1 percent. Meanwhile, development remains considerable, although generallylimited to primary markets; deliveries in 2015 exceeded 230,000 units for the second straight year, the highestannual total since 2000. However, despite the incredible pace of construction, net absorption surpassed supplygrowth, supporting a 5.6 percent climb in average effective rental rates.
• Fannie Mae and Freddie Mac are underwriting five-, seven- and 10-year commercial property loans withmaximum leverage of 80 percent. Interest rates for these loans will range from the 3.7 percent to 4.2 percent,depending on loan structure and maturity, for loans above $3 million. Portfolio lenders, including commercialbanks and life insurance companies, offer debt at 65 to 75 percent loan to value on 10-year terms at 3.60 to4.25 percent. Floating-rate terms typically carry a maximum LTV of 65 percent for stabilized properties, whilepricing at a 250- to 425-basis-point spread above Libor. CMBS issuance topped $100 billion last year, butwider spreads have curtailed activity thus far in 2016.
Capital Markets
• Mayor Bill de Blasio is set to propose a streetcar line that would connect Brooklyn and Queens along the EastRiver over a 16-mile stretch. The project would provide new transportation solutions for both boroughs amid amassive surge in multifamily development along this corridor.
• A Met Foods store on Browne Street in Flushing has been demolished to make way for a new 14-story, 84-unitcondo tower mixed-use development. This highlights the incredible demand for multifamily housing in themetro amid record tightness in local operations.
• Rising office rents in Manhattan are triggering an exodus among firms toward more affordable spaces inBrooklyn. As a result, Heritage Equities is moving to construct a 480,000-square-foot office complex at KentAvenue in Williamsburg. The continuation of this trend will draw more workers to Brooklyn, raising demandfor local rentals.
• Social-media giant Facebook is looking to acquire more than 500,000 square feet in Manhattan, along withlooking to hire up to a 1,000 new workers as the firm continues to expand.
• Vornado Realty Trust is considering plans to combine One and Two Penn Plaza into a more than 4 million square-foot office and retail complex as the firm works with the city to redevelop the area. Vornado ownsmore than 9 million square feet of property in the surrounding area, providing incentive to repackage the assets.
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of OUR APPROACH
THE ADVANTAGE4 L O C A T E D I N H A R L E M
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Since 1971, Marcus & Millichap has been the premier provider of investment real estate brokerage services. In2013, the firm announced its listing on the New York stock exchange under the ticker symbol MMI. Taking thefirm public was another major step toward solidifying the Marcus & Millichap brand for decades to come. Withmore than 1,600 investment professionals throughout the United States and Canada, Marcus & Millichap is thelargest brokerage firm focused exclusively on investments. By specializing 100 percent on investments andorganizing our sales force into property specialty groups, we provide clients with superior market knowledge andtransaction expertise targeted specifically to the unique requirements of each property type. Having pioneered theindustry’s most powerful marketing system, the essence of Marcus & Millichap’s value proposition is our ability to“make a market” for each property through expanded market exposure, which generates the broadest buyer interestand results in maximum value.
We combine comprehensive market research, state-of-the-art technology and communications systems with accessto the industry’s largest pool of private and institutional investors. The result is the most efficient process formatching buyers and sellers locally, regionally and nationally. We offer investment expertise in all major propertytypes, including apartments, retail, office, industrial, single-tenant net-lease, seniors housing, hospitality andlodging, manufactured home communities, self-storage, golf and resort properties and land.
The Marcus & Millichap Advantage
Marcus & Millichap utilizes a powerful and proprietary marketing system tofacilitate the sale, purchase or exchange of investment properties nationwide.This platform is supported by our national inventory of investmentproperties, state-of-the-art communication technology and our culture ofinformation sharing.
Through investment specialization, we have accumulated the largest database of qualified investors in the industry.Through the personal local relationships maintained by our investment professionals, we provide unparalleledaccess to potential buyers for each property we represent.
Each property is exposed to the broadest pool of qualified investors. Our unique culture brings a superior level ofexpertise to each transaction. The large number of owners and investors who repeatedly conduct business withMarcus & Millichap serves as a testimony to our success in matching buyers and sellers, and maximizing value.
A pioneer in real estate technology, Marcus & Millichap leverages the power of its sales force and the entirebrokerage community to assure maximum exposure for each listing and meet investors’ needs.
Our real-time property marketing system, supported by reliable property and market information, facilitates thematching of buyers and sellers from coast to coast.
Investors have come to rely on Marcus & Millichap for access to investment opportunities that meet their specificparameters, including sensitive timing demands driven by 1031-exchange requirements.
The Industry’s Most Powerful Marketing System
Access to more qualified investors than any other source.
The largest investment brokerage sales force, a culture of information sharing.
Our investment property inventory is recognized for its size, diversity, quality,deliverability and underwriting standards.
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Our commitment and focus on investment brokerage services is rooted in our founders’ philosophy that the mosteffective market knowledge and expertise can only be generated through specialization. Our sales force and servicesare further specialized by property type and geography, leading to the deepest and most up-to-date marketknowledge, as well as personal relationships with owners and investors. To support our commitment tospecialization within each property type, the firm has instituted National Specialty Groups, which organize thetraining, communication and marketing activities of our sales force by property type. Our specialty groups includeNational Multi Housing Group, National Retail Group, National Office and Industrial Properties Group,National Hospitality Group, National Manufactured Home Communities Group, National Self-Storage Group,National Seniors Housing Group, Net Leased Properties Group, Healthcare Real Estate Group, National Golf andResort Properties Group, National Land Group and Student Housing Group.
Information sharing among our sales force and throughout the brokerage community best serves our clients’interests when all of our agents present investment opportunities to their clients. This results in the broadestpossible exposure for each property and the most visible investment opportunities for investors. We “make amarket” for each property we represent while expanding investors’ choices and investment options.
Marcus & Millichap believes in maintaining long-term relationships with its clients by providing the industry’shighest quality services. We offer a number of services and capabilities designed to help clients maximize theirinvestment returns. Through our Research Services Division, Marcus & Millichap Capital Corporation, NationalSpecialty Groups and Major Account Services, we offer an array of services that help investors meet their objectivesbefore, during and after each and every transaction. In addition, our investment-experienced management teamoperates with a hands-on philosophy focused on quality assurance and support for agents and clients in everymarket.
Specialization
Making a Market Through Information Sharing
Value-Added Brokerage
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• We review comparable property rents, recent sales, current for-sale properties and local market conditions.
• Our investment team creates financial performance scenarios with input from clients in order to help assess pricing and formulate the right strategy.
• Our investment professionals conduct detailed market surveys that provide an accurate and competitive estimate of a property’s current and future value.
• A comparison of property trends and values in various submarkets enables investors to assess the desirability of moving equity from one market to another in order to take advantage of local cycles and opportunities.
Marcus & Millichap’s Research Services Division is comprised of experienced real estate analysts. Our marketresearch is specialized by property type and integrates local market trends, as well as regional and nationaldevelopments, to support property evaluation, pricing and positioning. Clients who are pursuing a transaction willbenefit from the combination of our investment research capabilities and the market knowledge of our agents.During the hold period of an investment, owners can utilize numerous research publications and analysiscapabilities to help maximize property performance.
As a part of our effort to create value for property owners and investors, Marcus & Millichap Capital Corporationoffers access to the most competitive capital sources, tailored by property type. Property owners can take advantageof refinancing opportunities to increase their returns during ownership. Investors can rely on our expert capitalmarket knowledge and benefit from our ability to secure well-managed, competitively priced financing throughour network of prominent national and regional lenders. Our national team of finance specialists possessesexperience in providing financing for a full range of investment property types.
Expert Underwriting/Positioning
Investment Decision Support Through Market Research
Access to Competitive Financing – Marcus & Millichap Capital Corporation
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We have tailored our services and delivery system to meet the needs of larger private and institutional investors.We provide major clients access to a special group of highly experienced financial analysts, research professionals,writers and graphic designers. Our Major Account Services (MAS) team delivers state-of-the-art underwriting,property and market analysis, marketing and presentation capabilities. Services include financial modeling, analysisand valuation, portfolio analysis, preparation of offering memorandums, specialized marketing material andgeneration of full-scale marketing packages. Key assignments for major accounts are planned and executed with theinvolvement of the firm’s management team to deliver the proper level of expertise to every client.
Marcus & Millichap’s national product specialty groups provide clients with product knowledge and transactionexpertise geared specifically to the unique requirements of each property type. Our specialists work closely withmajor clients to understand their long-term objectives and to formulate the most effective marketing plan andteam for specific projects. Our capabilities produce superior results for major clients, whether the assignmentinvolves a single asset or a large multi-market portfolio.
Our national sales force is managed by a team of market experts who were investment sales professionals at somepoint in their careers. Marcus & Millichap has a long-standing philosophy of supporting its sales professionalswith noncompetitive managers whose purpose is to provide clients with premier investment brokerage services.Managers foster these services by providing ongoing training and coaching of the sales force, supporting client andagents’ needs, and overseeing the transaction process to ensure the best possible results for every client.
Major Account Services
National Specialty Groups Research
Management Team of Investment Experts
R E S U L T S : Maximizing Results Through Value-Added Services
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Marcus & Millichap helps sellers maximize value. Because assets are marketed to a wide range of qualified investors from across the country, sellers receive optimal access to potential buyers. In 2015, the company’s unique national platform, marketing system and investor relationships secured out-of-state buyers for 46 percent of the firm’s total transactions.
To have a cushion for negotiation, you must have potential buyers to negotiate with. If you over-price your property, it is not likely to be shown. If your property is being shown, but not sold, maybe it is being used to make other listings more attractive.
The diagram below shows the segment of prospective purchasers who are likely to see your property based upon the relationship of its asking price to its fair market value.
Moving Capital, Making Markets, Maximizing Value
Pricing Evaluation
54%
46%L O C A L B U Y E R S
O U T- O F - M A R K E T B U Y E R S
The diagram below shows the segment of prospective purchasers who are likely to see your property based upon the relationship of its asking price to its fair market value.
ASKING PRICE IN RELATION TO FAIR MARKET VALUE
% OR PROSPECTIVE PURCHASERS WHO WILL VIEW PROPERTY
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QUALIFICATIONSA D V I S O R5 L O C A T E D
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Education
New York University, Stern School of Business, M.B.A.Howard University School of Law, J.D.Hofstra University, B.B.A.
M A N H A T T A N , N E W Y O R K
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D W A N E O M A R J O N E S
Dwane Omar Jones specializes in commercial real estate investments and ground-up development in New York City. His deep market knowledge, exceptional analytical and underwriting skills, and wealth of relationships make him a valued advisor and partner.
Mr. Jones earned his Juris Doctorate degree from Howard University School of Law in Washington, D.C., where he was a Howard University School of Law Merit Scholar, and won the CALI Excellence for the Future Award in Contract Law. Mr. Jones earned his undergraduate degree in Business from the Zarb School of Business at Hofstra University on Long Island, in New York. While at Hofstra, Mr. Jones became a member of Alpha Phi Alpha Fraternity, Inc., served as chapter President during his junior year, and was a Dean’s List student.
He previously worked as a corporate attorney at a large New York City law firm on corporate reorganization matters. While at the firm, Mr. Jones engaged in the liquidation of a large commodities brokerage under the Securities Investor Protection Act and advised a client acting as Trustee on potential litigation issues related to the dissolution of a financial services firm holding over $600 billion in assets. He was also heavily involved with several of the firm’s pro bono initiatives, including representation of clients seeking Special Immigrant Juvenile (SIJ) Status, research on Military Law reform, and Family Court counsel. Mr. Jones has also worked in Cape Town, South Africa, focusing on corporate, commercial litigation and real estate matters, and counseling clients on compliance with South Africa’s Broad-Based Black Economic Empowerment Act.
Mr. Jones earned his M.B.A. from the New York University Leonard N. Stern School of Business with Specializations in Entrepreneurship & Innovation, Man-agement, and Real Estate, where he was a Management Leadership for Tomorrow Fellow, a Robert Toigo Foundation Fellow, and a Consortium for Graduate Study in Management Fellow. At Stern, Mr. Jones worked on a team with the Director of the Center for Real Estate Finance Research to produce a Stern Signature Project on the development of a Real Estate Bubble Early Warning System for the World Economic Forum in Davos.
Mr. Jones was born in Kingston, Jamaica, and raised in Brooklyn, New York. He is passionate about God, his family, his community, and real estate. He is the President of the Howard University School of Law Alumni Club of New York and is a member of the New York State Bar.
Presented By:
Dwane Omar Jones260 Madison AvenueNew York, NY 10016Tel: (212) 430-6138 (direct)Attorney Registration #: 4980488Broker License: NY: [email protected]
www.jonesinvestmentco.com
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