62 Thomas Street

02
The Opportunity
62 Thomas Street offers the opportunity to
acquire a quality, income producing
ground floor retail condominium in the
sought after South Tribeca area. The
current tenant (lease expiring June 30,
2022) is Food Scope NY LLC, AKA Food
Scope America, which represents the
upscale restaurant at 62 Thomas Street,
Megu. Megu is a six-star Japanese
Restaurant that has been operating since
2004. Food Scope America’s Megu, with 7
worldwide restaurants – (Tribeca New York,
Midtown New York, Russia, Doha, New
Delhi, Switzerland, and Mumbai), was
acquired by the publicly traded company
Universal Entertainment (6425:TSE). The
company is traded on the Tokyo Stock
Exchange and is financially responsible for
the Megu Restaurant lease at 62 Thomas
Street. The rent is guaranteed until 2022 at
3% increases each year, which yields a 5%
return.
03
The Opportunity
Megu has completely renovated and built-out
the space, creating a beautiful bar-area on
the upper level and an extraordinary and
exclusive restaurant with dramatic high ceilings
and an atmosphere that brings in both tourists
and chic restaurant-goers. The original listed
square footage of the condo is 16,909;
however the current square footage has been
reduced to 12,500 to accommodate the
astounding renovations that make Megu the
beautiful and extravagant attraction that it is.
Please note that the lease requires that the
original square footage be returned upon
termination
on
June,
30
2022.
This
neighborhood has grown dramatically over the
last 10 years due to the influx of movie stars
and music producers. The area is now an
eclectic mix of restaurants, expensive lofts, and
is now world famous for Tribeca’s celebritylifestyle. The purchaser of this extraordinary
retail condominium will benefit by acquiring a
stable income producing asset that will
appreciate significantly over the life of Megu’s
lease.
04
Property Overview
Location:
Building is on the South Side
of Thomas Street between
West Broadway and Church
Street.
Base Rent Income**:
$ 875,000
Real Estate Taxes (13/14):
$ 115,398
Block / Lot:
147 / 1704
Common Charges:
$ 47,076
Lot Size (approx:):
75’ x 175’
Insurance:
$ 5,478
Condo Size (approx):
75’ x 100’
Total Expenses***:
$ 167,952
Total SF (approx.)*:
16,909
Net Operating Income:
$ 707,048
Historic District:
Tribeca South
* The tenant has made some renovations that decreased the
current SF to approx. 12,500 SF and is obligated to restore the
space to its original SF at the expiration of the lease June 30, 2022.
Zoning:
C6-4A
** Rent increases 3% per year
*** Tenant pays electric, 100% increase in taxes, and water/sewer
bill
ASKING PRICE: $ 14,200,000
Cap Rate: 5%
Price PSF: $840
CHURCH
W BROADWAY
THOMAS
05
Site Plan
DUANE
62- 66 Thomas Street
Location:
South Side of Thomas between
West Broadway and Church
Block:
147
Lot:
1704
06
Floor Plans – Upper Floor
Bar Area
Diagram only: Interior walls may be different than depicted. Not to scale. All
measurements are approximate.
07
Floor Plans - Bar Area Detail
Diagram only: Interior walls may be different than depicted. Not to scale. All
measurements are approximate.
08
Floor Plans – Main Restaurant Level
Diagram only: Interior walls may be different than depicted. Not to scale. All
measurements are approximate.
09
Megu Pictures
10
Neighborhood Description
New York City’s Most Cosmopolitan Neighborhood
TriBeCa includes the area bounded by Canal Street (north), Vesey Street
(south), Lafayette Street (east) and the Hudson River (west). TriBeCa, an
acronym for Triangle Below Canal Street, was coined in the mid-1970’s as a
result of City Planning studies and the adoption of the Special Lower
Manhattan Mixed Use District (LMM). TriBeCa retains much of the Bohemian
quality that once characterized the entire complex of cast-iron architecture
between Houston and Vesey streets before it went upscale. Because this
neighborhood overlaps the City Hall area, with its enormous daytime
working population, it has been more successful in resisting the tide of fad
enterprise. Art and commerce have, of course, transformed TriBeCa to a
certain degree, but they have not overwhelmed it. TriBeCa today is the most
sought after residential address in Manhattan. Many of the old historic
warehouses and loft buildings have been converted to spectacular
apartments. Many of New York City’s finest restaurants, antique and craft
stores are located in TriBeCa. With easy access to every corner of the island,
it remains a sophisticated, cosmopolitan, and glamorous New York
neighborhood.
TriBeCa South Historic District:
The TriBeCa South Historic District, Encompassing 70 buildings and two
undeveloped lots, contains cohesive block fronts of the mid-nineteenth
century store and loft buildings that extend between Broadway and West
Broadway, from Chambers Street on the south to Duane and Thomas Streets
on the north. West Broadway, historically a major transportation route, forms
the western boundary. Chambers Street, the area’s major east-west
commercial street, linked Broadway, historically the preeminent mercantile
thoroughfare, with West Broadway, the location of the Hudson River Railroad
line and its depot which opened in 1851 at Chambers and Hudson Street.
11
Neighborhood Description Cont.
The overwhelming majority of the structures in the TriBeCa South Historic District are store and loft buildings; the
homogeneity of this predominant building type bestows a particular distinctiveness on the district. While the store and loft
buildings in the district display an overall consistency in form and scale, their exteriors vary somewhat in design
sophistication and ornamental quality. Some of the ornamental elements, such as sheet- metal cornices, were chosen
from catalogs; almost every building was erected with some exposed cast-iron elements that were often selected from
manufacturers’ stock. In general, the buildings in the district were consciously designed to be impressive advertisements
for the businesses they housed.
In the TriBeCa South Historic District, most of the store and loft buildings are typically five-story structures with facades
composed of cast-iron-framed storefronts and upper walls faced in high quality materials: stone in over forty cases, brick
in nearly twenty cases, or, more exceptionally, cast iron. Most of the store and loft buildings are in the Italianate style.
The TriBeCa South Historic District was shaped by the growth of the transportation network in New York City and
commercial pressures that pushed the urban center northward, displacing residential neighborhoods to accommodate
New York’s burgeoning wholesale dry goods trade. Throughout the seventeenth and eighteenth centuries, what is now
the TriBeCa South Historic District was open land. The early history of the district is reflected in the names of most of the
streets. In the blocks belonging to Trinity Church, the cross streets were named after prominent parishioners: James
Duane, Joseph Reade, and John Chambers, while the streets paralleling Broadway were dubbed Church Street, in honor
of Trinity Church, and Chapel Street, in honor of St. Paul’s. Later, Chapel Street was widened to relieve congestion on
Broadway and renamed West Broadway.
12
Neighborhood Description Cont.
Though the area of TriBeCa South Historic District had
been mapped in the mid-eighteenth century, the first
phase of urbanization in the district did not get
underway until the late 1780’s with the construction of
brick and frame workshops and two-and-one-half and
three-and-one-half story dwellings. In the 1820’s and
1830’s, wealthy New Yorkers displaced by the expansion
of banks and other financial institutions in the previously
residential Wall Street area, began moving to Broadway
and the side streets between Barclay and Chambers
Streets, replacing the older houses in the area with
Greek Revival town houses.
In the 1850’s, the first store and loft buildings were
erected, specifically for dry goods wholesalers, along
the north side of Chambers Street between Broadway
and Church Streets. Store and loft buildings soon began
to appear on other blocks in the district. The area of the
TriBeCa South Historic District was also home to H.B.
Clafin & Co., the most successful wholesale dry goods
firm in the country from the 1860’s through the 1880’s,
and the largest in the world by the 1890’s.
13
Neighborhood Description Cont.
In the first half of the twentieth century, the upper stories of the buildings in the district continued to be used by
wholesale businesses, while ground floor stores were frequently converted to retail use. From 1904 to the 1920’s, no
new construction took place in the district. However some of the earliest store and loft buildings in the district were
refaced in brick.
Beginning in the 1970’s, residential tenants began to locate in vacated loft spaces in the district, continuing a trend
begun by artists further north in the SoHo area. In 1976 the City Planning Commission proposed a Special Lower
Manhattan Mixed Use District (LMM), a zoning designation, which allowed for residential lofts and light manufacturing
in the same area. This was followed in the late 1970’s and early 1980’s by the conversion of store and loft buildings to
residential cooperatives. The area is now called the TriBeCa Mixed-Use District (TMU). Today, the TriBeCa South
Historic District contains a wide range of uses, from traditional businesses, such as several shoe wholesalers on Duane
Street, to retail stores and fashionable restaurants, and to a large residential population.
14
Neighborhood Map
62- 66 Thomas Street
15
Neighborhood Map
Historic District, Tribeca South
62- 66 Thomas Street
16
Transportation Description
In addition to the diversity of services and amenities located within its
parameters, 62 Thomas Street has excellent access to major transportation
modes. All four subway lines (the 1, 9; the A, C, E; the N, R; the D, F; and
the 6) are within six blocks. The area is also serviced by express and local
MTA buses for uptown service along Sixth Avenue and Bowery and
downtown service along Varick Street and Broadway. The fare for both
the bus and subway lines is two dollars and fifty cents ($2.50).
By car, there is easy access to and from SoHo by the Franklin Delano
Roosevelt Drive and the West Side Highway. The Holland and Brooklyn
Battery Tunnels are less than 5 minutes away and the Manhattan, Brooklyn
and Williamsburg Bridges are about 10 minutes away. The highway
transportation network connects Manhattan to New Jersey, the three
boroughs, and all points north.
62 Thomas Street is close to three major metropolitan airports....LaGuardia
(approximately 20-25 minutes drive), John F. Kennedy (approximately 4560 minutes drive) located to the east on Long Island, and Newark
(approximately 20-25 minutes drive) located to the west.
The caliber of quick access from 62 Thomas Street to local and regional
business destinations is unusual and definitely enhances the attractiveness
of the property.
17
Subway Map
62- 66 Thomas Street
18
Bus Map
62- 66 Thomas Street
19
Zoning Information
62- 66 Thomas Street
New York City’s zoning regulates
permitted uses of the property; the size of
the building allowed in relation to the size
of the lot (“floor area ratio”); required
open space on the lot, the number of
dwelling units permitted; the distance
between the building and the street; the
distance between the building and the
lot line; and the amount of parking
required. The Manufacturing district has
Three different classifications.
62 Thomas Street is zoned C6-2A and Lies
within the TriBeCa Mixed-Use District
(TMU) FAR: 6.02
20
Zoning
Information
21
Zoning Information
22
Certificate
Of Occupancy
23
DOB Violations
*DOB Violations record for entire tax lot
7509. Two open cases for (1) fourth and
fifth floor and (2) the roof.
24
Property Tax
Assessment
Robert Burton
Senior Vice President
212.660.7770
rburton@masseyknakal.com
Nick Petkoff
Director of Sales
212.660.7766
npetkoff@masseyknakal.com
Maurice Suede
Associate
212.660.5131
msuede@masseyknakal.com
Matthew Colantonio
Associate
212.660.7718
mcolantonio@masseyknakal.com
Stephanie Mitchell
Associate
212.660.7724
smitchell@masseyknakal.com
275 Madison Avenue
3rd Floor
New York, NY 10016
www.masseyknakal.com