MARC JACOBS 382 BLEECKER RETAIL CONDOMINIUM
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382 BLEECKER RETAIL CONDOMINIUM
MARC JACOBS
property
CONTACT
a
James P. Nelson
t / 212 696 2500 x7710
e / jnelson@masseyknakal.com
Robert A. Knakal
t / 212 696 2500 x7777
e / rknakal@masseyknakal.com
Mitchell Levine
t / 212 696 2500 x7761
e / mlevine@masseyknakal.com
275 Madison Avenue, Third Floor
New York NY 10016
t / 212 696 2500
f / 212 696 0333
Introduction
INTRODUCTION
There are few streets – perhaps Today, they are home to Beck
Tenant Description
only Rue St. Honore, Bond Street, Street Capital’s own collection of
Rodeo Drive, and Russell Street jewel-box luxury retailers including
– which share the attributes that Burberry, Michael Kors, Mulberry,
make Bleecker Street one of the Marc Jacobs, and APC, as well as
elite locations for luxury retail other internationally recognized
worldwide. I first noticed this brands such as Ralph Lauren,
Investment Summary
potential for Bleecker in the early Brunello Cucinelli, and Diptyque.
90’s when I lived just around the Perhaps the most appealing aspect
corner, on Christopher Street. Even of Bleecker Street is that unlike
then, the narrow street, lined with virtually every other location
flowering pear trees and historic around the globe, this street is
townhomes, was occupied by some forever protected from the threat
Property Overview
of the most desirable retailers in of modern development – and
the country, including the original consequently new supply of
home of Pierre Deux Antiques. It leasable space – by the power of
was at Pierre Deux where I first met its designation as a historic area
the “deux” of Pierre Moulin and by the New York City Landmarks’
Pierre LeVec, who together made Preservation Commission. This
Bleecker Street
me fall in love with not only their designation ensures the historic
antiques, but Bleecker Street itself. buildings, narrow street, and
Their store, and their home above, character of Bleecker Street are
BLEECKER became our first investment on the
street.
enshrined in their present state in
perpetuity, and are as a result likely
STREET
Contact Information
to retain their appeal to luxury
Since then, these few precious retailers and loyal consumers for
blocks have continued to evolve. generations to come.
Kevin Comer
Senior Managing Director
Beck Street Capital
01
Introduction
TENANT DESCRIPTION
Marc Jacobs is an internationally Marc Jacobs is a global fashion
Tenant Description
recognized iconic luxury fashion leader with stores in New York,
firm with a worldwide distribution San Francisco, Los Angeles, Paris,
network specializing in fashion, London, Madrid, Copenhagen,
leather goods and accessories. Moscow, Beirut, Riyadh, Dubai,
Marc Jacobs is a dominant Bleecker Kuwait, and Doha, Tokyo, Osaka,
Street retailer, with multiple stores Kyoto, Kobe, Nagoya, Sendai,
Investment Summary
and numerous brands. Marc S h i z u o k a , Na g a n o, C h i b a ,
Jacobs is a subsidiary of LVMH, Matsuyama, and Tottori, Seoul,
one of the world’s largest luxury Hong Kong, Taipei, Shanghai,
goods conglomerates. In 2009 Beijing, Chengdu, Guangzhou,
LVMH had revenues in excess of Manila, Kuala Lumpur, Singapore,
17 billion euros. Jakarta, and Bangkok.
Property Overview
Bleecker Street
Contact Information
03
Introduction
INVESTMENT SUMMARY
The 382-384 Bleecker Street retail 1,131 NSF of retail space, plus
Tenant Description
condominiums – which feature an additional 876 NSF of storage
the prestigious Marc Jacobs with and outdoor space in an area where
LVMH credit until at least 2017 retail rents ommand north of $500/
– are now for sale. These two SF. This is evident in Marc Jacobs’s
condominiums offer an investor an recent lease signing at 400 Bleecker
immediate and dominant position Street, the former Biography
Investment Summary
on Greenwich Village’s strongest Bookshop, for $545/SF. Before
retail corridor. 2009, rents were achieved as high
as $740/SF, as seen with Diptyque’s
This northern portion of Bleecker lease at 377 Bleecker.
Street serves as the connection
between the Meatpacking District Located in the heart of the
and the heart of Greenwich Village, West Village, these two retail
Property Overview
catering to thousands of retail condominiums are nestled between
customers on a daily basis. other high end retailers such
as Polo Ralph Lauren, Tommy
This offering provides an investor Hilfiger, Michael Kors, Black
in-place income from an established Fleece by Brooks Brothers, Alexis
credit tenant with a combined net Bittar, Cynthia Rowley, Brunello
Bleecker Street
operating income of $419,582. Cucinelli, Bonpoint, and Jack
Spade, among many others.
The offering consists of nearly
Contact Information
05
Introduction
PROPERTY OVERVIEW
The Marc Jacobs Retail Condominiums consist of two units located in
Tenant Description
the heart of the West Village along a stretch of Bleecker Street, which
has become one of the top luxury shopping districts of Manhattan. Retail
adjacencies include Ralph Lauren, Coach, Brooks Brothers, Bonpoint,
Robert Marc, Dyptique, Tommy Hilfiger and Brunello Cucinelli. Marc
Jacobs, a subsidiary of LVMH, currently occupies the two commercial
units, with leases expiring in 2017. One of the two units is located on the
Investment Summary
ground and the other is located on the lower level, accessible on Perry
Street. The units generate a combined rent, including tax passthrough,
of $449,114.
Retail Condominium Unit Information
Property Overview
Tenant Marc Jacobs
Total Retail NSF 1,131 sf (approx)
Total Storage and Outdoor NSF 876 sf (approx)
Assessment $ 142,127 (2010)
Estimated Taxes $ 17,623 (2011)
Bleecker Street
Building Information
Location Southwest corner, Perry
and Bleecker Streets
Lot Size 42’6” x 70’ (approx)
Contact Information
Lot Area 2,975 sf (approx)
Zoning C1-6
Landmark Yes; Greenwich Village
Historic District
07
Introduction
Lease Abstract
Tenant Marc Jacobs
Date January 26, 2007
Premises 382 Bleecker Street, Ground Floor and basement
Tenant Description
Use of Premises Tenant shall use and occupy the demised premises
for the retail sale of luxury goods such as those that
are sold by those entities on the “Morgan Stanley
Luxury Sector Index” or if such index ceases to
be published then on such other index of luxury
retailers as shall be reasonably similar and for no
Investment Summary
other purpose.
Term 10 years with 3% annual increases
Lease Commencement February 01, 2007
Lease Expiration July 31, 2017
Option to Renew One option to renew lease for 5 years, at 95% of fair
market value
Property Overview
Additional Rent 100% of taxes
Security Deposit None
Assignment Rights Only with the Landlord’s prior written consent
Guaranty Guaranteed by Louis Vuitton North America, Inc.
Bleecker Street
MARC JACOBS rental income
$585,992 rent
Contact Information
$568,924
$552,354
$536,266
$520,646
$505,482
$490,759
$476,465
rent $449,114 $462,587
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
09
Financial Information
Introduction
Lease Expiration July 31, 2017
Annual Rent $ 449,114
Annual Increase 3%
Tenant Description
Revenue
Potential Gross Annual Revenue
Base Rental Revenue $ 431,491
Expense Reimbursement Revenue
Investment Summary
Real Estate Taxes $ 17,623
Total Potential Gross Annual Revenue $ 449,114
Expenses
Real Estate Taxes $ 17,623
Property Overview
Common Charges $ 7,418
Miscellaneous $ 4,491
Total Operating Expenses $ 29,532
Projected Net Operating Income $ 419,582
Bleecker Street
MARC JACOBS net operating income
$585,992 rent
Contact Information
$568,924 $547,459 net operating
income
$552,354 $531,513
$536,266
$520,646 $516,032
$505,482 $501,002
$490,759 $486,410
$476,465 $472,243
rent $449,114 $462,587 $458,488
$445,134
net operating $419,582 $432,169
income
expense $29,532 $30,418 $31,331 $32,271 $33,239 $34,236 $35,264 $36,322 $37,411 $38,533 expense
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
11Chelsea
Introduction
Meatpacking District
Bank St BLEECKER STREET
Dominating the luxury retail scene
Bleecke r St
Tenant Description
in downtown Manhattan, the few
blocks of Bleecker Street that
JACK SPADE
stretch from West 10th, to Charles,
W 11th St
Perry and West 11th Streets, have
become home to many of the
world’s most prestigious retailers,
Investment Summary
Greenwich Village including Burberry, Michael Kors,
Marc Jacobs, Ralph Lauren, Brooks
Brothers and Brunello Cucinelli.
This small tree-lined street serves
as the connector between the uber-
Perryy St trendy Meatpacking District, and
the dense historic neighborhood of
Property Overview
Greenwich Village, with residents
and tourists walking this small strip
by the tens of thousands on any day
of the week. While global luxury
retail dominates these few blocks
St
Bleecker Street
of Bleecker, the surrounding side
son
Charles St streets are all home to many of New
Hud
York City’s finest restaurants and
hotels, as well as its most exclusive
residential neighborhoods.
Contact Information
ve
hA
W 10th St 7t
Soho
Tribeca
13CONTACT
1st Floor
a property
bleecker street
Beck Street Capital, LLC
Beck Street Capital is a real estate investment company with
offices in New York City and Washington Depot, CT. Beck Street
Capital consists of a team of highly experienced professionals
led by accomplished real estate entrepreneurs with direct real
estate development and operating experience across multiple real
Basement Level
rear yard
estate cycles. BSC specializes in the adaptive re-use of historically
significant buildings, working closely with neighborhood civic
bleecker street
groups and preservationist organizations.
side yard
Tel: +1 212 337 3173
beckstreetcapital.com
Sponsor name: 382/384 Bleecker, LLC. Sponsor address: 100 Vandam Street, 4th Floor, New York, NY 10013
The complete offering terms are in an offering plan available from sponsor. File No.CD060256
Financial Assumptions
- At lease termination, the renewal option is exercised at a rent 3% greater than the prior year’s rent perry street
- Expenses are inflated by 3% per year
- Property Taxes increase in July, all other expenses increase in January
- Property Management and Miscellaneous Expenses equal 1% of revenues
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