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MARC JACOBS
382 BLEECKER RETAIL CONDOMINIUM
prop
erty
a
CONTACT
275 Madison Avenue, Third Floor
New York NY 10016
t / 212 696 2500
f / 212 696 0333
James P. Nelson
t / 212 696 2500 x7710
Robert A. Knakal
t / 212 696 2500 x7777
Mitchell Levine
t / 212 696 2500 x7761
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There are few streets – perhaps only Rue St. Honore, Bond Street, Rodeo Drive, and Russell Street – which share the attributes that make Bleecker Street one of the elite locations for luxury retail worldwide. I first noticed this potential for Bleecker in the early 90’s when I lived just around the corner, on Christopher Street. Even then, the narrow street, lined with flowering pear trees and historic townhomes, was occupied by some of the most desirable retailers in the country, including the original home of Pierre Deux Antiques. It was at Pierre Deux where I first met the “deux” of Pierre Moulin and Pierre LeVec, who together made me fall in love with not only their antiques, but Bleecker Street itself. Their store, and their home above, became our first investment on the street.
Since then, these few precious blocks have continued to evolve.
Today, they are home to Beck Street Capital’s own collection of jewel-box luxury retailers including Burberry, Michael Kors, Mulberry, Marc Jacobs, and APC, as well as other internationally recognized brands such as Ralph Lauren, Brunello Cucinelli, and Diptyque. Perhaps the most appealing aspect of Bleecker Street is that unlike virtually every other location around the globe, this street is forever protected from the threat of modern development – and consequently new supply of leasable space – by the power of its designation as a historic area by the New York City Landmarks’ Preservation Commission. This designation ensures the historic buildings, narrow street, and character of Bleecker Street are enshrined in their present state in perpetuity, and are as a result likely to retain their appeal to luxury retailers and loyal consumers for generations to come.
Kevin ComerSenior Managing DirectorBeck Street Capital
INTRODUCTION
B L E E C K E RS T R E E T
TENANT DESCRIPTION
Marc Jacobs is an internationally recognized iconic luxury fashion firm with a worldwide distribution network specializing in fashion, leather goods and accessories. Marc Jacobs is a dominant Bleecker Street retailer, with multiple stores and numerous brands. Marc Jacobs is a subsidiary of LVMH, one of the world’s largest luxury goods conglomerates. In 2009 LVMH had revenues in excess of 17 billion euros.
Marc Jacobs is a global fashion leader with stores in New York, San Francisco, Los Angeles, Paris, London, Madrid, Copenhagen, Moscow, Beirut, Riyadh, Dubai, Kuwait, and Doha, Tokyo, Osaka, Kyoto, Kobe, Nagoya, Sendai, Shizuoka, Nagano, Chiba , Matsuyama, and Tottori, Seoul, Hong Kong, Taipei, Shanghai, Beijing, Chengdu, Guangzhou, Manila, Kuala Lumpur, Singapore, Jakarta, and Bangkok.
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INVESTMENT SUMMARY
The 382-384 Bleecker Street retail condominiums – which feature the prestigious Marc Jacobs with LVMH credit until at least 2017 – are now for sale. These two condominiums offer an investor an immediate and dominant position on Greenwich Village’s strongest retail corridor.
This northern portion of Bleecker Street serves as the connection between the Meatpacking District and the heart of Greenwich Village, catering to thousands of retail customers on a daily basis.
This offering provides an investor in-place income from an established credit tenant with a combined net operating income of $419,582.
The offering consists of nearly
1,131 NSF of retail space, plus an additional 876 NSF of storage and outdoor space in an area where retail rents ommand north of $500/SF. This is evident in Marc Jacobs’s recent lease signing at 400 Bleecker Street, the former Biography Bookshop, for $545/SF. Before 2009, rents were achieved as high as $740/SF, as seen with Diptyque’s lease at 377 Bleecker.
Located in the heart of the West Village, these two retail condominiums are nestled between other high end retailers such as Polo Ralph Lauren, Tommy Hilfiger, Michael Kors, Black Fleece by Brooks Brothers, Alexis Bittar, Cynthia Rowley, Brunello Cucinelli, Bonpoint, and Jack Spade, among many others.
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PROPERTY OVERVIEW
The Marc Jacobs Retail Condominiums consist of two units located in 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 ground and the other is located on the lower level, accessible on Perry Street. The units generate a combined rent, including tax passthrough, of $449,114.
Building InformationLocation
Lot SizeLot AreaZoningLandmark
Southwest corner, Perry and Bleecker Streets
42’6” x 70’ (approx)2,975 sf (approx)C1-6Yes; Greenwich VillageHistoric District
Retail Condominium Unit InformationTenant
Assessment
Total Retail NSFTotal Storage and Outdoor NSF
Estimated Taxes
Marc Jacobs1,131 sf (approx)876 sf (approx)$ 142,127 (2010)$ 17,623 (2011)
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2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
rent
rent$585,992
$568,924$552,354
$536,266$520,646
$505,482$490,759
$476,465$462,587$449,114
MARC JACOBS rental income
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Additional Rent
Security Deposit
Assignment Rights
Guaranty
100% of taxes
None
Only with the Landlord’s prior written consent
Guaranteed by Louis Vuitton North America, Inc.
Lease AbstractTenant
Term
Date
Lease Commencement
Premises
Lease Expiration
Use of Premises
Option to Renew
Marc Jacobs
10 years with 3% annual increases
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 other purpose.
One option to renew lease for 5 years, at 95% of fair market value
January 26, 2007
February 01, 2007
382 Bleecker Street, Ground Floor and basement
July 31, 2017
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
rent
expense
rent
expense$29,532 $30,418 $31,331 $32,271 $33,239 $34,236 $35,264 $36,322 $37,411 $38,533
$419,582 $432,169 $445,134$458,488
$472,243$486,410
$501,002$516,032
$531,513
$547,459
$585,992
$568,924$552,354
$536,266$520,646
$505,482$490,759
$476,465$462,587$449,114
MARC JACOBS net operating income
net operating income
net operatingincome
$ 17,623$ 7,418$ 4,491
$ 29,532
Revenue
Potential Gross Annual Revenue Base Rental Revenue
Real Estate Taxes
$ 431,491
Total Potential Gross Annual Revenue $ 449,114
Expense Reimbursement Revenue$ 17,623
Financial Information
Lease Expiration July 31, 2017
Annual Increase 3%$ 449,114Annual Rent
Expenses
Real Estate TaxesCommon Charges
Miscellaneous
Total Operating Expenses
Projected Net Operating Income $ 419,582
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7th A
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Charles St
W 11th St
Bank St
W 10th St
Hud
son
St
Bleecker St
yPerry St
St
JACK SPADE
BLEECKER STREET
Dominating the luxury retail scene in downtown Manhattan, the few blocks of Bleecker Street that stretch from West 10th, to Charles, Perry and West 11th Streets, have become home to many of the world’s most prestigious retailers, 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-trendy Meatpacking District, and the dense historic neighborhood of 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 of Bleecker, the surrounding side streets are all home to many of New York City’s finest restaurants and hotels, as well as its most exclusive residential neighborhoods.
Meatpacking District
Chelsea
Tribeca
Soho
Greenwich Village
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CONTACT
a property
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 estate cycles. BSC specializes in the adaptive re-use of historically significant buildings, working closely with neighborhood civic groups and preservationist organizations.
Tel: +1 212 337 3173beckstreetcapital.com
design: Brooklyn Digital Foundry / printing: CRW Graphics
Financial Assumptions- At lease termination, the renewal option is exercised at a rent 3% greater than the prior year’s rent- 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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1st Floor
Basement Levelrear yard
perry street
Sponsor name: 382/384 Bleecker, LLC. Sponsor address: 100 Vandam Street, 4th Floor, New York, NY 10013The complete offering terms are in an offering plan available from sponsor. File No.CD060256