406 West 25th Street, New York, NY 10001

This memorandum presents a unique opportunity to acquire a historic, 25-foot-wide townhouse in a premium West Chelsea location through a distressed asset transaction. The investment thesis is centered on a significant arbitrage potential stemming from the property's current legal and physical entanglements, including holdover tenants, debt, and the lack of a Certificate of Occupancy. This situation has created a profound gap between the asset's current state and its true market potential. Our strategy involves acquiring the controlling legal entity ("Entity Sale"), resolving the encumbrances, and executing one of two distinct value-add business plans. The target acquisition basis is approximately $8 million, a figure that represents a remarkable opportunity to secure a trophy asset at a land-value price point, with the potential to generate over $16 million in profit while being supported by a strong defensive cash-flow alternative.

The owner of the property in fee simple absolute is ready, willing and able to transfer complete ownership of the corporate entity (LLC) to a buyer for the mentioned price. The property is the corporation's sole asset. The Buyer would step into the corporation's shoes and assume ownership of the property in fee simple absolute in consideration of the indicated price paid by the Buyer to a single member of the corporation at closing.

The Buyer is advised of liabilities against the corporation related to the property, all of which are negotiable. A Buyer who successfully negotiates concessions against these liabilities will realize the benefit of the bargain by acquiring negotiated settlements to reduce the total liabilities due and owing.

Related will soon rebuild the entire block north of 25th Street to connect to Hudson Yards.