598 BROADWAY New York NY 10012-3351

Marcus & Millichap has been exclusively engaged by the
owners of the property to facilitate a 99-year leasehold
acquisition of 598 Broadway +/- 88,000 gross rentable
square foot building containing 66,000 sf. of office space,
5,500 sf. on grade retail and 5,500 sf. of below grade
retail / storage space, and 11,000 sf. of Rent Stabilized
residential. Floors 2 – 12 each contain 7,000 rentable sf.

The property is located in the heart of Soho between
East Houston Street to the north, Prince Street to the
south and Broadway on the west and Crosby Street on
the east. The property has entrances on both Broadway
and on Crosby Street.

During the recent pandemic, many of the retail
establishments closed, however, there has been a rebirth
of retail along Broadway. SoHo remains a destination
area for both local residents as well as the large influx of
tourists from throughout the world, especially from Asia.

The area is serviced by the following trains and buses:
subway: 6X, B, F, M and R; buses: M2, M5,5 X27.

New York University has recently completed the
Paulson Center at 181 Mercer Street which will house
more classrooms than any other NYU building, plus
instructional performance spaces for NYU’s drama and
music programs, a sports center and for faculty.

• The Investment is Projected to Realize a Gross 22.05% Levered Irr and 3.01x Equity Multiple Over a Six-year Hold Period.
• Buildings at Scale in This Highly Sought-after Submarket Rarely Trade, and the Transaction is a Unique Opportunity to Acquire a Sizable Soho Asset. The Asset Provides the Opportunity to Own High Quality Office and Retail Within the Prestigious Soho Submarket.
• The Implied Basis of the Ground Lease is at a Significant Discount to Prior Sales. When Adding Back the Capitalized Value of the Ground Rent, the Purchase Price (Including Leasing Costs) is Approximately $688 Per Gross Square Foot, Which is a Significant Discount to Comps.
• 598 Broadway Contains a Diverse Mix of Tenants, the Majority of Which Are Wellness Related (E.g., Acupuncture, Dermatology). The Current Average Rent Across the Office Portion of the Property is $45 / Sf Which is at a Significant Discount to Average Office Rents in Soho ($75-80/ Sf). The Investment Presents a Mark-to-market Opportunity Requiring Limited Capital Costs.