OPPORTUNITY

386 Park Avenue South is a boutique office tower dual zoned for commercial and residential use.  The Property is located on the northwest corner of Park Avenue South and 27^th Street in a bourgeoning commercial, residential and entertainment area.  Built in 1927, 386 Park Avenue South is a 20-story, 260,000 rentable square foot class B office building with ground floor retail. The existing floor plate has been extremely successful accommodating office tenants, however it could strongly support conversion to either residential or hotel use.  Approximately 95% leased at acquisition, the small cap and non-institutionalized profile of the tenancy presented a number of prospective opportunities to enhance revenue.  Through a focused leasing effort emphasizing short-term deals and consolidation of space, ownership could reprofile the expiration schedule and explore alternate use conversion as market conditions dictate.

TRANSACTION

Recognizing opportunity in a potential conversion, with an office repositioning should there be a change in the residential dynamics of the market, 386 Park Avenue South was acquired in May 2005 in partnership with The Landis Group for $71 million ($273 PSF).  Monday was the successful bidder due in large part to its demonstrated ability and strong willingness to close the transaction.  Monday holds the majority interest in its partnership with The Landis Group and financed approximately 50% of the acquisition with a flexible senior loan provided by North Fork Bank.

RESULTS / BUSINESS PLAN

Monday’s efforts at 386 Park Avenue South focus on reprofiling the expiration schedule and a 2010 potential office, residential, or hotel redevelopment.  At acquisition, approximately 60% of the tenancy expired by 2009, with only 20% of the total rolling in that year.  Monday’s strategic leasing plan consolidated space and focused on shorter

term leases, re-profiling the expiration schedule for 50% rollover in 2009. This significant achievement facilitates a potential opportunity to convert the building for further office, residential, or hotel use. As owner, Monday has seen extraordinary rental growth at the asset despite the shorter-term nature of the leases, an approximate 25% improvement over pro forma.

With the tremendous success Monday has had leasing the building and reshaping the profile of the expiration schedule, we are now exploring the feasibility for a future conversion and redevelopment.

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