-282-...0 438 e 12th street new york, new york 10009 penthouse c duplex 2 bed /2.5 bath sixth floor, penthouse & roof approx. unit area: 1658 sf approx

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438 E 12TH STREET NEW YORK, NEW YORK 10009

PENTHOUSE C DUPLEX 2 BED /2.5 BATH SIXTH FLOOR, PENTHOUSE & ROOF

APPROX. UNIT AREA: 1658 SF APPROX. TERRACE AREA: 942 SF

KITCHEN 8'-11" • 16'-9"

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23'-5"Xf6'·9"

PRIVATE TERRACE 32'-4" • 7'-4"

PENTHOUSE

5' 10' 15' 20'

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f\

ROOF

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PRIVATE TERRACE 31'-6' x 22'-6'

MBR 12'-2'X13"-8'

SIXTH FLOOR

+tt1 II

8R#2 10'-5'X13"-8'

KEY PLAN

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PENTHOUSED DUPLEX 3 BED /1 HOME OFFICE/ 1 MEZZANINE/ 3.5 BATH PENTHOUSE, MEZZANINE & ROOF


D MEZZANINE

MEZZANINE SPACE

12'-9'X2T-1'

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8'-11'x 18'-2'

H.0. 12'-7'X9'-7'

8R#3 12'-7'Xl2'-1'

PENTHOUSE

LR/DR 21'-7')(27.Q'

KEY PLAN

PRIVATE TERRACE

8'.Q'x26'-4'

MBR 14'.Q'Xl5'-9'

W.1.C. 14'.Q'x

5'.Q'

BR#2 11'-10'X12'-I'

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PENTHOUSED DUPLEX 3 BED /1 HOME OFFICE/ 1 MEZZANINE/ 3.5 BATH PENTHOUSE, MEZZANINE & ROOF


ROOF

0 5' 10' 15' 20'

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ROOF PRIVATE TERRACE

21'-11"x37'-6"

KEY PLAN

12.03.2015


PENTHOUSE E 4 BED /1 HOME OFFICE/ 4.5 BATH PENTHOUSE


0 5'

BR#4 1l·11'X10'-0'

10' 15'

BR#3 1s.s·x11·.s·

H.0. 10'-0'X12'-3'

20'

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LR 30'-5')(17'-5'

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W.l,C. 5'-0" x 12'-9'

DR 19'-10'X1T-5"

PRIVATE TERRACE

57'-7' x6~-2·

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KEY PLAN

12.03.2015

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PENTHOUSE F 3 BED /2.5 BATH PENTHOUSE & ROOF


5'

ROOF

BR~ 10'-0'Xll"-10'

PENTHOUSE

10' 15'

ROOF PRIVATE TERRACE

28'-5' x 29'-1'

8R#2 10'-0'Xll '-10'

20'

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UWR 2Z.S'X1T-8'

MBR 11'-0'XlT-2'

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PENTHOUSE G 4 BED /3.5 BATH PENTHOUSE


5' 10' 15' 20'

MBR lil'· l1'~1:Z'-<I'

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PAIVATE. TERIW:E35'.J', 7',4'

BR#2 10'-C'XI0'-7'

KITCHEN 8'-11"x 14'.J'

PRJVATE TERRACE 33'-6' x 13'-0'

BR#3 10'·2'X12'-7'

LR 22'-S'X18'·2'

OR 10'-1 1' x 14'.ii'

KEY PLAN

12.03.2015

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PENTHOUSE H DUPLEX 3 BED /2.5 BATH SIXTH FLOOR, PENTHOUSE & ROOF


MBR 11'-11'X12'-10'

SIXTH FLOOR

5' 10' 15'

ROOF

BR#2 10'-7'X12'-5'

LR,IJR 11"-10'X 16"-10'

20'

BRIJ 11"·1'X 11"-9'

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15'-9' I I

PENTHOUSE

PRIVATETERRACE3Z-4' x 7'-4'

LR,IJR 2?-7'X15'-9'

KEY PLAN

12.03.2015

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TUCHMAN, KORNGOLD, WEISS. LIEBMAN 8 GELLES, LLP COUNSELORS AT LAW

BERT TUCHMAN

6 EAST 45TH STREET, NEW YORK, N. Y. 10017

(212) 687-3747

PAUL J. KORNGOLD

ERIC S. WEISS

DONALD LIEBMAN

BRETT J. GOITUEB

YUHTYNG T. PATKA•

CRACE A. BETANCOURT

PHILIP M. Pl.ATZ ••

181 Avenue A, LLC c/o Steiner NYC, LLC 15 Washington Avenue Brooklyn, New York I l205

RE: 438 East 12 11' Street

Block 439, Lot 26 Borough of Manhattan Clty of New York

Dear Sir or Madam:

FAX: (212) 599-4459 WALTER R. GELLES (R.ET.)

• Af..SO ,',DMITrrD IN CT 8 NI

" Af.SO ,',DMfTTED IN NI

August 12, 2015

This letter is in response to your request for an opinion and projection of the estimated real estate tax assessments and taxes upon the completion of construction and creation of a condominium.

You have requested our opinion concerning the real property tax assessment to be levied upon the captioned premises as well as the taxes for the budget year for the first year of condominium operation which you have advised us will be the period January 1, 2018 through December 31, 2018 as well as the first post construction tax year which will be the period July 1, 2018 through June 30, 2019. You have advised us that the project will consist of the constmction a residential multiple dwelling containing eighty-two residential units, a retail unit, community facility space and six parking units. All units will be conveyed by deed. You have advised us the construction has now commenced and you expect construction to be completed in the late fall of 201 7.

In order to prepare this letter and the opinion set forth herein, you have supplied us with certain information upon which we have relied. This information includes your purchase price, your estimated construction costs and your estimated operating expenses. You have also supplied us with a square footage analysis of the project and architectural drawings prepared by the firm of Perkins Eastman Architects. We have also examined publicly available web sites maintained by the NYC Department of Buildings and Department of Finance.

We have also considered the recent tax assessment history of the property, the cost of the new project, the potential income for the new structure (if operated as a rental), comparable properties in the Borough of Manhattan which have been newly constructed or undergone renovation as well as market conditions in the general area.

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TUCHMAN. KORNGOLD. WEISS. LIEBMAN 8 GELLES. LLP

181 A venue A, LLC August 12, 2015 Page 2

In predicting the future assessed value, we have given consideration to the following factors:

l. The current claimed standard of assessment used by the Real Property Division of the New York City Department of Finance is to assess at 45% of value.

2. The estimate of the cost of the construction will be a factor.

3. The potential capitalized net income of the property if operated as a rental.

4. Tax Assessments of comparable properties.

Real Estate Tax Assessments in New York City are made on a fiscal year basis running from July l of any one year to the next succeeding June 30. The status of the building on January 5 of any one year is the basis of the assessment for the fiscal year beginning that July 1. The final assessment roll containing the final 2015/2016 assessed values (the property consisted of vacant Land) was publi~hed on May 27, 2015 and showed the following values:

Actual Assessed Value Transition Assessed Value Tax Class

$2,118,150 $2,076,3 74 4

Real Property Tax Law Section 581 provides that cooperative and condominium apartments shall be assessed for tax purposes as if the building was a comparable rentalproperty~ Thus, the Department of Finance is prohibited from utilizing the sales prices of the individual condominium units in determining the assessed valuation. Therefore the prices that you set in your offering plan and any subsequent sales or resales are not relevant in determining the assessed value of the property or of the individual condominium units. Upon conversion to a condominium and after an application is submitted by you, the New York City Department of Finance shall assign individual tax lot numbers to each of the condominium units. The residential condominium units will be designated as tax class 2 property and will pay on the class 2 tax rate and the retail condominium and community facility units will be designated as tax class 4 property and will pay on the class 4 tax rate. The 2015/2016 class 2 residential tax rate has recently been set at $12.883 for each $100 of assessed valuation and the class 4 nonresidential tax rate has been set at $10.656 for each $100 of assessed valuation.

Real Property Tax Law Section 1805 provides for the creation of a transition assessment system within the City of New York. Under the transition assessment system, the usual increase in the actual assessed value of a property between one year and the next is phased in over a five

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TUCHMAN. KORNGOLD. WEISS. LIEBMAN 0 GELLES. LLP

18 l Avenue A, LLC August 12, 2015 Page 3

year period in equal installments. The five year phase in does not apply to new construction or other increases due to physical improvements to the property. Increases due to such physical improvements or new construction are added in full to the next year's assessment. Pursuant to Real Prope11y Tax Law Section 1805, the taxable assessment is determined to be the lesser of the actual assessed valuation or the transition assessed valuation. We believe that there will be an increase in value for 2018/ 19 and 2019/2020 as a result of the new construction which will be placed on the assessment roll immediately and not subject to the five year phase in as well as a general equalization increase due to the changes in use of the building. In future years, part of the increases we project in assessed value will likely result in the taxable assessment being increased and based on a phased-in transition assessed value.

On June 25, 2015 the New York State Legislature passed legislation extending property tax abatements for homeowners in New York City cooperatives and condominiums through June 30, 2018 at the rate of 17.5% with buildings with average asses~ments greater than $60,000 per unit and a 6rreater percentage for buildings with a lesser average per unit. The law makes additional changes from the original abatement law which may eliminate such abatement benefits for units which are not the primary residence of the owner. The law further limits the benefits to a maximum of three units in the building, one of which must be the primary residence of the owner. It is unknown at this time if unit owners will have acquired their ownership interests at a point in time by which they will be eligible to apply for this abatement. Therefore, in predicting the taxes on this building we have not given any consideration to this tax benefit. Unit owners are advised to beware of various filing deadlines that may be included in the renewed law as well as possible changes in the level of abatement and eligibility.

We caution you that it is possible that there will not be an official apportionment of the assessment for the tax liability among the units until such time as an official apportionment of the assessed value is made and becomes effective. You should explain in your offering plan how . taxes are to be allocated among unit owners prior to the apportionment of the tax lots which may . be substantially different than the numbers set forth herein.

Predicated upon the foregoing, it is our opinion that for the total actual assessed value of the property will be $11,000,000 for the 2017/2018 tax year and will be $18,500,000 for the 2018/2019 tax year and we have utilized those numbers in estimating the real estate taxes for the initial budget year and the first post construction tax year. For the 20l7/2018 tax year you have advised us that the project will be not be complete by the tax status date of January 5, 2017. We caution you that we have found that the assessment practices of the New York City Department of Finance are notoriously inconsistent in assessing properties duririg the course of construction and it is likely that there may be a substantial deviation from our estimate in the assessed·value for the 2017/2018 tax year.

We have been advised that in determining the assessed values for the individual units, the current procedures of the New York City Department of Finance calls for the locking-in of the

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TUCHMAN. KORNGOLD. WEISS, LIEBMAN 8 GELLES. LLP

18 l Avenue A, LLC August 12, 2015 Page 4

common interest (elements) percentages (Unit Allocation Factor or UAF) extracted from th.e condominium declaration filed with the Department of Finance, Survey office and registered at the City Register, Thus the initial allocation of the assessed value of all units should be based on the common interest as set forth in the condominium declaration which you have advised us is 90.5275% to the residential units, 8.3650% to the retail unit 0.8871 % to the community facility unit and 0.2205% to the parking units.

Therefore assuming the class 2 tax rate increases to $13 .25 for each $100 of assessed valuation and further assuming the class 4 tax rate increases to $11.25 for each $100 of assessed valuation we make the following projections of the real estate taxes for the initial budget year January l, 2018 through December 31, 2018 and the first post construction tax year:

January 1, 2018 through June 30, 2018 ( 6 Months of the 2017/2018 Tax Year)

Units Assessed Value Tax Rate Tax (6 Months)

Residential $9,958,025 13.25% $659,719 Retail $920,150 11.25% $51,758 Community Facility $97,581 11.25% $5,489 Parking $24,255 11.25% $1,364

July 1, 2018 through December 3 l, 2018 (6 Months of the 2018/2019 Tax Year)

Units Assessed Value Tax Rate '· Tax (6 Months)

Residential $16,747,588 13.25% $1,109,528 Retail $1,547,525 l 1.25% $87,048 Community Facility $164,114 11.25% $9,231 Parking $40,793 l l.25% $2,295

It is estimated that the 2018/2019 tax year will be the first tax year that the property will be fully assessed by the Department of Finance. For the 2018/2019 tax year we estimate that the real estate tax prior to any abatements or exemptions will be calculated as follows:

Units Assessed Value Tax Rate Tax

Residential $16,747,588 13.25% $2,219,055 Retail $1,547,525 11.25% $174,097 Community Facility $164,114 11.25% $18,463 Parking $40,793 11 .25% $4,589

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TUCHMAN. KOR.NGOLD, WEISS. LIEBMAN 8 GELLES, LLP

181 Avenue A, LLC August 12, 2015 Page 5

Estimated Initial Residential Budget Year Real Estate Taxes Estimated Initial Retail Budget Year Real Estate Taxes Estimated Initial Community Facility Budget Year Real Estate Taxes Estimated [nitial Parking Budget Year Real Estate Taxes Estimated Post Construction Initial Tax Year Real Estate Taxes Estimated Post Constrnction Initial Retail Budget Year Real Estate Taxes Estimated Post Constn1ction Community Facility Tax Year Real Estate Taxes Estimated Post Construction Parking Tax Year Real Estate Taxes

$1,769,247 $138,806

$14,720 $3,659

$2,219,055 $174,097

$18,463 $4,589

Our film has an extensive practice in real estate tax review matters and in 421-a and J-5 l tax exemption/ tax abatement applications, and we currently represent the owners of approximately 2,500 buildings in the City of New York, and file applications for correction of the tax assessments and tax exemptions/tax abatements on these properties. This firm and its predecessors have been engaged in such practice for a period in excess of 60 years. Additionally, the writer is the past chainnan of the Law Committee of the Associated Builders and Owners of Greater New York, a director of both the New York State Builders Association and the Associated Builders and Owners of Greater New York, a past member of the Tax Certiorari and Condemnation Committee of the Bar Association of the City of New York, and is a director and former President of the Real Estate Tax Review Bar Association, a specialized Bar dealing with real estate tax assessment matters.

Based upon our previous experience with such proceedings, we have issued the within letter with the estimates and caveats contained therein which the specific understanding that our opinion is not a guarantee that the taxes will be exactly as estimated. In no event will we, as Sponsor's real estate tax counsel, be liable ifthere are changes in the facts on which we have relied in issuing this opinion, or if there are changes in the applicable statutes, rules and regulations of the City of New York, decisional laws or administrative agency rulings, interpretations and policies on which we have relied which cause this opinion to be inaccurate. Interested parties should be aware that the estimate of the initial real estate tax assessment and taxes cover a period far into the future. Neither we nor any person can guarantee what the real estate taxes will be at any future date. As stated above, changes in law or policies of government agencies may radically change the opinions expressed herein.

The opinion expressed herein is that of the undersigned, and does not purport to express the opinion of the New York City Department of Finance or any city or government agency. That Department's opinions may result in substantially different total taxes for the initial budget year as well as for tax years 2018/20 l 9 and 2019/2020 than set forth herein. We consent to the inclusion of this letter in the offering plan.

Very truly yours,

tUC l-IMAN1

KQRN0,0 LD, W EIS S. UEBM~N &:GELLES) L.tl\ ,....-c ..... - ((, ---J1 l·U ,: f..\';, lv.....f_p f ~d!{Ji I L, , I"

/1- /"J .,,1 vf By: Paul J . Korngolcl I

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DECLARATION

Establishing a Plan for Condominium Ownership of Premises located at 438 East 12th Street, County, City, and State of New York Pursuant to Article 9-B of the Real Property Law of the State of New York.

NAME:

DECLARANT:

DATE OF DECLARATION:

438 EAST 12Tn STREET CONDOMINIUM

181 Avenue A, LLC c/o Steiner NYC 15 Washington A venue Brooklyn Navy Yard Brooklyn, New York 11205

The land affected by the within instrument lies in Tax Block __ Tax Lot formerly known as Lot _ and now known as Lots __ -__ _ inclusive on the Tax Map of the Borough of Manhattan, County, City, and State of New York.

Record and Return to:

SEIDEN & SCHEIN, P.C.

Attorneys for Declarant 570 Lexington A venue

New York, New York 10022

(212) 935-1400

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INDEX TO DECLARATION

Article Subject

ARTICLE 1 DEFINITIONS ................................ .. ..... .... ... .... .. .............. .. .... .. .... ..... ...................... I

ARTICLE 2 SUBMISSION OF THE PROPERTY ..................................................................... !

ARTICLE 3 THE LAND ...................................... .. ............................ ... ........................ .. ............. 1

ARTICLE 4 THE PROPERTY ................................................................... .. ............................... 2

ARTICLE 5 THE BUILDING ................................... ........ ........ ........................................ .. ........ 2

ARTICLE 6 THE UNITS ..................................................................................... ........................ 2

ARTICLE 8 COMMON ELEMENTS ........ ... ........... ... ................................................. ..... .......... 4

ARTICLE 9 USE OF BUILDING AND UNITS ......................................................................... 8

ARTICLE 10 CHANGES IN THE RESIDENTIAL SECTION .................................................. 9

ARTICLE 11 CHANGES IN THE COMMERCIAL SECTION ................................................ 10

ARTICLE 12 PERSON TO RECEIVE SERVICE ................................................................... .11

ARTICLE 13 DETERMINATION OF PERCENTAGE INTERESTS IN COMMON ELEMENTS .............. ................ ............. ........................... ............... 11

ARTICLE 14 ENCROACHMENTS ......... ................................................................................. 11

ARTICLE 15 ACCESS TO COMMON ELEMENTS ............................................................... 11

ARTICLE 16 EASEMENTS AND NAME OF CONDOMINIUM ........................................... 12

ARTICLE 17 POWER OF ATTORNEY .......................................... .. .. ....... ............................. .16

ARTICLE 18 ACQUISITION OF UNITS BY BOARDS ........................................................ .18

ARTICLE 19 COVENANTS RUNNING WITH THE LAND ................................................ .19

ARTICLE 20 AMENDMENTS OF DECLARATION ...... ........................................................ 20

ARTICLE 21 TERMINATION OF CONDOMINIUM ........................................ ..................... 23

ARTICLE 22 WAIVER ...... ...... ... ... ...... ............................................. ...... ..... ............... ...... ........ 24

ARTICLE 23 CAPTIONS .......................................................................................................... 24

ARTICLE 24 CERTAIN REFERENCES .................................................................................. 24

ARTICLE 25 SEVERABILITY .: ................................................................................ .. ............. 24

ARTICLE 26 COVENANT OF FURTHER ASSURANCES ................. ....... ...... ..................... 25

ARTICLE 27 SUCCESSORS AND ASSIGNS .............................. ... ........................................ 25

ARTICLE 28 CONSENTS .................... .............................................. .... .................. .. ............... 26

ARTICLE 29 INCORPORATION BY REFERENCE .............................................................. 26

P:\Offering Plans\438 East 12th Street\Accepted for Filing\Declaration of Condominium.doc

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ARTICLE 30 GENERAL ....... ........ .. ..... .... ... ... ......... ..... ..... ... ... .. ..... ...... ....... ... .... .. ....... .... .... ... ... 26

EXHIBITS

A. Description of the Land

B. Description of the Units

C. Definitions

D. By-Laws

E. Budget for First Year of Condominium Operation

F. Permitted Commercial Signage Locations

P:\Offering Plans\438 East 12th Street\Accepted for Filing\Declaration of Condominium.doc 11

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DECLARATION OF

438 EAST 12th STREET CONDOMINIUM

(Pursuant to Article 9-B of the Real Property Law of the State of New York)

181 Avenue A, LLC, a New York limited liability company having an office at c/o Steiner NYC, 15 Washington Avenue, Brooklyn Navy Yard, Brooklyn, New York 11205 (the ''Declarant"), does hereby declare as follows:

ARTICLE 1

DEFINITIONS

All capitalized terms used in this Declaration (hereinafter referred to as the "Declaration") that are not otherwise defined in the Articles hereof or in the By-Laws (as herein ufter defined) will have the meanings set forth in Exhibit C annexed hereto, unless the context in which they are used will otherwise require.

ARTICLE2

SUBMISSION OF THE PROPERTY

2.1 Declarant hereby submits the Land and Building ( each as hereinafter defined), all other improvements erected and to be erected thereon, all easements, rights and appurtenances belonging thereto and all other property, real, personal or mixed, intended for use in connection therewith (collectively, the "Property") to the provisions of Article 9-B of the Real Property Law of the State ofNew York (the "Condominium Act"), and pursuant thereto does hereby establish a condominium to be known as "438 EAST 12TH STREET CONDOMINIUM" (the "Condominium").

2.2 Attached to this Declaration as Exhibit D and made a part hereof are the By-Laws of the Condominium which set forth detailed provisions governing the operation, use and occupancy of the Condominium (said By-Laws, as they may be amended from time to time, are hereinafter referred to as the "By-Laws").

ARTICLE3

THE LAND

Included in the Property described in Article 2 is all that certain tract, plot, piece and parcel of land (the "Land") situate, lying and being in the County of New York, City and State of New York, commonly known as 438 East12th Street, and more particularly described in Exhibit A annexed hereto and made a part hereof. The Land is owned by Declarant in fee simple absolute. The Land has an area of approximately 29,705 square feet.


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ARTICLE 4

THE PROPERTY

Included in the Property described in Article 2 is a building (the "Building") consisting of one (1) retail unit (the "Retail Unit"), one (1) Community Facility Unit (the "Community Facility Unit"), six (6) parking units (collectively, the "Parking Units" and individually a "Parking Unit") and eighty-two (82) residential units (collectively, the "Residential Units" and individually a "Residential Unit"). The Retail Unit, Community Facility Unit, Parking Units and the Residential Units are sometimes hereinafter collectively referred to as the "Units" and individually as a "Unit." The Retail Unit and the Community Facility Unit are sometimes hereinafter collectively referred to as the "Commercial Units" and individually as a "Commercial Unit." The Commercial Units, together with the Commercial Common Elements (as hereinafter defined), are collectively referred to as the "Commercial Section." The Residential Units, and the Parking Units, together with the Residential Common Elements, and the Residential Limited Common Elements (as hereinafter defined), are collectively referred to as the "Residential Section." The owner of the Retail Unit is herein called the "Retail Unit Owner." The owner of the Community Facility Unit is herein called the "Community Facility Unit Owner." The owners the Retail Unit and the Community Facility Unit are herein sometimes called a "Commercial Unit Owner," and collectively the Retail Unit Owner and the Community Facility Unit Owner are herein called the "Commercial Unit Owners." The owner of a Parking Unit is herein called a "Parking Unit Owner," and all of the owners of the Parking Units are herein collectively called the "Parking Unit Owners." The owner of a Residential Unit is herein called a "Residential Unit Owner" and all the owners of the Residential Units are herein collectively called the ''Residential Unit Owners." The Commercial Unit Owners, Parking Unit Owners and all Residential Unit Owners are collectively referred to herein as the ''Unit Owners" and individually as a "Unit Owner."

ARTICLES

THE BUILDING

The Building is a single structure consisting of an amenities level, a garden level and six (6) floors above grade, plus mechanical levels, and will be a Class 1-A noncombustible building. The Building will be constructed of concrete, steel, brick, glass and metal.

ARTICLE 6

THE UNITS

6.1 Exhibit B annexed hereto and made a part hereof sets forth the following data with respect to each Unit necessary for the proper identification thereof: (i) its Unit designation; (ii) tax lot number; (iii) approximate location in the Building; (iv) approximate square foot area; (v) number of rooms; and (vi) the percentage interest in the Common Elements appurtenant to such Unit. The location of each Unit is shown on the floor plans of the Building (the "Floor Plans") certified by S9, as affiliate of Perkins Eastman Architects, 115 Fifth Avenue, New York, New York 10003 and intended to be approved by the Tax Map Unit of the City of New York and


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filed in the Office of the Register of the City of New York, County of New York (the "Register's Office") following the recording of this Declaration.

6.2 Each Unit includes, and each Unit Owner shall be responsible for, entrance doors to the Unit, the interior sheetrocked walls and partitions, non-structural flooring, interior stairways, interior elevators, floor coverings and plastered or sheetrocked ceilings affixed, attached or appurtenant to such Unit, smoke detectors, carbon monoxide detectors, all plumbing, gas and heating fixtures and equipment such as, but not limited to, refrigerators, dishwashers, heating, ventilating and air conditioning ("HV AC") units (including the fans inside the units), heating equipment, ranges and other equipment and appliances, as may be affixed, attached or appurtenant to such Unit and serving such Unit exclusively. Plumbing, gas and heating fixtures and equipment as used in the preceding sentence shall include exposed gas and water pipes from branch or fixture shut-off valves attached to fixtures, appliances and equipment and the fixtures, appliances and equipment to which they are attached, and any special pipes or equipment which a Unit Owner may install within a wall or ceiling, or under the floor, but shall not include gas, water or other pipes, conduits, wiring or ductwork within the walls, ceilings or floors. Each Unit shall also include (i) all lighting and electrical fixtures and appliances within the Unit, and (ii) any special equipment, fixtures or Facilities (as hereinafter defined) affixed, attached or appurtenant to the Unit by or for the benefit of a Unit Owner, to the extent located within a Unit from the panel and serving or benefiting only that Unit including, but not limited to, any freight elevators or freight entrances servicing a Commercial Unit. Notwithstanding anything contained in this Article 6 to the contrary, each Unit Owner will have the right, exercisable at any time, to install, at such Unit Owner's sole cost and expense, decorations, fixtures and coverings (including, without limitation, painting, finishing, wall to wall carpeting, pictures, mirrors, shelving and lighting fixtures) on the surfaces of the walls, ceilings and floors that face the interior of such Unit Owner's Unit and to a depth of one inch behind such surfaces for the purposes of installing nails, screws, bolts and the like, provided that no such installation shall impair the structural integrity of the Building or affect any of the mechanical and electrical systems of such Unit or of the Building.

6.3 The Commercial Units include all windows and window frames, storefronts, entranceways and door assemblies and related and similar installations in the exterior fa~ade which exclusively opens into, or is appurtenant to, the Commercial Units, as more particularly delineated on the Floor Plans.

6.4 As of the date of the filing of this Declaration with the Register's Office, fee simple absolute title shall automatically vest in Declarant in all Units, individually and collectively, without the need to execute specific and particular deeds or indentures for each and every Unit.

ARTICLE 7

DIMENSIONS OF UNITS

The Residential Units and Commercial Units were measured from the exterior side of the exterior walls (perimeter columns and mechanical pipes/ducts/shafts/ are not deducted) to the corridor/Common Elements side of interior walls separating one Unit from another Unit, or


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separating a Unit from public corridors, stairs, elevators and other mechanical equipment spaces or any Common Elements or Limited Common Elements, and to the midpoint of the demising interior walls and partitions separating one Unit from another Unit. Any Common Elements located within a unit shall not be considered a part of such Unit.

Parking Units are measured from the center of the dividing line between such Units.

ARTICLES

COMMON ELEMENTS

8.1 The common elements of the Condominium (the "Common Elements") consist of the entire Property, including the Land and all parts of the Building and improvements thereon, other than the Units. The Common Elements include, but are not limited to, those rooms, areas, corridors, spaces and other parts of the Building and all Facilities ( defined below) therein for the common use of the Units and the Unit Owners or which are necessary or convenient for the existence, operation, maintenance or safety of the Property. The Common Elements of the Condominium that serve or benefit exclusively (a) the Residential Units or the Residential UniL Owners are called "Residential Common Elements," (b) one or more but not all of the Residential Units or the Residential Unit Owners are called "Residential Limited Common Elements," (c) the Parking Units or the Parking Unit Owners are called ''Parking Common Elements," ( d) the Commercial Unit or the Commercial Unit Owner am called "Commercial Common Elements." The "General Common Elements" are appurtenant to, serve and benefit each Unit to the extent of such Unit's percentage share of the General Common Elements. The General Common Elements are for the common use of all Unit Owners.

8.2 As used in this Declaration, the word "Facility" or "Facilities" includes, but is not limited to, the following items (grouped more or less functionally) which are set forth only for purposes of illustrating the broad scope of that term: system, equipment, apparatus, converter, radiator, heater, heat exchanger, mechanism, device, machinery, motor, pump, control, tank or tank assembly, insulation, induction unit, condenser, compressor, fan, damper, blower, thermostat, thermometer, coil, vent, sensor, shut-off valve or other valve, gong, panel, receptacle, outlet, relay, alarm, sprinkler head, electric distribution facility, wiring, wireway, switch, switchboard, circuit breaker, transformer, fitting, siamese connection, hose, plumbing fixture, lighting fixture, other fixture, bulb, sign, telephone, meter, meter assembly, scaffolding, piping, line, duct, conduit, cable, riser, main shaft, pit, flue, lock or other hardware, rack, screen, strainer, trap, drain, catch basin, leader, filter, canopy, incinerator, closet, cabinet, door, railing, coping, step, furniture, mirror, furnishing, appurtenance, um, basket, mail box, carpeting, tile or other floor covering, drapery, shade or other window covering, wallpaper or other wall covering, tree, shrubbery, flower or other planting and horticult11re tub or box.

8.3 The Common Elements will remain undivided and no Unit Owner or other person will bring or will have the right to bring any action for partition or division thereof except as may be specifically provided for herein and in the By-Laws.

8.4 The General Common Elements consist of the following:


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8.4.1 The Land (as more particularly described in Exhibit A attached to this Declaration), together with all easements, rights and privileges appurtenant thereto;

8.4.2 Any of the following: all foundations, footings, columns, girders, floor slabs and structural ceilings, beams, and supports and interior load bearing walls,

8.4.3 The fac;ade, exterior walls and structural elements of exterior walls including, but not limited to, non-operable windows and spandrel glass, if any, in the Residential Section of the Building, but excluding (i) all operable windows and operable window frames in the Residential Section of the Building and (ii) all windows and window frames, storefronts, entranceways and door assemblies and related and similar installations in the exterior fac;ade which exclusively opens into, or is appurtenant to, the Commercial Units;

8.4.4 The rooms and Facilities located as follows: on the amenities level, the maintenance workshop, Building storage, secondary water tank, the water meter room, the gas meter room, the electric room, the telephone room, the detention tank room, the staff room and the superintendent's office; on the lobby level, Building storage; the mechanical areas, stairs, roof, and the underlying roof structure and waterproofing on all terraces and roofs; the bulkhead roof and ladder to the main roof and all other areas designated as a General Common Element on the Floor Plans;

8.4.5 Any other Facilities in the Building which serve or benefit or are necessary or convenient for the existence, maintenance, operation or safety of all of the Commercial Section and the Residential Section and are not a part of any Unit, Residential Conunon Elements, Commercial Common Elements or any Limited Common Element.

8.5 The Residential Common Elements consist of the following:

8.5.1 Residential electric meters and panels, electric closets, feeders, risers and Facilities, Residential Section gas meter(s), and cables serving exclusively the Residential Section;

8.5.2 The operable windows (including frames) and skylights (including frames), if any, that serve the Residential Section;

8.5.3 Kitchen, bathroom and dryer exhaust ducts, corridor and Residential Unit supply air ducts if any, water lines supply and return for heating, water pressure reducing valve system, and all other Facilities in the floor and ceilings serving or benefiting exclusively the Residential Section;

8.5.4 CATV riser and all other Facilities located in the Property serving or benefiting exclusively the Residential Section to the extent that the same are not owned by a third party;

8.5.5 The rooms and Facilities located as follows: on the amenities level, the residential storage room in which the Storage Bins are located, all other storage rooms,


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the compactor rooms, the bicycle room, the swimming pool and all of its Facilities, the pool equipment room, the sauna, the steam room, the men's and women's bathrooms, the fitness room, the children's playroom, the lounge, the compacter room and the laundry room; on the garden level, two (2) refuse rooms; on the lobby level, the residential vestibule, residential lobbies on East 11th Street and East 12th Street, the package room, the mail area and the satellite electrical room; on the second floor, two (2) refuse rooms; on floors two through penthouse, two (2) refuse rooms and one (1) electrical room per floor; on the second floor, one (1) telephone/data closet; on floors three though penthouse, two (2) telephone/data closets per floor; the walkable surface of the residential terrace on the roof; and all other areas designated as a Residential Common Element on the Floor Plans;

8.5.5.1 Notwithstanding that the resident storage room located on the amenities level is a Residential Common Element, Declarant shall have the sole and exclusive right to the proceeds from the initial licensing by the Board of any Storage Bin located within the resident storage room.

8.5.6 The passenger elevator and its shafts, pits, machine rooms and Facilities;

8.5. 7 All passages, hallways, stairs and corridors, all mechanical space and all other rooms, areas, spaces and other parts of the Building which are not Parking Units, Residential Units, Residential Limited Common Elements or part of the Commercial Units, Commercial Common Elements, or General Common Elements;

8.5.8 All other Facilities exclusively serving the Residential Section, excluding the Parking Units, the Residential Units, the Residential Limited Common Elements, the Commercial Units, the Commercial Common Elements, and the General Common Elements, and which serve or benefit or are necessary or convenient for the existence, maintenance, operation or safety of the Residential Section.

8.5.9 Notwithstanding anything to the contrary in this Article 8, if a Residential Common Element benefits only certain Residential Unit Owners, then the alteration, addition, repair, replacement and restoration thereto shall be performed by the Residential Board and the cost thereof shall be borne solely by those Residential Unit Owners who benefit from the Residential Common Element in the proportion that the Common Interest of each benefiting Residential Unit Owner bears to the Common Interests of all benefiting Residential Unit Owners.

8.6 The Parking Common Elements shall consist of the following:

8.6.1 The entrance door appurtenant to the Parking Units area and all areas in the parking garage which are not part of any Parking Unit. Notwithstanding anything to the contrary contained in the By-Laws or this Declaration, the cost of repairing the Parking Unit Common Elements shall be a Parking Common Expense which shall be allocated exclusively to Parking Unit Owners based on their respective percentage of Common Interest (unless damage is caused by a Unit Owner or a Unit Owner's lessee, in which case the repair shall be undertaken by the Board at the expense of the Unit Owner).


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8.6.2 All remaining Facilities exclusively serving the Parking Units, excluding the Parking Units, the Residential Units, the Commercial Units, the Residential Common Elements, the Residential Limited Common Elements and the General Common Elements, which serve or benefit or are necessary or convenient for the existence, maintenance, operation or safety of the Parking Units.

8. 7 The Residential Limited Common Elements consist of the following:

8.7.1 The terraces to which one or more Residential Units have exclusive access as set forth in Exhibit B annexed hereto. Notwithstanding anything to the contrary contained in the By-Laws or this Declaration, Residential Unit Owners with a terrace appurtenant to their Residential Unit shall be responsible for all normal maintenance of such terrace at such Residential Unit Owner's sole cost and expense. The replacement of the pavers or other exterior walkable surface that was installed by Declarant with an alternate surface shall be subject to the approval of the Residential Board. The repair and replacement of the exterior surface of such terrace shall at all times be performed by the Residential Board and charged to the Residential Unit Owner. However, any structural or extraordinary repairs (non-recurring repair which requires more than the usual annual expense for ordinary wear) or replacements to such terrace (including any leaks which are not caused by the negligence of the Residential Unit Owner having access to the same) shall be made by the Residential Board and the cost and expense thereof shall be charged to all Unit Owners as a Common Expense; provided, however, that any repairs or replacements that are necessitated or deemed advisable by the Board and result from the negligence or wrongful acts of any Residential Unit Owner having exclusive access to a terrace, as set forth in Exhibit B annexed hereto, or any of its invitees, may be made or done by the Board, and the Board may charge the entire cost thereof to such Residential Unit Owner;

8.8.2 All other Facilities exclusively serving one or more but not all Residential Units, excluding the Residential Units, the Residential Common Elements, the Parking Units, the Commercial Units, the Commercial Common Elements, and the General Common Elements, and which serve or benefit or are necessary or convenient for the existence, maintenance, operation or safety of one or more but not all of the Residential Units.

8.8 The Commercial Common Elements consist of the following:

8.8.1 Electric meters, water meters, gas meters and other utility meters (if any) serving or available for the exclusive use of the Commercial Section;

8.8.2 Ductwork, and all other HV AC and electric and similar Facilities serving or benefiting exclusively the Commercial Section;

8.8.3 All remaining Facilities exclusively serving the Commercial Units, excluding the Commercial Units, the Parking Units, the Residential Units, the Residential Common Elements, the Residential Limited Common Elements and the General


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Common Elements, which serve or benefit or are necessary or convenient for the existence, maintenance, operation or safety of the Commercial Units.

ARTICLE 9

USE OF BUILDING AND UNITS

9.1 As more particularly set forth in the By-Laws, Residential Units may be used only for residential purposes and for any home occupation uses to the extent permitted under applicable zoning law and ordinances and other applicable governmental laws and regulations, but not for retail use. A Residential Unit may also be used for any other lawful purposes (but not for retail use), subject, however, to (1) the terms and conditions of the then existing certificate of occupancy for the Building, (2) applicable governmental laws and regulations, (3) the use of such Residential Unit not adversely affecting the use and enjoyment of neighboring or adjacent Residential Units for residential purposes, (4) compliance with the By-Laws and (5) the prior written permission of the Residential Board, which permission shall in no event be granted unless such Board affirmatively finds that the conditions in (1) through (5) above have been met.

9.2 Notwithstanding the foregoing or anything contained in the By-Laws or the Rules and Regulations to the contrary, Declarant may, without the permission of the Residential Board or any other Board, (1) grant permission for the use of any Unsold Residential Unit (as defined in Exhibit C) owned by it or its designee for any purpose, provided such use is permitted by Law, and does not violate the then existing certificate of occupancy for such Residential Unit or any other governmental regulations, and (2) use any Unsold Residential Units owned by it or its designee as models and sales and/or promotion offices in connection with the sale or rental of the Units, subject only to compliance with applicable governmental laws and regulations.

9.3 The Commercial Units may be used for any lawful purposes, including, without limitation, department and other retail stores and outlets, storage, theaters, banks, restaurants and commercial and professional offices and studios.

9.4 In accordance with Section 339-m of the Real Property Law and the By-Laws, the Board of Managers shall have the right to impose Common Charges to Commercial Units, and Parking Units based on factors other than such Unit's percentage of Common Interest.

9.5 As more particularly set forth and described in the By-Laws, except as otherwise expressly provided herein or in the By-Laws, Storage Bins shall only be used for the personal storage of Residential Unit Owners or a bona fide lessee thereof. The Storage Bins shall be maintained, repaired and replaced by the Residential Board and the cost thereof shall be allocated exclusively to each Storage Bin licensee.

9.6 Except for Parking Units Owned by Declarant or its designee, Parking Units shall only be sold by the Parking Unit Owner to a Residential Unit Owner. Parking Units shall only be leased by a Parking Unit Owner to a Residential Unit Owner or to a bona fide lessee of a Residential Unit Owner.


Documents

-282-...0 438 e 12th street new york, new york 10009 penthouse c duplex 2 bed /2.5 bath sixth floor, penthouse & roof approx. unit area: 1658 sf approx