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Team Kimyagarov Year End ReportEast Harlem

CUSHMAN & WAKEFIELD275 Madison Avenue, Third FloorNew York, NY 10016nyinvestmentsales.com

Lev KimyagarovDirector212 660 7729lev.kimyagarov@cushwake.com

What is your property worth?

YEAR END 2015

Cushman & Wakefield Copyright 2016. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). AS APPLICABLE, WE MAKE NO REPRESENTATION AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) IN QUESTION.

EXCLUSIVES LISTINGS FOR SALE

145 East 125th Street6-Story Mixed-Use

Commercial BuildingAsking Price: $35,000,000

230 West 113th Street6 Story Elevator

Apartment BuildingAsking Price: $15,950,000

204 East 110th Street30’ Wide Elevator

Mixed-Use Building Asking Price: $8,500,000

665 Lenox Avenue6-Story Mixed-Use Walk-Up Building

Asking Price: $8,200,000

1713 Madison AvenueNon-Profit Development

OpportunityAsking Price: $7,000,000

56 East 130th Street25’ Wide Vacant Brownstone

Asking Price: $3,600,000

2321 First Avenue25’ Wide Mixed-Use BuildingAsking Price: $3,2500,000

416 East 115th Street4 Unit Mixed-Use BuildingAsking Price: $2,295,000

SOLD

RECENT TRANSACTIONS

265 Pleasant Avenue 301 East 103rd Street 133 West 119th Street

Your Property

Here

IN CONTRACT SOLD

Multi-Family

EAST HARLEM SALES REPORT EAST HARLEM SALES REPORT

Address Price Gross SF S / SF Property Type

103-105 East 125th St. $48,000,000 137,535 $349 Commercial

17-27 West 125th St. $30,000,000 46,224 $649 Mixed-Use

137-145 West 145th St. $24,000,000 54,054 $444 Multi-Family

2143 Adam Clayton Powell Jr. Blvd. $21,500,000 50,351 $427 Mixed-Use

1988-1996 2nd Ave. $19,500,000 71,428 $273 Development

325-327 East 101st St. $18,250,000 36,868 $495 Multi-Family

With a slight bump in interest rates at the end of 2015, transactions began to slow with the turn of the new year. A total of 202 properties traded in 2014 for a cumulative $682 Million. In 2015, $636 Million worth of properties sold but only 141 assets traded. Although there were less transactions in 2015 than 2014, property values have continued to increase. This is supported the price per square foot value of all property types increasing an average of 16%. Similarly land prices jumped 21% in value on a buildable square foot basis.

China’s instability, persistent shakiness in the Middle East, and ongoing challenges and slumps in several large economies such as Greece, Russia, Brazil, and Canada continue to cause global unrest. In the United States, plummeting oil prices, a weak beginning of the year for the stock market, and concern over the shakeout following the FED’s raising of federal funds rate has contributed to anxiety over the possible downturn for the domestic economy and in turn the commercial real estate market. Despite these conditions, East Harlem’s growth persists.

A Resilient Market

Year End Data

1-4 Family Commercial Development Mixed Use Multifamily$-

$100

$200

$300

$400

$500

$600

0%

5%

10%

15%

20%

25%

30%

27.8%

7.6%

21.6%

3.9%

16.1%

2014 % change from 20142015

$100M

$200M

$300M

$400M

$500M

$600M

$700M

2009 2010 2011 2012 2013 2014 2015$- 0

20

40

60

80

100

120

140

160

180

117

165

92104

5040

28

Dollar Volume

# of Buildings

Dollar Volume & Number of Buildings Sold % Change in PPSF by Property Type

10

20

30

40

50

60

70

02009 2010 2011 2012 2013 2014 2015

4

Number of Buildings Sold

15

15

28

2

26

6 59

29

6

2219

49

69

30 32

15

29

39

63

6

34

25

37

Commercial

Development

Mixed-Use

Multi-Family

Notable Transactions

Address Price Gross SF S / SF Property Type

1987-1991 3rd Ave. $16,000,000 55,944 $286 Development

265 Pleasant Ave. $10,000,000 19,584 $511 Mixed-Use

2211 3rd Ave. $10,000,000 12,000 $833 Commercial Condo

26 East 125th St. $7,050,000 10,038 $702 Commercial

148 East 98th St. $6,600,000 9,900 $667 Multi-Family

1961 Adam Clayton Powell Jr. Blvd. $3,445,000 4,936 $698 Commercial Condo

Year End Data

$50M

$100M

$150M

$200M

$250M

$300M

$350M

2009 2010 2011 2012 2013 2014 2015$- 0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$433

$339

$297

$247

$205$200$202

Total $ Volume

$/SF

$500

Mixed-Use

$20M

$40M

$60M

$80M

$100M

$120M

$140M

2009 2010 2011 2012 2013 2014 2015$- 0

$50

$100

$150

$200

$250

$300

$350

$400

$450$428

$397

$270

$224$217$222

$264

Total $ Volume

$/SF$160M

Development/Land

$20M

$40M

$60M

$80M

$100M

$120M

$140M

2010 2011 2012 2013 2014 2015$- 0

$50

$100

$150

$200$193

$159

$191

$93$92$81

Total $ Volume

$/SF$160M

Multi-Family• Dollar volume through year end 2015 reached about $326

million.

• There were 37 transactions with an average price per square foot of $433.

• As history dictates, multi-family is always the last property type to slow down. In line with this theory, the value of multifamily in harlem continued to increased by 28% from 2014 to 2015.

Mixed-Use• 2014 Was a record year for mixed-use buildings leaving 2015

with 14 less transactions and dollar volume down about $46 million.

• Despite a slow down in transactions, the average price per square foot of mixed-use buildings had an 8% increase.

• The figures above clearly exemplify that the buyer’s demand for mixed-use properties outweighs the market’s supply. This continues to drive up the value of such properties.

Development/Land• Land & Development transactions have decreased from

2014 to 2015 due to expiring 421A’s and other externalities. With these changes largely at the end of 2015 not a single development site traded in Harlem in the 4th Quarter.

• Continuously rising rental rates, scarcity of land and the optimistic outlook for the market drove the demand for development higher and ultimately the advancement in land value in the region.

2014 2015 % Change

Dollar Volume $63,305,500 $46,985,732 -26%

# of Buildings 37 24 -35%

PPSF $439 $509 16%

1-4 Family

1-4 Family• 1-4 Family market was at all-time high last year with a

total dollar volume of over $63M and approximately 37 transactional sales.

• We noticed the transaction dollar volume and total property sales decreased by over 25%, but the average price per square foot for the properties increased by 16%.

• It is clear that the value for these properties are still there due to the strong demand for these properties but lack of supply of 1-4 family buildings on the market.

The Cap Rates, Gross Rent Multipliers, Average Price per Square Foot and Total Volume presented in this report pertain to closed sales, including partial sales, researched or sold by Cushman & Wakefield through 12/15/15. The “fourth quarter” herein covers the period of 9/16/15 through 12/15/15. These transactions occurred at a minimum sales price of $500,000 and were located in Manhattan north of 96th Street east of Adam Clayton Powell Jr. Blvd., though extending west to Frederick Douglass Blvd from 110th to 116th streets. These sales may be found in the public record and were reported by ACRIS, CoStar, RCA and other sources deemed reliable. This information has been compiled for informational purposes only and Cushman & Wakefield shall not be liable for any reliance thereon.

• We use the following classifications:• 1-4 Family properties: A, B, CO and C3• 5+ Family Walk-Up properties: C1, C2, C4, C5, C7, C8 and C9 (excluding C6 which

represent Co-Ops)• 5+ Family Elevator properties: D1, D2, D3, D5, D6, D7, D8 and D9 (excluding D0, D4

which represent Co-Ops)• Mixed-Use properties: K and S classes• Retail properties / retail condominiums: L1, L8, L9, K, O, R5, R7 and R8• Office properties and commercial condos: O, R5, R7 and R8• Hotel properties: H classes• Development properties: VO, V1, V2 and other properties that were purchased for

development• Specialty-Use properties: properties that, because of their intended uses (such as

religious, medical, government, educational, non-profit uses), do not fall into any of the above property classes

Each sale was analyzed and categorized on a case-by-case basis.

Methodology