Marcus & Millichap - New York Multifamily€¦ · Marcus & Millichap 212.430.5114 Dear Friends and...
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Transcript of Marcus & Millichap - New York Multifamily€¦ · Marcus & Millichap 212.430.5114 Dear Friends and...
Marcus & Millichap
212.430.5114
Dear Friends and Investors,
I have met countless NYC multifamily owners and entrepreneurs throughout mycareer. As a by-product of working with them, I have become a student of theirsuccess. They all share similar qualities. Regardless of your stage of life orindustry, these habits transcend real estate and have something to teach us all.
1.They Play the Long Game
The most important quality is they play the long game. The best owners arewilling to make upfront investments that often don’t produce short-termdividends. They see the world in a less transactional way. It’s not, “How can I cashout as soon as possible?” It’s rather, “What can I build out of this that will give mea long-term advantage?”
2. They Put Their Ego to the Side
An over inflated sense of self-worth can limit ones view of what is possible. Manyof the most successful individuals started careers by taking positions that werenothing to brag about. I am thinking of those who started in buildingmanagement, as superintendents, in one of the trades, or even opening pizzashops. One successful investor even started by giving walking tours of NYC. He isnow a pioneer in RE tech.
3. They are Skeptical Toward Experts
The most successful owners purchased buildings in the Bronx in the 70’s, Tribecain the 80s, the East Village in the 90s, Harlem in the 2000s, and Brooklyn in 2010.
Financial advisors and “experts” at the time of those purchases would have toldthem they were making mistakes. Had they taken that advice, they would havemissed out on millions. The best gather information from multiple, diversesources. But, they always think for themselves.
4. They are Ridiculously Creative
All humans will face significant challenges in their lives. It’s part of the game. Forinvestors sometimes that is scarcity of capital, a lack of access to opportunities, orjust bad luck.
The industry titans persevered, though, often using creativity to turn scarcity intoopportunity. One investor with a $200,000,000 portfolio started out by writinghand-written notes to people asking them to sell their building. Painstaking. Timeconsuming. People thought he was crazy. The result: several below marketpurchases.
5. They Have Grit
Unconventional investments almost never pay off immediately. You need to seethem through. This ability is called “grit.” How is grit developed?
Studies show that immigrants become wealthier than native born US citizens ofthe same economic status. The environments they were born into and thechallenges they faced are unimaginable to most Americans. Their paths helpedthem develop grit. It’s something that won’t show up on a résumé, but certainlyimpacts performance. How bad do you want it?
6. They are Loyal and Pay it Forward
Earlier, I mentioned the best owners focus on the long game. That’s true for business, but it’s also true when buildingpersonal relationships. This is loyalty. I recently heard someone describe dating and maintaining a long-term relationshipin NYC as challenging due to the abundance of “other available options” you walk by each day. Focusing on “otheravailable options” creates the illusion that, if you encounter problems, you don’t need to work through them. Just startover.
7. They Work for A Bigger ‘Why’
I often hear, “What’s your ‘why’?” To reach extreme success, most entrepreneurs work for something beyond their ownself-aggrandizement. It’s about something bigger than themselves. It’s known that individuals who achieve a certain levelof wealth enjoy only a marginally positive impact on their lives as they earn more. That’s why money alone can’t motivateor incentivize to titan status— you need “a bigger why”. Most immigrants don’t take their opportunities as Americans forgranted. Instead, they find motivation through innovation and connecting to improve the lives of those around them.
Improving Your Investing Performance
Many of the same personal qualities mentioned above can double as investing principles in uncertain markets.
Having a long-term outlook, creative business strategy, and ability to delay gratification will often lead to success. Investing
alongside a bigger why (like a macro demographic trend) helps too! In the future, I may dive deeper with further examples
of the attributes above with specific stories from some of the most fascinating owners I’ve met. In the meantime, feel free
to reach out with any questions or comments on the topic.
Regards,
e-mail: [email protected]
Building Meaningful Relationships That Matter.Photo from our semi-annual NYM brainstorming retreat. Montauk – March 2018
We specialize only in multifamily
properties, only in New York City,
customizing our strategy
around you.
We are positioned to source
exclusive opportunities for our
clients–sellers frequently become
buyers with NYM.
Backed by the nation’s largest
private client brokerage, we
bridge the gap between private
and institutional capital.
We don’t simply market
properties–we aggressively
sell them in pursuit of the best
outcomes for clients.
Our specialized focus in NYC mid-market multifamily real estate, backed by
the power and resources of Marcus & Millichap uniquely positions us to create
optimal opportunities for both private capital and institutional investments.
212.430.5114
212.430.5137
212.430.5147
212.430.5136
The number one multifamily investment sales team in New York City.
718.475.4369
718.475.4358
718.475.4380
718.475.4375
Our specialized expertise, network, and team of superstars make
for sales that are impressive, and always increasing.
Our 24-month track record speaks for itself.
68 115 183
MANHATTAN SALES BOROUGH SALES TOTAL SALES
We research and understand the metrics on every sale in the marketplace. In certain cases, the current Cap
Rate or Gross Rent Multiplier (GRM) will indicate a value that is inconsistent with the actual transaction.
Therefore, for sales with special circumstances, we have created the below key to provide further clarity
into the sale. For specific information on any transaction, feel free to contact us at 212.430.5114.
The property was either delivered vacant, sold on the basis of being vacant,
or subsequently vacated. As a result, operating income and expense metrics
are not relevant.
The property was purchased with the buyer intending to occupy all or part of
the residential or commercial (if applicable) portion of the property for their
own use. Typically, user value reflects a premium over investor value.
The property was purchased with the assumption that all or a substantial
portion of the property will be redeveloped, (e.g. conversion to condo).
Therefore, the relevant operating metrics are not current operations, but are
based on projections of potential future income and expenses.
The property was purchased with the buyer intending to transition the
commercial space, (e.g. release to new tenant), substantially increase rents,
or combine/separate the existing space(s). Therefore, the relevant operating
metrics are unavailable.
The disposition of the property was supervised by an Executor or
Administrator and not by the former owner. Estate sales can be affected by
timing issues like taxes due or lacking someone to operate the property. The
values achieved in an estate sale often reflect a transaction in which the
decision maker may or may not have directly benefitted from the outcome.
The property was sold as a result of financial pressures from creditors–
usually foreclosure or preforeclosure. Typically these pressures limit the
seller’s ability to achieve fair market value.
This section is divided into several markets,
featuring Manhattan multifamily sales from
Q2 of 2018 valued over $1,000,000.
$1,061,173
$789,365$/UNIT
$884
$782$/SF
Last 12 Months
Previous 12 Months
All NYC Multifamily Sales 12-Month Comparison
25 Million+ Multifamily Sales
24%Reduction in Sales Volume
SALES
1%Average Reduction in Price Per Square Foot
$/SF
7%Average Reduction in Gross Rent Multiplier
GRM
34%Average Reduction in $/Unit
12%Average Reduction in $/SF
6%Reduction in Sales Volume
SALES
With a commitment to integrity, we operate with our ears to the ground.
April 2018 | $44,100,000
54 Units
$778 Price/SF
April 2018 | $41,409,880
44 Units
$1,048 Price/SF
June 2018 | $30,000,000
44 Units
$732 Price/SF
May 2018 | $16,950,000
13 Units
$1,080 Price/SF
*Includes only single asset transactions
77 Madison Street 38 Ludlow Street 150 East Broadway 185 East Broadway
PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF
77 Madison Street May-18 $12,000,000 30 2.07% -- 21,274 $564
38 Ludlow Street May-18 $7,100,000 18 Value Add -- 7,350 $966
150 East Broadway Jun-18 $6,350,000 9 Value Add -- 6,225 $1,020
185 East Broadway Apr-18 $6,100,000 6 Repositioned -- 6,416 $951
684 Greenwich Street Apr-18 $8,785,000 6 3.40% 22.80 4,875 $1,802
212.430.5162
646.805.1426
684 Greenwich Street
224 East 59th Street
116 St. Mark's Place
24 St. Mark's Place
106 Avenue B
215 East 12th Street
207 East 4th Street
84 Second Avenue
187 East 7th Street
203 East 7th Street
PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF
224 East 59th Street Jun-18 $14,000,000 10 Value Add -- 11,827 $1,184
24 St. Mark's Place May-18 $12,900,000 17 4.48% 14.52 12,374 $1,043
215 East 12th Street May-18 $8,500,000 5 Value Add -- 5,024 $1,692
84 Second Avenue May-18 $7,800,000 6 Value Add -- 4,812 $1,621
203 East 7th Street May-18 $6,250,000 4 Value Add -- 5,446 $1,148
116 St. Mark's Place May-18 $5,000,000 7 Delivered Vacant -- 5,479 $913
106 Avenue B May-18 $3,100,000 10 Value Add -- 7,810 $397
207 East 4th Street May-18 $3,000,000 11 Value Add -- 7,166 $419
187 East 7th Street May-18 $2,400,000 10 Value Add -- 5,220 $460
212.430.5162
125 West 16th Street
448 West 55th Street
41 West 24th Street
342 West 15th Street
40 West 28th Street 687 Eighth Avenue 131 West 14th Street
PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF
125 West 16th Street Apr-18 $41,409,880 44 5.10% 14.58 39,504 $1,048
41 West 24th Street May-18 $16,950,000 13 4.67% 16.18 15,695 $1,080
40 West 28th Street May-18 $13,800,000 5 Finished Product -- 10,735 $1,286
687 Eighth Avenue May-18 $13,750,000 5 Redevelopment -- 7,760 $1,772
131 West 14th Street Apr-18 $13,000,000 5 Sold To End User -- 11,550 $1,126
448 West 55th Street Jun-18 $9,900,000 20 2.67% 22.81 9,105 $1,087
342 West 15th Street Apr-18 $7,500,000 5 2.85% 19.00 3,950 $1,899
336 West 95 Street Jun-18 $30,000,000 44 2.70% 22.54 41,000 $732
43 West 87th Street Apr-18 $6,950,000 7 Finished Product -- 6,420 $1,083
212.430.5194
336 West 95 Street 43 West 87th Street
1514 First Avenue 1528 First Avenue 309 East 92nd Street 313 East 92 Street
PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF
1514 First Avenue Apr-18 $16,200,000 9 Repositioned -- 7,174 $2,258
1528 First Avenue Apr-18 $14,938,625 14 Redevelopment -- 7,174 $2,082
309 East 92nd Street May-18 $9,300,000 10 5.60% 14.00 8,600 $1,081
313 East 92 Street May-18 $8,400,000 10 4.13% 19.43 8,540 $984
212.430.5138
3694 Broadway
1975 Adam C Powell Blvd
1274 Fifth Avenue 141 West 111th Street 51 Hamilton Place 505 West 135th Street
PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF
3694 Broadway Apr-18 $62,000,000 24 Value Add -- 15,072 $4,114
1274 Fifth Avenue Apr-18 $44,100,000 54 Value Add -- 56,670 $778
141 West 111th Street Jun-18 $9,700,000 21 5.00% -- 14,495 $669
51 Hamilton Place May-18 $9,500,000 29 Value Add -- 33,880 $280
505 West 135th Street May-18 $7,210,000 21 4.40% 15.54 13,170 $547
1975 Adam C Powell Blvd May-18 $5,225,000 20 3.31% 17.03 13,940 $375
452 West 164th Street Apr-18 $4,795,000 20 Value Add -- 19,500 $246
212.430.5155
452 West 164th Street
This section features Brooklyn multifamily sales
from Q2 of 2018 valued over $5,000,000.
$966NORTHERN$42,350,000
2 Sales
$894 WESTERN
$86,515,000 2 Sales
$257CENTRAL
$87,065,09110 Sales
$227SOUTHERN$15,700,000
1 Sales
Average Price Per Square FootBY MARKETTotal Sales Volume
Total Number of Sales
With a commitment to integrity, we operate with our ears to the ground.
May 2018 | $81,240,000
106 Units
$929 Price/SF
April 2018 | $22,350,000
20 Units
$1,081 Price/SF
May 2018 | $20,000,000
27 Units
$863 Price/SF
June 2018 | $15,700,000
72 Units
$227 Price/SF
*Includes only single asset transactions
PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF
470 4th Avenue 24-May $81,240,000 106 4.50% 18.20 87,424 $929
119-123 Kent Avenue 10-Apr $22,350,000 20 4.85% -- 20,680 $1,081
2470 West 1st Street 6-Jun $15,700,000 72 Value Add -- 69,190 $227
140 Clarkson Avenue 13-Jun $14,490,000 59 Value Add -- 69,491 $209
826 Crown Street 22-Jun $11,450,000 47 Value Add -- 52,764 $217
377 Ocean Parkway 26-Apr $10,650,000 46 3.60% 16.80 34,958 $305
31 East 21st Street 14-Jun $10,262,870 49 Value Add -- 41,000 $250
21 East 21st Street 14-Jun $8,587,220 41 Value Add -- 41,952 $205
222 Kosciuszko Street 7-Jun $8,200,000 16 5.48% 15.33 13,970 $587
939 & 947 Saint Marks Avenue 15-May $7,000,001 16 4.75% 13.21 19,432 $360
1043 Sterling Place 3-May $6,000,000 16 5.03% 13.53 15,808 $380
5201-5209 Snyder Avenue 4-Apr $5,300,000 32 Value Add -- 28,160 $188
204-206 Saint Marks Avenue 4-Apr $5,275,000 16 Value Add -- 9,360 $564
17 Van Siclen Avenue 19-Jun $5,125,000 26 4.70% 12.13 21,220 $242
Simon Manhattan Ave Portfolio 23-May $20,000,000 6 Value Add -- 23,158 $864
718.475.4358
718.475.4380
718.475.4357
470 4th Avenue 119-123 Kent Avenue 2470 West 1st Street 140 Clarkson Avenue 826 Crown Street
377 Ocean Parkway 31 East 21st Street 21 East 21st Street 222 Kosciuszko Street
939 & 947 Saint Marks
Avenue1043 Sterling Place 5201-5209 Snyder
Avenue
204-206 Saint Marks
Avenue
Simon Manhattan
Avenue Portfolio
17 Van Siclen Avenue
This section features Bronx multifamily sales
from Q2 of 2018, above 25 units.
Average Price Per UnitBY MARKETTotal Sales Volume
Total Number of Sales
(Derived only from sales of assets
above a total of 25 units)
$148,466NORTH BRONX
$32,514,000 4 Sales
$139,726SOUTH BRONX
$10,200,000 2 Sales
With a commitment to integrity, we operate with our ears to the ground.
April 2018 | $14,900,000
100 Units
$191 Price/SF
May 2018 | $6,800,000
52 Units
$157 Price/SF
May 2018 | $6,314,000
37 Units
$232 Price/SF
June 2018 | $5,200,000
25 Units
$314 Price/SF
*Includes only single asset transactions
PROPERTY DATE PRICE UNITS $/UNIT SF $/SF
2050 Bartow Avenue 19-Apr $14,900,000 100 $149,000 78,120 $191
1484 - 1494 Watson Avenue 27-Apr $5,000,000 48 $104,167 52,800 $95
2537 Valentine Avenue 31-May $6,800,000 52 $130,769 43,270 $157
2541 Aqueduct Avenue West 9-May $6,314,000 37 $170,649 27,250 $232
1468 Bryant Avenue 7-Jun $5,200,000 25 $208,000 16,575 $314
6125 Broadway 31-May $4,500,000 30 $150,000 21,735 $207
212.430.5281
2050 Bartow Avenue 2537 Valentine Avenue 1484 - 1494 Watson
Avenue
2541 Aqueduct Avenue
West
1468 Bryant Avenue
6125 Broadway
This section features Queens multifamily sales
above $5MM, from Q2 of 2018
With a commitment to integrity, we operate with our ears to the ground.
April 2018 | $56,500,000
167 Units
$301 Price/SF
June 2018 | $13,300,000
50 Units
$324 Price/SF
June 2018 | $10,500,000
35 Units
$302 Price/SF
April 2018 | $6,300,000
23 Units
$384 Price/SF
*Includes only single asset transactions
PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF
94-25 56th Avenue 6-Apr $56,500,000 167 3.90% -- 187,800 $301
142-27 Barclay Avenue 4-Jun $13,300,000 50 3.60% 15.70 40,991 $324
10-51 Irving Avenue 8-May $12,500,000 1 Redevelopment -- 6,900 $103
42-04 Saull Street 1-Jun $10,500,000 35 3.90% 15.40 34,807 $302
48-11 45th St 26-Apr $6,300,000 23 4.40% 15.00 16,400 $384
2912 Newtown Avenue 24-May $5,560,000 16 4.10% 16.80 11,820 $470
212.430.5102 | [email protected]
94-25 56th Avenue 142-27 Barclay Avenue 42-04 Saull Street 48-11 45th St 2912 Newtown Avenue
94-25 56th Avenue
Refinance
5-Unit Mixed-Use
ManhattanStrong existing
relationships with
both national and
regional lenders.
With more than ten
years in the real estate
industry, Andrew leads
our capital team in
securing commercial
debt financing for an
array of property
types.
Marcus & Millichap
212.430.5168
Refinance
8-Unit Multi-Family
Brooklyn
Refinance
23-Unit Mixed-Use
Bronx
Refinance
18-Unit Multi-Family
Manhattan
