MultifaMily Quarter in review: new york City | Q1 2015€¦ · An Astoria portfolio purchased by...

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212.544.9500 I arielpa.com 122 East 42 nd Street, Suite 1015, New York NY 10168 MULTIFAMILY QUARTER IN REVIEW: NEW YORK CITY | Q1 2015 Released April 2015 | By Ariel Property Advisors Join Our Network: e-mail [email protected] or visit arielpa.com

Transcript of MultifaMily Quarter in review: new york City | Q1 2015€¦ · An Astoria portfolio purchased by...

Page 1: MultifaMily Quarter in review: new york City | Q1 2015€¦ · An Astoria portfolio purchased by ushner Companies in January k was the largest sale of the quarter, at $51 million,

212.544.9500 I arielpa.com122 East 42nd Street, Suite 1015, New York NY 10168

MultifaMily Quarter in review:new york City | Q1 2015

Released April 2015 | By Ariel Property Advisors

Join Our Network:

e-mail [email protected] or visit arielpa.com

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Ariel Property Advisors | 122 East 42nd Street, Suite 1015 - New York NY 10168 | 212.544.9500 | arielpa.com | 2

About the RepoRt

Ariel Property Advisors is pleased to present its Multifamily Quarter In Review: New York City | Q1 2015. The report is a modified version of our Multifamily Month In Review: New York City, which provides a monthly over-view of market activity, benchmark transactions, revenue and expense trends, and current events that affect the multifamily real estate market. The Multifamily Month In Review is distributed to our clients on a monthly basis. Past versions of the Multifamily Month In Review can be found at http://arielpa.com/research/reports/.

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Multifamily Quarter In Review: New York City | Q1 2015

3 | Ariel Property Advisors | 122 East 42nd Street, Suite 1015 - New York NY 10168 | 212.544.9500 | arielpa.com

table of Contents

4 new york City Multifamily Quarter in review

5 Multifamily Market Performance by sub-Market

6 trailing six Month analysis: introduction

7 trailing six Month Performance Comparison

8 transaction & Dollar volume trailing analysis

9 Macro-economic overview & Market fundamentals

10 nyC sub-Market overviewManhattan | n. Manhattan | the bronx | brooklyn | Queens

15 about ariel Property advisors

16 sample listing activity by ariel Property advisors

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ShIMON ShkuRY MIkE A. TORTORICI VICTOR SOzIO

President Executive VP- Sales Operations Executive VP - Brokerage Services212.544.9500 x.11 212.544.9500 x.13 212.544.9500 [email protected] [email protected] [email protected]

MultifaMily Quarter in review: new york City | Q1 2015

After a sluggish January and February, the NYC Multifamily sales market gathered signifi-cant steam in March. In all, the quarter was on par with the robust fourth quarter of 2014, totaling over $3 billion in sales. Activity was strong across all regions, with Brooklyn in particular standing out for its strong dollar volume.

For the 1Q15, New York City saw 208 transactions comprised of 338 buildings totaling $3.324 billion in gross consideration. This represents a 7% increase in transaction volume, a 13% decrease in building volume and a 6% increase in dollar volume compared to 1Q14, which saw 194 transactions comprised of 387 buildings totaling $3.130 billion in gross consideration.

Pricing continued to advance year-over-year, as the average Manhattan price per square foot approaches $900, and cap rates in Northern Manhatta, Brooklyn, and Queens sit be-low 5%, with Manhattan below 4%. On a more general level, the median multifamily sales price across all of NYC for the last six months was $6.4 million, compared to $5.4 million in the same 6-month period a year ago.

Manhattan: While Manhattan’s fourth quarter was buoyed by a handful of large sales, this past quarter was on par in terms of transaction activity, and easily surpassed the activity seen in the first quarter a year ago. For the quarter, the borough saw 42 trades across 69 buildings, totaling $1.333 billion in gross consideration, a 24%, 44%, and 9% increase over last year’s totals, respectively. One of the notable sales was a 5-building package that sold for over $1,500 per foot in NoLiTa on Elizabeth Street, one of the city’s most quickly appreciating areas.

Brooklyn: Two massive Brooklyn portfolios in East Flatbush and Brighton Beach drove the borough’s strong quarter, which saw 114 buildings trade, among 63 transactions and $1.079 billion in dollar volume. Dollar volume for the quarter almost doubled that of the 4Q14, and was 48% higher than the first quarter of last year. In Crown heights, 494 Ster-ling Place sold for almost $800 per foot, and over $600,000 per unit.

Northern Manhattan: Northern Manhattan was relatively stable quarter-to-quarter, with a strong uptick year-over-year. For the quarter, the borough saw 34 trades across 50 build-ings and just over $400 million in gross consideration. Compared to last year, these fig-ures were up 21%, 22%, and 53%, respectively. Multifamily price per foot surpassed $300 in the region this quarter, an all-time high. A sign of the region’s potential, two mixed-use buildings on 125th and Broadway closed for $533 per square foot.

The Bronx: The first quarter brought mixed results for The Bronx, showing strong trans-action and dollar volume compared to last quarter, but down from a big 1Q2014. The borough in total saw 49 sales across 69 buildings, and $340.240 million in gross consid-eration. Pricing in the borough continues to climb, reaching $135 per square foot in the last six months. The largest sale in the borough took place at 2001 Story Avenue in Castle hill, for $66 million, or $156 per foot.

Queens: Queens made a fair amount of noise this quarter, despite paling in comparison to the first quarter of 2014. The 20 transactions, 37 buildings, and $169.237 million in gross consideration which traded represent quarter-to-quarter increases of 54%, 76%, and 21%, respectively. An Astoria portfolio purchased by kushner Companies in January was the largest sale of the quarter, at $51 million, or $401 per square foot.

Q1 2015 SNAPShOT

DollarVolume

TransactionVolume

BuildingVolume

$3.32 billion

208 3386% increase

compared to

Q1 2014

7% increase

compared to

Q1 2014

13% decrease

compared to

Q1 2014

METhODOLOgY: The multifamily transactions included in the analysis occurred at a minimum sales price of $1 million, with a minimum gross area of 5,000 square feet and with a minimum of 10 units. TYPES OF TRANSACTIONS CONSIDERED:

Transactions in which there was a transfer of owner-ship and deed document recorded on ACRIS were considered. This report does not include partial interest in ownership transactions. LOCATION DEFINITIONS:

Manhattan - south of E. 96th Street and south of W. 110th Street Northern Manhattan - north of E. 96th Street, north of W. 110th Street

The Bronx - Bronx Borough

Brooklyn - Brooklyn Borough

Queens - Queens Borough

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Multifamily Quarter In Review: New York City | Q1 2015

5 | Ariel Property Advisors | 122 East 42nd Street, Suite 1015 - New York NY 10168 | 212.544.9500 | arielpa.com

MetriCs Q1 2015% Change

vs. Q4 2014Q4 2014

% Change vs. Q1 2014

Q1 2014

Transaction Vol 42 -7% 45 24% 34

Building Vol 69 -4% 72 44% 48

Dollar Vol $1,333,370,818 -50% $2,647,286,295 9% $1,220,708,000

Total Units 2,319 -63% 6,329 81% 1,283

Transaction Vol 34 -8% 37 21% 28

Building Vol 50 -23% 65 22% 41

Dollar Vol $401,898,791 5% $383,252,500 53% $262,050,000

Total Units 1,499 -12% 1,702 26% 1,189

Transaction Vol 49 32% 37 2% 48

Building Vol 68 -15% 80 -41% 116

Dollar Vol $340,240,478 8% $313,980,000 -46% $630,037,182

Total Units 2,645 -6% 2,809 -52% 5,548

Transaction Vol 63 7% 59 2% 62

Building Vol 114 16% 98 -14% 132

Dollar Vol $1,079,873,514 87% $577,875,814 48% $728,465,000

Total Units 4,972 117% 2,288 22% 4,079

Transaction Vol 20 54% 13 -9% 22

Building Vol 37 76% 21 -26% 50

Dollar Vol $169,237,135 21% $139,702,893 -41% $289,061,260

Total Units 633 34% 473 -70% 2,077

Transaction Vol 208 9% 191 7% 194

Building Vol 338 1% 336 -13% 387

Dollar Vol $3,324,620,736 -18% $4,062,097,502 6% $3,130,321,442

Total Units 12,068 -11% 13,601 -15% 14,176

MultifaMily Market PerforManCe by sub-MarketN

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Bro

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TRANSACTION VOLuME COMPARISON BY LOCATION

DOLLAR VOLuME COMPARISONBY LOCATION

ManhattanNorthern ManhattanThe BronxBrooklynQueens

ManhattanNorthern ManhattanThe BronxBrooklynQueens 40+12+10+32+6+x 20+15+20+34+11+x40%

12%10%32%

6%

20%15%20%34%11%

250

225

200

175

150

125

100

75

50

25

$0

$5b

$2b

$1.75b

$1.5b

$1.25b

$1b

$750m

$500m

$250m

$0

LEgEND

DOLLAR VOLuME COMPARISON gRAPh

BuILDINg VOLuME COMPARISON gRAPh

2014 2013 2012

2014 2013 2012

Manhattan

Northern Manhattan

The Bronx

Brooklyn

Queens

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trailing six Month analysis: introDuCtion

trailing six Month analysis MethoDology

given the commercial real estate industry’s cyclical nature and relatively small number of sample properties that trade in any month or quarter, Ariel Property Advisors developed the Trailing Six Month Analysis as a unique research tool for identifying multifamily sales trends in New York City.

The Trailing Six Month Analysis includes charts for the most recent six month period that detail the average price per unit, average price per square foot, average cap rate, average gross rent multiplier, and total transactions and prices for multifamily properties in Manhattan (south of East 96th Street and south of West 110th Street), Northern Manhattan (north of East 96th Street, north of West 110th Street), The Bronx, Brooklyn, and Queens. Sales figures from neighborhoods that had transactions during the six month period also are highlighted.

trailing six Month PerforManCe: oCt 2014 - Mar 2015 vs. oCt 2013 - Mar 2014 CoMParison

PriCing inDiCators

oCt 2014 - Mar 2015 trailing nuMbers oCt 2013 - Mar 2014 trailing nuMbers

loCaTioN aVg. $/UNiT aVg. $/sF aVg. Cap raTe aVg. grM aVg. $/UNiT aVg. $/sF aVg. Cap raTe aVg. grM

Manhattan $638,763 $896 3.76% 18.57 $764,487 $808 3.85% 17.48

N. Manhattan $264,312 $306 4.36% 13.64 $229,333 $245 4.69% 12.19

Bronx $114,823 $135 5.64% 9.06 $108,692 $118 6.87% 7.78

Brooklyn $265,027 $311 4.95% 14.21 $230,667 $238 5.28% 11.67

Queens $236,076 $280 4.00% 13.25 $188,716 $234 4.82% 12.88

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Multifamily Quarter In Review: New York City | Q1 2015

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trailing six Month PerforManCe: oCt ’14 – Mar ‘15 vs. oCt ‘13 – Mar’14 CoMParison

oCt 2014 - Mar 2015 trailing nuMbers oCt 2013 - Mar 2014 trailing nuMbers

location / Criteria

Total Transactions

Total Buildings

Traded

Total Dollar

Value Traded

Median price

Total Units

Traded

Median Units /

Transaction

Total Transactions

Total Buildings

Traded

Total Dollar

Value Traded

Median price

Total Units

Traded

Median Units /

Transaction

Manhattan 87 141 $3,980,657,113 $13,350,000 8,648 24 87 204 $3,133,713,400 $10,600,000 5,649 22

N. Manhattan 71 115 $785,151,291 $8,500,000 3,201 34 54 79 $520,937,254 $6,700,000 2,646 36

Bronx 86 148 $654,220,478 $3,450,000 5,454 31 103 202 $1,028,965,759 $4,050,000 9,276 44

Brooklyn 122 212 $1,657,749,328 $4,800,000 7,260 21 124 217 $1,177,001,027 $3,850,000 5,976 20

Queens 33 58 $308,940,028 $4,300,000 1,106 16 49 119 $893,600,557 $3,500,000 4,905 24

summary 399 674 $7,386,718,238 $6,375,000 25,669 26 417 821 $6,754,217,997 $5,350,000 28,452 28

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trailing six Month PerforManCe: Deal Distribution by transaCtion Count anD Dollar voluMe

LEgEND: $20MM+ | $5-20mm | $1-5mm

Manhattan n. Manhattan bronx brooklyn Queens

35% 13% 5% 12% 10%

59% 63% 33% 36% 39%

6% 24% 62% 52% 51%

Manhattan n. Manhattan bronx brooklyn Queens

86% 37% 41% 64% 55%

14% 55% 38% 24% 30%

0% 8% 21% 12% 15%

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$2.25b 120

$1.75b 100

$1.25b 80

$750mm 60

$250mm 40

transaCtion & Dollar voluMe by Quarter |the trailing 6-Month Moving average

the trailing 6-Month Moving Average6 Months ended Avg. Dollar Vol. Avg. transaction Vol.Mar 2014 - Mar 2015

2014 Mar $1,125,703,000 70

apr $1,104,377,526 64

May $982,214,410 63

Jun $838,569,876 60

Jul $887,324,796 64

aug $830,726,246 65

sep $926,901,674 64

oct $1,136,169,375 68

Nov $1,122,653,212 68

Dec $1,287,068,288 68

2015 Jan $1,254,273,173 66

Feb $1,238,125,142 66

Mar $1,290,368,508 68

MultifaMily transaCtion tiMeline

LEgEND: Transaction Volume | Dollar Volume

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015*

Trans Vol: 223 194 169 215 191 208Dollar

Vol: $3.62b $3.13b $1.90b $3.66b $4.06b $3.32b

oct Nov Dec Jan Feb Mar apr May Jun Jul aug sep oct Nov Dec Jan Feb Mar

$1.6b 85

$1.5b 80

$1.4b 75

$1.3b 70

$1.2b 65

$1.1b 60

$1b 55

$950mm 50

$900mm 45

$850mm 40

$800mm 35

$750mm 30

the trailing 6-Month Moving average

LEgEND: Transaction Volume | Dollar Volume

6 MONThSENDED

AVg.DOLLAR VOL.

AVg.TRANSACTION VOL.

Mar

apr

May

Jun

Jul

aug

sep

oct

Nov

Dec

Jan

Feb

Mar

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Multifamily Quarter In Review: New York City | Q1 2015

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MaCro-eConoMiC overview: uneMPloyMent | finanCing | revenue | exPenses

uneMPloyMent: rental Market / vaCanCy:

The first quarter of 2015 has continues the steady positive trend of decreasing unemployment rates. After a slight uptick in January, the New York City average now sits at 6.4%, while the state dropped to 5.8%. This compared to 8.3% and 7.2% at the same time last year. On a national level, the uS economy added 126,000 jobs in March. While still a very positive development, this ended a 12-month stretch of gains above 200,000.

Manhattan rental vacancy rates increased slightly to 1.50% for the first time since November. The lowest vacancy rate among Manhat-tan neighborhoods resides in gramercy, owner of a 0.78% vacancy rate. Brooklyn one- and two-bedroom apartments have experi-enced a steady rise over the last several months, reaching $2,608 per month and $3,386 per month, respectively. Over in Queens, Long Island City is the most attractive neighborhood for renters, fetching close to $4,000 per month for 2-bedrooms, compared to $2,548 for the borough on average.

finanCing: exPenses:

The Fed announced a plan for increased interest rates over the course of the year, but the plan has yet to make a dent in rates to date. Rates for 30-year bonds actually dipped slightly in March after rising in February, and now sit at 2.54%. 10-year and 5-year notes followed the same trend to start 2015, and are at 2.61% and 1.44%, respectively. 1-year Treasury bills did increase slightly to 0.26%, from 0.22% in February and 0.18% in January.

The Mid-Atlantic March residential electricity rate increased slightly to 15.36 cents per kilowatt hour (kWh). The New York State Energy Research and Development Authority (NYSERDA) reported the March price of No. 2 home heating at 300.9 cents per gallon, continuing a steady decline in oil prices.

10%

7.5%

5%

2.5%‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

6%

4%

2%

0%‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

500

400

300

200

100‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

17.5

15

12.5‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

Manhattan rental vacancy rates | Monthly Percentage Change

1.46% 1.36% 1.17% 1.10% 1.25% 1.27% 1.42% 1.62% 1.73% 1.74% 1.60% 1.45% 1.50%

2.5%

2%

1.5%

1%

0.5%

0%Mar apr May Jun Jul aug sep oct Nov Dec Jan Feb Mar

source: Citi habitats

unemployment rate history | NYS (Seasonally Adjusted) & NYC (Not Seasonally Adjusted)

treasury yield Curve rates | 30-year | 10-year | 5-year | 1-year

home heating oil Prices | Monthly Average (cents per gallon)

residential electricity rates | Regional - Middle Atlantic (Cents / kWh)

source: NYs Dept of labor

source: Us Treasury Dept.

source: NYserDa

source: Us eia

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nyC sub-Market overview: Manhattan | oCt 2014 - Mar 2015

*Please note numbers above do not include projections

highlighteD transaCtions 1Q 2015

ProPertyname

Sale month Sale Price $/SF $/ Unittotal

bUildingStotal

bUilding SFtotal UnitS

1 The esM portfolio 3/27/2015 $116,732,701 $933 $442,169 12 125,103 264

2 257-271 south st 2/9/2015 $115,000,000 $437 $449,219 1 262,875 256

3 308 e 38th st 1/30/2015 $75,000,000 $804 $757,576 1 93,314 99

4 260-268 elizabeth street 3/11/2015 $61,250,000 $1,586 $1,155,660 5 38,609 53

5 330 e 63rd st 2/10/2015 $58,000,000 $721 $630,435 1 80,402 92

location total dollarValUe traded

total tranSactionS

totalbUildingS traded

total UnitS traded

aVerage$ / SF

aVerage$ / Unit

alphabet City $69,200,000 5 5 132 $791 $484,993

Chelsea $217,250,000 7 10 271 $1,112 $711,838

Chinatown $17,512,500 3 4 87 $498 $217,660

Civic Center $328,472,620 1 2 508 $433 $646,600

east Village $45,575,000 5 5 90 $1,010 $513,776

Financial District $73,350,000 2 2 74 $727 $1,221,658

Flatiron $38,900,000 2 2 52 $1,390 $846,875

greenwich Village $260,276,000 6 10 295 $1,160 $829,447

hell's kitchen $302,200,000 6 10 458 $831 $635,313

kips Bay $102,053,000 6 8 186 $832 $569,564

little italy $17,000,000 1 1 28 $1,090 $607,143

lower east side $157,852,675 6 7 370 $716 $450,835

Midtown east $1,232,440,000 3 9 4,232 $559 $510,235

Midtown west $15,550,000 2 2 31 $835 $536,645

Murray hill $84,550,000 2 2 116 $824 $659,670

Nolita $61,250,000 1 5 53 $1,586 $1,155,660

soho $42,900,000 2 2 23 $1,574 $1,938,462

sutton place $45,600,000 2 5 60 $1,185 $909,091

Turtle Bay $42,295,000 3 4 71 $883 $613,971

Upper east side $506,307,701 14 28 833 $820 $537,916

Upper west side $98,975,000 3 10 198 $670 $433,414

breakDown by neighborhooD

ProPertytyPe

total dollarValUe traded

total tranSactionS

totalbUildingS traded

total UnitS traded

aVerage$ / SF

aVerage$ / Unit

elevatored Building $582,603,000 10 11 843 $889 $963,804

Mixed-Use Building $1,445,055,496 41 63 2,299 $906 $619,867

walk-Up Building $188,351,000 21 29 436 $823 $436,925

breakDown by ProPerty tyPe

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Multifamily Quarter In Review: New York City | Q1 2015

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nyC sub-Market overview: northern Manhattan | oCt 2014 - Mar 2015

ProPertytyPe

total dollarValUe traded

totaltranSactionS

totalbUildingS traded

totalUnitS traded

aVerage$ / SF

aVerage$ / Unit

elevatored Building $128,176,275 9 9 421 $315 $308,850

Mixed-Use Building $290,915,000 28 42 1,103 $336 $301,712

walk-Up Building $229,158,000 26 48 1,166 $270 $199,152

location total dollar ValUe traded

totaltranSactionS

totalbUildingS traded

totalUnitS traded

aVerage$ / SF

aVerage$ / Unit

Central harlem $115,084,275 12 18 401 $337 $280,738

east harlem $64,175,000 6 10 131 $408 $483,649

hamilton heights $80,900,000 7 9 252 $358 $311,680

inwood $39,400,000 7 8 242 $188 $162,785

Marble hill $8,620,000 1 2 41 $319 $210,244

Morningside heights $21,700,000 3 4 58 $530 $378,274

washington heights $381,207,500 27 54 1,788 $248 $208,374

west harlem $30,445,000 4 4 110 $391 $286,442

*Please note numbers above do not include projections

highlighteD transaCtions 1Q 2015

ProPertyname

Sale month Sale Price $/SF $/ Unittotal

bUildingStotal

bUilding SFtotal UnitS

1 4101 & 4113 Broadway 3/16/2015 $42,000,000 $333 $318,182 50 2 132

2 225 Central park N 1/22/2015 $33,000,000 $621 $568,966 50 1 58

3 98 Morningside ave 3/17/2015 $21,634,275 $329 $450,714 50 1 48

4 567-569 w 125th st 1/30/2015 $11,595,000 $533 $483,125 50 1 24

5 2147 2nd ave 3/17/2015 $7,500,000 $465 $441,176 50 1 17

breakDown by ProPerty tyPe

breakDown by neighborhooD

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nyC sub-Market overview: bronx | oCt 2014 - Mar 2015

locationtotal dollarValUe traded

totaltranSactionS

totalbUildingS traded

totalUnitS traded

aVerage$ / SF

aVerage$ / Unit

Bathgate $11,300,000 2 5 95 $131 $116,714

Bedford park $81,615,000 11 15 640 $127 $119,788

Belmont $25,430,000 8 13 216 $155 $116,847

Bronxdale $4,285,000 2 2 39 $141 $105,481

Castle hill $66,000,000 1 1 355 $156 $185,915

Crotona park $6,650,000 3 4 68 $136 $100,074

east Tremont $6,075,000 3 3 46 $144 $131,563

Fordham $52,719,991 9 9 404 $154 $124,513

highbridge $4,150,000 1 1 36 $177 $115,278

hunts point $2,130,000 1 1 25 $90 $85,200

kingsbridge $19,970,000 4 4 156 $130 $118,887

kingsbridge heights $142,411,000 10 27 1,287 $132 $132,180

Melrose $116,065,000 7 26 998 $110 $101,920

Morris park $13,875,000 1 2 112 $229 $123,884

Morrisania $11,410,000 6 8 161 $118 $84,974

Mott haven $8,358,905 3 5 68 $154 $119,539

Mount hope $21,800,000 2 2 173 $136 $115,845

parkchester $1,830,000 1 1 19 $138 $96,316

schuylerville $4,950,000 2 2 71 $136 $81,466

soundview $8,700,000 2 7 59 $111 $129,167

wakefield $2,850,000 1 1 31 $115 $91,935

williamsbridge $5,300,000 1 1 92 $71 $57,609 *Please note numbers above do not include projections

highlighteD transaCtions 1Q 2015

ProPertyname

Sale month Sale Price $/SF $/ Unittotal

bUildingStotal

bUilding SFtotal UnitS

1 2001 story ave 3/12/2015 $66,000,000 $156 $185,915 1 421,833 355

2 2055 grand Concourse 3/11/2015 $10,025,000 $184 $147,426 1 54,360 68

3 2523 University ave 3/3/2015 $9,000,000 $154 $150,000 1 58,585 60

4 3058 godwin Ter 3/9/2015 $6,500,000 $155 $151,163 1 42,000 43

5 1115 College ave & 1249 webster ave 1/30/2015 $6,015,000 $117 $113,491 2 51,231 53

ProPertytyPe

total dollarValUe traded

totaltranSactionS

total bUildingS traded

total UnitS traded

aVerage$ / SF

aVerage$ / Unit

elevatored Building $128,320,000 10 11 848 $142 $129,109

Mixed-Use Building $120,089,991 22 28 976 $137 $116,773

walk-Up Building $169,231,000 44 59 1,534 $134 $110,724

breakDown by ProPerty tyPe

breakDown by neighborhooD

Page 13: MultifaMily Quarter in review: new york City | Q1 2015€¦ · An Astoria portfolio purchased by ushner Companies in January k was the largest sale of the quarter, at $51 million,

Multifamily Quarter In Review: New York City | Q1 2015

13 | Ariel Property Advisors | 122 East 42nd Street, Suite 1015 - New York NY 10168 | 212.544.9500 | arielpa.com

nyC sub-Market overview: brooklyn | oCt 2014 - Mar 2015

ProPerty tyPe totaldollar ValUe traded

totaltranSactionS

totalbUildingS traded

totalUnitS traded

aVerage$ / SF

aVerage$ / Unit

elevatored Building $646,250,000 14 28 2,192 $359 $428,800

Mixed-Use Building $215,016,071 35 52 799 $342 $279,834

walk-Up Building $441,246,072 63 97 2,340 $285 $218,191

location total dollarValUe traded

totaltranSactionS

totalbUildingS traded

totalUnitS traded

aVerage$ / SF

aVerage$ / Unit

Bath Beach $5,545,000 2 3 31 $272 $187,205 Bay ridge $88,667,000 7 11 402 $242 $205,188 Bedford-stuyvesant $96,460,000 12 23 488 $309 $262,651 Boerum hill $77,467,299 4 5 150 $646 $460,934 Borough park $4,400,000 1 1 35 $125 $125,714 Brighton Beach $213,000,000 2 12 866 $223 $201,037 Brooklyn heights $4,950,000 1 1 10 $754 $495,000 Brownsville $102,951,252 2 12 647 $199 $185,564 Bushwick $8,325,000 2 4 36 $451 $221,875 Carroll gardens $3,700,000 1 1 16 $330 $231,250 Clinton hill $18,201,550 3 5 53 $334 $326,569 Crown heights $138,910,000 13 15 491 $323 $251,856 Cypress hills $3,060,000 1 1 23 $190 $133,043 Dyker heights $12,200,000 2 2 65 $214 $181,389 east Flatbush $273,505,000 4 20 1,697 $146 $139,435 Flatbush $112,720,000 17 22 688 $185 $160,668 Fort hamilton $5,400,000 1 1 39 $169 $138,462 gravesend $3,000,000 1 1 16 $200 $187,500 greenpoint $11,250,000 2 3 44 $352 $254,167 homecrest $2,244,000 1 1 16 $190 $140,250 kensington $75,925,000 1 1 126 $629 $602,579 Midwood $7,750,000 2 2 38 $295 $233,214 ocean hill $15,235,000 4 8 105 $239 $156,231 ocean parkway $29,000,000 2 3 43 $252 $509,091 park slope $53,435,562 7 10 118 $539 $473,313 prospect heights $2,500,000 1 1 10 $416 $250,000 prospect lefferts garden $39,617,821 2 2 154 $277 $252,063 sheepshead Bay $2,096,100 1 1 12 $233 $174,675 sunset park $20,976,559 7 9 149 $213 $160,786 williamsburg $130,660,000 8 18 273 $498 $544,221 wyckoff heights $2,500,000 1 1 16 $357 $156,250

*Please note numbers above do not include projections

highlighteD transaCtions 1Q 2015

ProPertyname

Sale month Sale Price $/SF $/ Unittotal

bUildingStotal

bUilding SFtotal UnitS

1 Urban american kings portfolio 3/10/2015 $236,000,000 $156 $164,575 17 1,509,354 1434

2 BCB properties williamsburg Multifamily portfolio 1/20/2015 $48,100,000 $671 $425,664 3 71,650 113

3 354-356 state st 3/27/2015 $14,767,299 $801 $369,182 2 18,445 40

4 620 Flatbush ave 3/30/2015 $14,117,821 $261 $207,615 1 54,027 68

5 1059 Union st 1/13/2015 $13,200,000 $312 $356,757 1 42,285 37

breakDown by neighborhooD

breakDown by ProPerty tyPe

Page 14: MultifaMily Quarter in review: new york City | Q1 2015€¦ · An Astoria portfolio purchased by ushner Companies in January k was the largest sale of the quarter, at $51 million,

Ariel Property Advisors | 122 East 42nd Street, Suite 1015 - New York NY 10168 | 212.544.9500 | arielpa.com | 14

nyC sub-Market overview: Queens | oCt 2014 - Mar 2015

ProPertytyPe

total dollarValUe traded

totaltranSactionS

totalbUildingS traded

totalUnitS traded

aVerage$ / SF

aVerage$ / Unit

elevatored Building $120,800,000 4 4 315 $397 $342,504

Mixed-Use Building $60,521,193 12 21 247 $271 $246,374

walk-Up Building $53,455,500 13 24 294 $241 $191,482

location total dollarValUe traded

totaltranSactionS

totalbUildingS traded

totalUnitS traded

aVerage$ / SF

aVerage$ / Unit

astoria $166,032,000 7 13 462 $393 $335,932

auburndale $11,200,000 1 3 50 $204 $224,000

Corona $22,395,500 5 8 90 $261 $241,716

elmhurst $16,986,300 4 7 77 $260 $226,804

Flushing $2,652,893 1 2 20 $242 $132,645

Flushing-North $2,735,000 1 1 16 $264 $170,938

Forest hills $8,300,000 2 7 31 $269 $270,833

Jamaica $3,800,000 1 4 40 $158 $95,000

long island City $5,625,000 1 1 31 $259 $181,452

Murray hill $15,750,000 2 3 81 $242 $187,819

richmond hill $3,025,000 2 2 28 $176 $106,771

ridgewood $22,900,000 2 2 61 $312 $296,364

woodhaven $1,975,000 1 1 16 $144 $123,438

woodside $8,400,000 1 1 42 $317 $200,000

*Please note numbers above do not include projections

highlighteD transaCtions 1Q 2015

ProPertyname

Sale month Sale Price $/SF $/ Unittotal

bUildingStotal

bUilding SFtotal UnitS

1 Douglaston realty Management portfolio 1/8/2015 $51,000,000 $401 $331,169 4 127,088 154

2 71-13 60th ln 2/26/2015 $21,000,000 $390 $420,000 1 53,865 50

3 4140 parsons Blvd 2/3/2015 $10,750,000 $244 $219,388 1 44,100 49

4 43-05 65th st 2/25/2015 $8,400,000 $317 $200,000 1 26,468 42

5 23-05 29th st 1/7/2015 $6,950,000 $413 $302,174 1 16,836 23

breakDown by ProPerty tyPe

breakDown by neighborhooD

Page 15: MultifaMily Quarter in review: new york City | Q1 2015€¦ · An Astoria portfolio purchased by ushner Companies in January k was the largest sale of the quarter, at $51 million,

Multifamily Quarter In Review: New York City | Q1 2015

15 | Ariel Property Advisors | 122 East 42nd Street, Suite 1015 - New York NY 10168 | 212.544.9500 | arielpa.com

Quality brokerage serviCes

asset evaluations

investMent sales &investMent researCh

exClusive Market rePorts

Ariel Property Advisors is a New York City real estate investment sales company dedicated to delivering the best trans-actional experience possible. We believe that outstanding sales performance originates from long-lasting relationships with organizations like yours.

Our company is structured to produce optimal results for clients through two complementary divisions—Investment Sales and Investment Research.

The Investment Sales Division provides private and institutional clients, equity capital, lenders, city/state/federal agen-cies and not for profit organizations with institutional quality brokerage services, regardless of the client, asset type or transaction size. The relationships established by our sales professionals give us key insights into the latest trends, value drivers and active market participants.

The Investment Research Division supports our sales professionals by organizing and synthesizing the latest information about the real estate market. In addition to producing high quality Asset Evaluations for institutional and private clients, our research professionals create a variety of market reports regularly covered by major New York City business publica-tions.

Additionally, we believe in supporting the communities in which we do business through organizations such as Legal Outreach, harlem RBI, South Bronx Overall Economic Development Corp., Abyssinian Development Corp., uJA Federa-tion, the Brooklyn historical Society, and the Jewish Children’s Museum.

Our latest education initiative is the establishment of the guy Shkury Scholarship for Excellent Academic Achievement and Determination at the Open university of Israel, in honor of the late guy Shkury, who graduated from the institution with honors. In the next four years, Ariel Property Advisors will provide scholarships to 38 students.

about ariel ProPerty aDvisors

Page 16: MultifaMily Quarter in review: new york City | Q1 2015€¦ · An Astoria portfolio purchased by ushner Companies in January k was the largest sale of the quarter, at $51 million,

The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee the accuracy of any information provided herein. As an example, all zoning information, buildable footage estimates and indicated uses must be independently verified. Vacancy factors used herein are an arbitrary percentage used only as an example, and does not neces-sarily relate to actual vacancy, if any. The value of this prospective investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket, and other factors which your tax advisor and/or legal counsel should evaluate. The prospective buyer should carefully verify each item of income, and all other information contained herein. april 27, 2015 5:25 PM

to learn more about current market condi-tions or if you would like a comprehensive asset evaluation for your property, please do not hesitate to contact us using the in-formation below:

If you would like to use or quote this report on the web, we ask that you quote the source as “Multifamily Quarter In Review: New York City by Ariel Property Advisors” and link report from our website page (http://arielpa.com/research/reports/)

212.544.9500 I arielpa.com122 East 42nd Street, Suite 1015, New York NY 10168

INVESTMENT SALES

Shimon Shkury ext. [email protected]

Sam Atlas ext. [email protected]

Victor Sozio ext. [email protected]

Marko Agbaba ext. [email protected]

Michael A. Tortorici ext. [email protected]

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Randy Modell ext. [email protected] INVESTMENT RESEARCh

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