LONG ISLAND CITY AND ASTORIA LIC AND ASTORIA ORANGE REPORT MODERN SPACES BROOKLYN 135 KENT AVENUE BROOKLYN, NY 11211

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1 LIC AND ASTORIA ORANGE REPORT T HE OR A N G E R E P O R T Q M A R K E T R E P O R T LONG ISLAND CITY AND ASTORIA M OD E RNSPACESNYC. C OM PG. 1 MODERN SPACES DITM ARS JACKSON AVENUE

2 Q MARKET REPORT Long Island City This past quarter we are finally seeing the rental market stabilizing and leveling out. With all the new projects that have come online this year, competition between buildings is becoming increasingly apparent and the prices of rentals in the area have started to adjust. Prices per square foot remain strong with numbers averaging in the $50 s and we don t see that number changing for a while as more and more units come online. A major event reached this past quarter is that TF Cornerstone finished what was a 10-year milestone on a $1.6 billion dollar waterfront project; which included 2,615 rental units and 184 condo units. This project was the catalyst for all the current development that is happening around Hunters Point. Another milestone reached was Rockrose leasing out the first phase of their $1 Billion dollar Court Square project, which in turn is spurring all the development around Court Square. We re starting to see a lot of other developers who are now making their way over to Long Island City and looking at it as an opportunity. The condo market average just broke $1000 a square-foot, and the demand for a surplus of condos is just going to increase that average. With the mid to larger size projects planning for more efficient size units for the price conscious buyer, there is also a handful of projects aimed at the larger size apartments targeted towards families. For example, Modern Spaces brought into the market this past quarter Five Forty One, a three unit townhouse project with unit sizes ranging from 1,620 2,040 square feet and prices from $1,750,000 $2.5M, with the price per squarefoot ranging from $1,000 $1,225. With two of the three units already spoken for, this alone shows that there is also a need for larger sized units for the consumer who loves the neighborhood so much and needs a place large enough for their growing family and/or needs. Those large ticket prices and interest in the area as a whole are the main causes behind land values jumping to numbers we never have seen before reaching $250 $300 a sq. ft. The properties that are being acquired at those price points will most likely all be condos as they don t make financial sense as a rental product with that high of a land base. But as condo prices rise in Manhattan and in Brooklyn, it s naturally going to drive the buyer who is getting priced out of the areas to Long Island City or Queens as a whole. $40 s a sq. ft., which have not been seen in Astoria before. This demand will raise land value and condo prices, but Astoria is just ripe for development and we are expecting a lot to change over the next year or so in that market. Commercial & Investment Long Island City South: For the purposes of this study, LIC South includes the waterfront, Hunter s Point, Court Square, and Queens Plaza. Land values have skyrocketed this year eclipsing an average of over $200 per buildable square foot. We have seen pricing as high as almost $300 per buildable square foot but do not think this trend will continue. Despite demand being as strong as it has ever been, we predict the market will level in the $225 $250 per buildable square foot range depending on exact location. However, land on Queens Plaza or Jackson Avenue in Court Square may soon set record pricing. Long Island City North: Northern LIC consists of the area north of the Queensboro Bridge and includes the waterfront across from Roosevelt Island. We have seen a tremendous growth in land value including a trade as high as $185 per buildable square foot. We also have a contract out for a property at $228 per buildable square foot further showing the demand in this area. Northern LIC will dramatically benefit from the Cornell Tech campus and we predict that land values will continue to rise to levels at or near $200 per buildable square foot. Astoria: When discussing the Astoria market it is important to differentiate between the area closer to the waterfront and the blocks that are within a short walk to the subway lines. We have seen the land market double in the last year and some properties have eclipsed $200 per buildable square foot. While the average is still below $200, we are confident this number will rise as demand for land continues to grow. Further out into the neighborhood, in the area west of 21st Street as well as parts of northern and northwest Astoria are areas that are less developed but certainly up and coming. Astoria Cove and Hallet s Point will change the landscape of northwest Astoria in years to come and pricing will continue to rise as the market matures. We have already seen numerous trades above $100 per buildable square foot and have recently signed a contract for a site worth just over $140 per buildable square foot, further evidence of the rising land costs in this market. Astoria Areas like Astoria, which is a well-established neighborhood that has infrastructure, transportation, and is becoming hip, are also high in demand. Condos are reaching $900+ a sq. ft. in some cases, although there has been a lack of new development being built over the past year and there has not been too much data to collect. For rentals we are starting to see numbers in the high Best Regards, Eric Benaim CEO / President & Founder Modern Spaces Real Estate MODERNSPACESNYC.COM PG. 2

3 TABLE OF CONTENTS The Report Table of Contents LIC Closed Data LIC Rental Data Astoria Closed Data Astoria Rental Data LIC Closed Data Quarter over Quarter LIC Quarterly Rental Snapshot Astoria Rental Snapshot Land Prices MODERNSPACESNYC.COM PG. 3

4 LIC CLOSED DATA The average price per foot overall is $1,020 with the highest being $1,328 at The View. The average absolute price is $1,036,573 with the highest being $1,764,627 at TEN63. AVERAGE CLOSED S AVERAGE PSF $1,600,000 $1,400,000 $1,200,000 $1,000,000 $947,864 $1,163,625 $1,511,477 $955 $950 $945 $1,060 $1,039 $1,029 $800,000 $600,000 $523,325 $940 $993 $400,000 $200,000 $935 STUDIOS ONE BED TWO BEDS THREE BEDS $930 STUDIOS ONE BEDS TWO BEDS TWO BEDS UNIT MIX 41% 15% 23% 10% 15% 47% 48% STUDIO 1 BED 2 BED 3 BED MODERNSPACESNYC.COM PG. 4

5 LIC RENTAL DATA Luxury The average price per foot of luxury rentals is $52 and with an average rental rate of $3,799. RENTAL RATES AVERAGE RENTAL PSF $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $5,680 $4,134 $3,013 $2,369 STUDIOS ONE BEDS TWO BEDS THREE BEDS $56 $55 $54 $53 $52 $51 $50 $49 $48 $47 $46 $55 $53 $51 $49 STUDIOS ONE BEDS TWO BEDS THREE BEDS Walk-ups The average price per foot of walk ups is $41 (up from $40 last quarter) and with an average rental rate of $2,440 RENTAL RATES AVERAGE RENTAL PSF $2,700 $2,600 $2,500 $2,400 $2,650 $42 $41 $40 $41 $40 $2,300 $2,200 $2,100 $2,230 $39 $38 $2,000 ONE BEDS TWO BEDS $37 ONE BEDS TWO BEDS Elevator Rentals The average price per foot in elevator rentals remains unchanged at $40 and with an average rental rate of $3,156 RENTAL RATES AVERAGE RENTAL PSF $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $3,836 $4,026 $2,510 $2,252 STUDIOS ONE BEDS TWO BEDS THREE BEDS $60 $50 $40 $30 $20 $10 $49 $41 $38 $41 STUDIOS ONE BEDS TWO BEDS THREE BEDS MODERNSPACESNYC.COM PG. 5

6 ASTORIA CLOSED DATA The average price per foot overall is $754 with the highest being $911 at the st Avenue. The average absolute price is $494,452 with the highest being $850,238 also at st Avenue AVERAGE CLOSED S AVERAGE PSF $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $358,500 STUDIOS $840 $827 $696,413 $820 $428,443 $800 $780 $760 $740 $733 $720 $702 $700 $680 $660 $640 $620 ONE BEDS TWO BEDS STUDIOS ONE BEDS TWO BEDS UNIT MIX 41% 27% STUDIO 1 BED 2 BED 32% MODERNSPACESNYC.COM PG. 6

7 ASTORIA RENTAL DATA The average price per foot overall is $43 with an average rental rate of $2,572 AVERAGE CLOSED S AVERAGE PSF $3,500 $3,000 $2,500 $2,000 $2,200 $2,329 $3,188 $47 $46 $45 $44 $46 $1,500 $1,000 $43 $42 $42 $42 $500 $41 STUDIOS ONE BEDS TWO BEDS $40 STUDIOS ONE BEDS TWO BEDS UNIT MIX 22% 6% STUDIO 1 BED 2 BED 72% MODERNSPACESNYC.COM PG. 7

8 LIC SALES AND RENTAL QUARTERLY TRACKING Below is the quarterly tracking of the price per foot of all closed sales. The data has increased over each quarter showing a 25% increase from Q to Q LIC CLOSED DATA QUARTER OVER QUARTER $1,200 $1,020 $1,000 $844 $846 $904 $930 $944 $800 $768 $600 $400 $200 Q Q Q Q Q Q Q MODERNSPACESNYC.COM PG. 8

9 LIC QUARTERLY RENTAL SNAPSHOT Below is a quarterly snapshot of the rental rate history from Q to Q Q Q LUXURY RENTALS LUXURY RENTALS Studios $2,369 One Beds $3,013 Two Beds $4,134 Three Beds $5,680 AVERAGE $3,799 Studios $2,558 One Beds $3,158 Two Beds $4,551 Three Beds $5,798 AVERAGE $4,017 ELEVATOR RENTALS ELEVATOR RENTALS Studios $2,252 One Beds $2,510 Two Beds $2,836 Three Beds $4,026 AVERAGE $3,086 Studios $2,252 One Beds $2,510 Two Beds $2,836 Three Beds $4,026 AVERAGE $3,086 WALK-UP RENTALS WALK-UP RENTALS 1 Bedrooms $2,230 2 Bedrooms $2,650 AVERAGE $2,440 1 Bedrooms $2,225 2 Bedrooms $2,625 AVERAGE $2,425 Q Q LUXURY RENTALS LUXURY RENTALS Studios $2,406 One Beds $2,795 Two Beds $4,250 Three Beds $5,137 AVERAGE $3,647 Studios $2,315 One Beds $2,918 Two Beds $3,838 Three Beds $5,648 AVERAGE $3,680 ELEVATOR RENTALS ELEVATOR RENTALS Studios $2,130 One Beds $2,497 Two Beds $3,718 Three Beds $4,000 AVERAGE $3,086 Studios $1,875 One Beds $2,575 Two Beds $3,175 Three Beds $4,350 AVERAGE $2,994 WALK-UP RENTALS WALK-UP RENTALS 1 Bedrooms $2,000 2 Bedrooms $2,600 AVERAGE $2,300 1 Bedrooms $1,950 2 Bedrooms $2,550 AVERAGE $2,250 MODERNSPACESNYC.COM PG. 9

10 ASTORIA RENTAL SNAPSHOT $3,100 $3,000 $2,974 $2,900 $2,800 $2,700 $2,623 $2,700 $2,600 $2,500 2,517 $2,525 $2,400 $2,300 $2,200 Q Q Q Q Q LAND S $250 $211 $200 $186 $150 $100 $125 $106 $50 LIC SOUTH LIC NORTH ASTORIA PRIME ASTORIA MODERNSPACESNYC.COM PG. 10

11 Thank you for following our report. Modern Spaces will continue to track the market on a quarterly basis. If you have any questions or would like a more detailed report please feel free to contact us at info@modernspacesnyc.com. For a direct download of our report please click the link below. This information was directly generated from Automated City Register Information System (ACRIS) and from Modern Spaces Sales and Rental Data for 7/1/2014 to 9/30/2014 MODERNSPACESNYC.COM PG. 11