3rd Quarter Flatbush Fort Greene Brooklyn. A comprehensive analysis of the residential real estate market in Brooklyn.

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1 Prospect Park South Red Hook Sheepshead Bay Sunset Park Williamsburg Windsor Terrace The Corcoran Report Bath Beach Bensonhurst Bay Ridge Bedford - Stuyvesant Boerum Hill Brooklyn Heights Bushwick Carroll Gardens Clinton Hill Cobble Hill Crown Heights Ditmas Park DUMBO Vinegar Hill Dyker Heights Flatbush Fort Greene Brooklyn Gowanus Gravesend Greenpoint Greenwood Kensington Lefferts Gardens Midwood Mill Basin Park Slope Prospect Heights Prospect Park South Red Hook Sheepshead Bay Sunset Park Williamsburg Windsor Terrace The Corcoran Report Bath Beach Bensonhurst Bay Ridge Bedford - Stuyvesant Boerum Hill Brooklyn Heights Bushwick Carroll Gardens Clinton Hill Cobble Hill Crown Heights Ditmas Park DUMBO Vinegar Hill Dyker Heights Flatbush Fort Greene Brooklyn A comprehensive analysis of the residential real estate market in Brooklyn.

2 Page 2 Introduction Welcome to the Corcoran Report, our comprehensive quarterly examination of the residential real estate market in Brooklyn. The report examines closed transactions during the Third Quarter of 2014 (July 1 through September 30) and compares them to the Third Quarter 2013 and the Second Quarter Statistics in this report trail actual market conditions by approximately eight to twelve weeks due to the typical lag time between a contract signing and its closing. For the third consecutive quarter the number of closed sales in Brooklyn increased, as enduring demand and low inventory resulted in higher sale prices in many neighborhoods. With quarterly gains in both condo and co-op sales, transaction numbers were up 16% from Second Quarter 2014 but down 16% versus Third Quarter 2013, the highwater mark for closed sales over a three-year period. In some ways, price appreciation in Brooklyn defies conventional wisdom. Because condominiums usually sell at a higher price point than other property types, one would expect their proportion of total sales to go up whenever overall prices do. However, in the Third Quarter 2014, there was a persistent lack of new developments, a contracting market share of resale condos, and an expanding number of closed sales in South Brooklyn where property tends to be less expensive. In spite of these market dynamics in the past year, the median price for Brooklyn rose 1% to $549,000 and average price climbed 3% to $679,000, thanks to the willingness of buyers to spend more in neighborhoods further afield from Downtown. The price per square foot climbed to $734, 6% higher than last year and 3% lower than last quarter (when it achieved a six-year high). New development sales remain low in Brooklyn. Last year 22% of sales were in new developments while this quarter new product comprised just 13% of transactions. Strong demand and limited supply fueled the fourteenth consecutive quarter of new development price growth. and average price was higher than a year ago, posting 9% and 15% annual gains, respectively. price was $960 per square foot for new developments a six-year record high up 20% year-over-year. This price growth is even more impressive due to the lack of transactions in Brooklyn s high-end markets. We hope you find this edition of the Corcoran Report useful and informative, and we welcome any questions you may have. For a digital copy of this report and more information on the New York real estate market please visit our website at Sincerely, Frank Percesepe Senior Regional Vice President, Brooklyn The following members of the The Corcoran Group made significant contributions to this report: Douglas LaMere I Kathleen Mejia I Ryan Schleis I Joshua Sachs I Brie Train The following members of the PropertyShark team made significant contributions to this report: Matthew Haines I Lavinia Husar I Bodor Kalman I Robert Raiz I Mihai Palermo The Corcoran Report is compiled using market-wide data aggregated by PropertyShark, an independent research firm.

3 Page 3 View all our current market reports at Park Slope Gowanus Page 10 Carroll Gardens Boerum Hill Red Hook Page 12 Brooklyn Heights Cobble Hill Dumbo Downtown Page 9 Williamsburg Greenpoint Page 8 Fort Greene Clinton Hill Prospect Heights Page 11 Bedford Stuyvesant Crown Heights Lefferts Gardens Bushwick Page 13 East Flatbush Marine Park Mill Basin Bergen Beach Gerritsen Beach Greenwood Sunset Park Borough Park Mapleton Midwood Bay Ridge Dyker Heights Bensonhurst Bath Beach Gravesend Sheepshead Bay Sea Gate Coney Island Brighton Beach Manhattan Beach Page 15 Kensington Windsor Terrace Ditmas Park Flatbush Prospect Park South Page 14 PropertyShark.com s map of Brooklyn plots buildings with sales in the Second Quarter according to their number of sales and average price per square foot. unit sales propertyshark.com/maps The Brooklyn Sales Report is based on data collected by The Corcoran Group from internal and external resources including the public records of the City of New York. Equal Housing Opportunity. The Corcoran Group is a licensed real estate broker owned and operated by NRT LLC. All information furnished regarding property for sale or rent or regarding financing is from sources deemed reliable, but Corcoran makes no warranty or representation as to the accuracy thereof. All property information is presented subject to errors, omissions, price changes, changed property conditions, and withdrawal of the property from the market, without notice.

4 Page 4 Brooklyn Market-Wide Market-wide median price increased 5% from last quarter to $549,000, slightly higher than a year ago and the highest median price since Third Quarter price of $679,000 was 3% higher than a year ago and was the second highest figure seen in six years. price per square foot increased 6% year-over-year, down only a slight 3% from last quarter s six-year high figure. s Resale Co-ops, Resale Condos and New Developments Sale Avg per sf ALL SALES 679K 549K 734-7% 5% -3% 734K 525K K 549K 734 3% 1% 6% 662K 545K 693 Market-Wide Historical $800,000 Sale PPSF $800 $700,000 $700 $600,000 $500,000 $400,000 $300,000 $200,000 $600 $500 $400 $300 $200 Per Square Foot $100,000 $100 $0 $0

5 Page 5 Resale Market-Wide The resale market repeated last quarter s performance with strong annual and quarterly gains. Resale price grew 18% to $758 per square foot, an increase driven entirely by the resale condo market. The condo resale figures during Third Quarter 2014 were the highest seen in over six years. Resale coop average price and price per square foot dipped slightly from a year ago, partially due to a decline in the number of transactions of larger residences. ALL RESALES Sale Avg per sf 676K 550K 758 2% 8% 2% 662K 507K K 550K % 16% 18% 602K 475K 643 RESALE Sale Avg per sf 492K 389K 596 4% 5% 0% 475K 370K K 389K 596-4% 9% -2% 513K 358K 608 RESALE Sale Avg per sf 907K 765K 836 7% 12% 4% 846K 686K K 765K % 34% 27% 685K 570K 658 New Developments Third Quarter 2014 marks nine consecutive quarters of double-digit annual gains for new development average price per square foot. A six-year high figure of $960 per square foot was seen this quarter, up 20% from last year. Brooklyn is still experiencing a low number of new introductions, but strong demand continues to fuel high prices. price increased 15% year-over-year and exceeded $1MM for the second consecutive quarter. and average price were down versus Second Quarter 2014, which was skewed significantly higher due to several closings of new condos in Brooklyn Heights and Dumbo. Sale Avg per sf Market-wide 1.012M 832K % -10% 9% 1.486M 923K M 832K % 9% 20% 877K 765K 802

6 Page 6 Townhouse averages can be skewed each quarter due to the limited number of sales. and median price of singlefamily townhomes saw double-digit annual gains due to strong sales in prime Brooklyn neighborhoods. Also contributing to the price gains is tremendous demand for single-family homes in Bedford-Stuyvesant and Crown Heights, where median price nearly doubled from a year ago. Market-wide 1.832M 1.550M 1.344M 1.100M -25% -21% -6% -3% 2.447M 1.953M 1.425M 1.130M 1.832M 1.550M 1.344M 1.100M 18% 21% -15% -21% 1.553M 1.285M 1.587M 1.395M Brooklyn Market-Wide Sales during Third Quarter 2014 exceeded the trailing six-year average number of sales per quarter. Inventory constraints have been the catalyst for annual sale declines seen during the past four quarters. Sales were down 16% versus a year ago, the largest annual decline seen in ten quarters. Sales Closings - Resale Co-ops, Resale Condos and New Developments 1,700 Closed Sales 1,600 1,500 1,400 1,300 1,200 1,100 1, Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Number of Closed Sales

7 Page 7 Brooklyn Market-wide Sales by Category Market share of sales priced between $750K and $1MM grew to 19% and was the highest share this category has seen in five years. Simultaneously, market share of sales over $1MM shrank compared to both last quarter and last year. Holding steady at 66% of total sales, market share of sales priced under $750,000 was unchanged versus both periods. 3Q14 28% 18% 19% 19% 13% 3% Quarter 2Q14 27% 20% 19% 15% 15% 4% 3Q13 30% 16% 20% 17% 15% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percent of Sales Under $350K $350K-$500K $500K-$750K $750K-$1M $1M-$2M $2M+ Neighborhood Sales Comparison Market share of sales in South Brooklyn had the biggest change from last year, growing by 7% to comprise 26% of all sales. Northern submarkets in Brooklyn subsequently shrank in market share during Third Quarter 2014 versus a year ago. This quarter apartment sales in Brooklyn Heights, Cobble Hill, Dumbo and Downtown comprised 15% of sales down from 19% a year, the largest decline in the Borough. Property Type Sales Comparison Resale coops comprised nearly half of the sales this quarter, growing from 38% during Third Quarter New developments represented 13% of total sales, a huge decline from its 22% market share a year ago. Versus last year, resale condo market share shrank slightly to 38%. 26% 8% 15% 7% 19% 11% 19% 13% 38% 22% 41% 8% 12% 7% 7% 9% 16% 12% 14% 12% 49% 38% Williamsburg/Greenpoint Brooklyn Heights/Cobble Hill/Dumbo/Downtown Park Slope/Gowanus Fort Greene/Clinton Hill/Prospect Heights Carroll Gardens/Boerum Hill/Red Hook Bedford Stuyvesant/Crown Heights/Lefferts Gardens/Bushwick Kensington/Windsor Terrace/Ditmas Park/Flatbush/Prospect Park South South Brooklyn Resale Condo Resale Co-op New Development

8 Page 8 Williamsburg - Greenpoint Condo average price per square foot during Third Quarter 2014 figure was level with last quarter s six-year high but 16% higher than last year. price increased 4% year-over-year, but was 12% lower than Second Quarter s six-year high due to fewer sales over $1MM this quarter. price experienced a 3% decline, the first annual decline seen in nearly four years. Note that there are a statistically insignificant number of co-op sales in the submarket. Sale Newton Creek Queens 337K N/A N/A 10% N/A N/A 305K 210K K N/A N/A -68% N/A N/A 1.061M 999K 785 East River Sale 950K 832K 1,016-12% -10% 0% 1.084M 925K 1, K 832K 1,016 4% -3% 16% 914K 855K 876 FLUSHING AVE unit sales 1.295M 1.295M 1.577M 1.443M N/A N/A -19% -18% N/A N/A 1.945M 1.760M 1.295M 1.295M 1.577M 1.443M N/A N/A 5% -2% N/A N/A 1.502M 1.473M

9 Page 9 Brooklyn Heights - Cobble Hill - Dumbo - Downtown Both coops and condos in this submarket experienced strong annual price gains. coop price was 16% higher than a year ago. condo price grew 27% year-over-year and was a six-year high. condo price per square foot increased 17% versus Third Quarter 2013 to $1,064 per square foot, nearly level with last quarter s six-year high figure. Manhattan East River Sale 711K 550K 755-2% -5% -9% 727K 579K K 550K 755 6% 16% 4% 673K 475K 723 Sale FLUSHING AVE FLATBUSH AVE 1.230M 915K 1,064-25% -24% -1% 1.641M 1.200K 1, M 915K 1,064 27% 2% 17% 967K 900K 910 DEGRAW ST COURT ST ATLANTIC AVE HOYT ST FULTON ST unit sales 3.443M 2.450M 3.233M 3.241M -27% -37% -12% 28% 4.721M 3.900M 3.694M 2.529M 3.443M 2.450M 3.233M 3.241M -8% N/A 28% 49% 3.735M N/A 2.529M 2.176M

10 Page 10 Park Slope - Gowanus condo price in Park Slope and Gowanus grew 4% and average condo price per square foot increased 3% year-over-year. Both gains marked the tenth consecutive quarter of annual gains. condo price was nearly level with last year s figure. Coop average price and average price per square foot were also level with last year s figure. With fewer large coop sales, median price declined 5% year-over-year. Sale Gowanus Canal DEGRAW ST 4TH AVE FLATBUSH AVE 833K 785K 885 3% 18% -2% 808K 668K K 785K 885 1% -5% 1% 822K 825K 873 Sale 986K 945K 908-5% -4% -10% 1.040M 980K 1, M 945K 908-1% 4% 3% 994M 905K 879 PROSPECT AVE PROSPECT PARK W Prospect Park unit sales 2.179M 1.595M 2.268M 2.080M -25% -45% 0% -10% 2.913M 2.913M 2.260M 2.300M 2.179M 1.595M 2.268M 2.080M 1% -19% 8% 6% 2.159M 1.973M 2.103M 1.963M

11 Page 11 Fort Greene - Clinton Hill - Prospect Heights Year-over-year average and median condo price increased 13%. condo price per square foot was 6% higher than Third Quarter 2013 and the fourth consecutive quarter where the figure exceeded $700 per square foot. The coop market experienced annual and quarterly declines partially due to fewer sales of large coop residences. Sale FLUSHING AVE 543K 465K % -10% -21% 602K 515K K 465K % -16% -14% 638K 555K 654 BEDFORD AVE Sale FLATBUSH AVE 838K 732K 723-8% -7% -3% 910K 787K K 732K % 13% 6% 743K 645K 679 WASHINGTON AVE ATLANTIC AVE unit sales EASTERN PKWY 2.550M 2.550M 1.898M 1.703M 32% 32% 10% 6% 1.925M M 1.613M 2.550M 2.550M 1.898M 1.703M 98% N/A -10% -18% 1.285M N/A 2.112M 2.075M

12 Page 12 Carroll Gardens - Boerum Hill - Red Hook The average condo price of $1,041 per square foot was 21% higher than a year ago and the highest seen in over six years. condo price also experienced significant annual and quarterly gains fueled by a number of sales over $2MM. condo price grew 20% from Third Quarter 2013 and was the second highest seen in six years. Annual and quarterly gains were not seen in the coop market this quarter, partially due to the increase in market share of smaller residences. Sale Governors Island Upper Bay ATLANTIC AVE FULTON ST HOYT ST 756K 699K 893-6% -16% 3% 801K 800K K 699K % -14% -4% 937K 780K 929 BQE DEGRAW ST COURT ST DEGRAW ST FLATBUSH AVE 4TH AVE unit sales Gowanus Canal Sale 1.347M 1.083M 1,041 11% -9% 1% 1.216M 1.195M 1, M 1.083M 1,041 34% 20% 21% 1.006M 902K M 1.685M 2.336M 2.505M -37% -48% 9% 26% 2.898M 3.230M 2.139M 1.987M 1.825M 1.685M 2.336M 2.505M -20% -26% -9% -7% 2.270M 2.270M 2.565M 2.695M

13 Page 13 Bedford Stuyvesant - Crown Heights - Lefferts Gardens - Bushwick Both the coop and condo markets in Bed-Stuy, Crown Heights, and Bushwick showed strong gains this quarter relative to last year. All price metrics for condo sales posted six-year highs. The average condo sale price rose 40% from last year, the largest year-over-year average price gain in the Borough. Compared to this time last year, the median coop sale price was up 8% and the average price grew by 15%. This submarket also displayed impressive gains in the single-family townhouse market. Queens Sale FLUSHING AVE CYPRESS AVE WYCKOFF AVE 346K 325K % 23% 25% 262K 264K K 325K % 8% 20% 302K 300K 316 WASHINGTON AVE BEDFORD AVE ATLANTIC AVE Cemetery of the Evergreens unit sales PARKSIDE AVE NOSTRAND AVE EMPIRE BLVD E NEW YORK AVE Sale 609K 545K % 21% 8% 463K 450K K 545K % 34% 23% 435K 406K M 1.850M 954K 949K 41% 48% -1% 0% 1.059M 1.250M 967K 950K 1.493M 1.850M 954K 949K 17% 86% 1% 9% 1.274M 995K 940K 873K

14 Page 14 Kensington - Windsor Terrace - Ditmas Park - Flatbush - Prospect Park South The for-sale market in Ditmas Park, Windsor Terrace, and Kensington exhibited strong gains during Third Quarter condo price increased 44% from last year and median coop price was 26% higher versus the same period. Fueled by price increases of all residence types, average condo price per square foot increased 28%, the highest annual gain in price per square foot in the Borough. PROSPECT PARK W Greenwood Cemetery MCDONALD AVE PROSPECT PARK SW Prospect Park PARKSIDE AVE PARKSIDE AVE NOSTRAND AVE Sale 398K 385K 452 4% 10% 12% 381K 350K K 385K % 26% 15% 336K 305K 394 Sale 593K 626K % 90% 31% 359K 330K K 626K % 44% 28% 457K 435K 461 FOSTER AVE CONEY ISLAND AVE AVENUE I unit sales 1.135M 1.200M 1.150M 1.135M -46% N/A 10% -5% 2.100M N/A 1.042M 1.200M 1.135M 1.200M 1.150M 1.135M -18% 8% 9% 17% 1.376M 1.113M 1.055M 970K

15 Page 15 South Brooklyn East Flatbush Marine Park Mill Basin Bergen Beach Gerritsen Beach Greenwood Sunset Park Borough Park Mapleton Midwood Bay Ridge Dyker Heights Bensonhurst Bath Beach Gravesend Sheepshead Bay Sea Gate Coney Island Brighton Beach Manhattan Beach and median South Brooklyn coop and condo sale prices saw significant double-digit annual increases. condo price had the highest annual gain in the Borough of 47%. Compared to Third Quarter 2013 average condo price grew 26% to $476,000. Coop median and average price were bolstered 13% and 15%, respectively, versus a year ago. unit sales Upper Bay PROSPECT AVE EMPIRE BLVD E NEW YORK AVE MCDONALD AVE NOSTRAND AVE AVENUE I Sale Gateway National Recreation Area 260K 220K % 0% 21% 237K 220K K 220K % 13% 3% 227K 195K 317 Gravesend Bay Sale Lower Bay 476K 454K 447-2% 6% -1% 485K 428K K 454K % 47% 14% 378K 308K K 560K 709K 688K -29% -28% -6% -7% 849K 782K 757K 740K 601K 560K 709K 688K -31% -30% -10% 1% 865K 795K 789K 681K