CPEX Quarterly Investment Sales Report Methodology

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2 CPEX Quarterly Investment Sales Report Methodology CPEX Real Estate s Quarterly Investment Sales Report is a comprehensive survey of commercial real estate sales recorded during the first quarter of 2016 in New York City. The report analyzes Development, Industrial, Mixed-Use, Multi-Family, Office, and Retail asset classes. This aggregated survey of sales data information was collected and analyzed using NYC s Department of Finance Rolling Sales Data and PropertyShark.com, with sales in each asset class verified by CPEX s corresponding team of property type specialists. Careful attention has been paid to accurately summarize the data studied for the period between January 1 and March 31, Transactions under $100,000 have been removed from the report along with sales involving residential condominiums. 110th Street was used as the border separating transactions occurring in Manhattan and Northern Manhattan. Development sales include NYC Class V and Z properties as well as those properties that CPEX identified as being purchased specifically for development purposes. Industrial sales include NYC Class E, F, and G buildings. Mixed-Use sales include NYC Class C7, D6, D7, K4, and S buildings, while Multi-Family sales cover NYC Class C, D, and N buildings. Office sales include NYC Class I, L, M, O, and W buildings. Retail sales involve NYC Class J, K, O9, select R, and Y properties. For more information about the CPEX Quarterly Investment Sales Report, or to learn more about the specific transactions included in the report, please contact one of our property type specialists at (718) or visit our website at

3 DEVELOPMENT 1Q16 STATS Citywide, first quarter development sales remained relatively steady from 2015 to Increased activity in Northern Manhattan, the Bronx and Queens offset lower transactional volume in Brooklyn and Manhattan. Pricing stayed at a premium in Manhattan despite fewer sales, increasing 32.3% in average price per square foot to surpass $1.1 billion in aggregate dollar volume. The island represented nearly half of the city s $2.2 billion in sales across all boroughs. 218 $2.2B+ Price Per Buildable Square Foot Borough Buildable SF PPBSF Brooklyn % $698,766, % 3,341, % $ % Manhattan % $1,135,874, % 2,132, % $ % N. Manhattan & The Bronx % $141,314, % 1,967, % $ % Queens % $256,120, % 1,721, % $ % Total % $2,232,077, % 9,163, % $ % 3

4 INDUSTRIAL 1Q16 STATS Aggregate sales and average price per square foot both saw double digit increases year over year despite a nearly 50% drop in transactions in New York City s industrial sector. Industrial assets commanded over $300 per square foot on average across the boroughs to push total dollar volume over $800 million for the quarter, an inverse 46.2% increase compared to transactional volume. Brooklyn was the most active industrial market in NYC, comprising approximately 55% of industrial sales transactions (51) and 65% of aggregate dollar volume ($523 million). 92 $808M+ Price Per Square Foot Borough SF PPSF Brooklyn % $523,371, % 1,656, % $ % N. Manhattan & The Bronx % $88,747, % 274, % $ % Queens % $195,995, % 666, % $ % Total % $808,114, % 2,597, % $ % Trades that took place in Manhattan were removed from the Industrial section of this report as the majority of them were classified as other property types. M zoned trades that took place in the remaining boroughs that were classified in other property types were allocated to those property types accordingly. 4

5 MIXED-USE 1Q16 STATS While aggregate sales volume dipped below $2 billion in mixed-use sales during the first quarter, values did increase in all boroughs compared to the previous year for a citywide average of $524 per square foot (12.6% increase). Manhattan led the pack in value ($930 PSF), Brooklyn saw the greatest volume of transactions (154, nearly twice any other borough), and Northern Manhattan and the Bronx saw the largest increase in value (46.5%) and greatest amount of units sold (1,464 units). 348 $1.7B+ Price Per Square Foot Borough SF PPSF Units Sold Average Cap Rate Brooklyn % $315,690, % 783, % $ % % 5.69% Manhattan % $864,755, % 929, % $ % % 4.52% N. Manhattan & The Bronx % $458,633, % 1,310, % $ % 1, % 5.31% Queens % $104,168, % 300, % $ % % 7.00% Total % $1,743,247, % 3,324, % $ % 3, % 5.83% 5

6 MULTI-FAMILY 1Q16 STATS Values in the multi-family sector saw a slight increase in the first quarter of 2016, approaching an average of $300 per square foot. In fact, Brooklyn, Manhattan, Northern Manhattan, the Bronx, and Queens all saw double digit increases in price per square foot compared to the first quarter of the previous year. Northern Manhattan and the Bronx alone reported 150 transactions, more than $1 billion in aggregate sales (most among all of the boroughs), and close to 6,000 total units sold. 447 $2.4B+ Price Per Square Foot Borough SF PPSF Units Sold Avg. Price Per Unit Average Cap Rate Brooklyn % $703,830, % 1,651, % $ % 1, % $370, % Manhattan % $426,454, % 507, % $ % % $541,873 N/A N. Manhattan & The Bronx % $1,004,342, % 5,082, % $ % 5, % $171, % Queens % $277,877, % 1,001, % $ % 1, % $221, % Total % $2,412,505, % 8,243, % $ % 9, % $246, % 6

7 OFFICE 1Q16 STATS Several largescale transactions in Manhattan drove the office market in the first quarter of 2016, most notably the $1.9 billion sale of 1.6 million square feet of office space at 787 7th Avenue. That sale, along with several other seven- and eight-figure sales on the island, drove pricing north of $1,000 per square foot for the borough and all of New York City a 54% increase over the first quarter of last year. 35 $2.7B+ Price Per Square Foot Borough SF PPSF Brooklyn % $37,116, % 101, % $ % Manhattan % $2,649,227, % 2,287, % $1, % N. Manhattan & The Bronx % $5,750, % 38, % $ % Queens 12 N/A $41,191,423 N/A 110,980 N/A $371 N/A Total % $2,733,284, % 2,538, % $1, % 7

8 RETAIL 1Q16 STATS In the first quarter 2016, aggregate dollar volume and average price per square foot both rose by more than 20% for retail investment sales compared to the same period in Although activity declined to 101 transactions, values in Manhattan surpassed $2,000 per square foot and jumped to $627 per square foot in Northern Manhattan and the Bronx. 101 $871M+ Price Per Square Foot Borough vs. 1Q15 SF vs. 1Q15 PPSF vs. 1Q14 Average Cap Rate Brooklyn % $141,319, % 354, % $ % 5.49% Manhattan % $588,123, % 290, % $2, % 4.27% N. Manhattan & The Bronx % $35,379, % 56, % $ % N/A Queens % $106,659, % 189, % $ % 5.45% Total % $871,482, % 891, % $ % 5.22% 8

9 SPECIALTY USE 1Q16 STATS Specialty use sales declined compared to a strong showing in the first quarter of Brooklyn was the most active borough in New York City with 15 sales totaling $31 million. The one transaction in Manhattan, 136 East 39th Street, sold for a sizeable $1,684 per square foot. The building was purchased by the Thai government. 33 $91M+ Price Per Square Foot Borough SF PPSF Brooklyn % $31,382, % 143, % $ % Manhattan % $17,500, % 10, % $1, % N. Manhattan & The Bronx % $19,978, % 66, % $ % Queens % $22,582, % 69, % $ % Total % $91,442, % 289, % $ % 9

10 CPEX REAL ESTATE TEAM Executive Team Multi-Family Sales Industrial Sales & Leasing Mixed-Use Timothy D. King Managing Partner Brian T. Leary Managing Partner Gregory H. Roberts Chief Operating Officer Carlos J. Matos Sales Manager Stephen Safina Director Multi-Family - Brooklyn Alyona Chystyakova Multi-Family - Brooklyn Thomas Ryan Multi-Family - Brooklyn Brian T. Leary Managing Partner Industrial - Brooklyn Harrison MacDonnell Industrial - Brooklyn Elizabeth Malone Industrial - Brooklyn Lawrence Sarn Director Mixed-Use - Brooklyn Bryan Hurley Mixed-Use - Brooklyn Chase Reiter Mixed-Use - Queens Development & Conversion Sales Sean R. Kelly, Esq. Managing Director Development & Conversion James O Neill Development & Conversion Sean Sears Development & Conversion Retail Sales Andre Sigourney Director Retail Sales Harrison Balisky Retail Sales Dimitri Venekas Retail Sales Mark Muñoz Industrial - Queens Andrew Smith Industrial - Queens Gina Damond Development & Conversion Jason Weisfeld Development & Conversion Catherine Vintonik Development & Conversion 10

11 Office Sales & Leasing Purchase Acquisitions Accounting Technology Rich Novak Director Office Rosanna Tapang Office Retail Leasing Ryan Condren Managing Director Retail Leasing - Brooklyn George Danut Director Retail Leasing - Brooklyn Keat Chew Retail Leasing - Brooklyn Timothy D. King Managing Partner Acquisitions Brian T. Leary Managing Partner Acquisitions Lease Acquisitions Brian T. Leary Managing Partner Acquisitions Rich Novak Director Acquisitions Rosanna Tapang Acquisitions Dino Velovic Accountant Research Nick Bohlen Manager, Research Graphic Design Joseph Feminella Manager, Graphic Design Alex DiNuzzo, Graphic Design Sophie Edelman, Graphic Design Wesley Tseng Support Specialist Robert H. Ralston Senior Consultant, Networking Colin R. Cogle Consultant, Networking Eamon Carey Phone Systems, Networking Martin Volerich Senior Web Developer, Web Human Resources Katherine Schneider Manager, Human Resources Brandon Seidenberg Retail Leasing - Queens David Heinzerling Retail Leasing - Queens 11

12 PREPARED BY THE CPEX INVESTMENT SALES TEAMS 81 WILLOUGHBY STREET, 8TH FLOOR BROOKLYN, NY