Multifamily Month In Review: I arielpa.com 122 East 42 nd Street, Suite 1015, New York NY 10168

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1 Multifamily Month In Review: New York City September 2015 Released November 2015 By Ariel Property Advisors Join Our Network: or visit arielpa.com I arielpa.com 122 East 42 nd Street, Suite 1015, New York NY 10168

2 Compiled by: Analyst Team: Daniel Novick ext. 29 Samuel Stuart About The Report Content Ariel Property Advisors is pleased to present its Multifamily Month In Review: New York City. The report provides a monthly overview 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 ext. 40 sstuart@arielpa.com Sales Team: Table Of Contents Shimon Shkury ext. 11 sshkury@arielpa.com Victor Sozio ext. 12 vsozio@arielpa.com Michael A. Tortorici ext. 13 mtortorici@arielpa.com Multifamily Month In Review: New York City Multifamily Market Performance by Sub-Market Transaction & Dollar Volume By Quarter Trailing 6-Month Moving Average Pricing Indicators & Distributions About Ariel Property Advisors Ariel Property Advisors 122 East 42nd Street, Suite New York NY arielpa.com 2

3 x x Multifamily Month In Review New York City Multifamily Month In Review: New York City September 2015 Confirming a strong finish to the third quarter, New York City posted excellent multifamily figures in the month of September, capped off by several portfolios trading hands for north of $100 million. While September numbers were down year-over-year, overall 3Q numbers were up due to a productive July and August. For the month, New York City saw 60 transactions comprised of 134 buildings totaling $1.663 billion in gross consideration. This represents a 97% increase in dollar volume, a 58% increase in building volume and a 25% increase in transaction volume compared to August 2015, which saw 48 transactions comprised of 85 buildings totaling $ million in gross consideration. led the way in September as the submarket accounted for roughly 67% of the city s monthly dollar volume. The Caiola Portfolio, a 988-unit package concentrated in Chelsea and the Upper East Side, exchanged hands for $690 million or $953 per square foot. A joint venture made up of Blackstone and Fairstead Capital purchased the portfolio after Thor Equities backed out of a deal earlier in the year. Dollar Volume $1.66 billion 97% increase compared to August 2015 September 2015 Snapshot Transaction Volume Building Volume % increase compared to August % increase compared to August 2015 Northern had a great month with impressive month-to-month and yearover-year dollar volume gains of 194% and 81%, respectively. The submarket owned the largest trade outside of core, as a 24-building, 578-unit portfolio located in West Harlem sold for $148.5 million, which equates to $365 per square foot and $257,000 per unit. The portfolio last exchanged hands in 2013 for $75 million. The average price per square foot in Northern has seen an impressive jump over the past year, as the submarket has leap-frogged and is now second to core at $335 per square foot. continues to pace the city as the most active submarket with 20 trades consisting of 25 buildings totaling $ million in gross consideration. The borough s largest transaction took place in Heights, where Law School sold a 12 story elevatored building for $35 million, or $871 per square foot. Vincent Viola, owner of the Florida Panthers hockey team and Virtu Financial, purchased the property, which last traded hands 30 years ago. In Park Slope, a joint venture made up of Madison Realty Capital and Steelpoint Property Group scooped up 78 Prospect Park West, a 41,000 square foot elevatored building, for $28 million, which equates to $681 per square foot. New management plans to convert the apartments into luxury rentals. had a quiet month with 8 buildings trading across 6 transactions totaling $ million in gross consideration. The month s largest transaction was the sale of 2120 Tiebout Avenue in Fordham Heights, a 75-unit walk-up building. The asset exchanged hands for $ million, or $163 per square foot. In Bedford Park, 3515 Rochambeau sold for $5.3 million, or $176 per square foot. experienced a typical month as the borough saw 4 transactions comprised of 8 buildings totaling $ million in gross consideration. A package of walk-up buildings located at th Avenue & th Avenue in Jamaica sold for $4.9 million, which equates to $185 per square foot. In Flushing, a 16-unit package sold for $3.285 million, or $306 per square foot. For the six months ended in September 2015 (Page 5), the average monthly transaction volume decreased to 66 transactions per month. The average monthly dollar volume also decreased slightly to $1.139 billion. 67% 18% 2% 12% 1% 43% 26% 6% 19% 6% Northern Northern Dollar Volume Comparison By Location Chart 67+ Building Volume Comparison By Location Chart 43+ New York City Metrics sep 2015 % Change vs. aug 2015 aug 2015 % Change vs. sep 2014 sep 2014 Transaction Vol 60 25% 48-23% 78 Building Vol % 85-15% 158 Dollar Vol $1,663,753,139 97% $845,104,287-16% $1,984,137,947 Units 3,815 67% 2,283-45% 6,993 Legend: Northern is defined as below 96 th Street on the east side and below 110 th Street on the west side 3 Ariel Property Advisors 122 East 42 nd Street, Suite New York NY arielpa.com

4 Multifamily Market Performance By Sub-Market Metrics sep 2015 % Change vs. Aug 2015 Aug 2015 % Change vs. sep 2014 sep 2014 Legend Transaction Vol % 8 0% 18 Building Vol % % 23 Dollar Vol $1,127,831, % $337,550,000-5% $1,183,755,000 Units 1, % % 2,514 Northern Dollar Volume Comparison Graph N. Transaction Vol % 5 33% 9 Building Vol % 16 3% 34 Dollar Vol $291,955, % $99,262,297 81% $160,866,608 Units 1, % % 823 $1.b $450m $400m $350m $300m $250m $200m Transaction Vol 6-33% 9-73% 22 $150m $100m Building Vol 8-27% 11-76% 33 Dollar Vol $28,196,287-75% $111,890,000-83% $167,158,658 $50m $0 Sep 15 Aug 15 Sep 14 Units % % 1,340 Building Volume Comparison Graph Transaction Vol 20-13% 23 5% 19 Building Vol 25-43% 44-38% 40 Dollar Vol $200,625,000-28% $279,351,990 10% $182,615, Units % 1,012-21% Transaction Vol 4 33% 3-60% 10 Building Vol 8 100% 4-71% 28 Dollar Vol $15,145,000-11% $17,050,000-95% $289,741, Units % 79-93% 1,582 0 Sep 15 Aug 15 Sep 14 Ariel Property Advisors 122 East 42 nd Street, Suite New York NY arielpa.com 4

5 Multifamily Month In Review New York City Transaction & Dollar Volume By Quarter Trailing 6-Month Moving Average Multifamily Transaction Timeline Legend: Transaction Volume Dollar Volume $2.5b 110 $2b 90 $1.5b 70 $1b 50 $500mm 30 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Q Q Q Q Q Q Trans Vol: Dollar Vol: $1.90b $3.66b $4.06b $3.50b $3.14b $3.69b The Trailing 6-Month Moving Average Legend: Transaction Volume Dollar Volume $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 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 6 Months Ended Avg. Dollar Vol. Avg. Transaction Vol Sep $926,901, Oct $1,136,169, Nov $1,122,653, Dec $1,287,068, Jan $1,260,462, Feb $1,284,794, Mar $1,260,820, Apr $1,127,515, May $1,217,366, Jun $1,107,877, Jul $1,168,879, Aug $1,168,596, Sep $1,139,173, Ariel Property Advisors 122 East 42 nd Street, Suite New York NY arielpa.com

6 A+1+19 A+5+55 A A Pricing Indicators & Distributions Apr sep 2015 Trailing Numbers apr sep 2014 Trailing numbers Transaction Summary Location / Criteria Transactions Buildings Traded Dollar Value Traded Median Price Units Traded Median Units / Transaction Transactions Buildings Traded Dollar Value Traded Median Price Units Traded Median Units / Transaction $2,742,401,235 $14,675,000 4, $2,493,916,978 $13,300,000 4, N $995,814,308 $10,050,000 3, $876,545,643 $7,900,000 4, Bronx $897,561,916 $5,000,000 6, $654,732,854 $3,850,000 5, $1,831,562,467 $5,070,000 5, $1,099,572,734 $4,875,000 4, $367,700,250 $3,600,000 1, $436,641,836 $4,150,000 2, Summary $6,835,040,176 $7,040,000 20, $5,561,410,045 $6,062,500 20, Pricing Indicators Location / Criteria Avg. $/Unit Avg. $/SF Avg. Cap Rate Avg. GRM Avg. $/Unit Avg. $/SF Avg. Cap Rate Avg. GRM $786,493 $ % $748,697 $ % N. $272,886 $ % $227,154 $ % Bronx $141,121 $ % 9.93 $110,624 $ % 8.52 $294,665 $ % $273,993 $ % $230,266 $ % $172,652 $ % Trailing Six Month Performance: Deal Distribution By Transaction Count and Dollar Volume Legend: $20mm+ $5-20mm $1-5mm By Transaction Volume By Dollar Volume N A12+ Bronx A % 19% 12% 16% 13% 55% 62% 41% 37% 13% 5% 19% 47% 47% 74% N. +3A50+ Bronx A A A 80% 55% 50% 67% 69% 19% 42% 36% 23% 12% 1% 3% 14% 10% 19% Ariel Property Advisors 122 East 42 nd Street, Suite New York NY arielpa.com 6

7 Multifamily Month In Review New York City About Ariel Property Advisors Investment Sales & Investment Research Quality Brokerage Services Exclusive Market Reports Asset Evaluations Ariel Property Advisors is a New York City real estate investment sales company dedicated to delivering the best transactional 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 agencies 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 publications. 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 Federation, the 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. 7 Ariel Property Advisors 122 East 42 nd Street, Suite New York NY arielpa.com

8 Investment Sales Shimon Shkury ext. 11 Victor Sozio ext. 12 Michael A. Tortorici ext. 13 Randy Modell ext. 17 Jonathan Berman ext. 20 Scot Hirschfield ext. 16 Howard Raber ext. 23 Daniel Wechsler ext. 44 Mark Spinelli ext. 35 Daniel Tropp ext. 26 Jesse Deutch ext. 18 Marko Agbaba ext. 32 Joshua Berkowitz ext. 41 Investment Research Ivan Petrovic Aryeh Orlofsky Daniel Novick David Baruch Brett Campbell Jason Pappas Sam Stuart Dusan Panic Jason Gold ext. 22 Matthew Gillis ext. 42 If you would like to use or quote this report on the web, we ask that you quote the source as Multifamily Month In Review: New York City by Ariel Property Advisors and link report from our website page ( reports/) To learn more about current market conditions or if you would like a comprehensive Asset Evaluation for your property, please do not hesitate to contact us using the information below: 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. Our estimated sales statistics reflect all data available on public records and through other sources we deem reliable. Types Of Transactions Considered: Transactions in which there was a transfer of ownership and deed document recorded on ACRIS were considered. Data is collected form public sources and other sources we deem reliable. Location Definitions: South of E. 96th Street and W. 110th Street Northern North of E. 96th Street and W. 110th Street - Bronx Borough Borough - Borough I arielpa.com 122 East 42 nd Street, Suite 1015, New York NY 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 necessarily 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. November 17, :36 AM