SALES REPORT Q NYC MULTIFAMILY MANHATTAN BROOKLYN BRONX QUEENS.

Transcription

1 SALES REPORT Q NYC MULTIFAMILY MANHATTAN BROOKLYN BRONX QUEENS

2 NYC INTRODUCTION Dear Friends and Investors, Peter Von Der Ahe Marcus & Millichap This is our comprehensive NYC Multifamily Report representing sales from Manhattan, Brooklyn, Bronx, and Queens- combining the full quarter of sales data into one report. As we enter into the second half of 2017, multifamily investors have been asking what the right move is in today s flat market. While the market may not be moving up or down today, investors should prepare for what s ahead. Standing still can cost you. There are several strategic moves investors could make. Let s explore 5 possibilities: Exploit Market Inefficiencies: One reason the market is flat is there is no industrywide consensus that pricing is moving up or down. By definition, there is confusion. Investors should exploit this inefficiency. Its one reason to love commercial real estate. For example, certain sellers will discount the future value of their asset, by lowering future projections too much, creating a buying opportunity. Others will overprice their properties on the market, limiting buyer activity. This leads to something we call sellers fatigue and many times these properties sell 9-12 months later below market value. Renovate: Sometimes the best return on new equity actually exists in your current holdings. In flat markets, you may not be buying and selling, but it s important to stay in motion, be creative, and create value. Renovate, utilize unused air rights or square footage, restructure leases, and reduce expenses by increasing efficiency. These value added activities will pay off in multiples in the future. Refinance: There is a paradox of the banking industry. When you don t need money, banks are willing to lend it, and when you do the lending windows are closed. Flat markets can be a reminder to refinance under leveraged buildings so you have a dry powder for future opportunities. Trade to Improve Cash Flow: Investment properties in NYC (regardless of location) sell at a premium, and owners can capitalize on this arbitrage. For example, selling a NYC apartment property and purchasing a triple-net leased (NNN) asset typically improves your cash flow by 2x-3x. If prices remain stagnant for several years (or decline), the benefits are multiplied. Trade to Improve Location: Closely related to improving cash flow, is improving location. After market peaks, class A properties in A locations are priced very similarly to C properties in C locations. Take advantage and upgrade the quality and location of your asset. Many choose not to make this move because the free cash flow may decrease slightly. This is a temporary illusion. From a net worth perspective 5 to 7 years after this transition has been made, your upgraded investment will likely bemore valuable. Great investors play thelong game. I hope you find this report valuable and look forward to our next conversation. Best Regards, pvonderahe@ipausa.com

3 MULTIFAMILY SALES REPORT TABLE OF CONTENTS SECTION I Manhattan SECTION II Brooklyn SECTION III Bronx SECTION IV Queens SECTION V Recent Commercial Debt Financing About Us

4 NYC TRANSACTION KEY We research and understand the metrics on every sale in the marketplace. In certain cases, the current Cap Rate or Gross Rent Multiplier (GRM) will indicate a value that is inconsistent with the actual transaction. Therefore, for sales with special circumstances, we have created the below key to provide further clarity into the sale. For specific information on any transaction, feel free to contact us at DELIVERED VACANT The property was either delivered vacant, sold on the basis of being vacant, or subsequently vacated. As a result, operating income and expense metrics are not relevant. SOLD TO END USER The property was purchased with the buyer intending to occupy all or part of the residential or commercial (if applicable) portion of the property for their own use. Typically, user value reflects a premium over investor value. REDEVELOPMENT The property was purchased with the assumption that all or a substantial portion of the property will be redeveloped, (e.g. conversion to condo). Therefore, the relevant operating metrics are not current operations, but are based on projections of potential future income and expenses. REPOSITIONED The property was purchased with the buyer intending to transition the commercial space, (e.g. release to new tenant), substantially increase rents, or combine/separate the existing space(s). Therefore, the relevant operating metrics are unavailable. ESTATE SALES The disposition of the property was supervised by an Executor or Administrator and not by the former owner. Estate sales can be affected by timing issues like taxes due or lacking someone to operate the property. The values achieved in an estate sale often reflect a transaction in which the decision maker may or may not have directly benefitted from the outcome. The property was sold as a result of financial pressures from creditors usually foreclosure or preforeclosure. Typically these pressures limit the seller s ability to achieve fair market value.

5 MULTIFAMILY SALES REPORT SECTION I MANHATTAN ANALYSIS

6 MANHATTAN LARGEST MANHATTAN SALES With a commitment to integrity, we operate with our ears to the ground West 107th Street May 2017 $51,900, Units $516 Price/SF 56 West 11th Street May 2017 $37,750, Units $1,389 Price/SF 720 West 181 Street April 2017 $32,000, Units $626 Price/SF 351 West 125 Street June 2017 $23,000, Units $501 Price/SF *Includes only single asset transactions

7 MANHATTAN MANHATTAN Downtown PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 223 Madison Street Jun-17 $5,060, Value Add 10,230 $ Chambers Street Jun-17 $10,700,000 6 Finished Product 8,885 $1, Bowery Street Jun-17 $23,500, Value Add 23,379 $1, Stanton Street Jun-17 $12,900, Value Add 12,168 $1, Ludlow Street Jun-17 $5,500, Value Add 8,421 $ Leonard Street May-17 $21,300, Value Add 23,000 $ Bowery May-17 $4,350,000 4 Delivered Vacant 3,274 $1, Park Place May-17 $15,000,000 8 Value Add 23,225 $ Ridge Street Apr-17 $9,600, % ,990 $ Mott Street Apr-17 $9,500, % ,170 $1, Madison Street 90 Chambers Street Bowery Street 101 Stanton Street 151 Ludlow Street Leonard Street 10 Bowery 23 Park Place 118 Ridge Street 223 Mott Street For further details: Corey Isdaner corey.isdaner@mmreis.com Noah Kossoff noah.kossoff@mmreis.com

8 MANHATTAN MANHATTAN Greenwich Village, West Village, and East Village PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 277 West 11 Street Jun-17 $20,000, % 22,686 $ Bleecker Street Jun-17 $9,167,000 5 Value Add 5,040 $1,819 East 5th & 6th Street Portfolio May-17 $18,000, Value Add 23,187 $ West 11th Street May-17 $37,750, % ,184 $1, Perry Street Apr-17 $18,000, % ,788 $ East 6 Street Apr-17 $3,750, Value Add 6,500 $ Avenue B Apr-17 $4,750, % ,309 $1, West 11 Street 176 Bleecker Street 56 West 11th Street 63 Perry Street 183 Avenue B East 5th & 6th Street Portfolio 738 East 6 Street For further details: Corey Isdaner corey.isdaner@mmreis.com Noah Kossoff noah.kossoff@mmreis.com

9 MANHATTAN MANHATTAN Midtown East and Midtown West PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF Ave Jun-17 $6,650, Distressed 5,720 $1, East 51 Street Jun-17 $5,500, % ,312 $1, West 48th Street Jun-17 $15,500, % ,515 $ East 45th Street May-17 $7,500, % ,468 $1, East 30th Street Apr-17 $7,150, % ,875 $1, Ave Apr-17 $12,075, % ,120 $1, Ave 346 East 51 Street West 48th Street 141 East 45th Street 104 East 30th Street Ave For further details: Corey Isdaner corey.isdaner@mmreis.com Logan Markley logan.markley@mmreis.com

10 MANHATTAN MANHATTAN Upper East Side PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF East 82nd Street Jun-17 $19,400, % ,670 $ East 62 Street Jun-17 $7,220,500 4 Redevelopment 3,810 $1, East 74th Street May-17 $16,500, % ,540 $ East 84 Street May-17 $11,200, % ,500 $1, East 64 Street May-17 $13,000,000 5 Redevelopment 8,740 $1, East 82 Street May-17 $10,750, % ,555 $1, nd Avenue Apr-17 $8,000, % ,050 $ East 82nd Street 167 East 62 Street East 74th Street 506 East 84 Street 52 East 64 Street 423 East 82 Street nd Avenue For further details: Danny Handweiler danny.handweiler@mmreis.com

11 MANHATTAN MANHATTAN Upper West Side PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 123 West 75 Street Jun-17 $5,700,000 7 Value Add 6,531 $ West 107 Street May-17 $17,052, % ,818 $ Columbus Ave May-17 $7,595, Value Add 12,215 $ West 107th Street May-17 $51,900, % ,576 $ West 108 Street May-17 $5,350, % 9,440 $ West 78 Street May-17 $5,500,000 7 Delivered Vacant 3,636 $1, West 88 Street May-17 $3,100,000 8 Value Add 4,100 $ West 76 Street Apr-17 $6,550, % ,399 $1, West 88 Street Apr-17 $5,950,000 5 Value Add 5,782 $1, West 87 Street Apr-17 $3,788, % ,109 $ West 81 Street Apr-17 $7,600, Redevelopment 7,330 $1, West 75 Street 15 West 107 Street 961 Columbus Ave West 107th Street 216 West 108 Street 123 West 78 Street 136 West 88 Street 154 West 76 Street 54 West 88 Street 331 West 87 Street For further details: Jacob Kahn jacob.kahn@mmreis.com Logan Markley logan.markley@mmreis.com

12 MANHATTAN MANHATTAN Harlem PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 351 West 125 Street Jun-17 $23,000, % ,945 $ & 385 Convent Avenue Jun-17 $2,650, % ,720 $ East 124 Street Jun-17 $4,400, % ,500 $ St. Nicholas Place May-17 $17,000, % ,924 $ East 105 Street May-17 $2,150, % 9,600 $ E. 104th Street May-17 $6,800, % ,112 $ Amsterdam Ave May-17 $14,000, % ,845 $485 9 Central Park North Apr-17 $13,650, % ,640 $ East 116 Street Apr-17 $14,800, % 47,750 $ West 125 Street 383 & 385 Convent Avenue 13 East 124 Street 48 St. Nicholas Place 169 East 105 Street East 104th Street Amsterdam Avenue 9 Central Park North 115 East 116 Street For further details: Jacob Kahn jacob.kahn@mmreis.com

13 MANHATTAN MANHATTAN Washington Heights & Inwood PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 568 West 192 Street Jun-17 $7,100, % ,210 $ West 184th St Jun-17 $12,350, Value Add 19,510 $ West 157 Street Jun-17 $15,150, Value Add 42,546 $ Nagle Ave Jun-17 $6,975, % ,080 $ West 175th St May-17 $14,100, % ,288 $ West 156 Street May-17 $9,000, % ,740 $ West 169 Street May-17 $2,850, % ,445 $ St. Nicholas Ave May-17 $12,225, Value Add 25,260 $ West 181 Street Apr-17 $32,000, % ,144 $ West 225 Street Apr-17 $2,085, % ,600 $ West 192 Street West 184th Street 522 West 157 Street 65 Nagle Ave West 175th Street 521 West 156 Street 515 West 169 Street 1425 St. Nicholas Ave 720 West 181 Street 109 West 225 Street For further details: Jacob Kahn jacob.kahn@mmreis.com

14 MULTIFAMILY SALES REPORT SECTION II BROOKLYN ANALYSIS

15 BROOKLYN LARGEST BROOKLYN SALES With a commitment to integrity, we operate with our ears to the ground. 70 Dahill Road June 2017 $33,000, Units $335 Price/SF 218 South Third Street May 2017 $23,000, Units $594 Price/SF 862 Union Street April 2017 $22,000, Units $623 Price/SF Lefferts Avenue May 2017 $20,250, Units $536 Price/SF *Includes only single asset transactions

16 BROOKLYN NEW YORK CITY Brooklyn PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 509 Saratoga Avenue 30-Jun $5,500, % ,840 $ Monroe Pl and 268 Henry St 20-Jun $11,200, % ,075 $ Dahill Road 16-Jun $33,000, % ,440 $ Lorimer Street 14-Jun $5,900,000 8 Finished Product 6,000 $983 Sunset Park Section 8 Portfolio 13-Jun $54,160, Value Add 185,972 $ Broadway 8-Jun $5,100,000 5 Delivered Vacant 7,750 $ North 8th Street 6-Jun $5,600, Finished Product 6,250 $ Washington Park 31-May $5,000,000 7 Finished Product 6,200 $ Bushwick Avenue 22-May $11,700, Value Add 57,257 $204 BK May $72,930, % ,378 $ South 3rd Street 16-May $23,000, % 38,700 $594 Berelson Portfolio 16-May $10,000, Value Add 60,560 $ Lefferts Avenue 9-May $20,250, % ,763 $ Park Place 8-May $6,000, % ,520 $ Bedford Avenue 27-Apr $9,300,000 1 Delivered Vacant 25,244 $ Lefferts Avenue 13-Apr $25,000, % ,650 $ Union Street 13-Apr $22,000, Value Add 35,310 $ Graham Avenue 5-Apr $11,400, % ,900 $ /295 Maple Street 5-Apr $17,500, % 74,622 $235 OUR REPORT This section represents six markets, as displayed on the previous page, featuring Brooklyn multifamily sales from Q2 of 2017 valued over $5,000,000.

17 BROOKLYN NEW YORK CITY Brooklyn 509 Saratoga Avenue 16 Monroe Pl and 268 Henry St 70 Dahill Road 715 Lorimer Street Sunset Park Portfolio 103 Broadway 68 North 8th Street 202 Washington Park 761 Bushwick Avenue BK South 3rd Street Berelson Portfolio Lefferts Avenue 1040 Park Place 926 Bedford Avenue Lefferts Avenue 862 Union Street 66 Graham Avenue 288/295 Maple Street For further details: Michael Salvatico Tom Shihadeh

18 MULTIFAMILY SALES REPORT SECTION III BRONX ANALYSIS

19 BRONX LARGEST BRONX SALES With a commitment to integrity, we operate with our ears to the ground Seward Avenue May 2017 $33,650, Units $152 Price/SF 888 Grand Concourse June 2017 $28,000, Units $228 Price/SF West 230th Street May 2017 $20,000, Units $251 Price/SF 2690 University Avenue June 2017 $14,000, Units $238 Price/SF *Includes only single asset transactions

20 BRONX NEW YORK CITY Bronx PROPERTY DATE PRICE UNITS $/UNIT SF $/SF 888 Grand Concourse 13-Jun $28,000, $307, ,800 $ University Avenue 12-Jun $14,000, $202,899 58,800 $ Monroe Avenue 23-May $7,720, $154,400 44,000 $ West 230th Street 23-May $20,000, $215,054 79,630 $ Seward Avenue 10-May $33,650, $187, ,208 $ Sheridan Avenue 3-May $12,383, $187,632 77,050 $161 Taylor Avenue Portfolio 26-Apr $10,750, $179,167 46,580 $231 Bronx Six Portfolio 20-Apr $38,500, $184, ,381 $209 Prana 11 Building Portfolio 6-Apr $49,280, $189, ,102 $226 OUR REPORT Our report represents two markets, as displayed to the right, featuring Bronx multifamily sales from Q2 of 2017, above 40 units. North Bronx South Bronx For further details: Mike Fusco

21 BRONX NEW YORK CITY Bronx 888 Grand Concourse 2690 University Avenue 1654 Monroe Avenue West 230th St Seward Avenue 909 Sheridan Avenue Taylor Avenue Portfolio Bronx Six Portfolio Prana 11 Building Portfolio

22 MULTIFAMILY SALES REPORT SECTION IV QUEENS ANALYSIS

23 BRONX NEW YORK CITY Queens PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF Street 14-Jun $10,200, % 56,584 $ Whitney Avenue 9-Jun $23,400, % ,293 $ and th St 19-May $20,500, % ,600 $ th Street 8-May $9,500, Value Add 18,800 $ Woodside Avenue 27-Apr $14,500, Value Add 26,252 $ , 15, 19 62nd St 19-Apr $12,900, % ,720 $302 Kushner Portfolio 5-Apr $76,500, % ,384 $ th Street 5-Apr $11,400, % ,000 $ Street Whitney Avenue & th St th Street Woodside Avenue 39-11, 15, 19 62nd Street Kushner Portfolio th Street OUR REPORT This section of the report represents all Queens sales above $5MM, from Q2 of 2017 North Bronx For further details: Mike Fusco South Bronx

24 MULTIFAMILY SALES REPORT SECTION V COMMERCIAL DEBT FINANCING + ABOUT US

25 RECENT FINANCING BK18 Portfolio Acquisition 207-Unit Multifamily Brooklyn 83 Hall Street Refinance 8-Unit Multifamily Brooklyn, Clinton Hill Andrew Dansker Marcus & Millichap Strong existing relationships with both national and regional lenders. With more than ten years in the real estate industry, Andrew leads our capital team in securing commercial debt financing for an array of property types th Street Refinance 8-Unit Multifamily Queens, Long Island City 284 West 137th Street Refinance 8-Unit Multifamily Manhattan, Harlem

26 WHY NYM? Our specialized focus in NYC mid-market multifamily real estate, backed by the power and resources of Marcus & Millichap uniquely positions us to create optimal opportunities for both private capital and institutional investments. NICHE EXPERTISE We specialize only in multifamily properties, only in New York City, customizing our strategy around you. MIDDLE MARKET Backed by the nation s largest private client brokerage, we bridge the gap between private and institutional capital. CREATING OPPORTUNITIES We are positioned to source exclusive opportunities for our clients sellers frequently become buyers with NYM. BROKERAGE AS A VERB We don t simply market properties we aggressively sell them in pursuit of the best outcomes for clients.

27 MULTIFAMILY SALES REPORT LEADERSHIP NYM The number one multifamily investment sales team in New York City. Peter Von Der Ahe Scott Edelstein Joe Koicim Shaun Riney Seth Glasser David Lloyd Michael Salvatico Thomas Shihadeh Dan Greenblatt

28 MULTIFAMILY SALES REPORT UNDISTRACTED BY OTHER PROPERTY TYPES OR PRODUCTS, OUR MARKET INFORMATION AND ACCESS TO INVENTORY IS UNPARALLELED. Our goal is to utilize our niche expertise and experience to fulfill the needs of the buying and selling clients we represent. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or unit count are approximate. Recipient must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2016Marcus & Millichap

29