THE LONG ISLAND CITY CONDOMINIUM REPORT

THE LONG ISLAND CITY CONDOMINIUM REPORT By Patrick W. Smith Cover photo taken from the roof deck of 10-50 Jackson Avenue.

THE MIDYEAR 2017 LONG ISLAND CITY CONDOMINIUM REPORT August 2017 Dear Readers, I am very happy to share The Midyear 2017 Long Island City Condominium Report. The Long Island City market continued to grow in midyear 2017 with new record pricing both in average and median sales price and price per square foot. The Luxury Market also performed extremely well with the top 10% of the market, based on average sales price, the percentage market share of $1 million+ sales and buyers paying cash, all making significant gains. Please check out our recent article that discusses how Long Island City has transitioned from a speculative area for real estate investment to a very desirable residential neighborhood that seems poised to expand further. The purpose of our market reports is to make the Long Island City real estate market more transparent and to help owners, sellers, buyers, investment partners and real estate developers make well informed decisions. We welcome your feedback so please feel free to contact me if you have any questions or if you would like a specific aspect of the market analyzed in our future reports. Best Regards Patrick W. Smith About The Author Patrick is a leading New York City real estate broker and new development specialist. He combines more than 15 years experience in real estate brokerage, marketing, research and new development sales and leasing with exceptional creativity and unparalleled service to help clients maximize value on their real estate investments while minimizing risk. Patrick joined Stribling to create a client-focused brokerage service dedicated to residential real estate in Long Island City, a neighborhood that Patrick has called home for many years and where Patrick sold more than 200 apartments as Director of Sales of Hunters Point Condos. Patrick is also the publisher of The Long Island City Condominium Report, the first market report to comprehensively cover and analyze Long Island City s condominium market. Patrick received a Master of Science in Real Estate Development from New York University, a Bachelor of Arts in Urban Studies from Queens College and a LEED AP BD+C from the United States Green Building Council. He is a member of the Real Estate Board of New York and the Urban Land Institute.

Table of Contents Average and Median Condominium Pricing...4 Price By Apartment Size... 5 6 Sales Volume...7 Average Listing Discount and Average Days On Market...8 The Luxury Market...9 New Developments...9 Methodology...10 Long Island City continues to grow with new record pricing 3

Average and Median Condominium Pricing Figure 1 compares the average and median sales price and price per square foot in midyear 2017 to midyear 2016. Average sales price of a condominium in Long Island City increased by 5% to $1,109,000 in midyear 2017, a new record. Average price per square foot increased by 6% to $1,175 per square foot in midyear 2017, also a new record. For the first time, the median price exceeded $1 million growing by 8% to $1,016,000 in midyear 2017. Median price per square foot also achieved a new record increasing by 5% to $1,177 PSF. n Midyear 2017 n Midyear 2016 $1,200,000 $1,000,000 AVERAGE SALES PRICE AVERAGE $/PSF $1,109,229 $1,200 $1,175 $1,055,731 $1,000 $1,108 $800,000 $800 $600,000 $600 $400,000 $400 $200,000 $200 0 0 $1,200,000 $1,000,000 $800,000 MEDIAN SALES PRICE $1,016,000 $940,000 $1,200 $1,000 $800 MEDIAN $/PSF $1,177 $1,122 $600,000 $600 $400,000 $400 $200,000 $200 0 0 Figure 1 4

Price By Apartment Size Figure 2 compares the average and median square footage, sales price and price per square foot, by apartment size, in midyear 2017 to midyear 2016. The median square footage of studio units increased significantly as the result of larger studio with home office units that sold in midyear 2017. As a result, the median sales price of studio units increased by 22%. One bedroom units were high performers in midyear 2017 with the median sales price increasing by 13% and the median $/PSF increasing by 6%. The median square footage of 1 bedroom units only increased by 4% while the percentage gains in median price and median price per square foot were much higher. This tells us that the gains in the 1 bedroom market were the result of real price growth. The median price per square foot of 1 bedroom units at $1,177 PSF set a new record. The median price per square foot of 2 bedroom units also achieved a new record in midyear 2017 reaching $1,190 per square foot. While the median price of 3 bedroom units was up by 5%, the median price per square foot declined by 2% as the median square footage of closed units in midyear 2017 were somewhat less efficient as compared to midyear 2016 increasing by 3% from 1515 square feet to 1563 square feet in midyear 2017.. MEDIAN MIDYEAR 2017 Unit Type Sales Median SF Median Sales Price Median PSF 0 6 726 $ 743,000 $ 1,024 1 31 727 $ 895,166 $ 1,177 2 23 1079 $ 1,230,000 $ 1,190 3+ 3 1563 $ 1,818,000 $ 1,237 MEDIAN MIDYEAR 2016 Unit Type Sales Median SF Median Sales Price Median PSF 0 11 532 $ 606,877 $ 914 1 46 697 $ 792,118 $ 1,111 2 31 1087 $ 1,245,000 $ 1,137 3+ 7 1515 $ 1,733,561 $ 1,266 CHANGE FUNCTIONS Unit Type Sales Median SF Median Sales Price Median PSF 0-45% 36% 22% 12% 1-33% 4% 13% 6% 2-26% -1% -1% 5% 3+ -57% 3% 5% -2% Figure 2A 5

Price By Apartment Size (continued) AVERAGE MIDYEAR 2017 Unit Type Sales Average SF Average Sales Price Average PSF 0 6 881 $ 823,417 $ 935 1 31 789 $ 933,802 $ 1,184 2 23 1095 $ 1,322,286 $ 1,208 3+ 3 1529 $ 1,860,167 $ 1,217 AVERAGE MIDYEAR 2016 Unit Type Sales Average SF Average Sales Price Average PSF 0 11 739 $ 694,847 $ 940 1 46 786 $ 845,630 $ 1,076 2 31 1157 $ 1,312,693 $ 1,135 3+ 7 1479 $ 1,865,525 $ 1,261 CHANGE FUNCTIONS Unit Type Sales Average SF Average Sales Price Average PSF 0-45% 19% 19% -1% 1-33% 0% 10% 10% 2-26% -5% 1% 6% 3+ -57% 3% 0% -4% Figure 2B 6

Sales Volume Figure 3 shows that dollar volume and recorded sales declined significantly in midyear 2017 as compared to midyear 2016. The decline in dollar volume and sales is due to a significant number of apartments that are under contract in new developments that have not started closing. As discussed later in this report, there are 194 apartments under contract in new developments. As these apartments begin to close over the coming quarters, sales and dollar volume will return to normal levels. 63 RECORDED SALES 2017 MIDYEAR VS. 2016 MIDYEAR 95 2017 Midyear 2016 Midyear DOLLAR VOLUME AND RECORDED SALES Metric 2017 Midyear 2016 Midyear Dollar Volume $69,881,427 $100,294,445 Recorded Sales 63 95 Figure 3 7

Average Listing Discount and Average Days On Market Average listing discount is defined as the average percentage difference in price between the price the apartment was last listed for and the closing price. For example, if the apartment was last listed for $1,000,000 and the closing price was $990,000, the listing discount would be -1%. Average days on market In Midyear 2017, it took an average of 54 days to achieve a signed contract is defined as the average number of days from the date of the most recent list price to the contract date. Figure 4 reflects average listing discount and average days on market, by apartment size, for apartments that sold in Long Island City, in midyear 2017 and midyear 2016. It took an average of 54 days to put an apartment under contract in midyear 2017, a decline of 12 days from midyear 2016 and the average listing discount was -3%, up from -1.5% in midyear 2016. There were only 6 studio closings in midyear 2017 and the average listing discount was close to zero percent. It also took fewer days in midyear 2017 to place a studio under contract as compared to midyear 2016. The average listing discount increased for both 1 and 2 bedroom apartments in midyear 2017 as compared to midyear 2016 as sellers pushed asking prices beyond even the new record pricing that was achieved. The average listing discount for 3 bedroom+ units held steady at around -6.6%, but days on market decreased significantly to 45 days from 95 days as the result of very few transactions with only 3 closings occurring during midyear 2017. Unit Type AVERAGE LISTING DISCOUNT AND AVERAGE DAYS ON MARKET FROM DATE OF LAST PRICE ADJUSTMENT % Avg. Listing Discount 2017 Midyear 2016 Midyear Avg. Days on Market Figure 4 % Avg. Listing Discount Avg. Days on Market 0-0.1% 50-2.7% 69 1-2.6% 52-1.6% 72 2-3.5% 60-0.1% 52 3+ -6.6% 45-6.5% 95 Average -3.0% 54-1.5% 66 8

The Luxury Market We define The Luxury Market in Long Island City as the top 10% of the market based on average sales price. We also measure the market share of cash sales and sales with a minimum price of $1 million. All metrics used to measure the performance of The Luxury Market reached all-time highs in midyear 2017. Please see Figure 5. The market share of $1 million+ sales increased by 11% to 52% of all sales, the percentage of buyers paying cash increased by 23% to 29% of all sales and the average sales price of the top 10% increased by 3% to $1,876,750. Notwithstanding the significant growth in Long Island City s luxury market and in the market as a whole, Long Island City condominium pricing remains very attractive as compared to Manhattan and even some neighborhoods in Brooklyn. THE LUXURY MARKET Metric Change 2017 Midyear 2016 Midyear $1 MM+ Sales Market Share 11% 52% 47% % Cash Buyers 23% 29% 23% Top 10% Average Price Luxury Market Average Sales Price Midyear 2017 $1.876 MM 3% $1,876,750 $1,824,000 Figure 5 New Development There were six new developments with listings in public databases as of July 19, 2017. The average price per square foot of these buildings, based on the pricing of apartments that were under contract, range from $1,112 per square foot to $1,419 per square foot, with a blended average of $1,227 per square foot. The six buildings comprise 322 apartments and based on the number of signed contracts (that have been publicly disclosed), approximately 70% of the apartments are sold (or under contract). This high level of sales activity is a great sign for the Long Island City condominium market and it speaks to the imbalance that exists in LIC with significantly more rental development than condominium development. As is typical in new development, the final 10% to 20% of the inventory is the most challenging to sell because the apartments tend to be the most expensive. As developers look to successfully wrap up sales, we are seeing some price improvement on very large and unique apartments as well as incentives such as free storage, a free parking spot and closing cost credits. Having said, while developers are willing to sweeten the pot with incentives on the most expensive apartments to achieve a sellout, developers are not significantly cutting prices given the upward trajectory of the neighborhood and the Long Island City real estate market. 70% of new development inventory is under contract 9

Methodology Recorded sales: Automated City Register Information System / ACRIS Unit Type and Square Footage: Automated City Register Information System / ACRIS Cash Transactions: Automated City Register Information System / ACRIS Mortgage Data: Automated City Register Information System / ACRIS Contract Dates: Real Property Transfer Reports, City of New York Developer and Architect Information: Department of Buildings Non-arm s length transactions have been excluded from this report. Area Studied: 41st Avenue to the north, Borden Avenue to the south, the East River to the west and Skillman Avenue to the east. Data for City Lights, 4-74 48th Avenue, a cooperative, is excluded from this report. Midyear Sales Occur Between January 1 and June 30 Copyright 2017. The information, data and analysis contained in this report is for informational purposes only. All information, data and analysis should be independently verified. Equal housing opportunity. 10

Patrick W. Smith Licensed Associate Real Estate Broker 924 Madison Avenue, New York, New York 10021 Long Island City 718.208.1999 Manhattan 212.434.7086 psmith@stribling.com www.stribling.com/agents/patrick-smith in/patrickwilliamny Creative. Halka Design Studios