SALES REPORT Q2 2017 NYC MULTIFAMILY MANHATTAN BROOKLYN BRONX QUEENS www.newyorkmultifamily.com
NYC INTRODUCTION Dear Friends and Investors, Peter Von Der Ahe Marcus & Millichap 212.430.5114 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, e-mail: pvonderahe@ipausa.com
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
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 212.430.5114. 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.
MULTIFAMILY SALES REPORT SECTION I MANHATTAN ANALYSIS
MANHATTAN LARGEST MANHATTAN SALES With a commitment to integrity, we operate with our ears to the ground. 60-68 West 107th Street May 2017 $51,900,000 100 Units $516 Price/SF 56 West 11th Street May 2017 $37,750,000 36 Units $1,389 Price/SF 720 West 181 Street April 2017 $32,000,000 57 Units $626 Price/SF 351 West 125 Street June 2017 $23,000,000 42 Units $501 Price/SF *Includes only single asset transactions
MANHATTAN MANHATTAN Downtown PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 223 Madison Street Jun-17 $5,060,000 20 Value Add 10,230 $495 90 Chambers Street Jun-17 $10,700,000 6 Finished Product 8,885 $1,204 162-166 Bowery Street Jun-17 $23,500,000 13 Value Add 23,379 $1,005 101 Stanton Street Jun-17 $12,900,000 19 Value Add 12,168 $1,060 151 Ludlow Street Jun-17 $5,500,000 10 Value Add 8,421 $653 74-76 Leonard Street May-17 $21,300,000 19 Value Add 23,000 $926 10 Bowery May-17 $4,350,000 4 Delivered Vacant 3,274 $1,329 23 Park Place May-17 $15,000,000 8 Value Add 23,225 $646 118 Ridge Street Apr-17 $9,600,000 10 4.60% 18.26 9,990 $961 223 Mott Street Apr-17 $9,500,000 20 1.65% 32.22 9,170 $1,036 223 Madison Street 90 Chambers Street 162-166 Bowery Street 101 Stanton Street 151 Ludlow Street 74-76 Leonard Street 10 Bowery 23 Park Place 118 Ridge Street 223 Mott Street For further details: Corey Isdaner 212.430.5162 corey.isdaner@mmreis.com Noah Kossoff 646.805.1426 noah.kossoff@mmreis.com
MANHATTAN MANHATTAN Greenwich Village, West Village, and East Village PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 277 West 11 Street Jun-17 $20,000,000 36 2.78% 22,686 $882 176 Bleecker Street Jun-17 $9,167,000 5 Value Add 5,040 $1,819 East 5th & 6th Street Portfolio May-17 $18,000,000 68 Value Add 23,187 $776 56 West 11th Street May-17 $37,750,000 36 3.36% 22.84 27,184 $1,389 63 Perry Street Apr-17 $18,000,000 27 1.49% 36.47 19,788 $910 738 East 6 Street Apr-17 $3,750,000 11 Value Add 6,500 $577 183 Avenue B Apr-17 $4,750,000 7 3.50% 24.20 3,309 $1,435 277 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 212.430.5162 corey.isdaner@mmreis.com Noah Kossoff 646.805.1426 noah.kossoff@mmreis.com
MANHATTAN MANHATTAN Midtown East and Midtown West PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 316 2 Ave Jun-17 $6,650,000 10 Distressed 5,720 $1,163 346 East 51 Street Jun-17 $5,500,000 7 3.00% 22.00 5,312 $1,035 439-443 West 48th Street Jun-17 $15,500,000 34 3.10% 22.80 24,515 $632 141 East 45th Street May-17 $7,500,000 4 3.45% 19.43 5,468 $1,372 104 East 30th Street Apr-17 $7,150,000 7 3.25% 22.33 5,875 $1,217 714 9 Ave Apr-17 $12,075,000 17 4.20% 19.30 10,120 $1,193 316 2 Ave 346 East 51 Street 439-443 West 48th Street 141 East 45th Street 104 East 30th Street 714 9 Ave For further details: Corey Isdaner 212.430.5162 corey.isdaner@mmreis.com Logan Markley 212.430.5194 logan.markley@mmreis.com
MANHATTAN MANHATTAN Upper East Side PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 162-164 East 82nd Street Jun-17 $19,400,000 40 4.10% 17.00 19,670 $986 167 East 62 Street Jun-17 $7,220,500 4 Redevelopment 3,810 $1,895 315-317 East 74th Street May-17 $16,500,000 36 3.75% 19.00 17,540 $941 506 East 84 Street May-17 $11,200,000 10 4.90% 16.70 9,500 $1,179 52 East 64 Street May-17 $13,000,000 5 Redevelopment 8,740 $1,487 423 East 82 Street May-17 $10,750,000 20 4.10% 18.03 8,555 $1,257 1733 2nd Avenue Apr-17 $8,000,000 10 4.10% 18.90 8,050 $994 162-164 East 82nd Street 167 East 62 Street 315-317 East 74th Street 506 East 84 Street 52 East 64 Street 423 East 82 Street 1733 2nd Avenue For further details: Danny Handweiler 212.430.5138 danny.handweiler@mmreis.com
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 $873 15 West 107 Street May-17 $17,052,000 30 5.60% 14.23 31,818 $536 961 Columbus Ave May-17 $7,595,000 15 Value Add 12,215 $622 60-68 West 107th Street May-17 $51,900,000 100 2.60% 19.57 100,576 $516 216 West 108 Street May-17 $5,350,000 15 5.28% 9,440 $567 123 West 78 Street May-17 $5,500,000 7 Delivered Vacant 3,636 $1,513 136 West 88 Street May-17 $3,100,000 8 Value Add 4,100 $756 154 West 76 Street Apr-17 $6,550,000 10 2.50% 24.66 6,399 $1,024 54 West 88 Street Apr-17 $5,950,000 5 Value Add 5,782 $1,029 331 West 87 Street Apr-17 $3,788,000 6 2.18% 27.76 4,109 $922 110 West 81 Street Apr-17 $7,600,000 10 Redevelopment 7,330 $1,037 123 West 75 Street 15 West 107 Street 961 Columbus Ave 60-68 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 212.430.5155 jacob.kahn@mmreis.com Logan Markley 212.430.5194 logan.markley@mmreis.com
MANHATTAN MANHATTAN Harlem PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 351 West 125 Street Jun-17 $23,000,000 42 4.60% 15.45 45,945 $501 383 & 385 Convent Avenue Jun-17 $2,650,000 17 5.00% 14.96 3,720 $712 13 East 124 Street Jun-17 $4,400,000 16 4.40% 15.83 8,500 $518 48 St. Nicholas Place May-17 $17,000,000 41 4.60% 15.11 42,924 $396 169 East 105 Street May-17 $2,150,000 10 2.80% 9,600 $224 166-168 E. 104th Street May-17 $6,800,000 16 4.90% 17.41 20,112 $338 1883-1887 Amsterdam Ave May-17 $14,000,000 61 4.00% 15.50 28,845 $485 9 Central Park North Apr-17 $13,650,000 30 3.90% 19.00 23,640 $577 115 East 116 Street Apr-17 $14,800,000 48 3.89% 47,750 $310 351 West 125 Street 383 & 385 Convent Avenue 13 East 124 Street 48 St. Nicholas Place 169 East 105 Street 166-168 East 104th Street 1883-1887 Amsterdam Avenue 9 Central Park North 115 East 116 Street For further details: Jacob Kahn 212.430.5155 jacob.kahn@mmreis.com
MANHATTAN MANHATTAN Washington Heights & Inwood PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 568 West 192 Street Jun-17 $7,100,000 30 3.80% 13.98 26,210 $271 558-560 West 184th St Jun-17 $12,350,000 24 Value Add 19,510 $633 522 West 157 Street Jun-17 $15,150,000 44 Value Add 42,546 $356 65 Nagle Ave Jun-17 $6,975,000 25 4.50% 13.86 21,080 $331 565-573 West 175th St May-17 $14,100,000 60 3.60% 17.05 48,288 $292 521 West 156 Street May-17 $9,000,000 46 5.00% 14.00 19,740 $456 515 West 169 Street May-17 $2,850,000 8 4.00% 15.86 6,445 $442 1425 St. Nicholas Ave May-17 $12,225,000 14 Value Add 25,260 $484 720 West 181 Street Apr-17 $32,000,000 57 4.50% 13.56 51,144 $626 109 West 225 Street Apr-17 $2,085,000 10 5.40% 11.70 12,600 $165 568 West 192 Street 558-560 West 184th Street 522 West 157 Street 65 Nagle Ave 565-573 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 212.430.5155 jacob.kahn@mmreis.com
MULTIFAMILY SALES REPORT SECTION II BROOKLYN ANALYSIS
BROOKLYN LARGEST BROOKLYN SALES With a commitment to integrity, we operate with our ears to the ground. 70 Dahill Road June 2017 $33,000,000 100 Units $335 Price/SF 218 South Third Street May 2017 $23,000,000 41 Units $594 Price/SF 862 Union Street April 2017 $22,000,000 49 Units $623 Price/SF 380-386 Lefferts Avenue May 2017 $20,250,000 46 Units $536 Price/SF *Includes only single asset transactions
BROOKLYN NEW YORK CITY Brooklyn PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 509 Saratoga Avenue 30-Jun $5,500,000 32 5.10% 11.28 20,840 $264 16 Monroe Pl and 268 Henry St 20-Jun $11,200,000 19 3.56% 18.19 16,075 $697 70 Dahill Road 16-Jun $33,000,000 100 3.51% 18.75 98,440 $335 715 Lorimer Street 14-Jun $5,900,000 8 Finished Product 6,000 $983 Sunset Park Section 8 Portfolio 13-Jun $54,160,395 221 Value Add 185,972 $291 103 Broadway 8-Jun $5,100,000 5 Delivered Vacant 7,750 $658 68 North 8th Street 6-Jun $5,600,000 10 Finished Product 6,250 $896 202 Washington Park 31-May $5,000,000 7 Finished Product 6,200 $806 761 Bushwick Avenue 22-May $11,700,000 70 Value Add 57,257 $204 BK-18 19-May $72,930,000 207 5.07% 14.68 174,378 $418 218 South 3rd Street 16-May $23,000,000 41 3.90% 38,700 $594 Berelson Portfolio 16-May $10,000,000 105 Value Add 60,560 $165 380-386 Lefferts Avenue 9-May $20,250,000 46 6.10% 13.11 37,763 $536 1040 Park Place 8-May $6,000,000 24 2.20% 21.92 25,520 $235 926 Bedford Avenue 27-Apr $9,300,000 1 Delivered Vacant 25,244 $368 556-570 Lefferts Avenue 13-Apr $25,000,000 102 3.00% 18.48 103,650 $241 862 Union Street 13-Apr $22,000,000 49 Value Add 35,310 $623 66 Graham Avenue 5-Apr $11,400,000 37 4.70% 15.00 25,900 $440 288/295 Maple Street 5-Apr $17,500,000 75 3.50% 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.
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-18 218 South 3rd Street Berelson Portfolio 380-386 Lefferts Avenue 1040 Park Place 926 Bedford Avenue 556-570 Lefferts Avenue 862 Union Street 66 Graham Avenue 288/295 Maple Street For further details: Michael Salvatico 718.475.4358 msalvatico@mmreis.com Tom Shihadeh 718.475.4380 tshihadeh@mmreis.com
MULTIFAMILY SALES REPORT SECTION III BRONX ANALYSIS
BRONX LARGEST BRONX SALES With a commitment to integrity, we operate with our ears to the ground. 2001-2025 Seward Avenue May 2017 $33,650,000 179 Units $152 Price/SF 888 Grand Concourse June 2017 $28,000,000 91 Units $228 Price/SF 231-235 West 230th Street May 2017 $20,000,000 93 Units $251 Price/SF 2690 University Avenue June 2017 $14,000,000 69 Units $238 Price/SF *Includes only single asset transactions
BRONX NEW YORK CITY Bronx PROPERTY DATE PRICE UNITS $/UNIT SF $/SF 888 Grand Concourse 13-Jun $28,000,000 91 $307,692 122,800 $228 2690 University Avenue 12-Jun $14,000,000 69 $202,899 58,800 $238 1654 Monroe Avenue 23-May $7,720,000 50 $154,400 44,000 $175 231-235 West 230th Street 23-May $20,000,000 93 $215,054 79,630 $251 2001-2025 Seward Avenue 10-May $33,650,000 179 $187,989 221,208 $152 909 Sheridan Avenue 3-May $12,383,705 66 $187,632 77,050 $161 Taylor Avenue Portfolio 26-Apr $10,750,000 60 $179,167 46,580 $231 Bronx Six Portfolio 20-Apr $38,500,000 209 $184,211 184,381 $209 Prana 11 Building Portfolio 6-Apr $49,280,000 260 $189,538 218,102 $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 212.430.5281 michael.fusco@mmreis.com
BRONX NEW YORK CITY Bronx 888 Grand Concourse 2690 University Avenue 1654 Monroe Avenue 231-235 West 230th St 2001-2025 Seward Avenue 909 Sheridan Avenue Taylor Avenue Portfolio Bronx Six Portfolio Prana 11 Building Portfolio
MULTIFAMILY SALES REPORT SECTION IV QUEENS ANALYSIS
BRONX NEW YORK CITY Queens PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF 26-49 96 Street 14-Jun $10,200,000 69 3.65% 56,584 $180 89-10 Whitney Avenue 9-Jun $23,400,000 96 3.30% 17.80 89,293 $262 30-58 and 30-64 34th St 19-May $20,500,000 70 2.91% 17.85 49,600 $413 31-32 29th Street 8-May $9,500,000 25 Value Add 18,800 $505 64-01 Woodside Avenue 27-Apr $14,500,000 28 Value Add 26,252 $552 39-11, 15, 19 62nd St 19-Apr $12,900,000 48 4.25% 15.50 42,720 $302 Kushner Portfolio 5-Apr $76,500,000 150 4.80% 15.20 96,384 $794 24-16 29th Street 5-Apr $11,400,000 27 3.79% 16.26 25,000 $456 26-49 96 Street 89-10 Whitney Avenue 30-58 & 30-64 34th St 31-32 29th Street 64-01 Woodside Avenue 39-11, 15, 19 62nd Street Kushner Portfolio 24-16 29th 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 212.430.5281 michael.fusco@mmreis.com South Bronx
MULTIFAMILY SALES REPORT SECTION V COMMERCIAL DEBT FINANCING + ABOUT US
RECENT FINANCING BK18 Portfolio Acquisition 207-Unit Multifamily Brooklyn 83 Hall Street Refinance 8-Unit Multifamily Brooklyn, Clinton Hill Andrew Dansker Marcus & Millichap 212.430.5168 adansker@marcusmillichap.com 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. 3925 29th Street Refinance 8-Unit Multifamily Queens, Long Island City 284 West 137th Street Refinance 8-Unit Multifamily Manhattan, Harlem
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.
MULTIFAMILY SALES REPORT LEADERSHIP NYM The number one multifamily investment sales team in New York City. Peter Von Der Ahe 212.430.5114 pvonderahe@mmreis.com Scott Edelstein 212.430.5137 sedelstein@mmreis.com Joe Koicim 212.430.5147 jkoicim@mmreis.com Shaun Riney 718.475.4369 sriney@mmreis.com Seth Glasser 212.430.5136 seth.glasser@mmreis.com David Lloyd 212.430.5185 david.lloyd@mmreis.com Michael Salvatico 718.475.4358 msalvatico@mmreis.com Thomas Shihadeh 718.475.4380 tshihadeh@mmreis.com Dan Greenblatt 718.475.4375 tdgreenblatt@mmreis.com
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
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