Ariel Property Advisors Presents. The Revitalization of the

Ariel Prperty Advisrs Presents The Revitalizatin f the Financial District

Neighbrhd Reprt The Revitalizatin f the Financial District Intrductin The Revitalizatin f the Financial District The Financial District has histrically been the heart f New Yrk s ecnmic engine, supprted by the bming financial sectr, which was the city s mst prevalent industry. Tday, while the neighbrhd s ffice sectr remains dminant, driven by creative tenants seeking space dwntwn, the residential market has been grwing in prminence. This, cupled with a strng turism sectr prpelled by the pening f 1 Wrld Trade Center, has driven a retail market previusly unseen in the area. In additin, sme f the city s best restaurants are mving dwntwn, establishing a renewed nightlife in the neighbrhd. This reprt will explre the changing landscape f the Financial District, including the rising residential market, expanding retail destinatins, and changing ffice envirnment. All f these factrs are cmbining t transfrm the Financial District frm a neighbrhd dminated by the ffice sectr, t a cmplete live/wrk cmmunity with amenities that rival the mst desirable neighbrhds in Manhattan. 3 Ariel Prperty Advisrs 212.544.9500 arielpa.cm

Neighbrhd Reprt The Revitalizatin f the Financial District Neighbrhd Reprt The Revitalizatin f the Financial District Ariel Prperty Advisrs 212.544.9500 arielpa.cm 4

FRANKFORT ST 1 Canal St A C E Canal St GRAND ST Canal St R Canal St N Q 6 Neighbrhd Reprt The Revitalizatin f the Financial District Canal St Transprtatin Imprvements VARICK ST Canal St CENTRE ST J Z Prject t Imprve Fultn Street Subway Statin CANAL ST B Gran FRANKLIN ST RRISON ST BMCC CHAMBERS ST 1 3 1 With the cmpletin f Fultn Center, transprtatin in the Financial District has never been mre Franklin accessible. St Nine subway lines and the PATH Train are cnnected in a mdern and cnvenient subway statin, serving 300,000 daily cmmuters and supprting a new retail hub managed by the Westfield Grup. prjected t serve Chambers St 2 W BROADWAY 300,000 cmmuters daily CHURCH ST A C Chamber St LAFAYETTE ST WORTH ST The cmplex is part f a Retail Hub by $1.4 Billin Develpment prject Chambers St J Z PARK ROW 4 5 6 ST JAMES PL MURRAY ST 2 3 City Hall ST WORLD TRADE CENTER 4 5 A C J Z 2 3 GOLD ST WATER ST PEARL ST FULTON ST PEARL ST FRONT ST CORTLANDT ST ERY CITY W THAMES ST 9/11 MEMORIAL RECTOR ST Rectr St 5 Ariel 5 Prperty Ariel Prperty Advisrs Advisrs 212.544.9500 arielpa.cm arielpa.cm B ST ST 1 GREENWI TRINITY PL BROADWAY 4 CHARGING BULL 5 NASSAU ST Wall St 4 5 NYSE Z WILLIAM ST Brad St BRO Wall St 2 3 ARL ST WATER ST WALL ST VIETNAM SOUTH ST PI EAST RI

Neighbrhd Reprt The Revitalizatin f the Financial District Dminant Office Market TAMI (Technlgy. Advertising. Media. Infrmatin.) The Financial District has seen a shift in ffice tenancy in recent years frm the traditinal finance and banking tenants t the emerging TAMI tenants. These tenants generally have sught subprime ffice space (Class B r C), but nw are seeking mre Class A ffice space, driving demand fr ffice units in a neighbrhd with n shrtage f ffice supply. Frm Q1 2011 t Q1 2015, 47% f relcatins t the Financial District were TAMI tenants, shwing a grwing prevalence f creative tenants in a traditinally finance-driven ffice market. Lwer manhattan relcatins by industry Sectr, q1 2011 - q1 2015 5% Educatin 7% Prfessinal 8% Law 10% Cnsumer Prducts 11% Other 12% FIRE* 47% TAMI *Finance, Insurance, and Real Estate Surce: Lwer Manhattan Real Estate Market Overview, Q1 2015, Alliance fr Dwntwn New Yrk 20+ Tp 10 47% Ad Agencies Relcated t FiDi Relcatins (by Sq. Ft.) were Nntraditinal Tenants Of Relcatins Since 2011 were TAMI Tenants Ariel Prperty Advisrs 212.544.9500 arielpa.cm 6

7 Ariel Prperty Advisrs 212.544.9500 arielpa.cm

Neighbrhd Reprt The Revitalizatin f the Financial District A Retail Destinatin 2 millin Square Feet f retail space planned in the near future $234/SF 4% increase vs. 2H 2014 retail rent alng majr crridrs $2.1 billin estimated retail spending ptential f Lwer Manhattan emplyees Tenants Cming t FiDi: The neighbrhd s retail, including Westfield s Fultn Center and the nearby Brkfield Place, benefits frm the newly-cmpleted One Wrld Trade Center, a grwing residential presence, and a bming turism sectr. Ariel Prperty Advisrs 212.544.9500 arielpa.cm 8

9 Ariel Prperty Advisrs 212.544.9500 arielpa.cm Neighbrhd Reprt The Revitalizatin f the Financial District

Neighbrhd Reprt The Revitalizatin f the Financial District An Emerging Residential Cmmunity The Financial District is transfrming int a residential destinatin, as numerus develpments near cmpletin and several thers are cmmencing. With a relative cst advantage t ther areas f dwntwn Manhattan, such as TriBeCa and SH, FiDi is pised t experience a residential revlutin. With a grwing appeal, shps and restaurants are slated t mve t the neighbrhd, including Le District at Brkfield Place, Eataly, and Nbu. 16 New Residential Buildings planned fr Financial District Financial District 2,446 Units Planned 760 f which are cnds Prximity t TriBeCa makes FiDi relatively less expensive, which has driven price-cnscius buyers t the neighbrhd $1,905 VS. $1,260 TriBeCa CONDO average FiDi Cnd average Change in residential appeal f the neighbrhd (restaurants, bars and shps arriving) Ariel Prperty Advisrs 212.544.9500 arielpa.cm 10

11 Ariel Prperty Advisrs 212.544.9500 arielpa.cm Neighbrhd Reprt The Revitalizatin f the Financial District

Neighbrhd Reprt The Revitalizatin f the Financial District An Emerging Residential Cmmunity Ariel Prperty Advisrs 212.544.9500 arielpa.cm 12

Neighbrhd Reprt The Revitalizatin f the Financial District New Cnstructin The Beekman (5 Beekman Street) GFI & GB Ldging 68-unit cnd twer attached t Thmpsn Htel Price range frm $1,600,000 t $15,300,000 (averaging $2,400/SF) 50 West Street Time Equities 191-unit cnd twer designed by Helmut Jahn Price range frm $1,800,000 t $22,600,000 (averaging $2,600/SF) 30 Park Place Silverstein Prperties 157 units n tp f the Fur Seasns Htel Designed by A.M. Stern Price range frm $2,600,000 t $60,000,000 (averaging $3,200/SF) 125 Greenwich Street Michael Shv / Bizzi & Partners 1,356 ft-tall twer 128 units designed by Rafael Vinly 13 Ariel Prperty Advisrs 212.544.9500 arielpa.cm

Neighbrhd Reprt The Revitalizatin f the Financial District Cnversin Prjects In additin t new cnstructins, develpers have been taking advantage f the existing building stck that FiDi has t ffer fr residential cnversin prjects. Icnic ffice buildings such as the Wlwrth Building and 70 Pine Street are underging cnversins t luxury apartments, a sign f the neighbrhd s shifting appeal frm an ffice and business hub t a residential destinatin. Wlwrth Building Cnversin by Alchemy Prperties Price range frm $3,400,000 t $110,000,000 (Averaging $3,200/SF) 70 Pine Street Cnversin by Rse Assciates Frmer hme f AIG 644 rental units and a 132-unit extended stay htel 180 Water Street Metr Lft Management is adding 7 stries and 9,000 sq. ft. f utdr space Frmer ffice building 555 units Expected cmpletin in Spring 2016 Ariel Prperty Advisrs 212.544.9500 arielpa.cm 14

Neighbrhd Reprt The Revitalizatin f the Financial District Financial District Rebrn Suth Street Seaprt Develpment 15 Ariel Prperty Advisrs 212.544.9500 arielpa.cm

Neighbrhd Reprt The Revitalizatin f the Financial District Suth Street Seaprt Develpment $1.5 billin develpment Plans include Pier 17, a 4-stry retail develpment - cmpletin set fr 2017 Mix f retail, ffice, residential, with a multipurpse space fr cncerts, films and special events. Residential cndminium twer planned as well, but n plans have been apprved by the city yet Infrastructure imprvements, as well as a new schl and an imprved Maritime Museum Develped by: Ariel Prperty Advisrs 212.544.9500 arielpa.cm 16

17 Ariel Prperty Advisrs 212.544.9500 arielpa.cm Neighbrhd Reprt The Revitalizatin f the Financial District

Neighbrhd Reprt The Revitalizatin f the Financial District WHAT S NEXT Ariel Prperty Advisrs 212.544.9500 arielpa.cm 18

Neighbrhd Reprt The Revitalizatin f the Financial District WHAT S NEXT The Revitalizatin f the Financial District Cnversins and develpments are just the tip f the iceberg, as the area cmpletes its transfrmatin int a prime residential neighbrhd. Transfrming skyline Residential develpments will push the skyline t new heights Bming ppulatin +170% 62,000 VS 22,900 peple tday peple in 2000 While the Financial District has traditinally been a strng ffice hub, the neighbrhd has recently diversified t include a desirable residential cmmunity as well. With the area s recent develpments, such as Brkfield Place and Fultn Center, alng with sme f the city s mst recgnizable restaurants, the neighbrhd s grwing residential appeal cannt be denied. As these prjects mve t cmpletin in the cming mnths, and mre details are revealed abut the Suth Street Seaprt mega-develpment, the Financial District will cntinue t develp int a true live-wrk cmmunity. 19 Ariel Prperty Advisrs 212.544.9500 arielpa.cm

Cmpiled by: Analyst: Brett Campbell 212.544.9500 ext. 27 bcampbell@arielpa.cm Manhattan Sales Team: Shimn Shkury 212.544.9500 ext. 11 sshkury@arielpa.cm Victr Szi 212.544.9500 ext. 12 vszi@arielpa.cm Michael A. Trtrici 212.544.9500 ext. 13 mtrtrici@arielpa.cm Randy Mdell 212.544.9500 ext. 17 rmdell@arielpa.cm Hward Raber 212.544.9500 ext. 23 hraber@arielpa.cm Jesse Deutch 212.544.9500 ext. 18 jdeutch@arielpa.cm arielpa.cm 122 East 42 nd Street, Suite 1015, New Yrk NY 10168 p. 212.544.9500 f. 212.544.9501 The infrmatin cntained herein has either been given t us by the wner f the prperty r btained frm surces that we deem reliable. We have n reasn t dubt its accuracy but we d nt guarantee the accuracy f any infrmatin prvided herein. As an example, all zning infrmatin, buildable ftage estimates and indicated uses must be independently verified. Vacancy factrs used herein are an arbitrary percentage used nly as an example, and des nt necessarily relate t actual vacancy, if any. The value f this prspective investment is dependent upn these estimates and assumptins made abve, as well as the investment incme, the tax bracket, and ther factrs which yur tax advisr and/r legal cunsel shuld evaluate. The prspective buyer shuld carefully verify each item f incme, and all ther infrmatin cntained herein.