THE FIDI REPORT A SURVEY OF APARTMENT TRENDS IN NEW YORK’S FINANCIAL DISTRICT

2014 YEAR-END REPORT

1 2014 SUMMARY AND MARKET SALES 2015 PREDICTIONS

For the first time in the history of the 2014, compared to nearly 18% in 2013, Financial District, the average price was however studios accounted for 30% of all over $1M during 2014. As the neighborhood units sold. Overall, 1-bedrooms accounted transitions to a more vibrant, 24/7 culture, for over 40% of the market for 2014, and more people are looking to purchase larger 2-bedrooms accounted for 21%. apartments. There was a 47% increase in the number of 3-bedrooms sold, whereas During the second quarter of 2014, there 2-bedrooms showed an 18% decrease. was a spike in sales, with over 140 units sold, but sales continued to decline thereafter The median price for apartment sales is just during the third and forth sales quarters. The under $1M, which is a 12.43% increase from fourth sales quarter showed the lowest number 2013. Most likely due to low levels of of sales during 2014, at just under 100. vacancy, studio sales were down -9% in

MARKET OVERVIEW: AVERAGES & MEDIANS 2010-14

2010 2011 2012 2013 2014 Average Price $869,013 $890,231 $943,203 $989,297 $1,102,894 Average PPSF $883 $940 $1,015 $1,079 $1,192 Average Discount 13.23% 10.50% 7.63% 5.23% 3.56% Median Price $763,687 $751,207 $839,645 $880,000 $989,400 Median PPSF $845 $872 $944 $1,014 $1,131 Units Sold 462 410 481 541 499

1 QUARTERLY APARTMENT SALE PRICE

$1,400,000

$1,200,000

$1,000000

$800,000 AVERAGE PRICE

PRICE $600,000 $400,000 MEDIAN PRICE $200,000

$0

SALES VOLUME

200 180 160 140 120 100 80

# OF SALES 60 40 20 0 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014

The data does not include new projects The following are additional new projects selling at prices in excess of $2000 per coming in 2015, but are not currently on square foot, some of which include the the market: following properties which have several units in contract: 100 Barclay Street 118 Fulton Street 50 West Street 75 Nassau Street 30 Park Place 125 2 AVERAGE PRICE PER SQUARE FOOT

$1,400 $1,200 $1,000

F $800

$600 PPS $400 $200 $0 2010 2011 2012 2013 2014

In 2014, the average per square foot in the Financial District was $1,192, showing an increase of 11% year over year. The average discount in 2014 was 3.56%, which is down -31.93% from year over year.

AVERAGE SALES PRICE

$1,200,000 $1,000,000

$800,000 AVERAGE PRICE $600,000 MEDIAN PRICE $400,000 PRICE $200,000 $0 2010 2011 2012 2013 2014

3 2014 SUMMARY AND 2015 PREDICTIONS RENTAL MARKET RENTAL

The Financial District and as a However, in 2015, with the opening of several whole saw a record-breaking year in 2014. new projects, there could be a shift in the With the final phases of many of Lower market with even higher pricing increases. Manhattan’s trademark developments, it One of the neighborhoods’ most notable was a year in which many of the billions of developments coming to the market this dollars of infrastructure and commercial year is Rose Associates’ . development finally came to fruition. Comprised of 132 extended-stay apartments, Subsequently, we saw increases across the as well as 644 rental units, this 66-story board in the rental market. development is certain to be a neighborhood changer. Bringing over 35,000 square feet The largest percentage increase came from of retail space, along with the promise of a 1-bedrooms, which increased almost 4% highly recognizable restaurateur to the top year over year from 2013. With the opening of the building, it will prove to continue the of more commercial space and many more development of the neighborhood further businesses relocated downtown, 1-bedrooms into a residential destination. have become one of the most desirable and rented products in the matrix, comprising Additionally, with the continued leasing of over 40% of the inventory absorbed. of , as well as other buildings in the vicinity, more and Second in both demand and price increase, more residential apartments will be in studios continued to account for a large demand. The Financial District is certain to portion of the market in the Financial District. be in the spotlight and forefront of Manhattan’s As there were few new developments hitting development for 2015. the market in 2014, the overall market share and square footage of each studio remained fairly consistent with the previous year.

4 MARKET OVERVIEW: YEARLY AVERAGES 2011-14

# OF MARKET RENT SIZE SF RENT RENT/SF UNITS SHARE CHANGE

2011 Studio 595 $2,528 $51 2177 33% 8.48% Alcove Studio 672 $2,769 $49 227 3% 8.60% 1 Bedroom 827 $3,568 $52 2902 44% 12.38% 2 Bedroom 1246 $5,236 $50 1288 20% 16.03%

2012 Studio 601 $2,686 $54 2173 31% 6.23% Alcove Studio 645 $2,810 $52 317 5% 1.51% 1 Bedroom 833 $3,726 $54 3147 45% 4.42% 2 Bedroom 1275 $5,411 $51 1283 19% 3.35%

2013 Studio 600 $2,800 $56 2700 31% 4.24% Alcove Studio 694 $2,911 $50 480 6% 3.57% 1 Bedroom 833 $3,661 $54 3869 45% -1.75% 2 Bedroom 1275 $5,529 $52 1598 18% 2.18%

2014 Studio 597 $2,871 $58 3071 36% 2.53% Alcove Studio 631 $2,924 $46 381 4% 0.46% 1 Bedroom 813 $3,804 $56 3535 41% 3.91% 2 Bedroom 1242 $5,570 $54 1627 19% 0.75%

MARKET OVERVIEW: JANUARY - DECEMBER 2014

STUDIO ALCOVE STUDIO 1 BEDROOM 2 BEDROOM Rent % Ch Rent/SF Rent % Ch Rent/SF Rent % Ch Rent/SF Rent % Ch Rent/SF Jan $2,796 0.43% $56 $2,764 0.29% $53 $3,623 0.86% $53 $5,600 2.08% $53 Feb $2,810 0.50% $58 $2,792 1.01% $55 $3,781 4.36% $55 $5,708 1.93% $54 Mar $2,903 3.31% $59 $2,892 3.58% $55 $3,814 0.87% $56 $5,763 0.96% $54 Apr $2,863 -1.38% $58 $2,917 0.86% $53 $3,795 -0.50% $57 $5,664 -1.72% $54 May $2,831 -1.12% $58 $2,876 -1.41% $52 $3,781 -0.37% $58 $5,630 -0.60% $54 June $2,862 1.10% $59 $2,834 -1.46% $52 $3,791 0.26% $57 $5,429 -3.57% $53 July $2,937 2.62% $60 $3,020 6.56% $54 $3,915 3.27% $57 $5,390 -0.72% $54 Aug $2,824 -3.85% $59 $3,031 0.36% $58 $3,925 0.26% $56 $5,634 4.53% $55 Sept $2,895 2.51% $57 $3,036 0.16% $60 $3,907 -0.46% $57 $5,735 1.79% $55 Oct $2,925 1.04% $57 $2,988 -1.58% $59 $3,863 -1.13% $56 $5,466 -4.69% $53 Nov $2,902 -0.79% $55 $2,965 -0.77% $58 $3,742 -3.13% $56 $5,358 -1.98% $52 Dec $2,899 -0.10% $56 $2,975 0.34% $58 $3,710 -0.86% $56 $5,468 2.05% $55

5 The flow of rental prices in 2014 was fairly typical, excluding 2-bedroom apartments. Contrary to the typical seasonality of the market, there was a decline in most apartment sizes in the heart of the summer, with the largest decline coming in 2-bedrooms, which saw a 4-month slide of over 6% from April through July before bouncing back up again in August. The bounce back in the fall months was likely attributed to the decreased vacancy rate during the same period.

The vacancy in the Financial District fluctuated, but showed an overall decline as the year progressed. The most notable trend was the dramatic decline of almost 40% of available studios following the peak in August. As supply decreased, pricing naturally increased. With several new developments hitting the market, the vacancy rate should be an interesting statistic to follow in 2015.

6 AVERAGE RENT: 2009 TO 2014 AVERAGE RENT/SF: 2009 TO 2014

$58 $5,800 $56 $5,300 $54 $4,800 $52 STUDIO $4,300 STUDIO $50 ALCOVE ALCOVE $3,800 STUDIO STUDIO $48 1 BEDROOM $3,300 1 BEDROOM $46 2 BEDROOM $2,800 2 BEDROOM $44 $2,300 $42 $1,800 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014

The FiDi Report, which is prepared by Platinum Properties’ President, Daniel Hedaya, focuses on real estate activities in ’s Financial District, encompassing the area bounded by the , the FDR Drive, Chambers Street and Battery Park. All data is based upon a combination of Platinum’s internal database, open rental listings, exclusive brokerage listings as well as city records. Some pricing discrepancies may appear due to the number of bathrooms, balconies or additional amenities. All prices reflect average values.

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