SALES REPORT | Q2 2017 MULTIFAMILY

www.newyorkmultifamily.com MULTIFAMILY SALES REPORT

INTRODUCTION

Dear Friends and Investors,

As we enter into the second half of 2017, multifamily investors have been asking what the right move is in todays’ 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 industry- Peter Von Der Ahe wide consensus that pricing is moving up or down. By definition, there is confusion. Marcus & Millichap 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 212.430.5114 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 be more valuable. Great investors play the long game. In this report, you will see the largest sales of the quarter 60-68 West 107th Street, 56 West 11th Street, 720 West 181st Street, and 351 West , all traded for an aggregate value of $144,650,000. Please refer to the key on the following page for additional details on these transactions. I hope you found this report valuable and look forward to our next conversation.

Best Regards,

e-mail: [email protected] MANHATTAN

LARGEST MULTIFAMILY SALES

With a commitment to integrity, we operate with our ears to the ground.

60-68 West 107th Street 56 West 11th Street May 2017 | $51,900,000 May 2017 | $37,750,000 100 Units 36 Units $516 Price/SF $1,389 Price/SF

720 West 181 Street 351 West 125 Street April 2017 | $32,000,000 June 2017 | $23,000,000 57 Units 42 Units $626 Price/SF $501 Price/SF

*Includes only single asset transactions

NEWYORKMULTIFAMILY.COM MULTIFAMILY SALES REPORT

MARKET INDICATORS

Average Price Per Square Foot Below

Q2 2017 $1,050$1,107

Q1 2017 $1,025$901

Q4 2016 $1,009$939

Average Price Per Square Foot Above 96th Street

Q2 2017 $337$434

Q1 2017 $350$442

Q4 2016 $369$409

Largest Multifamily Sales, 20 Million+ Current Quarter vs Previous Two Quarters

Q2 2017 9 SALES

Q1 2017 9 SALES

Q4 2016 19 SALES

NEWYORKMULTIFAMILY.COM MANHATTAN

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.

Our report is divided into nine Washington Heights OUR REPORT & Inwood neighborhoods, as displayed above, featuring Manhattan multifamily sales from Q2 of 2017 Midtown West Upper valued over $1,000,000. & Chelsea East Side Greenwich & Midtown East West Village East Village Downtown

NEWYORKMULTIFAMILY.COM MULTIFAMILY SALES REPORT

SECTION I

SALES BY NEIGHBORHOOD

NEWYORKMULTIFAMILY.COM MANHATTAN

MANHATTAN Downtown

PROPERTY DATE PRICE UNITS CAPRATE 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 Street Jun-17 $23,500,000 13 Value Add 23,379 $1,005 101 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 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 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 Noah Kossoff 212.430.5162 646.805.1426 [email protected] [email protected]

NEWYORKMULTIFAMILY.COM MANHATTAN

MANHATTAN Greenwich Village, West Village, and East Village

PROPERTY DATE PRICE UNITS CAPRATE GRM SF $/SF

277 West 11 Street Jun-17 $20,000,000 36 2.78% 22,686 $882 176 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 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 738 East 6 Street Portfolio

For further details: Corey Isdaner 212.430.5162 [email protected]

NEWYORKMULTIFAMILY.COM MANHATTAN

MANHATTAN Midtown East and Midtown West

PROPERTY DATE PRICE UNITS CAPRATE 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

NEWYORKMULTIFAMILY.COM MANHATTAN

MANHATTAN

PROPERTY DATE PRICE UNITS CAPRATE 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 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 [email protected]

NEWYORKMULTIFAMILY.COM MANHATTAN

MANHATTAN Upper West Side

PROPERTY DATE PRICE UNITS CAPRATE 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 [email protected]

NEWYORKMULTIFAMILY.COM MANHATTAN

MANHATTAN Harlem

PROPERTY DATE PRICE UNITS CAPRATE 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 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 13 East 124 Street 48 St. Nicholas Place 169 East 105 Street Avenue

166-168 East 104th 1883 - 1887 Amsterdam 9 Central Park North 115 East 116 Street Street Avenue

For further details: Jacob Kahn 212.430.5155 [email protected]

NEWYORKMULTIFAMILY.COM MANHATTAN

MANHATTAN Washington Heights & Inwood

PROPERTY DATE PRICE UNITS CAPRATE 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 522 West 157 Street 65 Nagle Ave 565-573 West 175th Street Street

521 West 156 Street 515 West 169 Street 1425 St. Nicholas Ave 720 West 181 Street 109 West 225 Street

For further details: Jonah Offitzer 212.430.5227 [email protected]

NEWYORKMULTIFAMILY.COM MULTIFAMILY SALES REPORT

SECTION II

COMMERCIAL DEBT FINANCING

NEWYORKMULTIFAMILY.COM RECENT FINANCING

Andrew Dansker Marcus & Millichap 212.430.5168

[email protected] BK18 Portfolio 83 Hall Street Acquisition Refinance 207-Unit Multifamily 8-Unit Multifamily Strong existing Brooklyn Brooklyn, Clinton Hill 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 284 West 137th Street Refinance Refinance 8-Unit Multifamily 8-Unit Multifamily Queens, Long Island City Manhattan, Harlem

NEWYORKMULTIFAMILY.COM MULTIFAMILY SALES REPORT

SECTION III

ABOUT US

NEWYORKMULTIFAMILY.COM 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 MIDDLE MARKET

We specialize only in multifamily Backed by the nation’s largest properties, only in , private client brokerage, we customizing our strategy bridge the gap between private around you. and institutional capital.

CREATING BROKERAGE OPPORTUNITIES AS A VERB

We are positioned to source We don’t simply market exclusive opportunities for our properties–we aggressively clients–sellers frequently become sell them in pursuit of the best buyers with NYM. outcomes for clients.

NEWYORKMULTIFAMILY.COM MULTIFAMILY SALES REPORT

LEADERSHIP | NYM

The number one multifamily investment sales team in New York City.

Peter Von Der Ahe Scott Edelstein Joe Koicim 212.430.5114 212.430.5137 212.430.5147 [email protected] [email protected] [email protected]

Shaun Riney Seth Glasser David Lloyd 718.475.4369 212.430.5136 212.430.5185 [email protected] [email protected] [email protected]

Michael Salvatico Thomas Shihadeh Dan Greenblatt 718.475.4358 718.475.4380 718.475.4375 [email protected] [email protected] [email protected]

NEWYORKMULTIFAMILY.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. ©2016 Marcus & Millichap

NEWYORKMULTIFAMILY.COM www.newyorkmultifamily.com

212 430 5114