Q1 2020 New York City Multifamily Market Overview

Q1 2020 MARKET OVERVIEW NEW YORK CITY

DeSophy, LLC New York, NY

NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 MARKET OVERVIEW NEW YORK CITY

THE STAGNATION OF ACTIVITIES ON THE MULTIFAMILY MARKET CONTINUES IN Q1 2020

The dollar volume decrease of 10% is noticeable between Q1 2020 and Q4 2019, with 241 sales for a combined $2 billion.

These numbers are in line with the long-term tendency of decline. Pricing remains relatively strong, ranging from $230 per square foot in the Bronx up to $1,102 per square foot in Manhattan, while the cap rates have relatively risen, ranging from 4.02 % in Manhattan up to 5.68 % in the Bronx, respectively.

The number of sales also have increased in this quarter over last, by 39%.

NYC Q1 2020 / DOLLAR VOLUME NYC Q1 2020 / SALES VOLUME

Here presented are the results of the data analysis regarding multifamily market transactions in all of the NYC boroughs. The sample is based on transactions that were recorded in ACRIS, and it covers the period between January and April of 2020. Collected data were then subjected to detailed analysis and verification to obtain credible results with the use of the comparative method. Only transactions valued at over $2 million were included. Q1 2020 MARKET OVERVIEW NEW YORK CITY

Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE

Dollar Volume $2,272,928,262 $2,045,678,413 -10% $391,665,179 $717,768,943 83%

Sales Volume 174 241 39% 87 110 26%

Property Volume 284 293 3% 131 136 4%

Units Volume 5,796 5,515 -5% 1,084 1,590 47% New York City New York Brooklyn

Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE

Dollar Volume $501,135,217 $962,705,704 92% $298,363,250 $198,694,113 -33%

Sales Volume 42 37 -12% 24 45 88%

Property Volume 49 43 -12% 33 53 61%

Units Volume 856 1,473 72% 1,059 452 -57% Manhattan Queens

Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE

Dollar Volume $1,023,297,235 $197,048,964 -81% $58,467,381 $141,160,690 141%

Sales Volume 12 25 108% 9 24 167%

Property Volume 54 31 -43% 17 30 76%

Units Volume 2,462 658 -73% 335 825 146% N. Manhattan The Bronx

NYC Multifamily Report Q1 2020 / by Desophy SUB-MARKET OVERVIEW Q1 2020 Notable MANHATTAN Transactions

$380,600,000 10 East 29th Street $934/SQ FT | $937,438/Unit

$67,000,000 30 East End Avenue $611/SQ FT | $650,485/Unit 154% 3% $ 17% 1,357,399 4.02% 1,102 $66,248,000 VS Q4 ‘19 VS Q4 ‘19 VS Q4 ‘19 st TOTAL SQ FT SOLD AVERAGE CAP RATE AVERAGE $/SQ FT 340 East 51 Street $747/SQ FT | $571,103/Unit

$33,667,653 159 Bleecker Street Manhattan’s market saw an increase in all of its indicators. This quarter, the average pricing was at $1,102 $1,275/SQ FT | $1,198,460/Unit per square foot, which is 17% higher than in Q4 2019, and with a slightly increased average cap rate of 4.02%. $27,250,000 118 East 93rd Street Multifamily dollar volume and unit volume both saw an increase of 48% and 42%, respectively. $636/SQ FT | $717,105/Unit There were 37 closed sales, which comprised approx. $963 million.

BY PROPERTY TYPE Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE

Dollar Volume $198,002,000 $717,180,628 262% $303,133,217 $245,525,076 -19%

Sales Volume 36 27 -25% 6 10 67% THE MOST ACTIVE NEIGHBORHOOD IN Property Volume 7 11 57% 42 32 -24% Q1 2020 WAS NOMAD, Units Volume 359 1,173 227% 497 300 -40% WITH $380 MILLION IN Walk-up Elevator Elevator DOLLAR VOLUME AND THE AVERAGE PRICE PER SQUARE FOOT AT $934.

NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 SUB-MARKET OVERVIEW MANHATTAN

NEIGHBORHOOD SALES VOLUME PROPERTY VOLUME DOLLAR VOLUME AVERAGE $/SQ FT AVERAGE $/UNIT TOTAL SQ FT SOLD THE HIGHEST

Carnegie Hill 1 1 $12,250,000 $1,294 $1,061,111 9,468 NUMBER OF SALES IN MANHATTAN Chelsea 2 2 $14,030,000 $1,192 $803,750 11,853 IN Q1 2020 WAS Chinatown 1 1 $3,820,000 $360 $318,333 10,600 IN LENOX HILL, Clinton - Hell's Kitchen 1 1 $8,400,000 $1,041 $933,333 8,070 TOTALING 6 SALES.

East Village 4 4 $25,875,000 $1,028 $866,652 28,430

Greenwich Village 2 2 $42,917,653 $1,625 $1,105,480 32,016

Lenox Hill 6 11 $84,040,000 $1,248 $928,733 81,240

Lower East Side 2 2 $24,380,000 $1,248 $666,250 19,527

NoLIta 2 2 $39,816,975 $1,073 $800,000 192,356

Nomad 1 1 $380,600,000 $934 $937,438 407,555

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NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 SUB-MARKET OVERVIEW MANHATTAN

NEIGHBORHOOD SALES VOLUME PROPERTY VOLUME DOLLAR VOLUME AVERAGE $/SQ FT AVERAGE $/UNIT TOTAL SQ FT SOLD THE HIGHEST

Soho 1 1 $13,450,000 $2,470 $538,000 5,446 PRICE PER UNIT IN Q1 2020 IN Sutton Place 1 1 $7,100,000 $1,255 $1,014,286 5,656 MANHATTAN TriBeCa 2 2 $19,075,000 $1,172 $882,500 16,399 WAS RECORDED Turtle Bay 2 2 $132,496,000 $747 $571,103 177,316 IN GREENWICH

Two Bridges 1 2 $14,000,000 $659 $424,242 21,258 VILLAGE, AT $1.1 MILLION. Upper East Side 3 3 $44,225,000 $816 $630,144 186,485

Upper West Side 1 1 $5,595,000 $1,013 $799,286 5,524

West Village 1 1 $9,900,000 $725 $430,435 13,662

Yorkville 3 3 $80,735,076 $843 $649,070 124,538

Grand Total 37 43 $962,705,704 $1,102 $787,461 1,357,399

NYC Multifamily Report Q1 2020 / by Desophy SUB-MARKET OVERVIEW Q1 2020 Notable NORTHERN MANHATTAN Transactions

$40,000,000 Neighborhood Renewal Housing Development NM Portfolio $431/SQ FT | $488,968/Unit

$10,150,000 1314 Riverside Drive $ $246/SQ FT | $158,594/Unit 450,913 -82% 4.78% -3% 437 -18% VS Q4 ‘19 VS Q4 ‘19 VS Q4’19 TOTAL SQ FT SOLD AVERAGE CAP RATE AVERAGE $/SQ FT $7,850,000 20 Sherman Avenue $191/SQ FT | $186,905/Unit

$6,300,000 The Northern Manhattan kept the interest of the investors looking for an attractive emerging market, which 125 West 138th Street mirrored in a high number of sales (25), but they comprised only $197 million, which is 81% less than in Q4 $643/SQ FT | $630,000/Unit $5,765,546 2019. The unit volume and property volume also decreased compared to the previous quarter by 73% and 43%, 509 & 524 W 134th St & respectively. The average price per square foot at $437 also decreased by 8%, and the average cap rate was 523 W 138th St Portfolio $125/SQ FT | $91,516/Unit 4.78%. The most active neighborhood was East Harlem, with 9 transactions which comprised $68.3 million.

BY PROPERTY TYPE Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE EAST HARLEM WAS THE Dollar Volume $852,600,000 $18,541,865 -98% $170,697,235 $178,507,099 5% NEIGHBORHOOD WITH THE MOST SALES IN NORTHERN Sales Volume 3 5 67% 9 20 122% MANHATTAN IN Q1 2020, TOTALING 9 SALES. Property Volume 7 6 -14% 47 25 -47%

Units Volume 1,769 109 -94% 693 549 -21% Walk-up Elevator

NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 SUB-MARKET OVERVIEW THE HIGHEST NORTHERN MANHATTAN DOLLAR VOLUME IN NORTHERN MANHATTAN IN Q1 NEIGHBORHOOD SALES VOLUME PROPERTY VOLUME DOLLAR VOLUME AVERAGE $/SQ FT AVERAGE $/UNIT TOTAL SQ FT SOLD 2020 WAS ALSO East Harlem 9 12 $68,249,055 $545 $373,151 125,337 SEEN IN EAST Central Harlem 8 9 $47,884,363 $562 $384,916 85,250 HARLEM, TOTALING West Harlem 4 6 $22,765,546 $266 $182,041 85,699 $68 MILLION.

Washington Heights 4 4 $58,150,000 $376 $257,710 154,627

Grand Total 25 31 197,048,964 $437 $299,454 450,913

NYC Multifamily Report Q1 2020 / by Desophy SUB-MARKET OVERVIEW Q1 2020 Notable BROOKLYN Transactions

$137,750,000 250 North Tenth Street $570/SQ FT | $581,224/Unit

$83,764,000 $ 432 Rodney Street 95% 5% -10% $740/SQ FT | $615,911/Unit 1,955,161 VS Q4 ‘19 4.68% VS Q4 ‘19 470 VS Q4 ‘19 TOTAL SQ FT SOLD AVERAGE CAP RATE AVERAGE $/SQ FT $55,890,888 100 Steuben St & 531 Myrtle Avenue Portfolio $1,055/SQ FT | $776,262/Unit

Brooklyn continues to be the most transactional multifamily submarket, with 110 sales volume, $26,925,000 925 Prospect Pl, which is an increase of 26% in comparison to the previous quarter. Dollar volume also increased 255 E 18th St & 2815 Beverley Rd Portfolio significantly (by 83%), so did the unit volume (by 94%). The average trades were $470 per square foot $772/SQ FT | $700,000/Unit

$22,900,000 with an average cap rate of 4.68%. 79 Clifton Place $395/SQ FT | $572,500/Unit

BY PROPERTY TYPE Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE THE MOST ACTIVE Dollar Volume $75,250,000 $335,507,642 346% $316,415,179 $382,261,301 21% NEIGHBORHOOD IN Sales Volume 2 10 400% 85 100 18% BROOKLYN IN Q1 2020 WAS WILLIAMSBURG, Property Volume 2 10 400% 129 126 -2% WITH A TOTAL OF 12 SALES COMPRISING Units Volume 133 1,125 746% 861 982 14% $270 MILLION. Walk-up Elevator

NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 SUB-MARKET OVERVIEW BROOKLYN

NEIGHBORHOOD SALES VOLUME PROPERTY VOLUME DOLLAR VOLUME AVERAGE $/SQ FT AVERAGE $/UNIT TOTAL SQ FT SOLD

Bath Beach 1 1 $1,300,000 $361 $216,667 3,600 WILLIAMSBURG ALSO HAD THE Bay Ridge 7 7 $11,080,308 $439 $469,722 68,313 HIGHEST NUMBER OF Bedford-Stuyvesant 9 9 $20,585,000 $454 $430,195 43,818 SALES IN BROOKLYN Bensonhurst 2 2 $11,077,500 $201 $183,885 84,750 IN Q1 2020 - 12.

Borough Park 3 3 $3,200,000 $413 $355,556 7,980

Bushwick 4 7 $15,534,167 $439 $410,047 37,819

Carroll Gardens 1 1 $2,100,000 $340 $350,000 6,175

Clinton Hill 2 4 $58,190,888 $658 $503,131 61,800

Cobble Hill 1 1 $2,000,000 $889 $666,667 2,250

Crown Heights 4 4 $7,585,000 $407 $478,958 18,672

Flatbush 6 6 $14,785,000 $288 $305,962 81,254

Greenwood Heights 1 3 $7,999,998 $471 $320,000 17,000

Midwood 2 2 $9,483,605 $541 $595,524 17,600

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NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 SUB-MARKET OVERVIEW BROOKLYN

NEIGHBORHOOD SALES VOLUME PROPERTY VOLUME DOLLAR VOLUME AVERAGE $/SQ FT AVERAGE $/UNIT TOTAL SQ FT SOLD THE HIGHEST

Ocean Hill 1 1 $10,000,000 $515 $10,000,000 19,416 AVERAGE DOLLAR PER UNIT IN Park Slope 4 5 $23,200,000 $612 $468,080 34,664 BROOKLYN IN Q1 Prospect - Lefferts Gardens 3 3 $3,600,000 $320 $400,000 11,300 2020 WAS IN OCEAN Sunset Park 1 3 $10,500,000 $256 $205,882 41,024 HILL - $10 MILLION.

Williamsburg 12 13 $269,534,000 $714 $770,812 424,904

East New York 5 11 $13,650,000 $331 $330,833 41,178

Gravesend 4 4 $5,438,000 $412 $394,833 13,634

Homecrest 4 8 $10,812,998 $402 $489,083 27,298 Columbia Street Waterfront District 1 1 $2,157,250 $761 $719,083 2,835 East Flatbush 3 3 $12,550,000 $149 $128,952 84,352

Kensington 3 3 $3,505,000 $252 $326,945 14,050

Boerum Hill 6 9 $28,700,500 $817 $723,391 36,463

Mapleton 1 1 $1,800,000 $545 $600,000 3,300

Coney Island 1 1 $1,600,000 $212 $320,000 7,540

Cyprees Hills 1 1 $2,500,000 $273 $312,500 9,146

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NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 SUB-MARKET OVERVIEW BROOKLYN

NEIGHBORHOOD SALES VOLUME PROPERTY VOLUME DOLLAR VOLUME AVERAGE $/SQ FT AVERAGE $/UNIT TOTAL SQ FT SOLD THE HIGHEST TOTAL

Fort Greene 1 1 $2,300,000 $261 $230,000 8,800 NUMBER OF SOLD SQ. FT. WERE IN Cypress Hills 1 1 $1,300,000 $253 $260,000 5,140 WILLIAMSBURG Bedford Stuyvesant 1 1 $2,475,000 $469 $309,375 5,280 AND DOWNTOWN Crown Heights, BROOKLYN, WITH Prospect Park, Flatbush 1 3 $26,925,000 $150 $143,218 179,772 425K AND 420K, Red Hook 1 1 $1,890,000 $583 $630,000 3,240 RESPECTIVELY. South Slope 2 2 $8,200,000 $510 $530,833 18,840

Weeksville 2 2 $3,550,000 $329 $221,875 10,800

Downtown Brooklyn 3 3 $72,989,729 $658 $685,673 420,467

East Williamsburg 1 1 $2,250,000 $346 $321,429 6,500

Clifton Hill 1 1 $22,900,000 $395 $572,500 57,937

Bushwick 1 1 $2,180,000 $501 $436,000 4,350

Gowanus 1 1 $2,740,000 $623 $685,000 4,400

Brighton Beach 1 1 $3,600,000 $480 $900,000 7,500

Grand Total 110 136 $717,768,943 $470 $556,829 1,955,161

NYC Multifamily Report Q1 2020 / by Desophy SUB-MARKET OVERVIEW Q1 2020 Notable QUEENS Transactions

$16,769,500 3165 29th Street $424/SQ FT | $349,364/Unit

$6,274,000 3743 80th Street $302/SQ FT | $232,370/Unit -48% 4% $ -4% % $5,875,000 495,591 VS Q4 ‘19 4.59 VS Q4 ‘19 369 VS Q4 ‘19 11802-11822 TOTAL SQ FT SOLD AVERAGE CAP RATE AVERAGE $/SQ FT Atlantic Avenue $258/SQ FT | $293,750/Unit

$5,000,000 In Q1 2020, the Queens market had a significant increase in the number of transactions, by 88%, but those 45 sales 8057 Lefferts Boulevard $267/SQ FT | $250,000/Unit comprised $199 million, which is 33% less than in the previous quarter. Sales volume and property volume increased $4,850,000 by 88% and 61%, respectively, while the unit volume decreased by 57%. In general, average pricing showed a slight 3926 62nd Street decrease of 4%, with average pricing of $369 per square foot, and an average cap rate of 4.59%. $276/SQ FT | $194,000/Unit

BY PROPERTY TYPE Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE

Dollar Volume $224,750,000 $59,142,865 -74% $73,613,250 $139,551,248 90% THE HIGHEST DOLLAR VOLUME IN QUEENS IN Q1 Sales Volume 4 2 -50% 20 43 115% 2020 WAS SEEN IN LONG Property Volume 6 3 -50% 27 50 85% ISLAND CITY, TOTALING $111 MILLION. Units Volume 783 152 -81% 276 300 9% Walk-up Elevator

NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 SUB-MARKET OVERVIEW THE MOST ACTIVE QUEENS NEIGHBORHOOD IN QUEENS IN Q1 2020 WAS IN NEIGHBORHOOD SALES VOLUME PROPERTY VOLUME DOLLAR VOLUME AVERAGE $/SQ FT AVERAGE $/UNIT TOTAL SQ FT SOLD ASTORIA, WITH AN Astoria 6 7 $20,499,500 $329 $361,277 62,214 AVERAGE DOLLAR

Jamaica 4 4 $5,225,000 $284 $311,777 18,375 PER SQ.FT. AT $329, AND THE AVERAGE Long Island City 7 11 $111,228,422 $547 $599,495 203,430 DOLLAR PER UNIT Murray Hill 2 3 $3,850,000 $490 $537,745 7,850 AT $361K. THIS Richmond Hill 1 3 $5,275,000 $231 $253,761 22,792 NEIGHBORHOOD

Woodhaven 1 1 $1,500,000 $455 $498,382 3,300 ALSO SAW THE LARGEST NUMBER Corona 2 2 $4,065,500 $456 $499,785 8,919 OF SALES (6), Pomonok 2 2 $9,000,000 $316 $346,487 28,480 ALONGSIDE LONG Forest Hills 3 3 $3,275,000 $436 $477,506 7,520 ISLAND CITY. South Ozone Park 2 2 $2,720,000 $453 $497,053 6,000

Jackson Heights 1 1 $6,074,000 $293 $320,953 20,750

Ridgewood 4 4 $5,040,000 $232 $253,862 21,768

East Elmhurst 1 1 $1,090,000 $471 $516,920 2,312

Flushing 6 6 $11,050,000 $236 $258,987 46,781

Middle Village 1 1 $3,000,000 $210 $229,862 14,310

East Flushing 1 1 $1,210,000 $593 $650,340 2,040

Kew Gardens 1 1 $4,591,691 $245 $268,507 18,750

Grand Total 45 53 198,694,113 $369 $404,865 495,591

NYC Multifamily Report Q1 2020 / by Desophy SUB-MARKET OVERVIEW Q1 2020 Notable THE BRONX Transactions

$25,000,000 Neighborhood Renewal Housing Development Bx Portfolio $414/SQ FT | $271,739/Unit

$16,215,373 163% 3% $ -9% 3530 Dekalb Ave & 1860 Billingsley 746,299 VS Q4 ‘19 5.68% VS Q4 ‘19 230 VS Q4 ‘19 TOTAL SQ FT SOLD AVERAGE CAP RATE AVERAGE $/SQ FT Terrace Portfolio $142/SQ FT | $150,142/Unit

$15,000,000 Dynamic of the activities in the Bronx market intensified at the beginning of the year which is evidenced 1491-1493 Watson Ave & 1126 Evergreen by the $141 million dollar volume, which is 141% higher than in the previous quarter. There was also an Ave Portfolio increase in all of the parameters: sales volume, property volume, and unit volume – all increased by 167%, $148/SQ FT | $125,000/Unit 76%, and 146% respectively. Pricing, however, decreased by 9%, and it is at $230 per square foot, with the $13,757,983 1515 Grand Concourse highest cap rate among all boroughs at 5.68%. $187/SQ FT | $181,026/Unit

$10,900,000 1135 Boynton Avenue $126/SQ FT | $131,325/Unit

BY PROPERTY TYPE Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE THE MOST ACTIVE Dollar Volume $23,775,000 $45,957,983 93% $34,692,381 $95,202,707 174% NEIGHBORHOOD IN THE BRONX IN Q1 2020 WAS Sales Volume 2 4 100% 7 20 186% MOTT HAVEN, WITH $29 MILLION IN DOLLAR Property Volume 2 5 150% 15 25 67% VOLUME, AND THE TOTAL OF 3 SALES. Units Volume 112 314 180% 223 511 129% Walk-up Elevator

NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 SUB-MARKET OVERVIEW THE BRONX

NEIGHBORHOOD SALES VOLUME PROPERTY VOLUME DOLLAR VOLUME AVERAGE $/SQ FT AVERAGE $/UNIT TOTAL SQ FT SOLD THE HIGHEST

Belmont 3 3 $6,000,000 $354 $377,778 19,344 DOLLAR PER UNIT WAS SEEN Carroll Gardens 1 1 $2,100,000 $340 $350,000 6,175 IN BELMONT, AT Mott Haven 3 7 $29,000,000 $283 $201,691 78,738 $378K. Soundview 2 3 $25,900,000 $137 $128,163 187,590

Bedford Park 2 2 $6,250,000 $234 $289,512 33,339

Fordham 1 1 $6,850,000 $300 $228,333 22,808

Kingsbridge 1 1 $9,690,000 $158 $158,852 61,500

Morris Heights 1 2 $16,215,373 $142 $150,142 114,014

Mount Eden 1 1 $13,757,983 $187 $181,026 73,692

Wakefield 1 1 $1,170,000 $373 $292,500 3,136

City Island 1 1 $1,100,000 $144 $137,500 7,650

Jerome Park 2 2 $9,195,000 $174 $147,900 52,532 Fairmont - Claremont Village 1 1 $3,700,000 $148 $115,625 25,065 Spuyten Duyvil 1 1 $2,082,334 $211 $297,476 9,876

Claremont 1 1 $1,800,000 $191 $128,571 9,419

Van Nest 1 1 $1,200,000 $189 $171,429 6,351

Concourse 1 1 $5,150,000 $147 $128,750 35,070

Grand Total 24 30 $141,160,690 $230 $217,073 746,299

NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 MARKET OVERVIEW Q1 2020 SUB-MARKET OVERVIEW

IN CONCLUSION There has been a noticeable long-term decline in the multifamily market, due to the new legislation which further strengthened the rent regulation. Also, the global COVID-19 pandemics, which effects will be visible at the beginning of the next quarter, will force the investors to continue with their restraint and capital withdrawal. As a result, fewer listings, contracts, and sales are to be expected through 2020.

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The information contained herein was furnished to us by sources (ACRIS, NYC DOB, NYC DCP, Property Shark), which we deem reliable, but no warranty or representation is made as to the accuracy thereof. Subject to correction of errors, omissions, change of price, prior sale or withdrawal without / by notice. Desophy Presented information covers the period between January and March of 2020. Collected data were then subjected to detailed analysis and verification to obtain credible results with the use of theNYC comparative Multifamily method. Report Only transactions Q1 2020 valued at over $2 million were included.