Property Sales Report

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Property Sales Report 1Q19 Property Sales Report Manhattan Investment Sales 1Q19 Manhattan Investment Sales Investment Sales Summary Total DollarTOTAL Volume DOLLAR by Asset ClassBased on the first quarter Manhattan sales figures, it appears the market is taking a “wait- VOLUME BY ASSET CLASS and-see” approach. With political uncertainty in both City Hall and Albany, the $3.7 billion in sales over 79 investment-grade transactions dropped 13 percent and 25 percent respectively, compared to the first quarter of 2018. If annualized to $15 billion and 316 sales, the result is a respectiveElevator 38 Apartments percent and 19 percent decline versus 2018. 7% 12% 8% 4% 5% TheWalk-Up positive Apartmentsnews is, with the exception of land sales, values in the first quarter increased across 6% the board with multi-family up 13 percent to $1,121 per square foot; retail up 23 percent to 6.5% Mixed-Us e $3.7 $2,637 per square foot; office and office condos up a respective 13 percent and 24 percent to Billion $1,098Office per Buildings rentable square foot and $1,078 per rentable square foot; and conversion/user sales rising 16 percent to $1,381 per square foot. Cap rates expanded for multi-family properties to 4.49Offi percent ce Condos and office to 4.57 percent. Only land sales dropped slightly by 3 percent to $638 56% per buildable square foot. Retail Multi-Family Development The 31 multi-family sales for a combined $677 million represent a slight uptick relative to the NUMBER OF SALES firstConversi quarter on/User of 2018, but a lower annualized total than 2018. Expanding the picture, asset Number of Sales by Asset Classpricing told two different stories, cap rates expanded significantly by 83 basis to 4.49 percent, BY ASSET CLASS while pricing per square foot actually climbed from $995 to $1,121, on average. El eva tor Apartments 3% Retail 11% RetailWalk-Up trades took Ap artmentsa step back, with only $185 million in trades across nine investment-grade 18% properties took place in the first quarter. Relative to 2018’s numbers, the first quarter of 2019 15% broughtMix ed-Usein $500 million less than the first quarter of 2018 and an annualized total of almost 79 a billionOffice dollars Buildings less than in 2018. Importantly, this steep decline must consider that 2018 Sales represented retail’s five-year high in transaction volume. Relative to our 2018 totals, cap rates 19% 11% actuallyOffice compressed Condos 19 basis points from 4.84 percent to 4.65 percent in the first quarter. Retail 13% 10% Office and Office Condo / Co-op OfficeDevelop and mentoffice condos / co-ops continued to lead the total dollar volume category with 63 percent of Manhattan's dollar volume, up from 58 percent of total transactions in 2018. Similar Number of Sales by Asset Class to otherConversion/User asset classes, office building pricing grew on a per square foot basis from $969 to $1,098, though cap rates did expand by 26 basis points to 4.57 percent. El eva tor Apartments Development Walk-Up Ap artments The 12 development sites that transacted for $286 million during the first quarter amounted to under half a million buildable square feet at an average of $638 per buildable square foot. Mix ed-Use Development site pricing is still heavily dependent on locations with, pricing ranging from the Office Buildings $400 to over $800 per buildable square foot. Office Condos Condos/Co-ops Conclusion Retail The takeaway from these opposing factors—declining sales and increased pricing—is that core stabilized assets are selling. For the multi-family asset class, this means renovated fair- Develop ment market buildings are changing hands, and in retail, the majority of investors are seeking leased spaces. This trend also indicates a flight to quality as the best locations are still trading, Conversion/User especially in the office market where more than half of the top trades were over $100 million in the first quarter. 2 Sheet 2 Manhattan Market Snapshot Price 935,000 200,000,000 400,000,000 ALL TRANSACTIONS IN MANHATTAN600,000,000 850,000,000 Number of Year TotalT Volumeype Convesion/User Sales Development 2010 $11,260,000,000Multifamily 310 Office 2011 $19,990,000,000Office Condo 505 Retail 2012 $27,750,000,000 882 2013 $27,030,000,000 600 2014 $38,840,000,000 817 2015 $55,500,000,000 913 2016 $36,440,000,000 616 2017 $17,750,000,000 300 2018 $24,254,854,822 392 1Q19 (Annualized) $15,091,799,760 316 Sheet 1 10 Year Average $27,390,665,458 565 Price Type 1770000 Conversion/User 2138000 Development Methodology 2750000 Multifamily 2900000 Office Building Avison Young’s Tri-State Investment Sales group tracks 4100000 OfficeOffice CCondos/Co-opsondo confirmed transactions above $5 million ($1 million for 4525000 Retail retail properties and office condominiums / co-ops) sold 5000000 in Manhattan south of 96th Street. 5075000 Map based on Long and Lat. Color shows details about Type. Size shows sum of Price. The view is filtered on Type, which has multiple members selected. 5150000 5300000 5310060 Transaction5800000 Volume and Number of Sales by Year Transaction5900000 Volume & Number of Sales by Year 6000000 $ 60 1000 6075000 9 00 $ 50 6500000 8 00 6625000 $ 40 6987505 7 00 7100000 6 00 $ 30 7100500 5 00 Billions 7200000 4 00 $ 20 # of Sales 7575000 3 00 7750000 $ 10 2 00 8900000 1 00 $0 9000000 0 9350000 9500000 2010 2011 2012 2013 2014 2015 2016 2017 2018 10000000 10350000 Total Volume # of Sa les 10905000 11000000 2019 (Annua lized) 12800000 14000000 Detailed14300000 sale information is available on page 10 15550000 16000000 16064000 Map based on Long and Lat. Color shows details about Type. Size shows details about Price. Details are shown for Address. The view is filtered on Type and Price. The Type filter keeps 6 of 6 members. 18250000 3 The Price filter keeps no members. 18500000 22500000 23000000 24250000 24500000 25000000 27600000 28250000 28280000 29800000 30200000 31000000 33000000 36000000 46284126 46500000 46750000 50000000 52800000 80000000 85000000 96000000 105000000 135000000 151000000 158000000 158500000 193000000 222500000 232197037 250000000 257000000 360000000 416000000 442000000 650000000 900000000 1155000000 1286083000 1Q19 Manhattan Investment Sales Multi-Family/Mixed-Use Market Snapshot $677M 31 4.49% $1,121 Total Dollar Volume Number of Sales Average Cap Rate Average Price PSF 20%* 9%* 83bps* 13%* *Percent change from trailing four quarter average Transaction Volume & Number ofMultifamily Sales by Year $14 600 $12 500 $10 400 $8 300 $6 # of Sales Billions Dollar Volume 200 $4 $2 100 $0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q192019 (annualized) Total Volume # of Sales Largest Transactions 34 Desbrosses Street 103 East 86th Street 344-348 East 62nd Street 236 East Fifth Street 35 Bedford Street $260,000,000 $90,500,000 $35,500,000 $23,250,000 $21,000,000 4 Retail Market Snapshot $185M 9 4.65% $2,637 Total Dollar Volume Number of Sales Average Cap Rate Average Price PSF 57%* 40%* 19bps* 23%* *Percent change from trailing four quarter average Transaction Volume & Number of SalesRetail by Year $4.0 140 $3.5 120 $3.0 100 $2.5 80 $2.0 60 $1.5 # of Sales Billions Dollar Volume 40 $1.0 $0.5 20 $0.0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q192019 (annualized) Total Volume # of Sales Largest Transactions 710 Madison Avenue 41 East 21st Street 212 Fifth Avenue 592-596 Ninth Avenue 22 Christopher Street $66,500,000 $22,500,000 $26,500,000 $17,000,000 $14,437,500 5 1Q19 Manhattan Investment Sales Office Market Snapshot $2.1B 8 4.57% $1,098 Total Dollar Volume Number of Sales Average Cap Rate Average Price PSF 35%* 41%* 26bps* 13%* *Percent change from trailing four quarter average Transaction Volume & Number of Sales by Year Office $25 140 120 $20 100 $15 80 Billions Dollar Volume 60 $10 # of Sales 40 $5 20 $0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q192019 (annualized) Total Volume # of Sales Largest Transactions 424-434 Fifth Avenue 885 Second Avenue 850 Third Avenue 670 Broadway 11 East 44th Street $850,000,000 $565,754,370 $422,000,000 $130,500,000 $105,800,000 6 Office Condo / Co-op Market Snapshot $246M 10 $1,078 Total Dollar Volume Number of Sales Condo / Co-op Average Price PSF 5%* 25%* 24%* *Percent change from trailing four quarter average Transaction Volume & Number of Sales by Year Office Condo $2.5 120 100 $2.0 80 $1.5 60 Billions $1.0 # of Sales Dollar Volume 40 $0.5 20 $0.0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q192019 (annualized) Total Volume # of Sales Largest Transactions 3 Columbus Circle 50 West 47th Street 375 Greenwich Street 633 Third Avenue (Unit 1304) 633 Third Avenue (Unit 13D) $215,600,000 $6,908,163 $6,000,000 $3,553,000 $3,500,000 7 1Q19 Manhattan Investment Sales Development Market Snapshot $286M 12 448k $638 Total Dollar Volume Number of Sales Total BSF Average Price BSF Total Dollar Volume 63%* 17%* 62bps* 3%* *Percent change from trailing four quarter average Transaction Volume & Number of Sales by Year Development $12 250 $10 200 $8 150 $6 100 # of Sales Billions $4 Dollar Volume 50 $2 $0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q192019 (annualized) Total Volume # of Sales Largest Transactions 1393 York Avenue 5 East 51st Street 47-59 Henry Street 156-158 West 48th Street 331-337 East 82nd Street $68,000,000 $44,000,000 $30,000,000 $24,275,000 $23,000,000 8 Conversion/User Market Snapshot $264M 9 277k $1,381 Total Dollar Volume Number of Sales Total SF Average Price BSF 45%* 16%* 50%* 16%* *Percent change from trailing four quarter average Transaction Volume & Number of Sales by Year Conversion/User $3.0 70
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