Property Sales Report

Home , 11 West 54th Street, 74th Street (Manhattan), Christopher Street

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

$2.5 60

50 $2.0 40 $1.5 30 # of Sales

Billions $1.0

Dollar Volume 20

$0.5 10

$0.0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q192019 (annualized)

Total Volume # of Sales Largest Transactions

301 First Avenue 9-11 West 54th Street 118 Madison Avenue 351 East 74th Street 334 East 79th Street $81,000,000 $75,000,000 $38,000,000 $22,562,500 $20,847,174

9 1Q19 Manhattan Investment Sales

Sale Details ELEVATOR APARTMENT Address Price # Units SF $/Units $/SF Cap Rate 34 Desbrosses Street $260,000,000 291 222,055 $893,471 $1,171 6.60% 227 East 67th Street $15,000,000 5 14,647 $3,000,000 $1,024 Delivered Vacant

WALK-UP APARTMENT Address Price # Units SF $/Units $/SF Cap Rate 344-348 East 62nd Street $35,500,000 72 36,060 $493,056 $984 2.70% 236 East Fifth Street $23,250,000 30 25,002 $775,000 $930 4.00% 24 Avenue A $15,800,000 25 15,308 $632,000 $1,032 4.93% 75 Warren Street $12,950,000 1 10,800 $12,950,000 $1,199 Delivered Vacant 316 - 318 East 77th Street $10,000,000 15 13,007 $666,667 $769 4.08% 54 East 80th Street $8,975,000 3 5,913 $2,991,667 $1,518 Delivered Vacant 356 Bowery $8,900,000 5 6,155 $1,780,000 $1,446 Delivered Vacant 110 West 15th Street $8,300,000 4 5,200 $2,075,000 $1,596 Delivered Vacant 310 West 81st Street $8,100,000 6 4,632 $1,350,000 $1,749 Delivered Vacant 26 Bethune Street $6,051,000 5 2,669 $1,210,200 $2,267 Delivered Vacant 451 West 36th Street $6,050,000 20 9,560 $302,500 $633 3.20% 123 West 82nd Street $5,200,000 5 4,125 $1,040,000 $1,261 Not Reported 351 West 48th Street $5,050,000 8 8,000 $631,250 $631 Delivered Vacant 143 East 36th Street $4,000,000 4 4,290 $1,000,000 $932 Delivered Vacant

MIXED-USE Address Price # Units SF $/Units $/SF Cap Rate 103 East 86th Street $90,500,000 51 91,260 $1,774,510 $992 Not Reported 35 Bedford Street $21,000,000 35 17,556 $600,000 $1,196 4.50% 442-444 Broome Street $19,000,000 9 10,710 $2,111,111 $1,774 Not Reported 243-245 East 18th Street $18,000,000 25 16,026 $720,000 $1,123 Not Reported 332 East Fourth Street $14,000,000 30 17,478 $466,667 $801 3.57% 117 East 15th Street $11,000,000 8 6,800 $1,375,000 $1,618 5.00% 42 Allen Street $10,200,000 9 14,348 $1,133,333 $711 Delivered Vacant 191 Spring Street $8,700,000 3 5,719 $2,900,000 $1,521 5.12% 213 West 85th Street $8,250,000 7 10,500 $1,178,571 $786 4.19% 101 First Avenue $8,000,000 4 7,040 $2,000,000 $1,136 4.80% 27-35 Madison Street $7,800,000 24 21,901 $325,000 $356 5.71% 113 East Second Street $7,400,000 2 6,993 $3,700,000 $1,058 Not Reported 325-327 Greenwich Street $7,300,000 8 11,726 $912,500 $623 Not Reported 145 East 62nd Street $6,721,937 8 5,332 $840,242 $1,261 Auction 31 Catherine Street $6,500,000 19 9,875 $342,105 $658 Not Reported

RETAIL Address Price Tenants Type SF $/SF Cap Rate 710 Madison Avenue $66,500,000 Graff Full Building 8,400 $7,917* Not Reported 41 East 21st Street $32,200,000 Unique Parking LLC Full Building 54,522 $591 Not Reported 212 Fifth Avenue $26,500,000 Togas House of Textiles Condo 4,620 $5,736 4.60% 592-596 Ninth Avenue $17,000,000 Talent II, Slam Talent, Hot 9, At Nine Restaurant Full Building 17,858 $952 4.50% 22 Christopher Street $14,437,500 Diana Broussard Designer Shoe Full Building 3,000 $4,813 Not Reported 62 Greenwich Avenue / $9,750,000 - Full Building 5,994 $1,627 Delivered Vacant 74-76 7th Avenue South 401 East 57th Street $7,000,000 The Ultimate Pizza, Barbers Bedford Full Building 4,046 $1,730 4.50% 152 Elizabeth Street $6,500,000 - Condo 2,224 $2,923 5.00% 150 Thompson Street $4,750,000 Safavieh Rugs Condo 7,800 $609 Owner/User

*Outlier

10 OFFICE Address Price Class RSF $/RSF Cap Rate 424-434 Fifth Avenue $850,000,000 A 615,782 $1,380 Delivered Vacant 885 Second Avenue $565,754,370 A 815,000 $694 Not Reported 850 Third Avenue $422,000,000 A 617,000 $684 Not Reported 670 Broadway $130,500,000 B 75,000 $1,740 3.60% 11 East 44th Street $105,800,000 A 135,000 $784 3.85% 384 Fifth Avenue $23,500,000 C 28,000 $839 Not Reported 126 East 38th Street $11,000,000 C 6,283 $1,751 Not Reported 53 East Broadway $5,500,000 C 6,017 $914 6.27%

OFFICE CONDO / CO-OP Address Price Type Unit RSF $/RSF 3 Columbus Circle $215,600,000 Condo VMLY&R 214,372 $1,006 50 West 47th Street $6,908,163 Condo 18th Floor 8,570 $806 375 Greenwich Street $6,000,000 Condo 3rd Floor 6,000 $1,000 633 Third Avenue $3,553,000 Condo 1304 2,273 $1,563 633 Third Avenue $3,500,000 Condo 13D 3,866 $905 426 West 58th Street $2,850,100 Condo CFU 2,300 $1,239 70 West 36th Street $2,775,000 Condo 5th Floor 3,000 $925 50 West 47th Street $2,720,000 Condo 19th Floor 2,591 $1,050 50 West 47th Street $1,882,530 Condo 16th Floor 1,609 $1,170 11-15 East Broadway $935,000 Condo 10A/10th Floor 840 $1,113

DEVELOPMENT Address Price Zoning Planned Use Assemblage BSF $/BSF 1393 York Avenue $68,000,000 R10/R8B Student Housing No 112,420 $605 5 East 51st Street $44,000,000 C5-2.5 Office Yes 36,096 $1,219 47-59 Henry Street $30,000,000 R7-2/C6-1G TBD No 58,200 $515 156-158 West 48th Street $24,275,000 C6-5.5, MID TBD No 41,004 $592 331-337 East 82nd Street $23,000,000 R8B Condo No 30,680 $750 542 West 29th Street $21,350,000 C6-3, West Chelsea Special District Condo / Hotel Yes 24,685 $865 527-531 West 36th Street $20,144,000 C6-2, New York (E9) Office / Park No 44,584 $452 1639-1641 First Avenue $14,850,000 C2-8A Condo/Retail No 37,500 $396 1352 First Avenue $14,000,000 C1-9 TBD No 28,820 $486 538 West 29th Street $11,000,000 C6-3, West Chelsea Special District Condo / Hotel Yes 12,490 $881 540 West 29th Street $9,675,000 C6-3 Condo / Hotel Yes 12,095 $800 346 West 44th Street $5,750,000 C6-2 TBD No 10,040 $573

CONVERSION / USER Address Price Zoning Planned Use Existing SF $ / Existing SF 301 First Avenue $81,000,000 C1-8/R8A Student Housing 146,246 $554 9-11 West 54th Street $75,000,000 C5-P / MID TBD 33,649 $2,229 118 Madison Avenue $38,000,000 C5-2 End-User 32,917 $1,154 351 East 74th Street $22,562,500 R8B End-User 16,999 $1,327 334 East 79th Street $20,847,174 R10A Owner/User 29,363 $710 175 East 73rd Street $8,965,666 R8B Owner/User 5,800 $1,546 68 Morton Street $7,780,000 C1-6 Owner/User 2,800 $2,779 331 East 50th Street $5,765,000 R8B Owner/User 4,220 $1,366 574 Broome Street $4,072,000 M1-6 / HSQ Residential 5,355 $760

11 For more information please contact:

James Nelson James Kinsey Principal, Head of Tri-State Investment Sales Principal, Senior Director of Tri-State Investment Sales 212.729.6585 212.729.3291 [email protected] [email protected]

Erik Edeen Ethan Bidna Director of Operations Analyst AVISON YOUNG—NEW YORK 1166 Avenue of the Americas, 15th Floor 212.729.7402 212.230.5993 New York, NY 10036 [email protected] [email protected] 212.729.7140 | avisonyoung.com

© 2019 Avison Young – New York, LLC. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.