New Development Report for Q2 2017

MANHATTAN BROOKLYN New Development $2,576 $1,413 AVERAGE PRICE AVERAGE PRICE Report PER SQ. FT. ACTIVE PER SQ. FT. ACTIVE $2,172 $1,421

AVERAGE PRICE AVERAGE PRICE PER SQ. FT. PER SQ. FT. CONTRACT SIGNED CONTRACT SIGNED $2,192 $1,342

AVERAGE PRICE AVERAGE PRICE Second2017 Quarter PER SQ. FT. CLOSED PER SQ. FT. CLOSED

5,936 5.5% QoQ 622 -6% QoQ

AVAILABLE INVENTORY AVAILABLE INVENTORY (UNITS)* (UNITS)*

*Available inventory includes all units currently on the market as well as those not yet released. Summary Points

MANHATTAN BROOKLYN

MEDIAN PRICE In Manhattan, average pricing decreased PER SQ. FT. modestly for the second straight quarter. New $2,172 PSF development units entering into contract fell 2.1% Active $2,287 $1,396 quarter-over-quarter to $2,172 PSF from $2,219 Contract Signed $2,025 $1,312 in Q1 2017, but rose 2.0% year-over-year from $2,129 PSF in Q2 2016. Avg. PPSF for closed new development units rose 1.0% quarter-over-quarter to $2,192, and fell 2.1% Closed $2,057 $1,319 year-over-year from $2,239 in Q2 2016.

AVERAGE PRICE In Brooklyn pricing Outside of PER SQ. FT. continued to rise for Billionaire’s 10.4% $1,207 Active $2,576 $1,413 the second consecutive Row, Harlem quarter. New development entering into experienced the largest quarter- Contract Signed $2,172 $1,421 over-quarter Avg. PPSF increase contract averaged $1,421 PSF, up 4.4% Closed $2,192 $1,342 quarter-over-quarter and 3.8% year-over-year. in Manhattan at 9.8% for sold units This is the second quarter in which pricing (contract signed and closed), has eclipsed the $1,400 PSF level, the first rising to $1,207. This is a result of being Q3 2016. Avg. PPSF for closed new sales at 2231 Adam Clayton Powell MEDIAN PRICE development in Brooklyn rose 10.4% year- Boulevard, 306 West 116th, and 285 Active $3,905,000 $1,797,500 over-year to $1,342. West 110th Street. Contract Signed $2,475,000 $1,295,000 Closed $2,900,000 $1,318,021 In Manhattan, over 350 units entered into contract in Q2 2017, an increase of 6.1% quarter-over-quarter and a decrease of 22.8% 36.4% year-over year from just over 450 units in Q2 2016. In Brooklyn, AVERAGE PRICE over 115 units entered into contract in Q2 2017, remaining flat quarter-over-quarter, but increasing 36.4% year-over-year. These numbers include units that entered into Active $6,682,379 $2,194,886 contract and closed within the same quarter. Contract Signed $3,759,785 $1,690,346 Closed $4,416,978 $1,796,901 The total number of available new development units increased 5,936 5.5% quarter-over-quarter, and 34.6% year-over-year in Manhattan to 5,936. The approval of several new condominium offering plans TOTAL INVENTORY including Waterline Square and 217 West 57th helped boost the total. Additionally, (UNITS) large-scale projects such as One Manhattan Square, Gramercy Square, 125 Greenwich, and Hudson Yards have added to the total in recent quarters. Just over 2,600 units are Total 11,465 1,807 expected to launch sales in 2017, well below a high of nearly 9,200 units in 2006. In Units Available 5,936 622 Brooklyn, available units decreased 6.5% quarter-over-quarter, and 28% year-over-year % Closed or 48.2% 65.6% to approximately 620, highlighting a lean Brooklyn condominium pipeline. Contract Signed

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 2 Introduction HPDM is pleased to present our New Development Report for Q2 2017. METHODOLOGY: This report focuses exclusively on the NYC new development condominium §§ All data is provided by proprietary market, and aims to be the only report Halstead Property Development of its kind presenting a comprehensive Marketing research. picture of new development activity. § This report tracks new development TABLE OF CONTENTS New development is unique from § projects only, defined as those new the overall real estate market in that to the market and currently selling MARKET OVERVIEW...... 5 closings often do not occur for 12 to sponsor units. Buildings that have 18 months after a buyer enters into MARKET OVERVIEW BY QUARTER...... 6 fully sold out of sponsor units are contract. Therefore, to fully understand not included, even though they may this market it is critical to track active MANHATTAN NEIGHBORHOOD INSIGHT...... 7 be newly built. Resale data is not listings, listings in contract, closed included in this report. listings, as well as total inventory. This ANALYSIS BY UNIT TYPE...... 8 report analyzes Q2 2017 as a whole §§ All listings were compiled as of PRICE POINT ANALYSIS...... 9 and is a snapshot of current new 6/19/17. development market conditions. TOTAL INVENTORY...... 11 §§ Total Inventory is defined as all units In Manhattan, pricing for new within new development projects FURTHER INSIGHT...... 12 development units entering into that are currently listed as Active, contract in Q2 2017 fell 2.1% quarter- Contract Signed, or Closed, as well over-quarter to $2,172 PSF from $2,219 as those units not yet released in Q1 2017, but rose 2.0% year-over- to the market. Available Units is year from $2,129 PSF in Q2 2016. Avg. defined as new development units PPSF for closed new development that are currently listed as Active units rose 1.0% quarter-over-quarter to as well as those not yet released $2,192, and fell 2.1% from $2,239 in Q2 to the market. These numbers 2016. In Brooklyn, new development include units released prior to 2017, entering into contract averaged $1,421 provided they are in a project that PSF, up 4.4% quarter-over-quarter has not sold out all sponsor units. and 3.8% year-over-year. Avg. PPSF By including currently unreleased for closed new development Brooklyn units that are not yet listed as rose 10.4% year-over-year to $1,342. Active this data provides a unique and comprehensive analysis of the current new development market.

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 3 ONE PARK 320 ADOLPHUS AVENUE, CLIFFSIDE PARK, NEW JERSEY OneParkCondosNJ.com Market Overview

Downtown saw the most development activity in Manhattan in Q2 2017 with more than 400 units either entering into contract or closing. Next to Billionaire’s Row, Downtown shows the highest Avg. Active Price per Sq. Ft. at $2,678. The highest Avg. Price per Sq. Ft. for Contract Signed deals in Q2 2017 occurred Downtown, with an average of $2,442 PSF, up 6.8% year-over-year from $2,286 PSF in Q2 2016. Ground Up vs. Conversions - Avg. Price per Sq. Ft. CONTRACT SIGNED AND CLOSED GROUND-UP VS. CONVERSIONS — AVG. PRICE PER SQ. FT.

GROUND UP CONVERSIONS NUMBER OF UNITS NUMBER OF UNITS

$8,000 4 600 401

$7,000 500 75 $6,000 $7,268 31 331 400 $5,000 81

$4,000 67 300 19 $3,000 200

$2,000 $2,777 $1,356 $1,207 100 $2,339 $2,324 $2,294

$1,000 $2,269 $1,831 $1,973 $1,816 $1,590 $1,401 $1,363

HARLEM UWS UES MIDTOWN WEST BILLIONAIRE'S ROW* MIDTOWN EAST DOWNTOWN BROOKLYN**

ACTIVE, CONTRACT SIGNED, CLOSED — AVG. PRICE PER SQ. FT.

ACTIVE CONTRACT SIGNED CLOSED

$9,000

$8,000

$7,000 $8,170 $6,000 $6,262

$5,000 $6,191 $6,367

$4,000 $4,982

$3,000 $3,911

$2,000 $1,730 $1,413 $1,421 $1,342 $1,223 $2,879 $1,179 $2,504 $2,422 $2,330

$1,000 $2,119 $2,143 $2,226 $2,678 $1,963 $2,314 $2,136 $2,017 $2,442 $2,273 $1,924 $2,424 $2,248 $1,957 $2,092 $1,619 $1,968 $1,750 $2,098 $1,726 $1,902 $1,908 $2,059 $2,098 $1,751

HARLEM UWS UES MIDTOWN WEST BILLIONAIRE'S MIDTOWN EAST DOWNTOWN BROOKLYN** ROW* *Billionaire's Row comprised of: 432 Park Ave, 53 W 53rd, 520 Park Avenue *Brooklyn neighborhoods tracked: Bedford Stuyvesant, Boerum Hill, Brooklyn Heights, Bushwick, Carroll Gardens, Clinton Hill, Crown Heights, Downtown Brooklyn, DUMBO, Greenpoint, Park Slope, Prospect Heights, Redhook, Williamsburg

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 5 Market Overview by Quarter

The graph below depicts pricing for Contract Signed and Closed units by quarter. Outside of Billionaire’s Row, Harlem experienced the largest quarter-over-quarter increase in Average PPSF at 9.8%, rising to $1,207, due to sales at 2231 Adam Clayton Powell Boulevard, 306 west 116th, and 285 West 110th Street. Midtown East experienced the second largest quarter-over-quarter increase, rising 7.3% to $2,252 PSF in Q2 2017, due largely to closings at 252 East 57th Street. Meanwhile, Avg. PPSF in Brooklyn rose 3.9% quarter-over-quarter.

CONTRACT SIGNED, CLOSED — AVG. PRICE PER SQ. FT.

Q3 2016 Q4 2016 Q1 2017 Q2 2017

$8,000

$7,000

$6,000 $7,268

$5,000 $6,188 $5,486

$4,000 $5,259

$3,000

$2,000 $1,362 $1,378 $1,322 $1,207 $1,311 $1,118 $1,117 $1,099 $2,589 $2,251 $2,303 $2,429 $2,341 $1,000 $2,252 $2,335 $2,197 $2,079 $1,987 $2,032 $2,098 $1,964 $1,970 $1,922 $1,958 $2,090 $1,875 $1,850 $1,729 $2,325

HARLEM UWS UES MIDTOWN WEST BILLIONAIRE'S MIDTOWN EAST DOWNTOWN BROOKLYN**

ROW* $1,245

*Billionaire's Row comprised of: 432 Park Ave, 53 W 53rd, 520 Park Avenue **Brooklyn neighborhoods tracked: Bedford Stuyvesant, Boerum Hill, Brooklyn Heights, Bushwick, Carroll Gardens, Clinton Hill, Crown Heights, Downtown Brooklyn, DUMBO, Greenpoint, Park Slope, Prospect Heights, Redhook, Williamsburg.

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 6 Manhattan Neighborhood Insight

Outside of Billionaire’s Row, the highest average Contract Signed pricing in Manhattan for Q2 2017 was $3,162 PSF, achieved in the Flatiron district with sales at 45 East 22nd, followed closely by Greenwich Village at $3,121. The highest average Closed pricing outside of Billionaire’s Row occurred in the West Village at $3,547 PSF due to sales at The Greenwich Lane, followed by Midtown West at $2,544 PSF.

UPTOWN AND MIDTOWN MANHATTAN — ACTIVE, CONTRACT SIGNED, CLOSED — AVG. PRICE PER SQ. FT.

ACTIVE CONTRACT SIGNED CLOSED

$9,000 $8,000 $7,000 $8,170 $6,000 $5,000 $6,191 $6,367 $4,000 $3,000 529 $1,902 $1,730

$2,000 $1,667 $1, 691 $1, 575 $1, 654 $1 , $3,293 $1,223 $1,179 136 $2,919 $1,000 059 $2,730 $2,844 $2,314 $2, 538 $2 , $2,544 $2,2 48 $2, 424 $2,162 $1 ,957 $2,096 $2,098 $2,098 $2,062 $2 , Harlem UWS UES Midtown Billionaire’s Midtown Chelsea West Hell’s Gramercy West Row* East Chelsea Kitchen Park

DOWNTOWN MANHATTAN — ACTIVE, CONTRACT SIGNED, CLOSED — AVG. PRICE PER SQ. FT.

ACTIVE CONTRACT SIGNED CLOSED

$9,000 $8,000 $7,000 $6,000 $5,000 $4,000 197

$3,000 $1, 675 $2,273 656 $2 , $2,000 $3 , $3,121 $3 ,547 $3,162 404 $2,910 $2,775 $2,907 $2,701 $1,000 $2,741 $2,628 $2,850 $2,796 $2, 538 $2, 181 $2,506 $2,118 $2,168 $2,268 $2,269 $2, 176 $2,200 $2 ,

Flatiron Greenwich SoHo NoHo TriBeCa West East LES Financial Village Village Village District

*Billionaire's Row comprised of: 432 Park Ave, 53 W 53rd, 520 Park Avenue

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 7 Analysis by Unit Type MANHATTAN AND BROOKLYN

In Q2 2017 two-bedroom units continued to experience the most deal volume by unit type in Manhattan, with over 230 two- bedroom units entering into contract or closing. In Brooklyn, one-bedroom units saw the most deal volume with more than 130 units entering into contract or closing. Median Contract Signed pricing for two-bedrooms in Manhattan remained flat quarter-over-quarter at $2.61M, while dropping 1.8% year-over-year from $2.66M in Q2 2016. In Brooklyn, median Contract Signed pricing for one-bedrooms rose 1.5% year-over-year to $890,000, up from $877,000 in Q2 2016. In Manhattan, two- bedrooms show the most Active listings at nearly 300, with three-bedrooms close behind at just over 260. Two-bedrooms also comprise the most Active listings in Brooklyn with 59, while three and one-bedrooms follow closely with 47 and 43 units respectively.

MANHATTAN — MEDIAN PRICE PER UNIT TYPE MANHATTAN — TOTAL UNITS BY BEDROOM

ACTIVE CONTRACT SIGNED CLOSED TOTAL NUMBER OF UNITS ACTIVE CONTRACT SIGNED CLOSED NUMBER OF UNITS 43 530 400 $16M 700 350 367 $14M 434 600 193 300 $12M 500

250 297 $10M 48 $14.58M $13.98M

400 263

$12.58M 200 $8M $11.01M 300

$6M 150 177 $9.59M 131 $4M 200 100 136 $2.95M 113 $2.61M $2.8M $8.43M 106 102 84 38 $5.73M $1.61M

50 32

$2M $1.32M 100 $1.39M $1.33M $5.40M 22 19 $1.07M 58 $5.08M $755K 16 7 10 4

STUDIO 1 BED 2 BED 3 BED 4 BED 5 BED STUDIO 1 BED 2 BED 3 BED 4 BED 5 BED

BROOKLYN — MEDIAN PRICE PER UNIT TYPE BROOKLYN — TOTAL UNITS BY BEDROOM

ACTIVE CONTRACT SIGNED CLOSED ACTIVE CONTRACT SIGNED CLOSED TOTAL NUMBER OF UNITS NUMBER OF UNITS 140 120 $6M 176 105 300 52 100 66 $5M 250

80 96 $4M 200 31 60 $3M 150 $4.0M 59 $3.7M 53 $3.77M 40 $2M 100 47 43 $1.63M $1.61M 40 $1.47M 37 $2.65M $884K $892K 20 $2.50M $890K 28 $625K 28 $1M $605K 50 $620K $2.15M 21 8 18 18 6 2

STUDIO 1 BED 2 BED 3 BED 4 BED STUDIO 1 BED 2 BED 3 BED 4 BED

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 8 Price Point Analysis MANHATTAN AND BROOKLYN

38% of all Active new development listings in Manhattan are priced above $5M, well In Manhattan, the total percentage of new development deals entering contract below a high of 52% in Q1 2015. Meanwhile, 15.4% of Active listings remain priced under $5M rose to 77% from 72.4% in Q1 2017. Conversely, the percentage of deals above $10M, essentially unchanged year-over-year. over $5M fell to 23% from 27.6% quarter-over-quarter.

Q2 2017 PRICE POINT MANHATTAN — ACTIVE MANHATTAN — CONTRACT SIGNED MANHATTAN — CLOSED 38% 34.9% 28.2% 27.7% 23% 18% % 17.1% 15.7% 16.8% 6.8% 6.5% 6.2 11.6% 10.3% 10.8% 10.4% 10.8% 7.2%

$5M+ $4M-5M $3M-4M $2M-3M $1M-2M $0-1M $5M+ $4M-5M $3M-4M $2M-3M $1M-2M $0-1M $5M+ $4M-5M $3M-4M $2M-3M $1M-2M $0-1M

Q2 2017 PRICE POINT BROOKLYN — ACTIVE BROOKLYN — CONTRACT SIGNED BROOKLYN — CLOSED 42.9% 40.4% 36.5% 33% 27.9% 21.3% 19.1% 7.7% 6.2 % 14.6% 12.5% 3.3% 11.0% 3.4% 10.7% 2.2% 3.3% 1.3%

$5M+ $4M-5M $3M-4M $2M-3M $1M-2M $0-1M $5M+ $4M-5M $3M-4M $2M-3M $1M-2M $0-1M $5M+ $4M-5M $3M-4M $2M-3M $1M-2M $0-1M

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 9

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HPDM | HPDMNY.COM | 2017 Second Quarter Report | 10 Total Inventory MANHATTAN AND BROOKLYN

The largest amount of total inventory in Manhattan is concentrated in the Financial Total Inventory is defined as all new development units, both currently listed as either District, followed closely by the Upper East Side and the Lower East Side. In Active, Contract Signed, or Closed, as well as those units not yet released to the Brooklyn, the highest total inventory is found in Williamsburg, Prospect Heights, and market. Available Units is defined as new development units that are either currently Boerum Hill. The graphs below present total inventory by neighborhood along with listed as Active or those not yet released to the market. These numbers include units the corresponding percentage of units sold. released prior to 2017, provided they are in a project that has not sold out all sponsor units. This data provides a comprehensive look at new development inventory by including unreleased units.

MANHATTAN TOTAL INVENTORY

TOTAL UNITS PERCENT SOLD PERCENTAGE SOLD

1600 100% 77% 71% 1400 18% 90% 44% 44% 66% 57% 62% 60% 80% 1200 52% 67% 48% 63% 70% 1,344 1000 1,276 35% 23% 60% 1,120 38% 38% 21% 1,163 800 21% 50%

600 812 40% 746 400 30% 577 543

468 20% 459 456

200 391 152 372 338 114 10% 34 21 212

HARLEM UWS UES MIDTOWN BN. MIDTOWN CHELSEA WEST HELL'S GRAM. FLATIRON GREEN. SOHO NOHO TRIBECA WEST EAST LES FINANCIAL WEST ROW* EAST CHELSEA KITCHEN PARK VILLAGE VILLAGE VILLAGE DISTRICT

BROOKLYN TOTAL INVENTORY

TOTAL UNITS PERCENT SOLD PERCENTAGE SOLD 94% 79% 600 85% 100% 90% 500 63% 65% 80%

50% 509 66% 60% 58% 400 70% 60% 300 50% 40% 295 200 274 30%

100 20% 157 136

32 10% 92 80 89

BROOKLYN CARROLL CLINTON HILL BOERUM HILL DUMBO GREENPOINT PROSPECT PARK SLOPE WILLIAMSBURG HEIGHTS GARDENS HEIGHTS

*Billionaire's Row comprised of: 432 Park Ave, 53 W 53rd, 520 Park Avenue

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 11 Further Insight MANHATTAN AND BROOKLYN

NEW DEVELOPMENT LISTINGS BY NEIGHBORHOOD MEDIAN SIZE (SQ. FT.) BY UNIT TYPE Downtown Manhattan continued to experience the most new development Two-bedroom units in Brooklyn remain more efficiently sized than those in Manhattan, activity by volume in Q2 2017, followed closely by Brooklyn. In Manhattan, over while one-bedrooms are becoming more similarly sized in each borough. Median size for 350 units entered into contract in Q2 2017, a decrease of 22.8% year-over year two-bedroom units in Brooklyn is 1171 sq.ft, while the median for two-bedroom units in from just over 450 units in Q2 2016. In Brooklyn, over 115 units entered into Manhattan is 1400 sq. ft. Median size for one-bedroom units in Brooklyn is 712 sq.ft, while contract in Q2 2017, a 36.4% year-over-year increase from just over 85 units in Q2 the median for one-bedroom units in Manhattan is 791 sq. ft. 2016. These numbers include units that entered into contract and closed within the same quarter.

ACTIVE CONTRACT SIGNED CLOSED MANHATTAN BROOKLYN

600 5,000 4,500 500

563 4,000 4,608 400 3,500 3,000 300 2,500 3,276

2,000 2,899

200 2,424 240

253 1,500 2,223 791

1,000 712 1,702 178

566 74 100 65 148 63 461 56 1,400 135 47 47 44 1,1171 28 35 37 21 500 13 20 16 15 2 78 2

UES UWS MIDTOWN MIDTOWN BN DOWNTOWN UPPER BKLYN** STUDIO 1 BR 2 BR 3 BR 4 BR 5 BR EAST WEST ROW* MANHATTAN

HPDM | HPDMNY.COM | 2017 Second Quarter Report | 12 Contact

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445 Park Avenue, 10th Floor | New York, NY 10022 Prepared by Matthew Petrallia, Vice President of Research and Analytics HPDMNY.com The information presented here has been gathered from resources deemed reliable and refined by HPDM internal research, though it may be subject to errors, omissions, changes or withdrawal without notice. This information may 212 521 5757 not be copied, commercially used or distributed without HPDM’s prior consent. For questions or comments regarding this report please contact [email protected]