SALES REPORT | Q2 2017 NYC MULTIFAMILY | BROOKLYN | BRONX | QUEENS

www.newyorkmultifamily.com NYC

INTRODUCTION

Dear Friends and Investors,

This is our comprehensive NYC Multifamily Report representing sales from Manhattan, Brooklyn, Bronx, and Queens- combining the full quarter of sales data into one report. As we enter into the second half of 2017, multifamily investors have been asking what the right move is in today’s flat market. While the market may not be moving up or down today, investors should prepare for what’s ahead. Standing still can Peter Von Der Ahe cost you. There are several strategic moves investors could make. Let’s explore 5 Marcus & Millichap possibilities: 212.430.5114 Exploit Market Inefficiencies: One reason the market is flat is there is no industry- wide consensus that pricing is moving up or down. By definition, there is confusion. 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 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. I hope you find this report valuable and look forward to our next conversation.

Best Regards,

e-mail: [email protected] MULTIFAMILY SALES REPORT

TABLE OF CONTENTS

SECTION I Manhattan

SECTION II Brooklyn

SECTION III Bronx

SECTION IV Queens

SECTION V

Recent Commercial Debt Financing About Us

NEWYORKMULTIFAMILY.COM NYC

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.

NEWYORKMULTIFAMILY.COM MULTIFAMILY SALES REPORT

SECTION I

MANHATTAN ANALYSIS

NEWYORKMULTIFAMILY.COM MANHATTAN

LARGEST MANHATTAN 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 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 Noah Kossoff 212.430.5162 646.805.1426 [email protected] [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

For further details: Corey Isdaner Logan Markley 212.430.5162 212.430.5194 [email protected] [email protected]

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 74th Street 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

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 Logan Markley 212.430.5155 212.430.5194 [email protected] [email protected]

NEWYORKMULTIFAMILY.COM MANHATTAN

MANHATTAN

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: Jacob Kahn 212.430.5155 [email protected]

NEWYORKMULTIFAMILY.COM MULTIFAMILY SALES REPORT

SECTION II

BROOKLYN ANALYSIS

NEWYORKMULTIFAMILY.COM BROOKLYN

LARGEST BROOKLYN SALES

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

70 Dahill Road 218 South Third Street June 2017 | $33,000,000 May 2017 | $23,000,000 100 Units 41 Units $335 Price/SF $594 Price/SF

862 Union Street 380-386 Lefferts Avenue April 2017 | $22,000,000 May 2017 | $20,250,000 49 Units 46 Units $623 Price/SF $536 Price/SF

*Includes only single asset transactions

NEWYORKMULTIFAMILY.COM BROOKLYN

NEW YORK CITY Brooklyn

PROPERTY DATE PRICE UNITS CAPRATE GRM SF $/SF

509 Saratoga Avenue 30-Jun $5,500,000 32 5.10% 11.28 20,840 $264

16 Monroe Pl and 268 Henry St 20-Jun $11,200,000 19 3.56% 18.19 16,075 $697

70 Dahill Road 16-Jun $33,000,000 100 3.51% 18.75 98,440 $335

715 Lorimer Street 14-Jun $5,900,000 8 Finished Product 6,000 $983

Sunset Park Section 8 Portfolio 13-Jun $54,160,395 221 Value Add 185,972 $291

103 8-Jun $5,100,000 5 Delivered Vacant 7,750 $658

68 North 8th Street 6-Jun $5,600,000 10 Finished Product 6,250 $896

202 Washington Park 31-May $5,000,000 7 Finished Product 6,200 $806

761 Bushwick Avenue 22-May $11,700,000 70 Value Add 57,257 $204

BK-18 19-May $72,930,000 207 5.07% 14.68 174,378 $418

218 South 3rd Street 16-May $23,000,000 41 3.90% 38,700 $594

Berelson Portfolio 16-May $10,000,000 105 Value Add 60,560 $165

380-386 Lefferts Avenue 9-May $20,250,000 46 6.10% 13.11 37,763 $536

1040 Park Place 8-May $6,000,000 24 2.20% 21.92 25,520 $235

926 Bedford Avenue 27-Apr $9,300,000 1 Delivered Vacant 25,244 $368

556-570 Lefferts Avenue 13-Apr $25,000,000 102 3.00% 18.48 103,650 $241

862 Union Street 13-Apr $22,000,000 49 Value Add 35,310 $623

66 Graham Avenue 5-Apr $11,400,000 37 4.70% 15.00 25,900 $440

288/295 Maple Street 5-Apr $17,500,000 75 3.50% 74,622 $235

OUR REPORT This section represents six markets, as displayed on the previous page, featuring Brooklyn multifamily sales from Q2 of 2017 valued over $5,000,000.

NEWYORKMULTIFAMILY.COM BROOKLYN

NEW YORK CITY Brooklyn

509 Saratoga Avenue 16 Monroe Pl and 268 Henry St 70 Dahill Road 715 Lorimer Street Sunset Park Portfolio

103 Broadway 68 North 8th Street 202 Washington Park 761 Bushwick Avenue BK-18

218 South 3rd Street Berelson Portfolio 380-386 Lefferts Avenue 1040 Park Place 926 Bedford Avenue

556-570 Lefferts Avenue 862 Union Street 66 Graham Avenue 288/295 Maple Street

For further details: Michael Salvatico Tom Shihadeh 718.475.4358 718.475.4380 [email protected] [email protected]

NEWYORKMULTIFAMILY.COM MULTIFAMILY SALES REPORT

SECTION III

BRONX ANALYSIS

NEWYORKMULTIFAMILY.COM BRONX

LARGEST BRONX SALES

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

2001-2025 Seward Avenue 888 Grand Concourse May 2017 | $33,650,000 June 2017 | $28,000,000 179 Units 91 Units $152 Price/SF $228 Price/SF

231-235 West 230th Street 2690 University Avenue May 2017 | $20,000,000 June 2017 | $14,000,000 93 Units 69 Units $251 Price/SF $238 Price/SF

*Includes only single asset transactions

NEWYORKMULTIFAMILY.COM BRONX

NEW YORK CITY Bronx

PROPERTY DATE PRICE UNITS $/UNIT SF $/SF

888 Grand Concourse 13-Jun $28,000,000 91 $307,692 122,800 $228 2690 University Avenue 12-Jun $14,000,000 69 $202,899 58,800 $238 1654 Monroe Avenue 23-May $7,720,000 50 $154,400 44,000 $175 231-235 West 230th Street 23-May $20,000,000 93 $215,054 79,630 $251 2001-2025 Seward Avenue 10-May $33,650,000 179 $187,989 221,208 $152 909 Sheridan Avenue 3-May $12,383,705 66 $187,632 77,050 $161 Taylor Avenue Portfolio 26-Apr $10,750,000 60 $179,167 46,580 $231 Bronx Six Portfolio 20-Apr $38,500,000 209 $184,211 184,381 $209 Prana 11 Building Portfolio 6-Apr $49,280,000 260 $189,538 218,102 $226

OUR REPORT Our report represents two markets, as displayed to the right, featuring Bronx multifamily sales North from Q2 of 2017, above 40 units. Bronx

South Bronx

For further details: Mike Fusco 212.430.5281 [email protected]

NEWYORKMULTIFAMILY.COM BRONX

NEW YORK CITY Bronx

888 Grand Concourse 2690 University Avenue 1654 Monroe Avenue 231-235 West 230th St 2001-2025 Seward Avenue

909 Sheridan Avenue Taylor Avenue Portfolio Bronx Six Portfolio Prana 11 Building Portfolio

NEWYORKMULTIFAMILY.COM MULTIFAMILY SALES REPORT

SECTION IV

QUEENS ANALYSIS

NEWYORKMULTIFAMILY.COM BRONX

NEW YORK CITY Queens

PROPERTY DATE PRICE UNITS CAPRATE GRM SF $/SF

26-49 96 Street 14-Jun $10,200,000 69 3.65% 56,584 $180 89-10 Whitney Avenue 9-Jun $23,400,000 96 3.30% 17.80 89,293 $262 30-58 and 30-64 34th St 19-May $20,500,000 70 2.91% 17.85 49,600 $413 31-32 29th Street 8-May $9,500,000 25 Value Add 18,800 $505 64-01 Woodside Avenue 27-Apr $14,500,000 28 Value Add 26,252 $552 39-11, 15, 19 62nd St 19-Apr $12,900,000 48 4.25% 15.50 42,720 $302 Kushner Portfolio 5-Apr $76,500,000 150 4.80% 15.20 96,384 $794 24-16 29th Street 5-Apr $11,400,000 27 3.79% 16.26 25,000 $456

26-49 96 Street 89-10 Whitney Avenue 30-58 & 30-64 34th St 31-32 29th Street 64-01 Woodside Avenue

39-11, 15, 19 62nd Street Kushner Portfolio 24-16 29th Street

OUR REPORT This section of the report represents all Queens sales above $5MM, from Q2 of 2017

North Bronx

South For further details: Bronx Mike Fusco 212.430.5281 [email protected]

NEWYORKMULTIFAMILY.COM MULTIFAMILY SALES REPORT

SECTION V

COMMERCIAL DEBT FINANCING + ABOUT US

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 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 New York City, 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

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