MetroGrid Report: Upper East Side

FOCUS ON NYC SUBMARKETS

November 2016

The Second Avenue Subway

The first leg of the long awaited Second Avenue Subway The Second Avenue Subway is New York City’s first major is scheduled to open soon and already retailers along subway expansion in over 50 years and when the first phase the commercial corridor are breathing a sigh of relief as is completed it is expected to serve approximately 200,000 construction winds down. riders each day, decrease crowding on the Lexington Avenue line by up to 13 percent, and reduce travel time for Although some intersections on Second Avenue are still Upper East Side commuters by 10 minutes or more. construction sites, much of the street has been restored and improved with wider sidewalks and plans for decorative No doubt foot traffic will increase when new stations open lighting, benches, and bike lanes. at 72nd Street, 86th Street, and 96th Street giving a much MetroGrid Report | Upper East Side FOCUS ON NYC SUBMARKETS Real estate investment services

Rendering: 72nd Street Station. Source: MTA

needed boost to retailers on Second Avenue. Also, the Q compared to $3,302 and $4,761, respectively, in Chelsea, line will be extended from its current terminal at 57th Street according to MNS’ Manhattan Rental Market Report. The – Seventh Avenue to the new 96th Street – Second Avenue average rent in October was $3,095 for a two bedroom station via an existing tunnel under Central Park and 63rd apartment in a non-doorman building and $6,085 in a Street. doorman building on the Upper East Side, compared to $4,552 and $6,890, respectively, in Chelsea, the report The Manhattan Chamber of Commerce is partnering with showed. the MTA to support local retailers along Second Avenue, many of which are Mom and Pop establishments and new The Second Avenue Subway will give residents in retail shops serving the needs of the local community rather apartments between Second Avenue and the FDR Drive than national chains designed for destination shoppers. easier access to transportation and, as a result, those units will become more desirable, which could result in higher Brokers say that owners have already figured the hope of the rents for free market units and greater value for multifamily new subway line into their retail rent calculations for Second building owners. Avenue where asking rents between 59th and 90th Streets are averaging $163 per square foot, but there is room for In the first six months of this year, investment property sales more growth after the new stations open and pedestrian on the Upper East Side exceeded $908 million, with the traffic picks up. Retail rents average $787 per square foot on largest dollar transaction a 207,284-square-foot apartment Madison Avenue, $291 on Lexington Avenue, and $286 on building at 250 East 63rd Street just off of Second Avenue Third Avenue. that traded for $180 million, or $868 per square foot, and a 279,891-square-foot newly constructed apartment building Although always a stable neighborhood, the Upper East at 1731-1735 York Avenue off 90th Street that traded for Side’s residential rents are among the lowest in the city due $139.6 million, or $499 per square foot. Last year, Eastern in part to the fact that 35,651 units, or 44.4 percent of the Consolidated sold a 26,000-square-foot property at 320 apartments in the neighborhood, are rent stabilized or rent East 82nd Street off Second Avenue for $23.2 million, or controlled, according to a report by the NYU Furman Center. over $892 per square foot.

In October, the average rent on the Upper East Side was The Second Avenue Subway will be built in four phases and $2,569 for a one bedroom unit in a non-doorman building when fully completed will extend 8.5 miles from 125th Street and $3,910 for a one bedroom unit in a doorman building, to Hanover Square in Lower Manhattan.

2 MetroGrid Report | Upper East Side FOCUS ON NYC SUBMARKETS Real estate investment services

Upper East Side | 2016 Sales Comps

Property Type Sale Date Sale Price Property Address SF $/SF

Hospitality 1/19/2016 $6,450,000.00 502 East 81st Street 5,855 $1,101.62

Multi-Family 3/9/2016 $180,000,000.00 250 East 63rd Street 207,28 4 $868.37

Multi-Family 5/20/2016 $139,600,000.00 1731-1735 York Avenue 279,891 $498.77

Multi-Family 3/9/2016 $130,000,000.00 1345-1357 First Avenue 165,527 $785.37 987 Madison Avenue Multi-Family 3/29/2016 $76,461,000.00 142,110 $538.04 Retail Co-op/Ground Multi-Family 4/6/2016 $52,600,000.00 1100, 1108 Lexington Ave 38,472 $1,367.23

Multi-Family 6/10/2016 $28,700,000.00 9 East 75th Street 13,176 $2,178.20

Multi-Family 1/15/2016 $27,000,000.00 322-326 East 82nd Street 48967 $551.39

Multi-Family 4/14/2016 $18,000,000.00 1286 First Avenue 40,571 $443.67

Multi-Family 6/29/2016 $17,750,000.00 1269 First Avenue 15,498 $1,145.31

Multi-Family 2/19/2016 $9,750,000.00 221 East 94th Street 10,120 $963.44

Multi-Family 1/20/2016 $9,750,000.00 1664 Third Avenue 13,000 $750.00

Multi-Family 1/25/2016 $9,400,000.00 1363 First Avenue 6,000 $1,566.67

Multi-Family 5/25/2016 $9,250,000.00 316-318 East 81st Street 5,400 $1,712.96

Multi-Family 3/17/2016 $7,600,000.00 334 East 90th Street 8,590 $884.75

Multi-Family 3/15/2016 $7,325,000.00 331 East 89th Street 8,500 $861.76

Mixed Use 6/30/2016 $6,600,000.00 327 East 65th Street 6,400 $1,031.25

Multi-Family 4/1/2016 $5,000,000.00 431 East 87th Street 5,091 $982.13

Multi-Family 1/6/2016 $4,500,000.00 322 East 79th Street 6,015 $748.13

Office 1/20/2016 $17,350,000.00 162 East 78th Street 9,007 $1,926.28

Mixed Use 4/4/2016 $28,000,000.00 27 East 79th Street 5,760 $4,861.11

Mixed Use 6/17/2016 $19,700,000.00 18 East 69th Street 6,770 $2,909.90

Retail 2/24/2016 $17,500,000.00 202 East 77th Street 6,130 $2,854.81

Specialty 6/28/2016 $24,961,050.00 1010 Park Avenue 17,125 $1,457.58

Specialty 4/7/2016 $20,000,000.00 7 East 96th Street 13,845 $1,444.56

Specialty 4/19/2016 $15,000,000.00 350 East 88th Street 11,218 $1,337.14

Specialty 1/13/2016 $16,250,000.00 124-126 East 63rd Street 23,297 $ 6 97.51 404 E 79th Street, Office 2/8/2016 $3,100,000.00 17,812 $174.04 Commercial Unit A $907,597,050.00

3 MetroGrid Report | Upper East Side FOCUS ON NYC SUBMARKETS Real estate investment services

Upper East Side | Average Retail Rents by Corridor

Between East 59th & East 90th Streets

Retail Corridor Asking Rent

Madison Avenue $787

Lexington Avenue $291

3rd Avenue $286

2nd Avenue $163

Source: Agorafy

Upper East Side | Average Residential Rents

Bedrooms Monthly Rent

Studios Doorman $2,696

Studios Non-Doorman $2,105

One-Bedroom Doorman $3,910

One-Bedroom Non-Doorman $2,569

Two-Bedroom Doorman $6,085

Two-Bedroom Non-Doorman $3,095

Source: MNS

4 MetroGrid Report | Upper East Side FOCUS ON NYC SUBMARKETS Real estate investment services

Upper East Side | Select Average Asking Rent for Vacant Retail by Block

MADISON AVENUE BETWEEN: SF PRICE PER SF THIRD AVENUE BETWEEN: SF PRICE PER SF E. 59th-60th Streets 22,445 $1,543 E. 60th-61st Streets 950 $215 E. 63rd-64th Streets 1,650 $1,394 E. 61st-62nd Streets 1,210 $268 E. 65th-66th Streets 3,800 $1,200 E. 69th-70th Streets 3,216 $300 E. 67th-68th Streets 2,382 $881 E. 71st-72nd Streets 7,100 $450 E. 69th-70th Streets 3,000 $734 E. 76th-77th Streets 1,500 $280 E. 72nd-73rd Streets 774 $772 E. 78th-79th Streets 1,200 $295 E. 74th-75th Streets 1,949 $1,200 E 79th-80th Streets 890 $371 E. 76th-77th Streets 860 $1,000 E. 82nd-83rd Streets 1,421 $250 E. 78th-79th Streets 1,000 $500 E. 88th-89th Streets 1,620 $223 E. 79th-80th Streets 450 $586 E. 89th-90th Streets 400 $210 E. 82nd-84th Streets 1,061 $438 AVERAGE $286 E. 83rd-84th Streets 2,100 $475 E. 84th-85th Streets 1,500 $280 SECOND AVENUE BETWEEN: SF PRICE PER SF E. 85th-86th Streets 1,650 $400 E. 60th-61st Streets 825 $185 E. 86th-87th Streets 1,400 $400 E. 63rd-64th Streets 1,600 $150 AVERAGE $787 E. 68th -69th Streets 700 $163 E. 72nd-73rd Streets 1,100 $99 LEXINGTON AVENUE BETWEEN: SF PRICE PER SF E. 73rd-74th Streets 1,800 $200 E. 60th-61st Streets 11,352 $169 E. 80th-81st Streets 1,400 $185 E. 62nd-63rd Streets 1,400 $122 E. 82th-83rd Streets 907 $154 E. 69th-70th Streets 1,163 $315 E. 84th-85th Streets 1,600 $120 E. 70th-71st Streets 350 $350 E. 85th-86th Streets 1,200 $215

E. 72nd-73rd Streets 2,800 $258 AVERAGE $163 E. 76th-E. 77th Streets 2,037 $700 E. 77th-78th Streets 750 $344 E. 78th-79th Streets 1,710 $308 E. 79th-E. 80th Streets 330 $200 E 80th-E. 81st Streets 1,000 $240 E. 84th-E. 85th Streets 2,070 $261 E. 85th 86th Streets 2,625 $210 E. 87th-88th Streets 940 $300

AVERAGE $291

Source: Agorafy

5 MetroGrid Report | Upper East Side FOCUS ON NYC SUBMARKETS Real estate investment services

Upper East Side Community District Data

Upper East Side

MN08 MANHATTAN DISTRICT PROFILES COMMUNITY Single-Year Indicators 2014 Rank ◆ Rental Units 2005-09 2010-14 % Change 2010-14 Rank Population 221,898 – Median rent, all MN08 $1,923 $1,972 2.6% 4 Population density (1,000 persons per square mile) 110 1 NYC $1,132 $1,236 9.1% – Racial diversity index 0.39 52 Median rent, MN08 $2,200 $2,086 -5.2% 6 Income diversity ratio 5.9 16 recent movers NYC $1,451 $1,549 6.8% –

◆ Severe crowding rate (% of renter households) 1.8% 48 Median rent, MN08 $1,837 $1,920 4.5% 4 Median rent, asking $2,600 11 studios and 1-bdrms NYC $1,078 $1,174 8.9% – Residential units in FEMA preliminary flood hazard areas 11.7% 17 Median rent, MN08 $2,282 $2,251 -1.4% 3 Residential units within 1/4 mile of a park 69.3% 37 2- and 3-bdrms NYC $1,199 $1,312 9.4% – Residential units within 1/2 mile of a subway station 78.9% 33 Rental vacancy rate MN08 4.8% 4.8% – 9 Lots regulated by the LPC 31.3% 5 NYC 3.7% 3.7% – –

Household Income Distribution (2015$) Racial and Ethnic Composition

n 2000 n 2010-14 n 2000 n 2014

83% 77%

32% 31% 23% 23% 20% 19% 10% 8% 8% 8% 10% 10% 10% 9% 6% 3% 2% 6%

≤$20,000 $20,001– $40,001– $60,001– $100,001– >$250,000 Asian Black Hispanic White $40,000 $60,000 $100,000 $250,000

Housing 2000 2006 2010 2014 2015 2000 Rank 2014-15 Rank Units authorized by new residential building permits 241 583 0 464 187 18 40 Units issued new certificates of occupancy 554 948 165 8 325 9 12

◆ Homeownership rate 30.7% 37.3% 32.7% 34.2% – 22 20 Serious housing code violations (per 1,000 privately owned rental units) – 9.9 12.1 14.2 15.1 – 50 Sales volume 396 1,229 992 934 758 34 13 Index of housing price appreciation, all property types 100.0 178.1 175.8 231.9 243.3 – 32 Index of housing price appreciation, 5+ family building 100.0 112.6 149.5 281.8 318.4 – 43 Index of housing price appreciation, condominium1 100.0 182.0 178.4 230.9 241.8 – 17 Median sales price per unit, 5+ family building $252,400 $276,753 $208,032 $556,256 $600,201 3 6 Median sales price per unit, condominium1 $930,870 $979,746 $1,281,349 $1,451,327 $1,485,000 2 3 Median rent $1,762 $1,870 $1,922 $2,103 – 1 4 Median rent burden 22.6% 25.1% 27.0% 25.4% – 52 54 ◆ Severely rent-burdened households 17.3% – – 19.8% – 54 53 ◆ Severely rent-burdened households, low income 59.4% – – 59.6% – 1 5 Housing choice vouchers (% of occupied, privately owned rental units) – – 1.6% 1.3% – – 47 Home purchase loan rate (per 1,000 properties) – 25.9 17.2 18.1 – – 32 Refinance loan rate (per 1,000 properties) – 10.4 30.7 8.0 – – 26 FHA/VA-backed home purchase loans (% of home purchase loans) – 0.0% 0.2% 0.0% – – 50 Pre-foreclosure notice rate (per 1,000 1–4 family and condo properties) – – – 9.5 8.1 – 55 Notices of foreclosure rate (per 1,000 1–4 family and condo properties) 2.4 1.7 7.8 2.5 1.6 51 56

Population 2000 2006 2010 2014 2015 2000 Rank 2014-15 Rank

◆ Households with children under 18 years old 13.3% 17.2% 16.2% 18.2% – 52 50

◆ Population aged 65+ 14.2% 14.3% 17.6% 18.2% – 12 6 Foreign-born population 21.5% 20.5% 21.1% 24.2% – 44 45 Median household income $110,406 $113,623 $103,284 $115,383 – 1 2 Population 25+ with a bachelors degree or higher 74.7% 77.7% 76.7% 81.3% – 1 1 Poverty rate 6.5% 4.8% 6.8% 8.1% – 53 53 Unemployment rate 3.7% 3.5% 6.0% 3.0% – 55 55 Car-free commute (% of commuters) 78.4% 78.6% 83.8% 84.2% – 12 14 Mean travel time to work (minutes) 30.7 31.0 30.0 31.0 – 51 50 Serious crime rate (per 1,000 residents) 20.0 13.6 9.1 9.2 9.1 36 45 Students performing at grade level in English language arts, 4th grade – – – 65.9% 67.2% – 5 Students performing at grade level in math, 4th grade – – – 67.5% 74.8% – 6 Note: Community district MN 08 falls within sub-borough area 306. ◆ These indicators use five-year estimates from the American Community Survey (ACS). All data under the 2000 heading comes from the 2000 Census and data under the 2014 heading from the 2010–2014 ACS. ◆ Under the 2010 heading, data come from the 2010 Census. See the ACS section in the Methods chapter for more information. 1 Ranked out of the 17 community districts where condominium sales were more prominent than 1-4 family building sales between 2000 and 2015.

Source: NYU Furman Center, State of New York City’s Housing and Neighborhoods in 2015State of New York City’s Housing and Neighborhoods in 2015 117

6 MetroGrid Report | Upper East Side FOCUS ON NYC SUBMARKETS Real estate investment services

Select Eastern Consolidated Transactions | Upper East Side

7 MetroGrid Report | Upper East Side FOCUS ON NYC SUBMARKETS Real estate investment services

Select Eastern Consolidated Transactions | Upper East Side

DEVELOPMENT OFFICE RESIDENTIAL RESIDENTIAL

1. 1133 York Avenue 19. 153 East 60th Street 37. 320 East 82nd Street 56. 1158 Second Avenue

2. 323 East 60th Street 20. 838 Fifth Avenue 38. 302 East 83rd Street 57. 1160-1162 First Avenue

3. 149-151 East 78th Street 39. 225 East 82nd Street 58. 1055 Park Avenue RESIDENTIAL

4. 1569 Second Avenue 40. 204 East 83rd Street 59. 228-238 East 80th Street 21. Trafalgar House

5. 321 East 60th Street 41. 133 East 84th Street 60. 1695 First Avenue 22. 400 East 67th Street

6. 305 East 85th Street 42. 317 East 90th Street 61. 411 East 75th Street 23. 400 East 67th Street

7. 1480-1482 Second Avenue 43. 313 East 90th Street 62. 410 East 75th Street 24. 808 Lexington Avenue

8. 212-214 East 95th Street 44. 221 East 94th Street 63. 480 East 74th Street 25. 60 East 66th Street

9. 1711 First Avenue 45. 205 East 85th Street 64. 405 East 90th Street 26. 1343-1347 Second Avenue

10. 1713 First Avenue 46. 220 East 63rd Street 65. 403 East 77th Street 27. 242 East 71st Street

11. 354 East 89th Street 47. 351 East 82nd Street 66. 313 East 78th Street 28. 423-425 East 76th Street

48. 512 East 81st Street MIXED USE 29. 520 East 76th Street RETAIL 49. 309 East 75th Street 12. 360 East 65th Street 30. 515-519 East 72nd Street 67. 201-203 East 86th Street 50. 484 East 74th Street 13. 250 East 65th Street 31. 255 East 74th Street 68. 1110 Third Avenue 51. 335 East 65th Street 14. 847 Lexington Avenue 32. 1439 Second Avenue 52. 420 East 80th Street RETAIL LEASING 15. 711 Madison Avenue 33. 309 East 76th Street

53. 322-334 East 63rd Street 69. 220 East 60th Street 16. 1428 Lexington Avenue 34. 518 East 81st Street

54. 330 East 63rd Street 70. 1334 Third Avenue 17. 1854 Second Avenue 35. 529-537 East 81st Street

55. 1144-1150 Second Avenue 71. 218 East 81st Street 18. 1128 Third Avenue 36. 300 East 79th Street

8 MetroGrid Report | Upper East Side FOCUS ON NYC SUBMARKETS Real estate investment services

Eastern Consolidated’s Recently Closed Transactions | Upper East Side

Upper East Side / Clinton Hill Portfolio

Property Type Mixed Use Location Upper East Side / Clinton Hill Square Footage 127,393 SF Selling Price $86,000,000

1110 Third Avenue

Property Type Retail Condo Location Upper East Side Square Footage 34,140 SF Selling Price $40,860,000

320 East 82nd Street

Property Type Multifamily Location Upper East Side Square Footage 26,000 SF Selling Price $23,200,000

44-46 East End Avenue

Property Type Multifamily Location Upper East Side Square Footage 16,110 SF Financed $12,450,000 seven year loan

9 MetroGrid Report | Upper East Side FOCUS ON NYC SUBMARKETS Real estate investment services

Eastern Consolidated’s Select Exclusives | Upper East Side

261 East 78th Street

Property Type Medical Office Location Upper East Side Square Footage 17,266 SF Asking Price $19,750,000

1410-1418 Lexington Avenue

Property Type Retail Condo Location Upper East Side Square Footage 5,100 SF Asking Price $14,250,000

306 East 81st Street

Property Type Mixed Use Location Upper East Side Square Footage ±4,125 SF Asking Price Please Inquire

1109 Lexington Avenue

Property Type Retail Location Upper East Side Square Footage 750 SF Asking Rent Upon Request

10