125Th Street

Real estate investment services

FOCUS ON NYC SUBMARKETS

May 2016

Central Harlem’s Retail Transformation

Central Harlem’s growing population, rising incomes, and Construction is nearing completion on a five-story, flourishing condominium developments have made the area 180,000-square-foot shopping center at 125th Street and ripe for national and local retailers. Lenox Avenue that will be home to Whole Foods, Burlington Coat Factory, American Eagle, and the Olive Garden. Also, Blink Fitness, Party City, DSW, Red Lobster, H&M, Marshalls, Bed, Bath & Beyond and WeWork have signed leases at a CVS Pharmacy, Starbucks, and Staples to name a few have planned project at 5 West 125th Street. already established a beachhead along 125th Street and more national retailers are on the way. MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS Real estate investment services

Development on 125th Street is spilling over to the north- corridors are under retailed and, as a result, the board is south corridors such as Lenox Avenue, which has become now encouraging retail development on 116th Street, 135th Harlem’s “Restaurant Row” boasting eateries such as Street, and 145th Street. Chaiwali, Red Rooster, Sylvia’s, Corner Social, Lenox Saphire, Harlem Shake, Sushi Inoue, and Babbalucci that Central Harlem also continues to attract buyers for its operate between 124th and 129th Streets. elegant brownstones, mixed-use buildings, and office properties. In 2015 the area saw an aggregate of over $725 Eastern Consolidated is in the midst of this activity with million in property transactions, a 5 percent increase from its Retail Leasing team actively marketing nine retail sites 2014 which saw $689 million in property transactions. throughout Harlem. The firm’s recent retail survey shows average asking retail rents of $104 per square foot on 125th Many of these trades were for the smaller properties that Street; $61 per square foot on 116th Street; $70 per square dominate the area, but a few consisted of significant foot on 135th Street; $71 per square foot on 145th Street; portfolios. The largest transaction in 2015 was a $117 million $84 per square foot on Frederick Douglass Boulevard; $63 land lease deal for a package of two office buildings—a per square foot on Adam Clayton Powell Jr. Boulevard; and 170,841-square-foot property at 215-217 West 125th $93 per square foot on Lenox Avenue. Street and a 228,017-square-foot property at 55-61 West 125th Street that is home to the office of former President Community Board 10, which covers Central Harlem, has Bill Clinton—and two parking lots at 62 and 64 West 126th welcomed retail along 125th Street but notes that other Street. Thor Equities bought a 46,200-square-foot mixed-

01 | MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS Real estate investment services use property at 17 West 125th Street for $30 million, and Central Harlem has changed. Median household income in Eastern Consolidated arranged the sale of the 13-building Central Harlem rose to $40,615 in 2014 up from $31,502 Morningside Heights portfolio for $47 million. in 2000; the population increased to 132,027 residents in 2014, up from 107,109 in 2000 and 99,519 in 1990; and So far in 2016, the largest sale has been the $21,080,388 median condominium sales rose to $880,500 in 2015 up purchase of a 24,600-square-foot office building at 310- from $237,379 per unit in 2000, with the majority of condos 316 Lenox Avenue, which houses the popular Red Rooster in South Central Harlem trading for close to or above $1,000 restaurant on the ground floor and lower level. per square foot.

The transformation of Central Harlem is remarkable because New condominium development, an influx of residents it was one of the areas hardest hit by disinvestment in seeking affordable housing, excellent transportation, and the 1970s and 1980s. The community was in such poor nearby parks have all contributed to Harlem’s second shape that between 1987 and 2003 city programs provided renaissance. The Furman Center study showed that 100 assistance to nearly 22,000 units or 40.6 percent of Central percent of the residential units in Central Harlem are located Harlem’s housing stock, more than any other neighborhood within one half mile of a subway station, ranking it first in the in New York City, according to a NYU Furman Center paper. city for transportation access, and that the mean travel time from Central Harlem to work is 34.5 minutes. In addition, A new NYU Furman Center publication A Study of New 96.6 percent of the residential units are one-fourth mile from York’s Housing and Neighborhoods in 2015 illustrates how a park.

02 | MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS Real estate investment services

Harlem | Asking Rents Address SF Available Price/ SF Address SF Available Price/ SF

125th Street Adam Clayton Powell Jr. Blvd.

52 W 125th St 3,132 $51 2524 Adam Clayton Powell Jr Blvd 800 $45

111 E 125th St 4,000 $51 2504 Adam Clayton Powell Jr Blvd 600 $50

51-55 E 125th St 5,200 $59 2268 Adam Clayton Powell Jr Blvd 1,200 $50 112 W 125th St (New Construction: 11,750SF ground & 2nd floor, 96,720 $82 2108-2118 Adam Clayton Powell Jr Blvd 67,50 0 $51 10,000 SF on each floor 3-8) 26 W 125th St 2,000 $84 2363-2369 Adam Clayton Powell Jr Blvd 2,600 $53

32 W 125th St 2,000 $88 2310 Adam Clayton Powell Jr Blvd 1,350 $53

26 E 125th St 3,150 $100 2308 Adam Clayton Powell Jr Blvd 1,210 $54

18 W 125th St 1,500 $104 2225-2239 Adam Clayton Powell Jr Blvd 6,781 $55

28-30 W 125th St 1,785 $108 2239 Adam Clayton Powell Jr Blvd 6,781 $55

61 E 125th St 900 $125 2310 Adam Clayton Powell Jr Blvd 2,550 $55

159 E 125th St 2,120 $125 2308 Adam Clayton Powell Jr Blvd 2,200 $56

215 W 125th St 1,737 $130 2055 Adam Clayton Powell Jr Blvd 1,000 $59

81 E 125th St 4,100 $160 2051-2055 Adam Clayton Powell Jr Blvd 1,000 $59

313-315 W 125th St 4,800 $185 1917-1919 Adam Clayton Powell Jr Blvd 1,550 $60

Average Asking Rents $104 2185 Adam Clayton Powell Jr Blvd 2,858 $60

Manhattan Avenue 2185 Adam Clayton Powell Jr Blvd 2,858 $60

419-421 Manhattan Ave 2,500 $48 2252-2258 Adam Clayton Powell Jr Blvd 1,000 $60

411 Manhattan Ave 1,205 $45 2500 Adam Clayton Powell Jr Blvd 325 $60

Average Asking Rents $47 2363 Adam Clayton Powell Jr Blvd 1,000 $65

St. Nicholas Avenue 2415 Adam Clayton Powell Jr Blvd 3,000 $65

17-25 St Nicholas Ave 575 $73 1939-1943 Adam C. Powell Jr Blvd 600 $66

761 St Nicholas Ave 670 $47 2067-2069 Adam Clayton Powell Jr Blvd 1,350 $67

Average Asking Rents $60 2369 Adam Clayton Powell Jr Blvd 1,350 $69

Frederick Douglass Blvd. 2067-2069 Adam Clayton Powell Jr Blvd 1,350 $70

2280 Frederick Douglass Blvd 9,000 $65 2574 Adam Clayton Powell Jr Blvd 925 $70

2500 Frederick Douglass Blvd 540 $73 1970 Adam Clayton Powell Jr Blvd 7,50 0 $85

2163-2169 Frederick Douglass Blvd 550 $113 2143 Adam Clayton Powell Jr Blvd 1,650 $87

Average Asking Rents $84 2143 Adam Clayton Powell Jr Blvd 1,650 $88

2373 Adam Clayton Powell Jr Blvd 940 $95

Average Asking Rents $63

04 | MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS Real estate investment services

Harlem | Asking Rents Continued

Address SF Available Price/ SF Address SF Available Price/ SF

Lenox Avenue 116th Street

101-109 Lenox Ave 2,460 $56 109 E 116th St 7,710 $40

419-421 Lenox Ave 300 $72 141 W 116th St 1,240 $44

543 Lenox Ave 600 $75 60 E 116th St 3,000 $45

333 Lenox Ave 1,500 $80 108 W 116th St 1,800 $50

541 Lenox Ave 600 $80 49 West 116 3,720 $50

329-331 Lenox Ave 1,300 $91 33 W 116th St 3,258 $60

192 Lenox Ave 925 $97 15-17 W 116th St 1,600 $75

437-439 Lenox Ave 850 $100 231-235 W 116th St 1,500 $80

381 Lenox Ave 2,050 $100 153-157 E 116th St 1,420 $106

429-431 Lenox Ave 700 $103 Average Asking Rents $61

228 Lenox Ave 915 $105 117th Street

67 Lenox Ave 560 $108 177 E 117th St 700 $81

280-284 Lenox Ave 2,800 $109 205 E 117th St 3,000 $40

352-354 Lenox Ave 1,000 $120 Average Asking Rents $61

Average Asking Rents $93 118th Street

Fifth Avenue 166-172 E 118th St 1,700 $54

1325 Fifth Ave 1,650 $55 159 W 118th St 5,850 $67

2254 Fifth Ave 1,000 $62 159 W 118th St - Space A 1,250 $85

Average Asking Rents $58 159 W 118th St - Space B 1,300 $75

Madison Avenue 159 W 118th St - Space C 1,100 $75

1825 Madison Ave 8,137 $47 159 W 118th St - Space E 1,100 $75

1770 Madison Ave 18,267 $37 Average asking rents $72

Average Asking Rents $42 129th Street

Third Avenue 167 W 129th St 1,000 $52

2162-2172 Third Ave 5,487 $60 131st Street

2171 Third Ave 2,200 $55 273 W 131st St 900 $70

Average Asking Rents $57 101-103 W 131st St 300 $72

112th Street Average Asking Rents $71

204-208 E 112th St 813 $59

05 | MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS Real estate investment services

Harlem | Asking Rents Continued

Address SF Available Price/ SF

135th Street

234-236 W 135th St 700 $57

228 W 135th St 500 $72

300 W 135th St 2,850 $80

Average Asking Rents $70

138th Street

273 W 138th St 3,000 $70

139th Street

272 W 139th St 3,000 $70

144th Street

302 W 144th St 1,000 $48

145th Street

155-157 W 145th St 975 $47

239-251 W 145th St 1,100 $71

350 W 145th St 700 $95

Average Asking Rents $71

06 | MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS Real estate investment services

Central Harlem Community District Data

Central Harlem

MN10 MANHATTAN DISTRICT PROFILES COMMUNITY Single-Year Indicators 2014 Rank ◆ Rental Units 2005-09 2010-14 % Change 2010-14 Rank Population 132,027 – Median rent, all MN10 $790 $913 15.6% 52 Population density (1,000 persons per square mile) 91.2 2 NYC $1,132 $1,236 9.1% – Racial diversity index 0.62 22 Median rent, MN10 $1,065 $1,425 33.8% 27 Income diversity ratio 8.5 1 recent movers NYC $1,451 $1,549 6.8% –

◆ Severe crowding rate (% of renter households) 2.2% 46 Median rent, MN10 $761 $909 19.4% 48 Median rent, asking $2,140 18 studios and 1-bdrms NYC $1,078 $1,174 8.9% – Residential units in FEMA preliminary flood hazard areas 11.3% 18 Median rent, MN10 $825 $946 14.7% 52 Residential units within 1/4 mile of a park 96.6% 13 2- and 3-bdrms NYC $1,199 $1,312 9.4% – Residential units within 1/2 mile of a subway station 100.0% 1 Rental vacancy rate MN10 5.2% 4.8% – 9 Lots regulated by the LPC 10.6% 11 NYC 3.7% 3.7% – –

Household Income Distribution (2015$) Racial and Ethnic Composition

n 2000 n 2010-14 n 2000 n 2014

77% 37% 30% 55% 22% 21% 16% 16% 17% 15% 13% 24% 9% 17% 15% 4% 1% 1% 3% 2%

≤$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 261 611 4 135 379 15 32 Units issued new certificates of occupancy 87 232 435 195 327 31 11

◆ Homeownership rate 6.6% 12.2% 13.4% 12.2% – 52 46 Serious housing code violations (per 1,000 privately owned rental units) – 52.5 50.5 61.3 72.8 – 18 Sales volume 118 339 428 473 411 46 37 Index of housing price appreciation, all property types 100.0 327.7 282.4 449.5 520.7 – 2 Index of housing price appreciation, 5+ family building 100.0 368.8 245.7 502.3 616.6 – 5 Index of housing price appreciation, condominium1 100.0 289.8 304.0 431.0 474.9 – 2 Median sales price per unit, 5+ family building $46,076 $135,569 $106,760 $189,469 $231,250 48 18 Median sales price per unit, condominium1 $237,379 $566,687 $667,448 $745,851 $880,500 13 12 Median rent $700 $764 $859 $973 – 52 50 Median rent burden 26.7% 30.1% 29.5% 29.8% – 25 44 ◆ Severely rent-burdened households 24.1% – – 26.6% – 24 44 ◆ Severely rent-burdened households, low income 33.7% – – 38.8% – 50 51 Housing choice vouchers (% of occupied, privately owned rental units) – – 7.6% 6.7% – – 22 Home purchase loan rate (per 1,000 properties) – 30.2 47.7 25.0 – – 6 Refinance loan rate (per 1,000 properties) – 22.5 10.9 9.4 – – 18 FHA/VA-backed home purchase loans (% of home purchase loans) – 0.0% 14.7% 0.4% – – 45 Pre-foreclosure notice rate (per 1,000 1–4 family and condo properties) – – – 37.6 32.2 – 31 Notices of foreclosure rate (per 1,000 1–4 family and condo properties) 70.0 8.0 13.2 7.4 9.0 1 34

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

◆ Households with children under 18 years old 34.0% 32.5% 27.8% 25.4% – 35 44

◆ Population aged 65+ 11.3% 10.3% 10.5% 9.9% – 24 44 Foreign-born population 17.8% 20.8% 19.7% 20.3% – 51 50 Median household income $31,502 $31,884 $38,224 $40,615 – 52 43 Population 25+ with a bachelors degree or higher 14.8% 25.6% 34.1% 37.8% – 41 17 Poverty rate 36.4% 28.7% 28.1% 29.2% – 8 12 Unemployment rate 18.6% 13.4% 15.9% 13.0% – 5 7 Car-free commute (% of commuters) 81.7% 83.8% 85.0% 88.1% – 8 7 Mean travel time to work (minutes) 37.3 35.5 34.7 34.5 – 42 48 Serious crime rate (per 1,000 residents) 27.1 24.2 17.3 15.7 17.8 15 13 Students performing at grade level in English language arts, 4th grade – – – 18.0% 15.2% – 52 Students performing at grade level in math, 4th grade – – – 15.9% 18.8% – 52 Note: Community district MN 10 falls within sub-borough area 308. ◆ 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.

State of New York City’s Housing and Neighborhoods in 2015 119

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

07 | MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS Real estate investment services

125th Street Business Improvement District

P A R K

A V

MTA Metro North North Metro MTA T

T S

1 2

2 1

E E E 124 ST

V A

N O S I D A M

Harlem Children's Zone

T T

S S 2

S 1

5 5

8 9

2 2

0 3

1 1

3 1

National Black Theater Black National

E E

A V

Marcus Garvey Park

New York Public Library- Harlem Library- Public York New

Harlem Village Academy Village Harlem

K R A P

I S R R O

N O T U M

T T S S

5 5

2 2

1 1

W W

2012 Annual Ridership:2012 Annual 4,635,697 people

V A

X O N E L 3 2

T T 8

S S 9

8 9

2 2 Harlem Center

1 1

W W

Harlem

Studio Museum in Harlem in Museum Studio Mama Foundation for theArts for Foundation Mama

Office Bldg

W Adam Clayton

Powell, Jr. State Powell, Jr.

7th AVE 7th

A D A M

P O W E L L

B L V D Hotel Theresa Hotel 235 West 125th Street 235 West 125th Street 121 West 125th Street 105 West 125th Street 100 West 51 East 125th Street Shoes Atmos

6 7 8 9

6 College Touro

Victoria Theater Victoria

2 4

Apollo Theater Apollo 1 2

2 1

5 W

W T

3 1

1 Hotel Harlem Aloft

D V L B

S S A L G U O D

K C I R D

R F

3 S

USA Harlem

2 1

ST NICHOLAS AV W 4 C D B A Park

St. Nicholas

S T

N I C H O L A S

T E R Showman's Jazz Club Jazz Showman's L P

C M O R N I N G S I D E A O V C N A

H T

CONVENT AV 8

2 Morningside Park

W 2

General Grant Housing Development

A M S T R E D A M

A V 639 West 125th Street 639 West 125th Street 461 West 125th Street 313 West 125th Street 300 West 125th Street 261 West 1 2 3 4 5

125th Street Business Improvement District Business Improvement 125th Street

T S

T T

S E S

L 6 5

Y L

1 A

A W S

A W

W Housing

O A

R General Grant

L B

Development

L O T

T S

2 Morningside Gardens

2 1

W Manhattanville

1 BROADWAY

V A

T N O M

E R A L C W

TIEMANN PL

R I V E R S I D E

D R Columbia University Manhattanville Project

T DR E S E

D T

S T SI

2 R

S VE

3 Cotton Club Club Cotton I

1 0 3 5 R

1 2

Tomb

Grants 1 1

W W W Park

RIVERSIDE DR Riverside

R W

E V I

R L R D S

I D

E P

A T

N I

A S

R N E H

9A Piers River Hudson West Harlem Source: 125th Street BID

08 | MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS Real estate investment services

Recent Eastern Consolidated Harlem Transactions

2415 Adam Clayton Powell Jr. Blvd.

439 Lenox Avenue

381 Lenox Avenue

111 West 128th Street

2067-2069 Adam Clayton Powell Jr. Blvd. 510 Manhattan Avenue 2211-2217 Third Avenue

214-216 East 121st Street

Morningside Hieghts Package

111 Central Park North 161-169 East 110th Street 9-11 Central Park North 1737 Lexington Avenue

09 | MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS Real estate investment services

Eastern Consolidated’s Retail Exclusives | Harlem

2067 Adam Clayton Powell Jr. Boulevard

Property Type Retail Location Harlem Square Footage 1,350 SF Asking Rent $8,000 Per Month

171 West 141st Street Property Type Retail Location Harlem Square Footage 2,500 SF Asking Rent $75 PSF

381 Lenox Avenue

Property Type Retail Location Harlem Square Footage Space A: 600 SF | Space B: 850 SF

Asking Rent $110 PSF

439 Lenox Avenue

Property Type Retail Location Harlem Square Footage Space A: 850 SF | Space B: 600 SF

Asking Rent $7,000 Per Month

10 | MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS Real estate investment services

Eastern Consolidated’s Retail Exclusives | Harlem

510 Manhattan Avenue

Property Type Community Facility Location Harlem Square Footage 5,500 SF Asking Rent $40 PSF

111 Central Park North | Space 1 Property Type Retail Location Harlem Square Footage 1,502 SF Asking Rent Upon Request

111 Central Park North | Space 2

Property Type Retail Location Harlem Square Footage 428 SF Asking Rent Upon Request

111 Central Park North | Space 3

Property Type Retail Location Harlem Square Footage 2,851 SF

Asking Rent Upon Request

11 | MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS Real estate investment services

Eastern Consolidated’s Recently Closed Transactions | Harlem

Morningside Heights Package

Property Type Multifamily Location Harlem Square Footage 13 Properties | 125,000 SF Selling Price $47,000,000

111 Central Park North

Property Type Retail Condo Location Harlem Square Footage 9,391 SF Selling Price $10,800,000

9-11 Central Park North

Property Type Multifamily Location Harlem Square Footage 23,640 SF Selling Price $11,000,000

2211-2217 Third Ave & 214-216 East 121st St Property Type Development Site Location Harlem Square Footage 136,443 Buildable SF Selling Price $13,000,000

12 | MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS Real estate investment services

Eastern Consolidated’s Recently Closed Transactions | Harlem

161-169 East 110th Street

Property Type Retail Condo Location Harlem Square Footage 9,405

Selling Price $5,570,000

2069 Adam Clayton Powell Jr. Boulevard

Property Type Retail - Leased Location Harlem Square Footage 1,350 SF

13 |