Real estate investment services

MetroGrid Report: Times Square/Hell’s Kitchen

FOCUS ON NYC SUBMARKETS

March 2016

Times Square/Hell’s Kitchen Investment Property Sales on Fire

Investment property sales in the Times Square/Hell’s Kitchen the property’s lobby features a 70-foot tall Roy Lichtenstein area doubled to over $3.3 billion in 2015 compared to 2014, painting, and tenants include French bank BNP Paribas, UBS, while the $1.9 billion sale of 787 Seventh Avenue pushed sales Athletic & Swim Club, and a number of law firms. volume to over $2.33 billion in just the first month of this year. Also in January, the Shubert Foundation sold the land beneath In January, CalPERS, acquired the 54-story AXA Equitable a 42-story tower at 1700 Broadway at West 53rd Street for Center at 787 Seventh Avenue from AXA Financial for $280 million to the Ruben Companies, which developed the $1,932,900,000, as part of the pension fund’s “strategic plan Class A office building in 1968 and currently manages it. Office to invest in core, income generating properties.” Built in 1985, tenants include Warner Brothers Entertainment, CBS MetroGrid Report: Times Square/Hell’s Kitchen FOCUS ON NYC SUBMARKETS Real estate investment services

Broadcasting, Talbots, and Friedman LLP, and retailers include building’s top 12 floors from the Blackstone Group for $516 Maison Restaurant and Europa Cafe. million. “Constructed between 1912 and 1947, the building underwent a complete renovation between 2011 and 2015 that In 2015, several Times Square hotels traded with one of the has filled its office portion with major tech and creative tenants most significant being the acquisition of a 97 percent stake in and still offers room for long-term rent growth,” according the 22-story, 689-key Manhattan at Times Square Hotel at 790 to Columbia Property Trust’s website. In October 2015, the Seventh Avenue for $513 million. The buyer was Al Rayyan Kushner Companies paid Africa Israel USA $295 million for the Tourism and Investment, a subsidiary of Qatar’s Al Faisal building’s 250,000-square-foot retail condo, home to Discovery Holdings, and seller Rockpoint Group, Highgate Hotels, and a Times Square, Bowlmor, Guitar Center and other retailers. Goldman Sachs fund. Another notable trade was the sale of a 186,000-square-foot Maefield Development, a privately owned real estate company office building at 311 West 43rd Street for $107 million, which headquartered in Indianapolis, acquired the leasehold interest was arranged by Brian Ezratty, Eastern Consolidated Vice in the 468-room Doubletree Guest Suites Times Square hotel Chairman and Principal, and Scott Ellard, Vice President and at 1568 Broadway from Sunstone Hotel Investors, a California- Principal. It was the third time in five years that Ezratty and based lodging REIT, for $540 million. Maefield reportedly plans Ellard had sold the property. The buyer was William Macklowe a $2 billion redevelopment that will include a new 704-room Company, which partnered with Principal Real Estate Investors, luxury hotel, four floors of retail and 40,000 square feet of LLC on the deal, and the seller was Atlas Capital Group. The entertainment space. building is adjacent to the 300,000-square-foot Intercontinental Hotel site at 300 West 44th Street that Ezratty sold to the In November 2015, the Abu Dhabi Investment Authority, on Tishman Hotel Corporation and on the same block as 322-326 behalf of the Government of Abu Dhabi, acquired the 563-key, West 44th Street where Ezratty arranged a long-term net lease 54-story London NYC hotel at 151 West 54th Street from the for hotel developer Sam Chang. Blackstone Group paying $194 million for the property itself and $157 million for the assumption of the ground lease. In On the development front, a new tower is under construction addition, the Chetrit Group acquired the Hotel Carter at 250 on West 52nd Street between Broadway and Eighth Avenue West 43rd Street from the Alphonse Hotel Corporation for $191 with an expected completion date of 2017; a Marriot Edition million at the beginning of 2015. is scheduled for completion in 2017 at West 47th Street and Seventh Avenue; and the RIU Hotel is expected to be In office trades, Kamber Management acquired SL Green’s completed this year at West 46th Street and Eighth Avenue, 460,000-square-foot Tower 45 in September 2015 for $365 according to the Times Square Alliance. million; Japanese investment firm Jowa Holdings acquired 421 West 44th Street in January 2015 from East End Capital for The Times Square Alliance also has identified a number of $165 million; and both the office condo and retail condo in the new retailers that will be coming soon to the district including former New York Times building at 229 West 43rd Street sold. Wahlburgers, Swatch, Old Navy, GAP, and Foot Locker. The average asking rent for ground space was $2,390 per square In August 2015, REIT Columbia Property Trust acquired foot on Broadway and Seventh Avenue between 42nd and 47th the 345,701-square-foot office condo on the former Times Streets, according to REBNY’s Fall 2015 Retail Report.

02 | MetroGrid Report: Times Square/Hell’s Kitchen FOCUS ON NYC SUBMARKETS Real estate investment services

2015-2016 Property Sales Times Square/Hell’s Kitchen

Date Closed Address Sales Price Date Closed Address Sales Price

1/1/2015 531 W 45 St $550,000 6/9/2015 640 10 Ave $7,000,000

1/12/2015 145-147 W 45 St $55,000,000 6/30/2015 166 W 48 St $15,340,000

1/12/2015 45-47 W 45 St $81,000,000 7/13/2015 451 W 50 St $3,500,000

1/13/2015 411 W 45 St $5,750,000 8/4/2015 229 West 43rd Street* $516,000,000

1/15/2015 338-340 W 39 St $22,500,000 8/20/2015 411-425 W 51 St $156,500,000

1/20/2015 312-316 W 48 St $1,768,500 8/20/2015 424 W 52 St $2,000,000

1/21/2015 315-329 W 44 St $165,000,000 8/20/2015 220-226 W 41 St $80,898,900

1/22/2015 250-262 W 43 St $191,850,000 9/24/2015 120 W 45 St $365,000,000

2/5/2015 439-441-443 W 54 St $19,600,000 10/29/2015 318-328 W 51 St $12,300,000

2/5/2015 520 W 45 St $4,000,000 10/29/2015 360 W 45 St $8,750,000

2/13/2015 790 7th Ave $513,024,080 10/29/2015 351 W 44 St $8,750,000

2/26/2015 453 W 47 St $4,200,000 10/29/2015 47-53 W 44 St $17,800,000

3/17/2015 129 W 56 St $10,450,000 10/29/2015 229 West 43rd Street** $295,027,000

3/23/2015 311-329 W 50 St $72,000,000 11/10/2015 151 W 54 St $194,000,000

3/26/2015 341 W 44 St $8,980,000 11/13/2015 250 W 47 St $7,788,754

3/26/2015 524 9 Ave $4,150,000 11/23/2015 503 W 47 St $6,800,000

4/1/2015 440 W 41 St $27,816,750 12/1/2015 250-256 W 39 St $123,500,000

4/15/2015 405 W 44 St $6,425,000 12/9/2015 311-319 W 43 St $107,000,000

4/17/2015 240 W 44 St $24,750,000 12/22/2015 448 W 44 St $4,640,000

5/5/2015 240-248 W 40 St $85,000,000 1/7/2016 433-440 W 53 St $25,000,000

5/7/2015 438-442 W 51 St $15,000,000 2015 Total $3,300,346,406

5/29/2015 654 9 Ave $8,600,000 1/13/2016 615 10 Ave $57,500,000

5/29/2015 25 W 47 St $15,400,000 1/26/2016 1690 Broadway $280,000,000

6/1/2015 720 11 Ave $10,937,422 1/27/2016 787 7 Ave $1,932,900,000

6/9/2015 642 10 Ave $7,000,000 1/28/2016 747 9 Ave $12,000,000

6/9/2015 644 10 Ave $7,000,000 1/28/2016 440 W 47 St $23,500,000

2016 YTD $2,330,900,000

*Commercial Condo, **Retail Condo

03 | MetroGrid Report: Times Square/Hell’s Kitchen FOCUS ON NYC SUBMARKETS Real estate investment services

Times Square February 2 016 Key Indicators

BROADWAY Last 8 Weeks 2014/15 2015/16 HOTELS Last 6 Months Gross Sales, Attendance, Average ‘13-’14 ‘14-’15 ‘15-’16 in Millions Millions Daily Rate 45 0.40 $400 100% 91.8% 92.8% 92.7% 91.9% 89.4% 40 0.35 $331 $325 $317 35 $300 80% 0.30 $269 75.1% 30 $245 0.25 25 0.20 $200 $183 60% 20 0.15 15 0.10 $100 40% 10

5 0.05

0 0.00 $0 20% 1/10 1/17 1/24 1/31 2/7 2/14 2/21 2/28 August September October November December January For the first three weeks of February, both In line with past seasonal trends, occupancy attendance and sales outpaced those of February declined in January after a very profitable of the previous year. December. Average rate per room is lower in January 2016 than it has been in the past two years.

PED COUNTS Last 4 Weeks 2015 2016 CLASS A Last 6 Months Midtown TSQ

400,000 100% $75 Price/SF

320,631 $61.46 302,232 297,143 297,119 296,636 300,000 293,600 91.1% 90% $50

200,000

80% $25

100,000

0 70% $0 2/7 2/14 2/21 2/28 January February September October November December January February Average Average Gated Counts for February 2016 improved upon Price per square foot in TSq dropped by $4 and benchmarks set in both the previous year and occupancy is virtually the same. Midtown also January, the previous month. saw a slight drop in both occupancy and price per square foot.

Source: Times Square Alliance: Monthly Indicator Report, March 2016

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* Because CoStar pulls asking rent data from a representative sample of buildings rather than an exhaustive survey, prices may level off in the coming months. MetroGrid Report: Greenwich Village FOCUS ON NYC SUBMARKETS Real estate investment services Retail/Oce Map February 2016

OPENINGS

W 53rd St 1. M.A.C. Cosmetics

1 CLOSINGS 1 1 1. T-Mobile W 52nd St 2. Pronto Pizza

! COMING SOON W 51st St 1. Le Grande 2. Invisible Gifts 3. Arabian Oud 4. Red Egg W 50th St 5. Wahlburgers 6. Swatch 7. Old Navy W 49th St 8. GAP 1 9. Foot Locker 1 1 10. Hotel Shocard

W 48th St IN DEVELOPMENT 3 2 (A new building under construction) 2 1. Midtown Tower (2017) W 47th St 2.Marriott Edition (2017)

3.RIU Hotel (June 2016) raway Broadw 7thAve 8thAve 9th Ave 3

W 46t h St 4

5 6 W 45th St 7 8 W 44th St

W 43rd St

W 42nd St

9 2 W 41st St 7 10 6th Ave 6th

W 40th St

Dark Blue icons indicate a new “Coming Soon” to the map. 05 | For questions about retail or office changes in Times Square, contact Marianne Vernetson at [email protected] MetroGrid Report: Times Square/Hell’s Kitchen FOCUS ON NYC SUBMARKETS Real estate investment services SelectSelect TimesEastern Square/Hell's Consolidated Kitchen Times TransactionsSquare/Hell’s Kitchen Transactions Real estate investment services

1 1 West 59th Street 2 Residential Of ce Commercial Development 14 John Jay St. Luke’s College Roosevelt Hospital 1 345 West 44th Street 1 400 West 59th Street 1 1 13 726 8th Avenue 1 401 West 56th Street aka 19,000 GSF, 3-Story 75,000 GSF 530-538 West 58th Street 49,500West 58th BSF Street 863-67 Ninth Avenue Sold Twice 2005 and 2006 62,500 BSF Sold with 846 7th Avenue 95-Units, 7-Story (E) 311-319 West 43rd Street 2 2 800 Tenth Avenue 2 2 14 2 350-358 West 55th Street 150,000 GSF 504-506 West 57th Street 225-227West 57th Street West 58th Street $44,600,000 - 2007 8,800 BSF 123 Units, 9-Story (E) Sold Twice 2010 and 2012 Referral 50,000 BSF 1 22 CBS 3 3 424-426 West 54th Street 3 3 214 West 50th Street 424 West 55th Street 15 435 West 54th Street 7,500 GSF, 5-Story 6,000 GSF 263-265West 56th Street West 54th Street Warehouse 18,500 BSF 23,590 BSF 2 20 Units, 5-Story (W) 4 4 4 306-312 West 52nd Street 4 244-250 West 49th Street 315 West 53rd Street 16 3 1 2 811 Ninth Avenue 80,400 GSF, 8-Story 250,000 BSF West 55th Street 846 7th Avenue 2,364 GSF, 3-Story 1 32 Units, 4-Story (W) $6,250,000 - 2005 - Air Rights 3 49,5001 BSF 16 Grif n Court 1 15 13 Condos Sold with 726 8th Avenue 5 348-358 West 53rd Street 5 545-551 West 48th Street & 5 4 437 West 53rd Street Retail (66) 421A Tax Certi cates 534-542West West54th Street 49th Street 2 3 4 3 11 Units, 5-Story (W) 100,000New BSF 5 4 Mercedes AT&T 1 421-429 West 54th Street 6 700-716 Twelfth Avenue 6 Dealership Mixed-Use DeWitt 516-530 West 48th Street 6 9,750Hudson RiverGSF, 1-Story Seventh Avenue The Hit Factory Eighth Avenue 789 Ninth Avenue Clinton 84,000 BSF West 53rd Street 5 Sold ParkRetail Portion In 1997 Park 6 16,886 GSF 1 1 13 Units, 5-Story (W) PS 111 327 West 42nd Street Retail Leasing 2 7 7 771-773 Eighth Avenue 353-355 West 48th Street 733-763 Eighth Avenue 10,615 GSF, 5-Story 4 7 23,218 GSF, 6-Story 323,600West BSF52nd Street 355 West 51st Street 13,500 GSF, 2-Story 6 Clinton 7 1 23 42 Units, 6-Story (E) 2 640-644 Tenth Avenue 788 Ninth Avenue (Hell’s Kitchen) 1,000 SF Retail Space 3 673 Ninth Avenue 8 622 West 47th Street 8 506-512 West 44th Street 19,372 GSF, 5-Story 8,525 GSF, 5-Story 8 West 51st Street 8 746 Tenth Avenue 1,200 GSF Eleventh Avenue 84,042 BSF Tenth Avenue Sold Twice 2000 &Twelfth Avenue 2011 Park West Ninth Avenue 2 6 Units, 2 Stores, 4-Story (W) High School 3 1697 Broadway Columbus Circle Turnstyle 9 The Ed Sullivan Theater 4 318 West 47th Street 9 604-612 Tenth Avenue 1,200 SF Retail Space3 826-840 Seventh Avenue 130,000West 50th Street GSF 9 308-310, 318-332 & 10,000 GSF, 1-Story 6,290 GSF, 4-Story 55,000 BSF HS of Graphic Worldwide 336-340 West 49th Street Commercial Arts Plaza 252 Units, (13) 5-Story (W) 10 556-558 West 44th Street 10 9 9 10 4 693-699 Eighth Avenue LeasesWest 49th Street 9 10 Air Rights 5,400 GSF, 2-Story 283,00 BSF Parking 300 West 49th Street Warehouse 5 11 7 FedEx 108 Units, 8-Story (E) 1 360 West 55th Street 1 413-417 West 54th Street 12 234-242 West 48th Street 11 517-521 West 42nd6 Street 12 1 200 Central Park South $507,500West 48th Street - 2007 12 11 100,000 GSF, 16-Story 9,000 BSF Sold Entire Building 1997 208 Spaces 19,800 BSF Ink 48 2 403 West 48th Street Hotel HK Hell’s 505 Kitchen Broadway 22 Units, 5-Story (W) 691-699 Eighth Avenue & Condo Park 870 Seventh Avenue 2 13 247-259 West 54th Street 12 321 West 43rd Street 2 9 2 306 West 44th Street 8 ParkWest 47thCentral Street Hotel 247 West 46th Street 12 90,000 GSF, 10-Story 35,428 BSF 13 3 14 48,180 BSF 100 Rooms 1017 Spaces2 324 & 326 West 47th Street 36 Units, 4 Stores, (2) 5-Story (W) 15 16 West 46th Street 17 13 2 452 West 47th Street Times Square 15 Units, 5-Story (W) 18 West 45th Street 14 670 Ninth Avenue 1 8 Units, 5-Story (W)

10 8 9 2 10 West 44th Street West 44th Street 2 12 15 444 West 46th Street 19 19 19 2 20 Units, 5-Story (W)

2020 West 43rd Street 21 11 1 13 16 334-336 West 46th Street 10 Units, 4-Story (W)

West 42nd Street 17 649-651 Ninth Avenue 12 Units, 2 Stores, 5-Story (W)

18 438 & 440 West 45th Street Of ce Commercial Development 34 Units, (2) 5-Story (W) Residential 331-337 West 43rd Street 1 345 West 44th Street 1 400 West 59th Street 1 13 726 8th Avenue 19 1 401 West 56th Street aka 19,000 GSF, 3-Story 75,000 GSF 530-538 West 58th Street 49,500 BSF The Clinton Properties 863-67 Ninth Avenue Sold Twice 2005 and 2006 62,500 BSF Sold with 846 7th Avenue 75 Units, 6-Story (E) 95-Units, 7-Story (E) 311-319 West 43rd Street 2 2 800 Tenth Avenue 2 504-506 West 57th Street 14 20 330 West 43rd Street 2 350-358 West 55th Street 150,000 GSF $44,600,000 - 2007 225-227 West 58th Street 22 Units, 5-Story (W) 123 Units, 9-Story (E) Sold Twice 2010 and 2012 Referral 8,800 BSF 50,000 BSF

3 3 424-426 West 54th Street 3 576 Tenth Avenue 3 214 West 50th Street 424 West 55th Street 15 21 435 West 54th Street 7,500 GSF, 5-Story 6,000 GSF 263-265 West 54th Street Manhattan Plaza Warehouse 18,500 BSF 23,590 BSF 1,100 Units (E) 20 Units, 5-Story (W) 4 244-250 West 49th Street 4 4 306-312 West 52nd Street 4 315 West 53rd Street 16 846 7th Avenue 22 322 West 57th Street 811 Ninth Avenue 80,400 GSF, 8-Story 2,364 GSF, 3-Story 250,000 BSF 32 Units, 4-Story (W) $6,250,000 - 2005 - Air Rights 1 49,500 BSF 51 Units, 58-Story (E) Sold with 726 8th Avenue 5 5 348-358 West 53rd Street 545-551 West 48th Street & 5 437 West 53rd Street Retail (66) 421A Tax Certi cates 534-542 West 49th Street 23 245 West 51st Street 11 Units, 5-Story (W) 100,000 BSF 80 Units, 1 Store, 9-Story (E) 1 421-429 West 54th Street 6 700-716 Twelfth Avenue 6 Mixed-Use 9,750 GSF, 1-Story 516-530 West 48th Street 6 The Hit Factory 84,000 BSF 789 Ninth Avenue 16,886 GSF Sold Retail Portion In 1997 13 Units, 5-Story (W) 1 327 West 42nd Street Retail Leasing 2 7 7 771-773 Eighth Avenue 353-355 West 48th Street 733-763 Eighth Avenue 10,615 GSF, 5-Story 7 23,218 GSF, 6-Story 323,600 BSF 355 West 51st Street 13,500 GSF, 2-Story 1 42 Units, 6-Story (E) 2 640-644 Tenth Avenue 788 Ninth Avenue 1,000 SF Retail Space 3 673 Ninth Avenue 8 622 West 47th Street 8 506-512 West 44th Street 19,372 GSF, 5-Story 8,525 GSF, 5-Story 8 746 Tenth Avenue 1,200 GSF Sold Twice 2000 & 2011 84,042 BSF 6 Units, 2 Stores, 4-Story (W) 3 1697 Broadway 2 Columbus Circle Turnstyle 4 9 318 West 47th Street 9 604-612 Tenth Avenue The Ed Sullivan Theater 1,200 SF Retail Space 826-840 Seventh Avenue 130,000 GSF 9 308-310, 318-332 & 10,000 GSF, 1-Story 6,290 GSF, 4-Story 55,000 BSF 336-340 West 49th Street 252 Units, (13) 5-Story (W) 10 556-558 West 44th Street 10 693-699 Eighth Avenue Leases 10 Air Rights 5,400 GSF, 2-Story 283,00 BSF Parking 300 West 49th Street Warehouse 108 Units, 8-Story (E) 360 West 55th Street 1 12 234-242 West 48th Street 11 517-521 West 42nd Street 1 1 200 Central Park South 413-417 West 54th Street $507,500 - 2007 11 19,800 BSF 100,000 GSF, 16-Story 9,000 BSF Sold Entire Building 1997 208 Spaces 403 West 48th Street 22 Units, 5-Story (W) 691-699 Eighth Avenue & 870 Seventh Avenue 2 13 247-259 West 54th Street 12 321 West 43rd Street 2 2 247 West 46th Street 306 West 44th Street 35,428 BSF Park Central Hotel 12 48,180 BSF 90,000 GSF, 10-Story 100 Rooms 101 Spaces 324 & 326 West 47th Street 36 Units, 4 Stores, (2) 5-Story (W)

13 452 West 47th Street 06 | 15 Units, 5-Story (W)

14 670 Ninth Avenue 8 Units, 5-Story (W)

15 444 West 46th Street 20 Units, 5-Story (W)

16 334-336 West 46th Street 10 Units, 4-Story (W)

17 649-651 Ninth Avenue 12 Units, 2 Stores, 5-Story (W)

18 438 & 440 West 45th Street 34 Units, (2) 5-Story (W)

19 331-337 West 43rd Street The Clinton Properties 75 Units, 6-Story (E)

20 330 West 43rd Street 22 Units, 5-Story (W) 576 Tenth Avenue 21 Manhattan Plaza 1,100 Units (E)

22 322 West 57th Street 51 Units, 58-Story (E)

23 245 West 51st Street 80 Units, 1 Store, 9-Story (E) MetroGrid Report: Times Square/Hell’s Kitchen FOCUS ON NYC SUBMARKETS Real estate investment services Eastern Consolidated’s Recent Times Square/Hell’s Kitchen Closed Transactions 311 West 43rd Street

Property Type Office - Sold Location Midtown Square Footage 186,000 Selling Price $107,000,000

615 Tenth Avenue Property Type Development Site - Financed Location Midtown West Square Footage 105,000 Bridge Loan $27,000,000

22-24 West 38th Street

Property Type Office - Sold Location Midtown Square Footage + 70,000

Selling Price $43,500,000

788 Ninth Avenue

Property Type Retail -Leased Location Hell’s Kitchen Square Footage 1,400

07 | MetroGrid Report: Times Square/Hell’s Kitchen FOCUS ON NYC SUBMARKETS Real estate investment services Eastern Consolidated’s Select Times Square/Hell’s Kitchen Exclusives 305 West 48th Street

Property Type Development Opportunity; 99-year triplle net lease Location Hell’s Kitchen Square Footage up to 59,177 on 50’ x 75’ lot

Selling Price Requesting Proposals

605 Tenth Avenue Property Type Retail - For Lease Location Hell’s Kitchen Square Footage 2,212 with additional 1,600 courtyard Asking Price Available Upon Request

696-700 Ninth Avenue

Property Type Retail - For Lease Location Hell’s Kitchen Square Footage 2,700

Selling Price $200/ sf

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