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.