metrogrid report - eastern consolidated...harlem’s “restaurant row” boasting eateries such as...

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FOCUS ON NYC SUBMARKETS

May 2016

MetroGrid Report: Harlem | 125th Street

Central Harlem’s Retail Transformation

Central Harlem’s growing population, rising incomes, and flourishing condominium developments have made the area ripe for national and local retailers.

Blink Fitness, Party City, DSW, Red Lobster, H&M, Marshalls, CVS Pharmacy, Starbucks, and Staples to name a few have already established a beachhead along 125th Street and more national retailers are on the way.

Construction is nearing completion on a five-story, 180,000-square-foot shopping center at 125th Street and Lenox Avenue that will be home to Whole Foods, Burlington Coat Factory, American Eagle, and the Olive Garden. Also, Bed, Bath & Beyond and WeWork have signed leases at a planned project at 5 West 125th Street.

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MetroGrid Report | Central Harlem, 125th Street FOCUS ON NYC SUBMARKETS


Development on 125th Street is spilling over to the north-south corridors such as Lenox Avenue, which has become Harlem’s “Restaurant Row” boasting eateries such as Chaiwali, Red Rooster, Sylvia’s, Corner Social, Lenox Saphire, Harlem Shake, Sushi Inoue, and Babbalucci that operate between 124th and 129th Streets.

Eastern Consolidated is in the midst of this activity with its Retail Leasing team actively marketing nine retail sites throughout Harlem. The firm’s recent retail survey shows average asking retail rents of $104 per square foot on 125th Street; $61 per square foot on 116th Street; $70 per square foot on 135th Street; $71 per square foot on 145th Street; $84 per square foot on Frederick Douglass Boulevard; $63 per square foot on Adam Clayton Powell Jr. Boulevard; and $93 per square foot on Lenox Avenue.

Community Board 10, which covers Central Harlem, has welcomed retail along 125th Street but notes that other

corridors are under retailed and, as a result, the board is now encouraging retail development on 116th Street, 135th Street, and 145th Street.

Central Harlem also continues to attract buyers for its elegant brownstones, mixed-use buildings, and office properties. In 2015 the area saw an aggregate of over $725 million in property transactions, a 5 percent increase from 2014 which saw $689 million in property transactions.

Many of these trades were for the smaller properties that dominate the area, but a few consisted of significant portfolios. The largest transaction in 2015 was a $117 million land lease deal for a package of two office buildings—a 170,841-square-foot property at 215-217 West 125th Street and a 228,017-square-foot property at 55-61 West 125th Street that is home to the office of former President Bill Clinton—and two parking lots at 62 and 64 West 126th Street. Thor Equities bought a 46,200-square-foot mixed-

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use property at 17 West 125th Street for $30 million, and Eastern Consolidated arranged the sale of the 13-building Morningside Heights portfolio for $47 million.

So far in 2016, the largest sale has been the $21,080,388 purchase of a 24,600-square-foot office building at 310-316 Lenox Avenue, which houses the popular Red Rooster restaurant on the ground floor and lower level.

The transformation of Central Harlem is remarkable because it was one of the areas hardest hit by disinvestment in the 1970s and 1980s. The community was in such poor shape that between 1987 and 2003 city programs provided assistance to nearly 22,000 units or 40.6 percent of Central Harlem’s housing stock, more than any other neighborhood in New York City, according to a NYU Furman Center paper.

A new NYU Furman Center publication A Study of New York’s Housing and Neighborhoods in 2015 illustrates how

Central Harlem has changed. Median household income in Central Harlem rose to $40,615 in 2014 up from $31,502 in 2000; the population increased to 132,027 residents in 2014, up from 107,109 in 2000 and 99,519 in 1990; and median condominium sales rose to $880,500 in 2015 up from $237,379 per unit in 2000, with the majority of condos in South Central Harlem trading for close to or above $1,000 per square foot.

New condominium development, an influx of residents seeking affordable housing, excellent transportation, and nearby parks have all contributed to Harlem’s second renaissance. The Furman Center study showed that 100 percent of the residential units in Central Harlem are located within one half mile of a subway station, ranking it first in the city for transportation access, and that the mean travel time from Central Harlem to work is 34.5 minutes. In addition, 96.6 percent of the residential units are one-fourth mile from a park.

Adam Clayton Powell Jr. Blvd.

2524 Adam Clayton Powell Jr Blvd 800 $45


2268 Adam Clayton Powell Jr Blvd 1,200 $50

2108-2118 Adam Clayton Powell Jr Blvd 67,500 $51

















1939-1943 Adam C. Powell Jr Blvd 600 $66









Average Asking Rents $63

Harlem | Asking Rents

04 |



Address SF Available Price/ SF

125th Street

52 W 125th St 3,132 $51

111 E 125th St 4,000 $51

51-55 E 125th St 5,200 $59

112 W 125th St (New Construction: 11,750SF ground & 2nd floor, 10,000 SF on each floor 3-8)

96,720 $82

26 W 125th St 2,000 $84

32 W 125th St 2,000 $88

26 E 125th St 3,150 $100

18 W 125th St 1,500 $104

28-30 W 125th St 1,785 $108

61 E 125th St 900 $125

159 E 125th St 2,120 $125

215 W 125th St 1,737 $130

81 E 125th St 4,100 $160

313-315 W 125th St 4,800 $185


Manhattan Avenue

419-421 Manhattan Ave 2,500 $48

411 Manhattan Ave 1,205 $45


St. Nicholas Avenue

17-25 St Nicholas Ave 575 $73

761 St Nicholas Ave 670 $47


Frederick Douglass Blvd.

2280 Frederick Douglass Blvd 9,000 $65

2500 Frederick Douglass Blvd 540 $73

2163-2169 Frederick Douglass Blvd 550 $113





05 |

Harlem | Asking Rents Continued

Lenox Avenue

101-109 Lenox Ave 2,460 $56

419-421 Lenox Ave 300 $72

543 Lenox Ave 600 $75

333 Lenox Ave 1,500 $80

541 Lenox Ave 600 $80

329-331 Lenox Ave 1,300 $91

192 Lenox Ave 925 $97

437-439 Lenox Ave 850 $100

381 Lenox Ave 2,050 $100

429-431 Lenox Ave 700 $103

228 Lenox Ave 915 $105

67 Lenox Ave 560 $108

280-284 Lenox Ave 2,800 $109

352-354 Lenox Ave 1,000 $120


Fifth Avenue

1325 Fifth Ave 1,650 $55

2254 Fifth Ave 1,000 $62


Madison Avenue

1825 Madison Ave 8,137 $47

1770 Madison Ave 18,267 $37


Third Avenue

2162-2172 Third Ave 5,487 $60

2171 Third Ave 2,200 $55


112th Street

204-208 E 112th St 813 $59

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

116th Street

109 E 116th St 7,710 $40

141 W 116th St 1,240 $44

60 E 116th St 3,000 $45

108 W 116th St 1,800 $50

49 West 116 3,720 $50

33 W 116th St 3,258 $60

15-17 W 116th St 1,600 $75

231-235 W 116th St 1,500 $80

153-157 E 116th St 1,420 $106


117th Street

177 E 117th St 700 $81

205 E 117th St 3,000 $40


118th Street

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

159 W 118th St 5,850 $67

159 W 118th St - Space A 1,250 $85

159 W 118th St - Space B 1,300 $75

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

159 W 118th St - Space E 1,100 $75

Average asking rents $72

129th Street

167 W 129th St 1,000 $52

131st Street

273 W 131st St 900 $70

101-103 W 131st St 300 $72


Harlem | Asking Rents Continued



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135th Street

234-236 W 135th St 700 $57

228 W 135th St 500 $72

300 W 135th St 2,850 $80


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



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

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Central Harlem Community District Data

State of New York City’s Housing and Neighborhoods in 2015 1 1 9

MA

NH

ATTA

N C

OM

MU

NITY

DIS

TRIC

T PR

OFILE

S

Racial and Ethnic Composition

n 2000 n 2014

Household Income Distribution (2015$)

n 2000 n 2010-14

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

Units authorized by new residential building permits Units issued new certificates of occupancy Homeownership rate

Serious housing code violations (per 1,000 privately owned rental units) Sales volumeIndex of housing price appreciation, all property typesIndex of housing price appreciation, 5+ family buildingIndex of housing price appreciation, condominium1

Median sales price per unit, 5+ family building Median sales price per unit, condominium1 Median rent Median rent burden Severely rent-burdened households Severely rent-burdened households, low income Housing choice vouchers (% of occupied, privately owned rental units) Home purchase loan rate (per 1,000 properties) Refinance loan rate (per 1,000 properties) FHA/VA-backed home purchase loans (% of home purchase loans) Pre-foreclosure notice rate (per 1,000 1–4 family and condo properties) Notices of foreclosure rate (per 1,000 1–4 family and condo properties) Population 2000 2006 2010 2014 2015 2000 Rank 2014-15 Rank

Households with children under 18 years old

Population aged 65+

Foreign-born population Median household income Population 25+ with a bachelors degree or higher Poverty rate Unemployment rate Car-free commute (% of commuters) Mean travel time to work (minutes) Serious crime rate (per 1,000 residents) Students performing at grade level in English language arts, 4th grade Students performing at grade level in math, 4th grade

261 611 4 135 379 15 32 87 232 435 195 327 31 11 6.6% 12.2% 13.4% 12.2% – 52 46 – 52.5 50.5 61.3 72.8 – 18 118 339 428 473 411 46 37 100.0 327.7 282.4 449.5 520.7 – 2 100.0 368.8 245.7 502.3 616.6 – 5 100.0 289.8 304.0 431.0 474.9 – 2 $46,076 $135,569 $106,760 $189,469 $231,250 48 18 $237,379 $566,687 $667,448 $745,851 $880,500 13 12 $700 $764 $859 $973 – 52 50 26.7% 30.1% 29.5% 29.8% – 25 44 24.1% – – 26.6% – 24 44 33.7% – – 38.8% – 50 51 – – 7.6% 6.7% – – 22 – 30.2 47.7 25.0 – – 6 – 22.5 10.9 9.4 – – 18 – 0.0% 14.7% 0.4% – – 45 – – – 37.6 32.2 – 31 70.0 8.0 13.2 7.4 9.0 1 34

34.0% 32.5% 27.8% 25.4% – 35 44 11.3% 10.3% 10.5% 9.9% – 24 44 17.8% 20.8% 19.7% 20.3% – 51 50 $31,502 $31,884 $38,224 $40,615 – 52 43 14.8% 25.6% 34.1% 37.8% – 41 17 36.4% 28.7% 28.1% 29.2% – 8 12 18.6% 13.4% 15.9% 13.0% – 5 7 81.7% 83.8% 85.0% 88.1% – 8 7 37.3 35.5 34.7 34.5 – 42 48 27.1 24.2 17.3 15.7 17.8 15 13 – – – 18.0% 15.2% – 52 – – – 15.9% 18.8% – 52

Rental Units 2005-09 2010-14 % Change 2010-14 Rank

Median rent, all Median rent, recent movers Median rent, studios and 1-bdrms Median rent, 2- and 3-bdrms Rental vacancy rate

MN10 $790 $913 15.6% 52NYC $1,132 $1,236 9.1% –MN10 $1,065 $1,425 33.8% 27NYC $1,451 $1,549 6.8% –MN10 $761 $909 19.4% 48NYC $1,078 $1,174 8.9% –MN10 $825 $946 14.7% 52NYC $1,199 $1,312 9.4% –MN10 5.2% 4.8% – 9NYC 3.7% 3.7% – –

1% 3%

77%

55%

17%24%

2%15%

16%22%

15%9%

1%

30%37%

21%16% 17%

13%

4%

≤$20,000 $40,001– $60,000

$60,001– $100,000

$100,001– $250,000

>$250,000 Asian Black Hispanic White

Single-Year Indicators 2014 Rank

Population Population density (1,000 persons per square mile) Racial diversity index Income diversity ratio Severe crowding rate (% of renter households)

Median rent, asking Residential units in FEMA preliminary flood hazard areas Residential units within 1/4 mile of a park Residential units within 1/2 mile of a subway station Lots regulated by the LPC

132,027 – 91.2 2 0.62 22 8.5 1 2.2% 46 $2,140 18 11.3% 18 96.6% 13 100.0% 1 10.6% 11

◆

Central Harlem MN10

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.

◆

◆

◆

◆

◆

◆

$20,001–$40,000

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125th Street Business Improvement District

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Showman's Jazz Club

Cotton Club

Wes

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Touro College

Aloft Harlem Hotel

Hotel Theresa

Harlem Village Academy

New York Public Library- Harlem

National Black Theater

Mama Foundation for theArts

Harlem Children's Zone

MTA Metro North

Apollo Theater

Victoria Theater

Studio Museum in Harlem

W 1

22 S

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MORNINGSIDE AV

5 AV

W 1

24 S

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CLAREMONT AV

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W 1

21 S

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RIVERSIDE DR

LENOX AV

E 12

1 ST

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MOUNT MORRIS PARK W

W 1

27 S

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FREDRICK DOUGLASS BLVD

W 1

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129

ST

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1 ST

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MARGINAL ST

HENRY HUDSON PKWY

ADAM C POWELL BLVD

BROADWAY

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100

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51 E

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Source: 125th Street BID

09 |



Recent Eastern Consolidated Harlem Transactions

2415 Adam Clayton Powell Jr. Blvd.

2067-2069 Adam Clayton Powell Jr. Blvd.

381 Lenox Avenue

439 Lenox Avenue

510 Manhattan Avenue

111 Central Park North

1737 Lexington Avenue

111 West 128th Street

Morningside Hieghts Package

9-11 Central Park North

2211-2217 Third Avenue

214-216 East 121st Street

161-169 East 110th Street

Eastern Consolidated’s Retail Exclusives | Harlem

Property Type Retail

Location Harlem

Square Footage 2,500 SF

Asking Rent $75 PSF

171 West 141st Street


Location Harlem


Asking Rent $8,000 Per Month

2067 Adam Clayton Powell Jr. Boulevard

381 Lenox AvenueProperty Type Retail

Location Harlem

Square Footage Space A: 600 SF | Space B: 850 SF

Asking Rent $110 PSF

439 Lenox Avenue

10 |




Location Harlem

Square Footage Space A: 850 SF | Space B: 600 SF

Asking Rent $7,000 Per Month

Eastern Consolidated’s Retail Exclusives | Harlem

11 |



111 Central Park North | Space 1

Property Type Community Facility

Location Harlem


Asking Rent $40 PSF

510 Manhattan Avenue



Location Harlem


Asking Rent Upon Request


Location Harlem

Square Footage 428 SF




Location Harlem



12 |



Eastern Consolidated’s Recently Closed Transactions | Harlem

Property Type Multifamily

Location Harlem

Square Footage 13 Properties | 125,000 SF

Selling Price $47,000,000

Morningside Heights Package

Property Type Retail Condo

Location Harlem



111 Central Park North

Property Type Multifamily

Location Harlem



9-11 Central Park North

Property Type Development Site

Location Harlem

Square Footage 136,443 Buildable SF


2211-2217 Third Ave & 214-216 East 121st St

13 |



Eastern Consolidated’s Recently Closed Transactions | Harlem

161-169 East 110th Street Property Type Retail Condo

Location Harlem

Square Footage 9,405


Property Type Retail - Leased

Location Harlem


2069 Adam Clayton Powell Jr. Boulevard

metrogrid report - eastern consolidated...harlem’s “restaurant row” boasting eateries such as...

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