metrogrid report - eastern consolidated

FOCUS ON NYC SUBMARKETSDecember 2017

MetroGrid Report: Long Island City

MetroGrid Report | Long Island CityFOCUS ON NYC SUBMARKETS

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Institutional investors are continuing to buy properties in Long Island City, accounting for 39% of the buyers in Q1-3 2017, while 55% were private investors. TIAA and Metropolitan Realty Associates recorded the largest deal so far this year with the purchase of a 256,000-Square-foot, three-story industrial building at 48-49 35th Street for $55 million.

Of the $256 million in assets sold this year, nearly half were industrial properties. Asking rents for industrial space have risen 115% in the past five years, indicating a healthy appetite for this asset class.

Development site sales fell to six transactions totaling $53 million in Q1-3 2017, their lowest level in five years. With 17.7 million square feet of projects under construction or proposed, however, the area continues to be one of the hottest areas for development in New York City rivaled only by Williamsburg and Downtown Brooklyn.

Since 2013, nearly 22,000 multifamily units spanning 20 million square feet have been built, are under construction, or proposed in Long Island City, which has led to an influx of new residents. Between 2005 and 2014 in zip code 11101 alone, the population jumped by 39% to 26,360 residents and the average household income more than doubled to $70,120.

Asking residential rents for new construction average $60+ per square foot south of the bridge, and $50 per square foot north of the bridge, while condos average $1,250 per square foot south of the bridge and $952 per square foot north of the bridge.

Despite residential growth and rising pedestrian counts, retail services have lagged. Since 2013, 15,395 square feet of retail has been built;

33,731 square feet is under construction; and 368,000 square feet has been proposed. Asking retail rents are affordable, generally under $100 per square foot.

A 2017 survey conducted by the Long Island City Partnership revealed that of the 1,347 participants that lived or worked in Long Island City, 56% felt a need for more restaurants, 54% for pharmacies, and 52% for grocers.

Long Island City Investment Highlights Q1-3 2017

• Investment property sales totaled $256 million Q1-3 2017, 76% drop compared to Q1-3 2016.

• Industrial acquisitions accounted for $121 million, or 47% of total dollar volume.

• Largest trade: 256,000 SF industrial site at 48-39 & 48-49 35th Street for $55 million.

• Development acquisitions accounted for $53.4 million, or 21% of total dollar volume.

• LIC investor composition: 55% private; 39% institutional; 4% user; 2% international.

Dear Friends,

We are pleased to share our latest Metrogrid Report for Long Island City, which provides an overview of investment sales activity in the area since 2013.

The report shows that investment property sales volume peaked in Long Island City in 2016 with $1.4 billion in transactions, of which institutional investors accounted for 44% of the trades, up from 4% in 2013.

This year however, Long Island City hasn’t been immune to the citywide downturn in investment property sales with dollar volume falling to $256 million in Q1-3 2017, a 76% drop from the first three quarters of 2016 and a 66% decline in transactions to 17 trades.

For more detailed information about the investment sales market or to request an evaluation of your holdings, please feel free to contact a member of our sales team.

Warm regards,

Peter HauspurgChairman & CEO

Long Island City Investment Property Sales Overview

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2017 Q1-3 2016 2015 2014 2013 TOTALS

# OF TRANS. $-VOLUME # OF

TRANS. $-VOLUME # OF TRANS. $-VOLUME # OF


TRANS. $-VOLUME

Dev Site 6 $53,400,000 22 $242,899,646 23 $451,584,063 24 $460,629,381 22 $201,047,686 97 $1,409,560,775

Hotel 0 $0 0 $0 0 $0 1 $22,039,369 0 $0 1 $22,039,369

Industrial 5 $120,709,000 17 $584,124,560 15 $226,700,000 13 $148,356,339 15 $157,654,167 65 $1,237,544,065

Multifamily 2 $22,450,930 12 $291,881,156 7 $106,785,161 0 $0 10 $144,760,970 31 $565,878,217

Office 3 $57,530,000 6 $306,945,000 2 $149,000,000 7 $456,156,569 4 $36,116,046 22 $1,005,747,615

Retail 1 $2,900,000 3 $9,730,000 3 $9,330,000 0 $0 4 $15,286,493 11 $37,246,493

TOTAL 17 $256,989,930 60 $1,435,580,362 50 $943,399,223 45 $1,087,181,657 55 $554,865,361 227 $4,278,016,534

Source: Various Sources

INVESTOR COMPOSITION

2017 Q1-3 2016 2015 2014 2013

Cross-Border 2% 5% 0% 13% 3%

Institutional 39% 44% 11% 32% 4%

Private 55% 49% 69% 51% 91%

REIT/Listed 0% 0% 15% 3% 2%

User/Other 4% 2% 4% 1% 1%

Source: RCA

TOP FOREIGN INVESTORS - SINCE 2013

# OF TRANS $-VOLUME

Canada 2 $98,500,000

United Kingdom 2 $67,948,021

China 1 $65,831,491

Argentina 1 $13,700,000

Qatar 1 $10,735,751

Japan 1 $5,000,000

2017 Q1-3 2016 Q1-3 2015 Q1-3 2014 Q1-3 2013 Q1-3 TOTALS

# OF TRANS. $-VOLUME # OF



TRANS. $-VOLUME

Dev Site 6 $53,400,000 21 $177,068,155 20 $426,514,063 17 $298,499,381 15 $115,230,045 79 $1,070,711,644

Hotel 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0

Industrial 5 $120,709,000 14 $569,624,560 10 $155,775,000 10 $114,156,339 11 $118,029,167 50 $1,078,294,065

Multifamily 2 $22,450,930 8 $257,900,000 5 $98,702,400 0 $0 7 $103,504,550 22 $482,557,880

Office 3 $57,530,000 5 $49,445,000 1 $142,000,000 5 $305,199,069 3 $32,300,000 17 $586,474,069

Retail 1 $2,900,000 2 $6,500,000 3 $9,330,000 0 $0 3 $8,386,493 9 $27,116,493

17 $256,989,930 50 $1,060,537,715 39 $832,321,463 32 $717,854,788 39 $377,450,255 177 $3,245,154,151

LIC Investment Sales Overview

Investment Sales Volumes | 1st-3rd Quarter 2013-2017

Investment Sales Volumes | 2013 - 3rd Quarter 2017

Investment Sales Buyer Composition


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Investment Sales Comps 1st-3rd Quarter 2017MAP PROPERTY TYPE SALE DATE ADDRESS SALE PRICE SF $/SF

1 MULTIFAMILY 6/29/2017 4707 39th St $13,470,930 35,700 $377

2 MULTIFAMILY 7/26/2017 43-39 & 43-35 42nd St $8,980,000 23,520 $382

3 INDUSTRIAL 3/8/2017 48-39 & 48-49 35th St $54,990,000 280,750 $196

4 INDUSTRIAL 5/23/2017 43-10 23rd St * $54,000,000 130,000 $415

5 INDUSTRIAL 7/18/2017 3624 & 3630 13th St $5,000,000 12,500 $400

6 INDUSTRIAL 7/20/2017 3829 24th St $3,750,000 7,500 $500

7 INDUSTRIAL 7/24/2017 1025 48th Ave $2,969,000 5,900 $503

8 OFFICE 3/10/2017 30-12 41st Ave $27,050,000 46,808 $578

9 OFFICE 6/13/2017 21-07 41st Ave $25,000,000 91,145 $274

10 OFFICE 3/30/2017 12-01 44th Ave $5,480,000 9,620 $570

11 RETAIL 6/12/2017 3727 32nd St $2,900,000 4,772 $608

TOTAL $203,589,930

Notes: * Partial interest transfer (unknown %), 130,000 SF represents full building

Development Site Sales 1st -3rd Quarter 2017

NO. PROPERTY TYPE SALE DATE ADDRESS SALE PRICE ZFA $/ZFA ZONING

12 DEV SITE 5/1/2017 2243 Jackson Ave $23,000,000 88,445 $260 R7X, C2-5, M1-4/R6B, LIC

13 DEV SITE 6/7/2017 37-14 34th St $16,500,000 58,500 $282 M1-2/R6A, LIC

14 DEV SITE 6/26/2017 40-36 24th St $5,000,000 22,500 $222 M1-2/R5B, LIC

15 DEV SITE 8/11/2017 3843 12th St $3,300,000 25,800 $128 M1-3

16 DEV SITE 8/9/2017 3823 28th St $2,825,000 10,042 $281 M1-2/R5B, LIC

17 DEV SITE 1/10/2017 37-24 34th St $2,775,000 9,195 $302 M1-2/R6A, LIC

TOTAL $53,400,000

GRAND TOTAL $256,989,930

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SF COMPLETED CONSTRUCTION PROPOSED TOTALS

HOTEL 441,946 517,378 533,495 1,492,819

INDUSTRIAL 674,641 11,250 275,000 960,891

MULTIFAMILY 6,634,115 6,608,037 6,531,446 19,773,598

OFFICE 192,770 1,100,000 1,732,876 3,025,646

RETAIL 15,395 33,731 367,990 417,116

TOTAL 7,958,867 8,270,396 9,440,807 25,670,070

Development Overview | Since 2013

Source: CoStar

COMPLETED CONSTRUCTION PROPOSED TOTALS

SF 6,634,115 6,608,037 6,531,446 19,773,598

UNITS 8,023 6,948 6,902 21,873

Multifamily Development

New Building Permits Density 2016

Source: NYC DOB

Development Project Map | Since 2013

Source: CoStar

COMPLETED

CONSTRUCTION

PROPOSED

* Values reflect SF totals


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43-25 HUNTER STREETTHE HAYDEN

22-44 JACKSON AVE5POINTZ

23-01 42ND ROAD1 QPS TOWER

STATUS YEAR BUILT ADDRESS DEVELOPER PROPERTY TYPE GROSS SF RESI UNITS STORIES

Completed 2016 44-41 Purves St The Rabsky Group Residential 260,000 284 25

Completed 2017 44-26 Purves St Brause Realty & Gotham Organization Residential with Commercial 275,000 272 33

Completed 2017 23-01 42nd Road Property Markets Group, Kamran Hakim, and New Valley Residential with Commercial 470,000 391 44

Completed 2017 43-25 Hunter St Rockrose Development Corp. Residential with Commercial 965,000 974 50

Construction 2017 42-12 28th St Heatherwood Communities Residential with Commercial 485,000 477 61

Construction 2018 22-44 Jackson Ave G&M Realty Residential with Commercial 1,070,000 1115 49

Construction 2018 29-22 Northern Blvd Simon Baron Development Group Residential with Commercial 500,000 467 44

Construction 2018 28-02 Jackson Ave Tishman Speyer and H&R REIT Residential with Commercial & Manufacturing 1,705,000 1871 56

Construction 2018 43-22 Queens St Rockrose Development Corp. Residential with Commercial 715,000 773 54

Construction 2019 28-07 Jackson Ave Tishman Speyer Commercial 1,780,000 -- 29

Proposed 2019 30-20 Northern Blvd Alma Realty Commercial 410,000 -- 10

Proposed 2020 2303 44th Road Stawski Partners Residential with Commercial 1,205,000 923 66

Proposed 2020 23-15 44th Dr United Construction & Development Group Residential with Commercial 975,000 802 68

Proposed 2022 5-40 & 4-99 44th Dr TF Cornerstone Inc. Residential with Commercial, Manufacturing & Community 800,000 1000 --

Proposed 2034 Anable Basin Site Plaxall Realty (Owner) Residential with Commercial, Manufacturing & Community 5,800,000 5000 70

Select Development Projects | Recently Completed, In Construction, Proposed


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$5

$10

$15

$20

$25

2013 2014 2015 2016 2017

All Rent

NNNRent

$400

$550

$700

$850

$1,000

$1,150

$1,300

2013 2014 2015 2016 2017

North of Bridge

South of Bridge

$40

$45

$50

$55

$60

$65

$70

2013 2014 2015 2016 2017

North of Bridge

South of Bridge

Market Rents and Pricing

Residential Rents (Elevator) - Asking $/SF Residential Condos (Elevator) - Closing $/SF

Industrial Rents - Asking $/SF

Neighborhood Demographics

ZIP CODE 2005 2014 % INCREASE

11101

POPULATION 18,974 26,360 38.9%

AVERAGE HOUSEHOLD INCOME 34,539 70,120 103.0%

11104

POPULATION 23,910 25,720 7.6%


11109

POPULATION 820 5,630 586.6%


Source: LIC BID Annual Report 2017

Source: CoStar Source: CoStar, Agorafy

Source: CoStar Source: Property Shark

Pedestrian Counts

PEDESTRIAN COUNTS 2016 2017 % INCREASE

QUEENS PLAZA

QUEENS PLAZA / 27TH ST AM 1,847 1,971 6.71%

QUEENS PLAZA / 27TH ST PM 2,841 2,951 3.87%

COURT SQUARE

44TH DRIVE / HUNTER STREET 2,656 2,858 7.61%

44TH DRIVE / JACKSON AVENUE (N&S) 934 960 2.78%

CORRIDOR LOW HIGH

Jackson Ave $50 $110

Vernon Blvd $30 $75

Greenpoint Ave $40 $45

Northern Blvd $30 $40

Van Dam St $30 $45

36th Ave $30 $60

44th Dr $40 $70

Retail Rents - Asking $/SF

Source: UnitedStatesZipcodes.org

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

2013 2014 2015 2016 2017

Residential Condos (Elevator) - $/SF

North of Bridge

South of Bridge

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

2013 2014 2015 2016 2017


North of Bridge

South of Bridge

NORTH OF BRIDGE

SOUTH OF BRIDGE

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

2013 2014 2015 2016 2017


North of Bridge

South of Bridge

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

2013 2014 2015 2016 2017


North of Bridge

South of Bridge

NORTH OF BRIDGE

SOUTH OF BRIDGE

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

2013 2014 2015 2016 2017


North of Bridge

South of Bridge

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

2013 2014 2015 2016 2017


North of Bridge

South of Bridge

NNN RENT

ALL RENT


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Eastern Consolidated Select Current Sales Exclusives

Speedway Package: 39-02 Queens Boulevard

Property Type Development Site

Location Long Island City

Square Footage 169,500 SF

Asking Price $45,500,000 (for both properties)

Speedway Package: 39-04 Northern Boulevard







Square FootageLot Size: ±16,850 SF Approved Plans: ±71,347 SF

Asking Price $15,500,000

37-29 31st Street

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Eastern Consolidated Select Current Leasing Exclusives





34-40 11th Street





Property Type Warehouse Space for Lease



Asking Rent Upon Request

Property Type Commercial Space for Sublease


Square Footage 66,000 RSF on the Second Floor

Asking Rent Upon Request

The Factory: 30-30 47th Avenue

47-09 5th Street

Property Type New Construction Retail Space for Lease



Asking Rent $90 PSF



Square FootageLot Size: ±16,850 SF Approved Plans: ±71,347 SF

Asking Price $15,500,000


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Eastern Consolidated Select Closed Sales

45-56 Pearson Street

Property Type Development Site: Sold



Selling Price $43,500,000

22-12 Jackson Avenue

37-10 Crescent Street









INVESTMENT SALESRETAIL LEASINGCAPITAL ADVISORY

WWW.EASTERNCONSOLIDATED.COM355 LEXINGTON AVENUE

NEW YORK, NY 10017F. 212.499.7718O. 212.499.7700

metrogrid report - eastern consolidated

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