multifamily month in review: new york city | january...

212.544.9500 I arielpa.nyc122 East 42nd Street, Suite 1015, New York NY 10168

MultifaMily Month in Review:new yoRk City | JanuaRy 2016

Released March 2016 | By Ariel Property Advisors

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Ariel Property Advisors | 122 East 42nd Street, Suite 1015 - New York NY 10168 | 212.544.9500 | arielpa.nyc | 2

about the RepoRt | Content

ariel property advisors is pleased to present its Multifamily Month in Review: new york City.

the report provides a monthly overview of market activity, benchmark transactions, revenue

and expense trends, and current events that affect the multifamily real estate market.

the Multifamily Month in Review is distributed to our clients on a monthly basis. past versions

of the Multifamily Month in Review can be found at arielpa.nyc/investor-relations/research-

reports

table of Contents

Multifamily Month in Review: new york City 3Multifamily Market performance by sub-Market 4transaction & Dollar volume by Quartertrailing 6-Month Moving average 5pricing indicators & Distributions 6about ariel property advisors 7

SAlES TEAM:

Shimon Shkury212.544.9500 ext. 11

[email protected]

Victor Sozio212.544.9500 ext. [email protected]

Michael A. Tortorici212.544.9500 ext. 13

[email protected]

ANAlYST TEAM:

Daniel Novick212.544.9500 ext. [email protected]

Samuel Stuart212.544.9500 ext. [email protected]

COMPIlEd BY:

Multifamily Month in Review | new york City

3 | Ariel Property Advisors | 122 East 42nd Street, Suite 1015 - New York NY 10168 | 212.544.9500 | arielpa.nyc

lEgENd:

Manhattan is defined as below 96th Street on the east side and below 110th Street on the west side

MetRiCsJan

2016% Change

vs. DeC 2015DeC

2015% Change

vs. Ja n 2015Jan

2015

Transaction Vol 59 -3% 61 -14% 69

Building Vol 76 -32% 112 -22% 98

Dollar Vol $1,371,309,190 -79% $6,572,048,407 68% $815,732,055

Total Units 3,905 -74% 14,887 62% 2,406

ManhattanNorthern Manhattan

The BronxBrooklyn

Queens

dOllAR VOluME COMPARISON

BY lOCATION ChART

BuIldINg VOluME COMPARISON

BY lOCATION ChART

ManhattanNorthern ManhattanThe BronxBrooklynQueens

ManhattanNorthern ManhattanThe BronxBrooklynQueens

40+21+9+16+14+x17+18+34+20+11+x

40%21%9%

16%14%

17%18%34%20%11%

new

yo

rk C

ityMultifaMily Month in Review: new yoRk City | JanuaRy 2016

New York City multifamily figures experienced a strong start to 2016 as January saw year-over-year gains in dollar volume and in most pricing metrics.

For the month, New York City saw 59 transactions comprised of 76 buildings totaling $1.371 billion in gross consideration. This represents a 68% increase in dollar volume, a 14% decrease in transaction volume and a 22% decrease in building volume compared to January 2015, which saw 69 transactions comprised of 98 buildings totaling $815.732 million in gross consideration.

Manhattan led all submarkets in January with 13 buildings trading across 12 transactions totaling $541.817 million in gross consideration, which represents a 77% increase in dol-lar volume compared to January of last year. The Maidman family sold 326 East 82nd Street, a 71-unit walk-up building, for $27 million, or $670 per square foot. The family had owned the property for 40 years and new management, a French 1031 exchange buyer, plans to renovate and update the property. Stone Street Properties continued their buying streak, closing two deals including a Kips Bay walk-up building located at 234-236 East 24th Street they purchased for $15 million, or $870 per square foot.

Farther uptown in Northern Manhattan, the submarket witnessed a tremendous month as 14 buildings traded across 10 transactions totaling $290.7 million in gross consideration. Most of this activity came from the $200.850 million sale of Riverton houses, a massive 1,229-unit complex in Central harlem which was the city’s largest transaction in Janu-ary. A&E Real Estate, the buyer, struck a deal with the city to maintain 975 of the units as affordable for the next 30 years. In Manhattanville, Thor Equities purchased a package of three walk-up rental buildings along the 500 block of West 126th Street in the vicinity of Columbia university’s expansion for $34.4 million, or $664 per square foot. Two of the three buildings sold for $461 per square foot in November of 2013.

Brooklyn saw mostly single assets trade as 15 buildings traded across 13 transactions to-taling $225.38 million in gross consideration – a 132% spike from december’s dollar vol-ume. World Wide group purchased 110 green Street in greenpoint, a new-construction elevatored building, for $103 million, which equates to $559 per square foot. The deal marks the most expensive multifamily deal ever for the neighborhood and the first north of $100 million.

Queens kicked off the year with 8 transactions comprised of 8 buildings totaling $192.3 million in gross consideration. The borough’s largest transaction took place in long Is-land City, where 41-23 Crescent Street, a 140,000 square foot mixed-use building, sold for $97 million, or $693 per square foot. The sale marks the third time in four years the building has traded hands since its completion in 2012. Before this month, the property last sold for $85 million in 2013. In Flushing, Pinnacle group purchased a 145-unit eleva-tored building located at 142-20 Franklin Avenue for $43 million, which equates to $333 per square foot.

The Bronx recorded the most transactions of any submarket in January as a number of small to mid-size buildings traded. The borough’s top two sales both occurred in the North Bronx as 3873 Orloff Avenue, a 93,767 square foot elevatored building located in Kingsbridge, traded hands for $19 million, or just north of $200 per square foot. In Kings-bridge heights, a portfolio of 4 buildings on grand Avenue spanning 101,380 square feet sold for $17 million and 10.8 times the gross rent. For the six months ended January 2016 (Page 5), the average monthly transaction vol-ume dropped slightly to 56 transactions per month. The average monthly dollar volume remained steady at $1.981 billion.

JANuARY 2016 SNAPShOT

Dollar Volume

TransactionVolume

Building Volume

$1.37billion

59 7668% increasecompared toJanuary 2015

14% decreasecompared toJanuary 2015

22% decreasecompared toJanuary 2015


lEgENd

dOllAR VOluME COMPARISON gRAPh

BuIldINg VOluME COMPARISON gRAPh

MultifaMily MaRket peRfoRManCe by sub-MaRket

MetRiCsJan

2016% Change

vs. DeC 2015DeC2015

% Change vs. Jan 2015

Jan2015

Transaction Vol 12 -25% 16 -29% 17

Building Vol 13 -38% 21 -46% 24

Dollar Vol $541,816,690 -91% $5,926,176,785 77% $305,987,500

Total Units 738 -94% 11,808 41% 523

Transaction Vol 10 0% 10 -23% 13

Building Vol 14 -39% 23 -7% 15

Dollar Vol $290,700,000 112% $136,995,124 153% $115,120,000

Total Units 1,369 170% 507 236% 408

Transaction Vol 16 14% 14 0% 16

Building Vol 26 -28% 36 30% 20

Dollar Vol $121,112,500 -32% $178,540,498 60% $75,874,905

Total Units 821 -30% 1,170 42% 579

Transaction Vol 13 8% 12 -19% 16

Building Vol 15 0% 15 -38% 24

Dollar Vol $225,380,000 132% $97,300,000 -7% $241,804,150

Total Units 470 15% 410 -27% 648

Transaction Vol 8 -11% 9 14% 7

Building Vol 8 -53% 17 -47% 15

Dollar Vol $192,300,000 -17% $233,036,000 150% $76,945,500

Total Units 507 -49% 992 104% 248

Man

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50

45

40

35

30

25

20

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$1b

$450m

$400m

$350m

$300m

$250m

$200m

$150m

$100m

$50m

$0Jan’16 Dec ‘15 Jan‘15

Manhattan

Northern Manhattan

The Bronx

Brooklyn

Queens

Jan’16 Dec ‘15 Jan‘15

$6b



tRansaCtion & DollaR voluMe by QuaRteR | tRailing 6-Month Moving aveRage

$2b 85

$1.5b 80

$1.4b 75

$1.3b 70

$1.2b 65

$1.1b 60

$1b 55

$950mm 50

$900mm 45

$850mm 40

$800mm 35

$750mm 30

the tRailing 6-Month Moving aveRage

lEgENd: Transaction Volume | dollar Volume

6 MONThSENdEd

AVg.dOllAR VOl.

AVg.TRANSACTION VOl.

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2015 Jan $1,260,462,423 66

Feb $1,357,954,941 68

Mar $1,333,980,966 70

Apr $1,200,676,182 70

May $1,290,527,333 73

Jun $1,181,037,917 74

Jul $1,242,256,498 75

Aug $1,169,263,522 72

Sep $1,139,226,877 67

Oct $1,116,979,972 64

Nov $1,010,023,697 61

Dec $1,949,547,215 59

2016 Jan $1,980,924,823 56

$6.5b 110

$2b 90

$1.5b 70

$1b 50

$500mm 30

MultifaMily tRansaCtion tiMeline

lEgENd: Transaction Volume | dollar Volume

Q4 2014 Q1 2015 Q2 2015 Q2 2015 Q4 2015 Q1 2016

Trans Vol: 191 229 216 185 167 177Dollar

Vol: $4.06b $3.94b $3.14b $3.69b $8.00b $4.11b

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar


32+62+6+A93+7+0+A

23+37+40+A

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25+48+27+A7+42+51+A15+49+36+A71+24+5+A47+39+14+A52+39+9+A69+23+8+A

aug 2015 - Jan 2016 tRailing nuMbeRs aug 2014 - Jan 2015 tRailing nuMbeRs

Location /Criteria

Total Transactions

Total Buildings

Traded

Total Dollar

Value Traded

Median Price

Total Units

Traded

Median Units /

Transaction

Total Transactions

Total Buildings

Traded

Total Dollar

Value Traded

Median Price

Total Units

Traded

Median Units /

Transaction

Manhattan 81 142 $8,395,908,280 $14,900,000 15,654 20 88 122 $3,326,379,795 $13,325,000 5,845 24

N. Manhattan 52 111 $1,024,549,921 $7,900,000 4,006 33 77 153 $1,887,170,143 $8,500,000 7,642 36

Bronx 71 123 $679,038,285 $4,600,000 4,481 33 88 149 $626,728,563 $3,987,500 5,239 36

Brooklyn 98 151 $1,204,306,077 $6,143,495 3,636 23 112 188 $1,207,105,809 $4,800,000 4,234 20

Queens 35 49 $581,746,375 $7,300,000 2,200 32 33 68 $515,390,229 $4,300,000 2,341 16

Summary 337 576 $11,885,548,938 $7,500,000 29,977 25 398 680 $7,562,774,539 $6,637,500 25,301 26

tRailing six Month peRfoRManCe: Deal DistRibution by tRansaCtion Count anD DollaR voluMe

lEgENd: $20MM+ | $5-20mm | $1-5mm

pRiCing inDiCatoRs & DistRibutions

Manhattan n. Manhattan bRonx bRooklyn Queens

32% 25% 7% 15% 23%

62% 48% 42% 49% 37%

6% 27% 51% 36% 40%

Manhattan n. Manhattan bRonx bRooklyn Queens

93% 71% 47% 52% 69%

7% 24% 39% 39% 23%

0% 5% 14% 9% 8%

pri

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Location /Criteria

Avg. $/Unit Avg. $/SF Avg. Cap Rate Avg. GRM Avg. $/Unit Avg. $/SF Avg. Cap Rate Avg. GRM

Manhattan $852,577 $971 3.62% 19.89 $657,595 $897 3.64% 19.18

N. Manhattan $284,734 $362 4.04% 15.25 $249,361 $281 4.19% 13.83

Bronx $143,535 $167 5.25% 10.34 $116,081 $132 5.76% 8.76

Brooklyn $322,825 $382 4.32% 16.38 $291,143 $329 4.90% 14.42

Queens $258,897 $296 4.28% 14.43 $212,566 $263 5.07% 13.25



about aRiel pRopeRty aDvisoRs

exClusive MaRket RepoRts asset evaluations

investMent sales, investMent ReseaRCh & Capital seRviCes Quality bRokeRage seRviCes

Ariel Property Advisors is a commercial real estate services and advisory company located in New York City.

Our company is unique to the industry in that it is structured like an investment bank, with separate divisions for investment sales, capital services and research. This strategic approach to commercial brokerage services allows our professionals to deploy greater resources and provide consistent, seamless execution to every transaction.

We cover all major commercial asset types throughout the New York metropolitan area, but maintain a very sharp focus on multifamily, mixed-use, development, commercial and industrial properties.

From consultation through closing, our professionals are dedicated to achieving optimal results for our clients. Combining the insights of veteran brokers with the latest real estate market intelligence, we find solutions that meet the specific needs of both the client and the asset.

Cultivating long-lasting relationships with the real estate community is essential to the success of both our firm and our cli-ents, so we encourage all market participants to use our company as a resource.

Contact us today for Asset Evaluations, listing information, financing opportunities or our latest market reports.

INVESMENT SAlES

Shimon Shkury ext. 11 Victor Sozio ext. 12 Michael A. Tortorici ext. [email protected] [email protected] [email protected]

Randy Modell ext. 17 Jonathan Berman ext. 20 Scot hirschfield ext. [email protected] [email protected] [email protected]

howard Raber ext. 23 daniel Wechsler ext. 44 Mark Spinelli ext. [email protected] [email protected] [email protected]

daniel Tropp ext. 26 Jesse deutch ext. 18 Jason gold ext. [email protected] [email protected] [email protected]

Matthew gillis ext. 42 Marko Agbaba ext. 32 Joshua Berkowitz ext. [email protected] [email protected] [email protected]

Nathan Singer ext. 48 Jesse greshin ext. 5272 Joshua Kwilecki ext. [email protected] [email protected] [email protected]

INVESMENT RESEARCh

Ivan Petrovic Aryeh Orlofsky daniel [email protected] [email protected] [email protected]

david Baruch Brett Campbell dusan [email protected] [email protected] [email protected]

Sam Stuart Spencer [email protected] [email protected]

The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee the accuracy of any information provided herein. As an example, all zoning information, buildable footage estimates and indicated uses must be independently verified. Vacancy factors used herein are an arbitrary percentage used only as an example, and does not necessarily relate to actual vacancy, if any. The value of this prospective investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket, and other factors which your tax advisor and/or legal counsel should evaluate. The prospective buyer should care-fully verify each item of income, and all other information contained herein. March 15, 2016 2:08 pM

OuR METhOdOlOgY

The multifamily transactions included in the analysis occurred at a mini-

mum sales price of $1 million, with a minimum gross area of 5,000 square

feet and with a minimum of 10 units. Our estimated sales statistics reflect

all data available on public records and through other sources we deem

reliable.

TYPES OF TRANSACTIONS CONSIdEREd:

Transactions in which there was a transfer of ownership and deed docu-

ment recorded on ACRIS were considered. data is collected form public

sources and other sources we deem reliable.

lOCATION dEFINITIONS:Manhattan - South of East 96th Street, South of West 110th StreetNorthern Manhattan - North of East 96th Street, North of West 110th StreetThe Bronx - Bronx BoroughBrooklyn - Brooklyn BoroughQueens - Queens Borough

Whether you are considering selling your building or you just want to know the current market value of your property, we are available to provide you with a complimentary asset evaluation. Produced by the joint efforts of our investment sales and investment research teams, an Asset Evaluation will provide you with a thorough analysis of your investment property, and will detail our future marketing efforts on your behalf.

COMPlIMENTARY ASSET EVAluATIONPlease call us at 212.544.9500 to request an Asset Evaluation

COMPIlEd BY:

If you would like to use or quote this report on the web, we ask that you quote the source as “Multifamily Month In Review: New York City by Ariel Property Advisors” and link report from our website page (http://arielpa.nyc/research/reports/)

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