Year in Review Sales Report. New York City Investment Sales

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1 218 Year in Review Sales Report New York City Investment Sales

2 218 Investment Sales - New York City 218 New York City Summary The 218 invetment sales market started strong, rebounding from last year's corrective market, and was able to expand upon the velocity. Taking into consideration that sales are often a rear view mirror of six to nine months due to the length of a real estate transaction, the market is upward trending, once again. Year-over-year dollar volume rose 35% for all New York City property sales, concluding at $45 billion. While this total dollar volume is significantly less than the recent market peak of $76 billion from 215, it comes in well above the ten-year average of $41 billion. Total Dollar Volume % Δ YOY # of Sales % Δ YOY Cap Rate Price Per Square Foot MULTI-FAMILY $13.6B 64% 75 13% 4.52% $525 OFFICE $18.8B 17% 164 1% 4.89% $949 DEVELOPMENT $4.5B 64% % N/A $275 RETAIL $4.7B 8% 365 8% 4.53% $1,11 2

3 218 Investment Sales - New York City 218 New York City Property Sales HIGHLIGHTS $45B 35% 1,565 1% Total YOY Total Number of Sales YOY TOTAL DOLLAR VOLUME BY ASSET CLASS 11% 8% 1% 3% 42% TOTAL NUMBER OF SALES BY ASSET CLASS TRANSACTION VOLUME AND NUMBER OF SALES BY YEAR $9 $8 $7 $6 $5 $4 $3 $2 $1 Total Dollar Dollar volume Volume 3, 2,5 2, 1,5 1, 5 1% 8% 1% DOLLAR VOLUME BY BOROUGH 23% 48% 3% Upper Manhattan 3% Bronx Offi ce Multi-Fami ly Retail 68% Manhattan 11% Queens Develop ment Other 14% Brooklyn Methodology: New York City property sales include all investment grade property sales (not inclusive of less than four-unit residential sites) within Manhattan, Brooklyn, Queens and Bronx. The above total includes Office, Multi-Family, Retail, Development and Other asset classes. 3

4 218 Investment Sales - Manhattan 218 Manhattan Investment Sales HIGHLIGHTS $24B 37% % Total YOY Total Number of Sales YOY TOTAL DOLLAR VOLUME BY ASSET CLASS TRANSACTION VOLUME AND NUMBER OF SALES BY YEAR 7% 13% 14% 8% 4% 54% TOTAL NUMBER OF SALES BY ASSET CLASS $6 $5 $4 $3 $2 $1 Dollar Total Volume volume % 15% 8% 14% 35% 14% TRANSACTIONS BY ASSET CLASS IN MANHATTAN Dollar Price value 1,2, 5,, 1,,, 1,5,, 2,,, 2,397,51,899 Office Office Condo Multi-Family Retail Development Conversion/User Type Conversion/User Development Multifamily Office / Office Condo Retail Methodology: Manhattan Investment Sales includes only verified transactions above $5 million ($1 million for retail properties and office condominiums) in asset classes south of 96th Street. 4

5 218 Investment Sales - Manhattan Manhattan Investment Sales Historical Pricing HISTORICAL MULTI-FAMILY PRICING $1,2 $1, $8 $6 $4 $ Price per Square square foot Foot Cap Rate 6% 5% 4% 3% 2% 1% % HISTORICAL RETAIL PRICING $4, $3, $2, $1, Price per Square square foot Foot Cap Rate 8% 6% 4% 2% % HISTORICAL OFFICE PRICING $1,5 $1, $ Price per Square square foot Foot Cap Rate 6% 5% 4% 3% 2% 1% % HISTORICAL DEVELOPMENT PRICING $8 $6 $4 $ Price per buildable square foot 5

6 218 Investment Sales - Manhattan Multi-Family/Mixed-Use Market Snapshot $3.4B % $995 Total Number of Sales Average Cap Rate Average Price PSF Transaction Volume & Number of Sales by Year $14 6 $12 5 $1 $8 $6 $ $2 1 Total Volume 218 Largest Transactions 11 West End Avenue $416,, Eighth Avenue (aka 271 West 47th Street) $29,, 34 Desbrosses Street $25,, 575 Amsterdam Avenue $22,, 52 West 43rd Street $193,, 6

7 218 Investment Sales - Manhattan Retail Market Snapshot $1.7B % $2,135 Total Number of Sales Average Cap Rate Average Price PSF Transaction Volume & Number of Sales by Year $4. Retail 14 $3.5 $3. $2.5 $2. $1.5 $ Total Total Volume Volume ## of of Sales Sales 218 Largest Transactions 1535 Broadway $442,, rd Avenue $143,8, 685 Fifth Ave $135,, 412 West 14th Street $87,, 11 East 68th Street $82,, 7

8 218 Investment Sales - Manhattan Office Market Snapshot $13B % $969 Total Number of Sales Average Cap Rate Average Price PSF Transaction Volume & Number of Sales by Year $25 $2 $15 $1 $ Total Volume 218 Largest Transactions 75 Ninth Avenue (Chelsea Market) $2,397,51, Fifth Avenue (office) $1,286,83, th Avenue $9,, 34 West Street (St. John's Terminal) $7,, 425 Lexington Avenue $7,, 8

9 218 Investment Sales - Manhattan Office Condo Market Snapshot $1B 53 $868 Total Number of Sales Condo Average Price PSF Transaction Volume & Number of Sales by Year $25$2.5 $2$2. $15$1.5 $1$1. $ Total Volume Total Volume of Sales 218 Largest Transactions 1745 Broadway $633,, 16 Fifth Avenue $18,75, 42 Fifth Avenue $18,723, West 33rd Street $18,59, West 33rd Street $12,948,15 9

10 218 Investment Sales - Manhattan Development Market Snapshot $3B M $655 Total Number of Sales Total BSF Average Price per BSF Transaction Volume & Number of Sales by Year $12 25 $1 2 $8 $6 $ $2 5 Total Volume 218 Largest Transactions Disney HQ Portfolio $65,, Northwell/TUFF Portfolio $232,197,37 25 Water Street $18,, East 34th Street / Third Avenue $143,8, 14 West 24th Street $112,67,59 1

11 218 Investment Sales - Manhattan Conversion/User Market Snapshot $1.9B M $1,195 Total Number of Sales Total SF Average Price PSF Transaction Volume & Number of Sales by Year $3 $3 $2 $2 $1 $ Total Volume 218 Largest Transactions ABC/Silverstein Portfolio $1,155,, 378 West End Avenue / 26 West 78th Street $158,, West 58th Street $71,521, West 83rd / 157 West 83rd /234 West 18th Street $5,775, 3-32 Howard Street $46,, 11

12 For more information please contact: James Nelson Principal, Head of Tri-State Investment Sales Erik Edeen Director of Operations James Kinsey Principal, Senior Director of Tri-State Investment Sales Ethan Bidna Analyst AVISON YOUNG NEW YORK 1166 Avenue of the Americas, 15th Floor New York, NY avisonyoung.com 219 Avison Young New York, LLC. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.