massey knakal sales report -final 71409

8/14/2019 Massey Knakal Sales Report -Final 71409

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NortherN MaNhattaN SaleS report

c o mp re h e n s i v e a n a l y s i s o f t h e f i r s t q u a r t e r o f 0 9

M i

N n M n n 2 0 0 9 n s i n i

2009 s i s i ns in n s is

In h i i : M i mi p o i

7 . 2 0 0 9

M a s s e y Kn a k a l Re a l t y Se rv i c e s - No r t h e rn M a n h a t t a n Sa l e s a n d Re s e a rc h Te a m

2 7 5 M a d i s o n Av e n u e , 3 rd F l o o r Ne w Yo rk NY , 1 0 0 1 6 p . - ( 2 1 2 ) 6 6 0 -7 7 2 9 f . ( 2 1 2 ) 6 9 6 -0 3 3 3

www. m a s s e y k n a k a l . c o m

I n v e s t m e n t Sa l e s I n v e s t m e n t Re s e a rc h


2/12

N n M n n S s r

M a s s e y Kn a k a l Re a l t y Se rv i c e s - No r t h e rn M a n h a t t a n Sa l e s a n d Re s e a rc h Te a m2

INtroductory letter


M a rk e t s i n T ra n s i t i o nI n t h e m i d s t o f a n u n p re c e d e n t e d g l o b a l e c o n o m i c a n d f i n a n c i a l t r a n s i t i o n , t h e m o s t s t r i k i nm e a s u re o f t o d a y s i n v e s t m e n t p ro p e r t y s a l e s m a rk e t i s t h e l o w n u m b e r o f t r a n s a c t i o n s . L o o ki n g a t Q 1 2 0 0 9 , No r t h e rn M a n h a t t a n s a w a t o t a l o f 2 6 t r a n s a c t i o n s r e p re s e n t i n g $ 8 1 , 3 8 5 , 8 3i n a g g re g a t e c o n s i d e ra t i o n . Co m p a re d t o Q 1 2 0 0 8 , b o t h t r a d i n g a n d d o l l a r v o l u m e d e c l i n eb y a p p ro x i m a t e l y 7 0 %.

F ro m a b ro a d e r Ne w Yo rk C i t y p e r s p e c t i v e , a n n u a l i z i n g s a l e s v o l u m e f o r t h e f i r s t q u a r t e r s u gg e s t s t h a t o n l y . 7 % o f b u i l d i n g s w i l l t r a d e t h i s y e a r c l e a r l y t h e l o we s t s a l e s v o l u m e s e es i n c e t h e s a v i n g s a n d l o a n c r i s i s o f t h e 1 9 8 0 s , wh e n s a l e s v o l u m e wa s a n a b y s m a l 1 . 6 % ot h e b u i l d i n g s t o c k . Wh i l e we b e l i e v e t h i s a c t i v i t y w i l l p i c k u p f r o m t h e Q 1 l o w , i t i s v e r y l i k et h a t f e we r b u i l d i n g s w i l l t r a d e t h i s y e a r t h a n a t a n y t i m e d u r i n g t h e l a s t t h re e d e c a d e s .

B i d d i n g a c t i v i t y o n p ro p e r t i e s we r e c u r r e n t l y m a rk e t i n g s u g g e s t s t h a t t h i s s l o w d o wn i s m o ra t t r i b u t e d t o a l a c k o f s u p p l y t h a n d e m a n d , e s p e c i a l l y f o r c a s h f l o w i n g m u l t i f a m i l y a s s e t s

Ho we v e r , m a n y o wn e rs a re r e l u c t a n t t o p u t t h e i r a s s e t s o n t h e m a rk e t u n l e s s t h e y h a v e s p e c i f i c r e a s o n t o s e l l (m a n a g e m e n t i s s u e s , p a r t n e r s h i p d i s p u t e s , o r i f t h e y a re u n d e r s o ml e v e l o f f i n a n c i a l p re s s u re ) .

A f t e r t h e n e x t p a g e s b r i e f c o m m e n t a r y o n t h e t h re e d i f f e re n t t y p e s o f i n v e s t m e n t p ro p e r t i ea v a i l a b l e u p t o wn , t h i s r e p o r t p ro v i d e s y o u w i t h a l l o f t h e s a l e s t h a t t o o k p l a c e i n Q 1 2 0 0 9 . Ad a t a i s s t i l l c o m i n g i n f o r Q 2 , t h i s i n f o rm a t i o n w i l l b e a v a i l a b l e i n o u r n e x t r e p o r t .

We l o o k f o rwa rd t o o u r c o n t i n u e d e f f o r t s i n p ro v i d i n g t h e No r t h e rn M a n h a t t a n c o m m u n i tw i t h t h e m o s t i n f o rm a t i v e a n d i n s i g h t f u l m a rk e t k n o w l e d g e a v a i l a b l e . Fo r f u r t h e r i n f o rm a t i ore g a rd i n g a n y o f t h e e n c l o s e d p ro p e r t i e s , o r t o d i s c u s s l o c a l r e a l e s t a t e t r e n d s i n g e n e rap l e a s e f e e l f r e e t o c o n t a c t u s a t a n y t i m e .

Wa rm e s t Re g a rd s ,

S h i m o n S h k u r y

I n v e s t m e n t Sa l e s : I n v e s t m e n t Re s e a rc h :M i c h a e l A . To r t o r i c i I v a n Pe t ro v i cV i c t o r S o z i o B r e n t R a n c eCh r i s t o p h e r L . L e f f e r t s

M a s s e y Kn a k a l Re a l t y Se rv i c e s2 7 5 M a d i s o n Av e n u e , 3 rd F l o o r Ne w Yo rk NY 1 0 0 1 6p . ( 2 1 2 ) 6 6 0 -7 7 2 9 - f . ( 2 1 2 ) 6 9 6 -0 3 3 3www. m a s s e y k n a k a l . c o m


3/12

Market obServatIoNS by product type


M a s s e y Kn a k a l Re a l t y Se rv i c e s - No r t h e rn M a n h a t t a n Sa l e s a n d Re s e a rc h Te a m 3

M u l t i f a m i l y :

1 1 m u l t i f a m i l y a s s e t s t r a d e d i n 2 0 0 9 f o r a n a g g re g a t e c o n s i d e ra t i o n o f $ 5 5 , 3 6 5 , 5 0 0 . Co m -p a re d t o 2 0 0 8 , t h e s e f i g u re s r e p re s e n t a 6 3 % d e c l i n e i n t u rn o v e r a n d 7 6 % d e c l i n e i n d o l l a r v o l u m e . De s p i t e t h e s e d e c l i n e s , m u l t i f a m i l y p r i c e s a re h o l d i n g b e t t e r t h a n o t h e r r e a l e s t a t ea s s e t s , e s p e c i a l l y i f t h e s u b j e c t b u i l d i n g h a s u p s i d e i n t h e r e n t s .

Q 1 2 0 0 9 s a l e s a c t i v i t y s h o ws a n a v e ra g e c a p ra t e a t 6 . 5 7 %, wh i c h i s 1 4 % h i g h e r t h a n 2 0 0 8l e v e l s a n d 1 8 % h i g h e r t h a n 2 0 0 7 l e v e l s . I n v e s t o r s wo u l d a p p l y l e s s o f a d i s c o u n t t o 2 0 0 7n u m b e rs wh e n d e a l i n g w i t h p ro p e r t i e s wh i c h a re we l l l o c a t e d a n d / o r p re s e n t s i g n i f i c a n t u p -s i d e . Two b u i l d i n g s s o l d i n t h e l o we r p a r t o f Ea s t Ha r l e m s u g g e s t e x a c t l y t h a t ( s e e Fe a t u re dT ra n s a c t i o n s ) . Wh i l e t h e a s s e t s s o l d f o r l e s s t h a n 6 % c a p ra t e , t h e a m o u n t o f u p s i d e a n d t h ep r i c e p e r s q u a re f o o t s u g g e s t t h a t t h i s p r i c e i s o n l y 2 0 % b e l o w 2 0 0 7 l e v e l s .

Ho we v e r , s i n c e Up p e r M a n h a t t a n h a s a l a rg e s t o c k o f s t a b i l i z e d a p a r t m e n t s , p r i c e s f o r b u i l d i n g s u p t o wn s h o u l d h o l d f i rm e r t h a n p r i c e s f o r b u i l d i n g s l o c a t e d i n n e i g h b o rh o o d s w i t h

m o re f r e e m a rk e t t e n a n t s .

Th a t b e i n g s a i d , t h e re a re s e v e ra l c l o u d s o n t h e h o r i z o n t h a t w i l l c o n t i n u e t o p u t d o wn wa rdp re s s u re o n p r i c e s . Th e s e i n c l u d e a n i n c re a s e i n a l t e rn a t i v e i n v e s t m e n t s ( r e a l e s t a t e o r o t h -e rw i s e ) , a n u n c e r t a i n r e g u l a t o r y e n v i r o n m e n t a n d t h e b e l i e f t h a t t h e n u m b e r o f b u i l d i n g s f o r s a l e w i l l i n c re a s e s i g n i f i c a n t l y a s t h e m a rk e t c o p e s w i t h m o r t g a g e re s e t s t h a t a re s c h e d u l e dt o t a k e p l a c e i n t h e n e x t f e w y e a rs .

C o m m e r c i a l ( N N N L e a s e s ) :

Se v e ra l we l l l o c a t e d , t r i p l e n e t l e a s e c o m m e rc i a l b u i l d i n g s s o l d d u r i n g t h e f i r s t q u a r t e r . Be -c a u s e t h e y r e q u i r e l i t t l e m a n a g e m e n t b y t h e o wn e r , p a y g o o d y i e l d s , a n d b e c a u s e M a n h a t t a nre t a i l h e l d i n h i g h r e g a rd b y i n v e s t o r s , t h e s e a s s e t s r a re l y s e l l . We b e l i e v e t h e s e a s s e t s a ren o w s e l l i n g b e c a u s e o wn e rs a re e i t h e r l o o k i n g t o r e p o s i t i o n t h e i r p o r t f o l i o s o r h a v e d e c i d e dn o t t o m o v e a h e a d o n d e v e l o p m e n t o p p o r t u n i t i e s t h e s e o n e -s t o r y b u i l d i n g s s o m e t i m e s p re s -e n t . Re c e n t p r i c e s r e f l e c t v a l u e s n o r t h o f a 6 -7 % re t u rn , a m a rk e d i n c re a s e f r o m c a p i t a l i z a -

t i o n r a t e s b e l o w 6 % t h a t w e r e m o r e c o m m o n u n t i l 2 0 0 7 .

De v e l o p m e n t S i t e s :

I t i s v e r y d i f f i c u l t t o f a c t u a l l y c o m m e n t o n d e v e l o p m e n t s i t e p r i c e s b e c a u s e f e w d e v e l o p -m e n t s i t e s h a v e s o l d i n Q 4 2 0 0 8 o r Q 1 2 0 0 9 . Th o s e s i t e s t h a t d i d t r a d e we re t y p i c a l l y e i t h e r c o n v e rs i o n s o r p u r c h a s e d b y u s e rs . O n e c a n m a k e s o m e i n f e re n c e s b y l o o k i n g a t b i d d i n g /c o n t ra c t a c t i v i t y w i t h d e v e l o p m e n t s i t e s o u r t e a m c u r re n t l y h a s o n t h e m a rk e t . Fo r e x a m p l e ,2 3 0 Ea s t 9 7 t h S t re e t a n d 2 3 0 4 -0 6 Se c o n d Av e n u e a re p r i c e d a t $ 1 4 8 a n d $ 6 6 p e r b u i l d a b l es q u a re f o o t . L o o k i n g a t t h e i r l o c a t i o n s , t h e s e a s k i n g p r i c e s r e p re s e n t a n d e c l i n e o f 3 1 % a n d4 5 % f r o m t h e i r p e a k v a l u e s . G e n e ra l l y s p e a k i n g , a s s e t s w i t h a u s e r c o m p o n e n t , c o n v e r t -i b l e e x i s t i n g s t r u c t u re , o r l o w a b s o l u t e p r i c e p o i n t a re h o l d i n g t h e i r v a l u e b e t t e r t h a n l a rg ep a rc e l s o f r a w l a n d . Wh e re a s t h e d e v e l o p m e n t m a rk e t wa s p re v i o u s l y d o m i n a t e d b y c o n d o -m i n i u m d e v e l o p e rs , t o d a y s b u y e rs t e n d t o b e u s e rs , a f f o rd a b l e h o u s i n g d e v e l o p e rs , o r b u y -a n d -h o l d i n v e s t o r s l o o k i n g t o l a n d b a n k t o d a y w i t h a n e y e o n a f u t u re s a l e o r d e v e l o p m e n t .

To wn h o u s e s :

Wh i l e a v e ra g e p r i c e s p e r s q u a re f o o t h a v e s e e n a d e c l i n e o f a p p ro x i m a t e l y 1 5 % i n c o m -p a r i s o n t o t h e f i r s t q u a r t e r o f 0 8 , t h e l a rg e s t i n d i c a t o r o f a s o f t e n i n g i n t h i s m a rk e t c a n b es e e n i n t h e l o we r v o l u m e o f s a l e s . D i s re g a rd i n g t r a n s a c t i o n s wh i c h we re a f f e c t e d b y s t a t eo r o t h e r a u c t i o n i n g a g e n c i e s , t h e n u m b e r o f t o wn h o u s e t r a n s a c t i o n s i n t h e 1 s t q u a r t e r o f 0 9 t o t a l s 7 t r a n s a c t i o n s . Th i s i s d o wn a p p ro x i m a t e l y 7 0 % (2 3 ) f r o m t h e s a m e t i m e l a s t y e a r .L a c k o f f i n a n c i n g o p t i o n s , a s m a l l e r b u y e r p o o l a n d t h e d e t e r i o ra t i o n o f r e s i d e n t i a l m a rk e t si n t h e g re a t e r m e t ro p o l i t a n a re a h a s l e d t o s o m e o f t h e l o we s t o f f e r i n g p r i c e s f o r u p t o wnt o wn h o u s e s i n y e a rs .


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N n M n n S s r


M e e t t h e t e a M


I N V E S T M E N T R E S E A R C HI N V E S T M E N T S A L E S

Shimon Shkury

Partner

(212) 660-7729

[email protected]

Michael A. TortoriciSales Team Manager(212) [email protected]

Joining the Northern Manhattan team in 2004, Mr.Tortorici has been involved in the sale of over 180properties totaling $660,000,000 in aggregate con-sideration. Though his primary focus is Northern

Manhattan, he has broad experience in marketing a variety investmentproperty types throughout the New York Tri-State area. He has beena source for numerous publications including The New York Sun, TheReal Deal and Real Estate Weekly, among others. Mr. Tortorici gradu-ated with honors from New York Universitys Stern School of Business,where he earned his Bachelors degree in Economics and Manage-ment.

Victor SozioDirector Of Sales(212) [email protected]

Victor Sozio joined the Northern Manhattan teamas an Associate in 2006 and has since been re-sponsible for overseeing all marketing operationsfor Central Harlem properties. Mr. Sozio has beeninvolved in over 90 transactions totaling above

$550,000,000 in aggregate consideration. Mr. Sozio graduated Man-hattan College with a B.S. in marketing and is a veteran of the UnitedStates Marine Corps. His extensive knowledge of neighborhood trans-actions and relationships with local buyers has allowed him to quicklyprovide Harlem owners with valuable market feedback.

Christopher L. LeffertsSenior Sales Associate(212) [email protected]

Mr. Lefferts graduated from the University of Kentucky in 2005 with a B.S. in marketing. He joined Massey Knakal as an assistant Founding Partner Paul Massey in 2005 and joined the Northern Manhattan team as an Associate in 2006. Since then, Mr. Lefferhas been involved in the sale of 90 properties totaling $550,000,000 in aggregate consideration. As he is responsible for overseeinthe production of all of the teams Opinion of Values, Mr. Lefferts has produced and distributed over 500 valuations for hundreds New York City landlords.

Ivan PetrovicDirector Of Research(212) [email protected]

Mr. Petrovic was born and raised in BelgradSerbia. He came to the United States in 2000 attend Baruch College and he graduated withB.S. in business administration and in interntional nance. Mr. Petrovic joined the Northe

Manhattan team in 2003 to develop comprehensive sales support sytems that focus on retaining data and managing all industry contactThrough his efforts, the sales team streamlined all marketing efforwhile also gaining the ability to provide clients and customers with peodic, detailed market reports for investment properties uptown.

Brent RanceResearch Associate(212) [email protected]

Mr. Rance joined the Northern Manhattan teain summer of 2008 working alongside Ivan. Hserves as a direct link between investment saleand investment research team. Amongst oththings, Brent has been involved in production

various neighborhood and market reports that are being used as onof the main sources of information for owners and investors in Nortern Manhattan. He is an honor student at Fordham Universitys Colege of Business Administration and expects to graduate in 2010.

Shimon Shkury, is Managing Director and Partner for Northern Manhattan, the Bronx, an

Westchester for Massey Knakal Realty Services. Since joining Massey Knakal in 2002, M

Shkurys individual broker transactions have included: 215 transactions (275 in investme

sales), consisting of 2 million in total square feet, and totaling over $700 million in investme

property sales. The largest single asset transaction, a 250,000 square foot residential proper

on the Upper East Side, was sold for $80 million. The largest portfolio of three buildings

residential properties at 15 and 19 West 55th Street and 779 Riverside Drive, and an ofc

building at 330 West 38th Street--totaled $120 million. Since 2004, his division has sold mo

than 500 properties, consisting of 4 million square feet and totaling in excess of $1 billion.


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featured traNSactIoNS



Sale Date: 2.2009

Sale Price: $12,500,000

CAP Rate: 6.27%

GRM: 9.07

$ / Unit: $104,166

$ / Sq. Ft.: $183.12

East Harlem HUD Portfolio

The East Harlem HUD Portfolio is a package of nine residential buildings

located in the rapidly up and coming area of East Harlem. All of the buildings

are under the Section 8 program of HUD and corresponding rent/income

regulations apply to tenancy. Seven of the portfolios nine (9) buildings are

elevatored and together they contain 237 apartments. The portfolio received

a tremendous amount of interest from both local and national affordable

housing operators. After 3 months of marketing and negotiations, our sales

team put the portfolio in contract with an affordable housing investor who

plans on continuing to operate the buildings under the Section 8 program.

The transaction is expected to close in the Fall of 2009.

East 101st Street Four Building Portfolio, New York NY 10029

The property consisted of four (4) adjacent 6-story walk-up with 120 apart-

ments. Though the collapse of Lehman Brothers and its aftermath was fresh

in everyones mind, our team managed to receive over 10 offers for the as-

set. Within an 8 week marketing period, the property was in contract with

a Manhattan investor. The asset closed in March for $12.5 million, which

represents a 6.27% capitalization rate and $183 per square foot.

2481 Adam Clayton Powell Blvd. , New York NY 10026

2481 Adam Claytown Powell Boulevard is a 50 wide one (1) story com-mercial building located on the northeast corner of West 144th Street and

Adam Clayton Powell Boulevard. Citibank currently occupies the building

and has a NNN that expires in July 2012 with options to stay in the space

until 2027. The property sold to a private investor in mid-March for $2.53

million, which represents a 7.11% cap rate and about $300 per square

foot.

Sale Date: 3.2009

Sale Price: $2,530,000

CAP Rate: 7.11%

$ / Sq. Ft.: $337.69

542 West 147th Street, New York NY 10031

37.5 wide, 5 story walk-up building on the south side of 147th Street, between

Broadway and Amsterdam Avenues. The building contains 15 apartments,which consists of 3 two-bedroom, 7 three-bedroom and 5 four-bedroom

units. The building was delivered with 5 vacancies. We sold the property for

$1.75 million, which represents $112 per sq. ft. and about $116,667 per unit.

The sale represents a trend in the multi-family sector, where in-place financ-

ing offered the purchaser an opportunity to acquire the asset with a minimal

cash outlay and allowed the seller to clear the debt on a distressed asset.

Sale Date: 3.2009

Sale Price: $1,750,000

CAP Rate: 6.84%

GRM: 8.45

$ / Unit: $116,667

$ / Sq. Ft.: $112.36

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6/12

N n M n n S s r

M a s s e y Kn a k a l Re a l t y Se rv i c e s6

NortherN M aNhattaN 1 St Qu


Pr ope r t y Ty p e Q1 20 07 Q1 2 00 8 Q1 2 009

De v e l op me n t S i t es 15 7 6

Mu l t i f am i l y 47 4 0 11

Own er - U s e r 39 2 3 7

Co mm er c ia l N / A N / A 2

Grand To ta l 1 01 7 0 2 6

Pr op e r t y Ty pe Q1 20 07 Q1 20 08 Q1 200 9

D ev e lo pm en t S i t e s $56 , 4 64 , 280 $1 8 , 7 86 , 718 $11 , 533 , 9 58

M u l t i f a mi l y $4 91 , 53 5 , 1 21 $2 26 , 29 9 , 1 97 $ 55 , 36 5 , 5 00

Ow ne r - Us e r $50 , 2 65 , 680 $2 8 , 2 46 , 05 9 $ 9 , 4 56 , 38 1

C om me rc i a l N / A N / A $ 5 , 0 30 , 00 0

Grand To ta l $598 , 265 , 081 $273 , 331 , 974 $81 , 385 , 839

TRANSACTI O N VO L UM E SUM M ARY CO M PARI SO N (Q 1 2 0 0 7 - Q 1 2 0 0 9 )

PRO PERTY VAL UE I NDI CATO R CO M PARI SO N (Q 1 2 0 0 7 - 2 0 0 9 )

I n d i c a t o r : Q1 2 00 7 Q1 200 8 Q1 20 09

C ap Ra t e - Mu l t i f am i l y 5 . 3 7% 5. 64% 6 . 57 %

GR M - M u l t i f ami l y 10 . 63 10 . 86 9 . 04

$ / U n i t - Mu l t i f am i l y $1 94 , 038 $1 62 , 27 6 $119 , 19 9

$ / S F - Mu l t i f am i l y $2 39 $2 02 $ 16 3

$ / SF - Va c an t Bu i l d in gs $2 23 $1 85 $ 13 6

$ / BS F - Va c an t La nd $11 7 $1 05 $6 6

$ / SF - U s e r P ro pe r t i e s $4 18 $3 95 $ 364

Ca p R a t e - C om me rc i a l / N NN N / A N / A 7 . 8 %

M u l t i f a m i l y

DO L L AR VO L UM E SUM M ARY CO M PARI SO N (Q 1 2 0 0 7 - Q 1 2 0 0 9 )

Q b Q a n s i s

Co m m e rc i a l


7/12

a n h a t t a n Sa l e s a n d Re s e a rc h Te a m


07 - 2009 coMparISoN SuMMary

7

D e v e l o p m e n t S i t e s O w n e r - U s e r

C o u n t Tra n s a c t i o n Va l u e

1 1 0 7 -4 5 We s t 1 3 5 t h S t r e e t $ 2 6 , 5 0 0 , 0 0 0

2 E a s t 1 0 1 s t S t r e e t $ 1 2 , 5 0 0 , 0 0 0

3 2 3 0 5 - 7 1 2 t h Av e n u e $ 4 , 8 7 5 , 7 0 8

4 1 9 6 9 - 7 1 A m s t e r d a m Av e n u e $ 4 , 5 0 0 , 0 0 0

5 3 5 7 We s t 1 2 1 S t r e e t $ 2 , 5 7 5 , 0 0 0

6 1 5 3 -5 9 W 1 4 4 t h S t re e t $ 2 , 5 3 0 , 0 0 0

7 4 0 3 E . 11 8 th St & 2 3 06 1s t A ve . $ 2 ,5 0 0, 0 00

8 6 0 6 We s t 1 3 7 t h S t r e e t $ 2 , 4 6 5 , 5 0 0

9 2 2 5 E a s t 1 2 5 S t re e t $ 1 , 9 4 7 , 5 0 0

1 0 1 0 4 -0 8 Ea s t 1 2 8 S t r e e t $ 1 , 8 7 5 , 7 5 0

11 5 4 2 We s t 1 4 7 S t r e e t $ 1 , 7 5 0 , 0 0 0

1 2 1 6 1 We s t 1 3 3 S t r e e t $ 1 , 7 0 0 , 0 0 0

1 3 4 5 7 We s t 1 4 3 S t r e e t $ 1 , 7 0 0 , 0 0 01 4 1 4 8 We s t 1 4 1 S t r e e t $ 1 , 5 7 0 , 0 0 0

1 5 1 6 7 E a s t 11 6 S t r e e t $ 1 , 5 0 0 , 0 0 0

1 6 2 2 0 We s t 1 3 9 t h S t r e e t $ 1 , 4 4 6 , 4 2 5

1 7 2 3 9 We s t 1 3 2 S t r e e t $ 1 , 3 5 0 , 0 0 0

1 8 4 5 0 We s t 1 5 0 t h S t r e e t $ 1 , 1 0 0 , 0 0 0

1 9 3 1 We s t 1 3 1 s t S t r e e t $ 1 , 1 0 0 , 0 0 0

2 0 3 3 0 E a s t 1 0 6 S t re e t $ 1 , 0 3 0 , 0 0 0

2 1 1 3 8 N a g l e Av e n u e $ 1 , 0 2 5 , 0 0 0

2 2 2 1 2 3 2 Av e n u e $ 1 , 0 2 5 , 0 0 0

2 3 2 1 2 5 1 Av e n u e $ 8 2 5 , 0 0 0

2 4 1 2 C o n v e n t Av e n u e $ 7 5 4 , 9 5 6

2 5 3 0 3 We s t 1 2 8 S t r e e t $ 7 1 0 , 0 0 0

2 6 5 4 7 We s t 1 5 9 S t r e e t $ 5 3 0 , 0 0 0

1

2

3

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

2223

24

25

26

M o a 1 s Q t n s i n s


8/12

N n M n n S s r


f IrSt Quarter 09 traNSactIoN l Ibrary


330 East 106th Street, 10029

4 Story Mixed-Use Building

Number of Units: 7 residential + 1 commercial

Building Area: 5,476 (Approx.)

Price: $1,030,000

606 West 137th Street, 10031

6 Story Elevatored Building

Number of Units: 24


Price: $2,465,500

148 West 141st Street, 10030

5 Story Walk-Up Building

Number of Units: 29


Price: $1,570,000

111-45 West 135th Street, 10030

6 Building Portfolio - Affordable Housing

Number of Units: 198

Total SF 164,460 (Approx.)

Price: $26,500,000

M i m i t n s i n s

1969-71 Amsterdam Avenue, 10032

6 Story Mixed Use Building



Price: $4,500,000





Price: $1,500,000

2125 1st Avenue, 10029




Price: $825,000

2123 2nd Avenue, 10029




Price: $1,025,000

161 West 133rd Street, 10030

5 Story Walk-Up Building

Number of Units: 17


Price: $1,700,000


9/12

IN h Ig hl Ight: Mult IfaMIly product overvIew



I n s p i t e o f t h e r e c e s s i o n , m u l t i f a m i l y b u i l d i n g s i n N e w Y o r k C i t y r e m a i n a t t r a c t i v e i n v e s t m e n t s b e c a u s e

t h e y d e l i v e r a s t e a d y c a s h f l o w , a n d l o c a l a n d r e g i o n a l b a n k s a r e s t i l l o f f e r i n g i n v e s t o r s f i n a n c i n g w i t h

i n t e r e s t r a t e s i n t h e l o w 6 % r a n g e .

S o m e d i f f e r e n c e s , h o w e v e r , a r e l e n d e r s a r e l o o k i n g f o r b u y e r s t o p u t u p 3 0 % t o 4 0 % e q u i t y t o d a y ,

c o m p a r e d t o 1 0 % t o 2 5 % d u r i n g t h e b o o m y e a r s , a n d h a v e d e b t s e r v i c e c o v e r a g e r a t i o s o f 1 . 2 t o 1 . 3

c o m p a r e d t o 1 . 0 5 t o 1 . 1 5 i n 2 0 0 7 . A n o t h e r d i f f e r e n c e i s t h e n u m b e r o f m u l t i f a m i l y b u i l d i n g s a v a i l a b l e

f o r s a l e i n U p p e r M a n h a t t a n i s a b o u t o n e - t h i r d w h a t i t w a s i n 2 0 0 7 b e c a u s e b u i l d i n g o w n e r s a r e n t

s e l l i n g u n l e s s t h e y h a v e t o , e v e n i f t h e y r e j u s t b r e a k i n g e v e n .

T h o s e w h o n e e d t o s e l l d u e t o p e r s o n a l r e a s o n s s u c h a s r e t i r e m e n t , d i v o r c e , a d e a t h i n t h e f a m i l y , o r

t o r a i s e e x t r a c a s h , a r e s e l l i n g t h e i r b u i l d i n g s f o r a b o u t 1 0 % t o 1 5 % l e s s t h a n a t t h e p e a k o f t h e r e a l

e s t a t e b o o m . T h e g o o d n e w s i s t h a t e v e n t h o u g h p r i c e s h a v e d r o p p e d s l i g h t l y , t h e c a p r a t e s f o r t h e s e

b u i l d i n g s h a v e i n c r e a s e d o n l y s l i g h t l y b e c a u s e o f d e c l i n i n g o i l p r i c e s a n d l o w i n t e r e s t r a t e s .

I n a d d i t i o n , w h i l e t h e r e a l e s t a t e i n d u s t r y i s c o n c e r n e d a b o u t r e f i n a n c i n g b i l l i o n s o f d o l l a r s i n c o m -m e r c i a l r e a l e s t a t e l o a n s i n t h e n e x t f e w y e a r s , w e s e e t h i s a s a n o p p o r t u n i t y f o r b u y e r s i n t e r e s t e d i n

p i c k i n g u p p r o p e r t i e s .

A l s o , f o r b u i l d i n g s w i t h e x c e l l e n t m a n a g e m e n t a n d g o o d f i n a n c i a l s , r e f i n a n c i n g s h o u l d n t b e a p r o b -

l e m . T w o s i x s t o r y a p a r t m e n t b u i l d i n g s o n E a s t 1 0 8 t h S t . , i l l u s t r a t e t h i s p o i n t . S i n c e t h e o w n e r b o u g h t

t h e a s s e t i n 2 0 0 4 , i n c o m e f r o m t h e p r o p e r t i e s h a s i n c r e a s e d f r o m $ 7 6 9 , 0 0 0 t o $ 1 . 2 m i l l i o n , w h i c h r e p -

r e s e n t s a 1 2 . 5 % i n c r e a s e i n r e n t r o l l e a c h y e a r . A s a r e s u l t , t h e b u i l d i n g s w i l l b e a t t r a c t i v e t o a l e n d e r

w h e n i t s t i m e t o r e f i n a n c e .

U p p e r M a n h a t t a n f e a t u r e s a l a r g e s u p p l y o f r e n t s t a b i l i z e d b u i l d i n g s t h a t g u a r a n t e e c a s h f l o w f r o m s t e a d y

r e n t s , h i g h o c c u p a n c y r a t e s , a n d t h e p o t e n t i a l f o r h i g h e r r e n t s a s a p a r t m e n t s b e c o m e v a c a n t . I n U p p e r

M a n h a t t a n , r e n t s t a b i l i z e d a p a r t m e n t s a r e $ 1 8 . 6 7 p e r s / f v e r s u s f r e e m a r k e t a p a r t m e n t s a t $ 2 7 . 6 2 p e r s / f .

S o m e c o n c e r n s f a c i n g t h e r e n t s t a b i l i z e d m a r k e t t h r o u g h o u t N e w Y o r k C i t y, h o w e v e r , i n c l u d e p r o p o s e d

N e w Y or k S t a t e l a w s t h a t w o u l d l i m i t M a j o r C a p i t a l I m p r o v e m e n t s ( M C I ) a n d i n d i v i d u a l a p a r t m e n t i m -

p r o v e m e n t r e c a p t u r e s , r e s t r i c t r e n t i n c r e a s e s t h a t o w n e r s c a n c h a r g e w h e n a p a r t m e n t s b e c o m e v a -

c a n t , a n d c h a n g e t h e r e n t t h r e s h o l d f o r c a t e g o r i z i n g a u n i t a s f r e e m a r k e t .

C o n c e r n s f a c i n g f r e e m a r k e t b u i l d i n g s i n c l u d e a n o v e r s u p p l y o f u n i t s , w h i c h i s r e s u l t i n g i n s o m e c o n -

d o s g o i n g r e n t a l , a n d h i g h e r u n e m p l o y m e n t a n d p a y c u t s . T h e u p s i d e f o r q u a l i f i e d b u y e r s , h o w e v e r , i s

t h e y c a n b u y c o n d o s a t a d i s c o u n t c o m p a r e d t o t w o o r t h r e e y e a r s a g o .

U p p e r M a n h a t t a n h a s i n c r e a s e d i n p o p u l a r i t y i n r e c e n t y e a r s a s i n d i c a t e d b y a j u m p i n p o p u l a t i o n o f

m o r e t h a n 2 0 , 0 0 0 b e t w e e n 2 0 0 0 a n d 2 0 0 7 , a n d t h e a d d i t i o n o f m o r e t h a n 6 , 5 0 0 r e s i d e n t i a l u n i t s w i t h

m o r e t h a n 8 0 % b u i l t f o r o w n e r s h i p .

N e w c o m e r s h a v e b e e n a t t r a c t e d b y t h e a r e a s p r o x i m i t y t o M i d t o w n , n e w c o n d o m i n i u m d e v e l o p m e n t s ,

l o w e r r e n t s a n d c o n d o m i n i u m p r i c e s , a n d n e w a n d p l a n n e d s e r v i c e s , r e t a i l s h o p s , a n d h o t e l d e v e l o p -

m e n t s , a l l o f w h i c h a r e m a k i n g t h e a r e a a d e s i r a b l e p l a c e t o l i v e . O v e r a l l , t h e n e i g h b o r h o o d s i n U p p e r

M a n h a t t a n a r e p r e d o m i n a n t l y r e s i d e n t i a l w i t h b a l a n c e d r e s i d e n t i a l a n d r e t a i l d e v e l o p m e n t c o n c e n -

t r a t e d a r o u n d t h e m a i n c o m m e r c i a l c o r r i d o r s , a n d a r e w e l l c o n n e c t e d t o s u b w a y l i n e s , b r i d g e s , a n d

b u s l i n e s .

E a c h a r e a o f U p p e r M a n h a t t a n h a s a u n i q u e p e r s o n a l i t y , w i t h M o r n i n g s i d e H e i g h t s a n d H a m i l t o n H e i g h t s

i n f l u e n c e d b y C o l u m b i a U n i v e r s i t y a n d i t s e x p a n s i o n ; C e n t r a l H a r l e m g r a d u a l l y b e c o m i n g a n e x t e n s i o n

o f t h e U p p e r W e s t S i d e ; E a s t H a r l e m f e a t u r i n g t h e c h a r a c t e r i s t i c s o f t h e E a s t V i l l a g e a n d L o w e r E a s t

S i d e ; a n d I n w o o d a n d W a s h i n g t o n H e i g h t s d i s t i n g u i s h e d b y t h e i r r e m a r k a b l e a r c h i t e c t u r e .

O v e r a l l , w e b e l i e v e b o t h t h e s t a b i l i t y o f l o c a l m u l t i f a m i l y a s s e t s a n d t h e p o t e n t i a l f o r U p p e r M a n h a t t a n

r e a l e s t a t e r e p r e s e n t s o m e o f t h e b e s t b u y i n g o p p o r t u n i t i e s i n t h e s e c h a l l e n g i n g t i m e s .

NY Real Estate Journa5.26 - 6.8 09 issue

This article was adapte

from a presentation Sh

mon Shkury delivered t

the National Realty Clu

on May 19.


10/12

N n M n n S s r




c m m i t i N l s t n s i n s

vn ln / vn b i in t ns i ns

138 Nagle Avenue, 10040

25' Wide Vacant Church

Building Size: 4,500 (Approx.)

Zoning: R7-2 (3.44)

Air Rights: 8,400 (Approx.)

Price: $1,025,000

104-08 East 128th Street, 10035

54' Wide Vacant Industrial Site


Zoning: M1-2 (2)


Price: $1,875,750

403 E 118th St & 2306 1st Ave., 10035

54' x 50 One Story Structure


Zoning: R7-x (5.0)


Price: $2,500,000

2305-7 12th Avenue, 10027

70' Wide Industrial Site


Zoning: C6-1 (3.44)


Price: $4,875,708


20' Wide Garage


Zoning:C1-4 (2);

R7-2 (3.44)


Price: $710,000

454 Convent Avenue, 10031

16.67 Vacant Lot

Lot Dimensions: 16.67 x 99.92 (Approx.)

Lot Size: 1,666

Zoning: R7-2 (3.44) (Approx.)

Buildable SF 5,730

Price: $1,100,000


70' Wide Industrial Site


Zoning: M1-2 (FAR: 2.0)

Air Rights: None

Price: $1,947,500


11/12




tns tns ins


16.67' Wide Townhouse


Zoning: R7-2 (3.44)


Price: $1,100,000


20' Wide Townhouse


Zoning: R7-2 (3.44)


Price: $1,446,425

239 West 132nd Street, 10027

15' Wide Townhouse


Zoning: R7-2 (3.44)


Price: $1,350,000

12 Convent Avenue, 10027

20' Wide Townhouse


Zoning: R7-2 (3.44)


Price: $754,956

457 West 143rd Street, 10031



Zoning: R7-2 (3.44)


Price: $1,700,000


16' Wide Townhouse


Zoning: R7-B (3.0)


Price: $2,575,000




Zoning: R7-2 (3.44)

Air Rights: 1,814 (Approx.)Price: $530,000


12/12

N o r t h e r n M a n h a t t a n R e s i d e n t i a l R e n t a l R e p o r t An a l y z i n g t h o u s a n d s o f r e n t a l

a p a r t m e n t s t h ro u g h o u t Ha r l e m , t h i s r e p o r t h i g h l i g h t s a n d d i s c u s s e s re c e n t t r e n d s

i n t h e l o c a l r e n t a l m a rk e t .

N o r t h e r n M a n h a t t a n C o n d o m i n i u m R e p o r t Th i s r e p o r t p ro v i d e s a u n i t b y u n i t

b re a k d o wn o f o v e r 1 , 0 0 0 u n i t s a v a i l a b l e , s o l d o r u n d e r c o n t ra c t i n No r t h e rn M a n -

h a t t a n . Th e s e c o n d p a r t o f t h e r e p o r t h i g h l i g h t s a l l No r t h e rn M a n h a t t a n c o n d o -

m i n i u m d e v e l o p m e n t s t h a t a re e i t h e r i n p ro g re s s o r c o m p l e t e d .

No r t h e rn M a n h a t t a n Co m m e rc i a l Re p o r t Th i s r e p o r t h i g h l i g h t s a v a i l a b l e a n d

re c e n t l y l e a s e d c o m m e rc i a l s p a c e i n t h e No r t h e rn M a n h a t t a n a re a . Th e s e c o n d

h a l f o f t h e r e p o r t d i s c u s s e s a l l c o m m e rc i a l d e v e l o p m e n t s a n d l a t e s t i n f o rm a t i o n

o n re - z o n i n g o r 1 2 5 t h S t re e t .

To re c e i v e a n y o f t h e r e p o r t s a b o v e , t o l e a rn m o r e a b o u t

c u r re n t m a rk e t c o n d i t i o n s o r i f y o u wo u l d l i k e a c o m -

p re h e n s i v e e v a l u a t i o n o f y o u r p ro p e r t y , p l e a s e d o n o t

h e s i t a t e t o c o n t a c t u s a t t h e n u m b e r b e l o w . We a re h e re

t o a n s we r y o u r q u e s t i o n s .

Sh i m o n Sh k u ry

I n v e s t m e n t Sa l e s : I n v e s t m e n t Re s e a rc h :

M i c h a e l A . To r t o r i c i I v a n Pe t ro v i c

V i c t o r So z i o B re n t Ra n c e

Ch r i s t o p h e r L . L e f f e r t s

p . 2 1 2 . 6 6 0 . 7 7 2 9 - f . 2 1 2 . 6 9 6 . 0 3 3 3

www. m a s s e y k n a k a l . c o m

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n h a s e i t h e r b e e n g i v e n t o u s b y t h e o w n e r o f t h e

p r o p e r t y o r o b t a i n e d f r o m s o u r c e s t h a t w e d e e m r e l i a b l e . W e h a v e n o r e a s o n t o

d o u b t i t s a c c u r a c y b u t w e d o n o t g u a r a n t e e i t . A l l z o n i n g , b u i l d a b l e f o o t a g e s a n d

u s e s m u s t b e i n d e p e n d e n t l y v e r i f y e d . V a c a n c y f a c t o r s u s e d h e r e i n a r e a n a r b i -

t r a r y p e r c e n t a g e u s e d o n l y a s a n e x a m p l e . I t d o e s n o t n e c e s s a r i l y r e l a t e t o a c t u a l

v a c a n c y , i f a n y . T h e v a l u e o f t h i s i n v e s t m e n t i s d e p e n d e n t u p o n t h e s e e s t i m a t e s

a n d a s s u m p t i o n s m a d e a b o v e , a s w e l l a s t h e i n v e s t m e n t i n c o m e , t h e t a x b r a c k e t ,

a n d o t h e r f a c t o r s w h i c h y o u r t a x a d v i s o r a n d / o r l e g a l c o u n s e l s h o u l d e v a l u a t e .

THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF IN-

COME, AND ALL OTHER INFORMATION HEREIN.

N n M n n S s r

avaIlable prod uct reportS - updated IN 1 St Q u a r t e r o f 0 9

I n s t r i v i n g t o p ro v i d e o u r c l i e n t s a n d c u s t o m e rs w i t h t h e m o s t c o m p re h e n s i v e No r t h e rn M a n h a t t a n r e a l e s t a t e d a t a , o

t e a m h a s p ro d u c e d a w i d e v a r i e t y o f m a rk e t r e p o r t s t h a t a re a v a i l a b l e u p o n re q u e s t . P l e a s e c o n t a c t u s i f y o u wo u

l i k e t o r e c e i v e a c o m p l i m e n t a r y c o p y o f a n y o f t h e f o l l o w i n g :

Shimon Shkury

Investment Sales:

Michael A. Tortorici

Victor Sozio

Christopher L. Lefferts

Investment Research:

Ivan Petrovic

Holly Daddario

Brent Rance

p. (212) 660-7729

f. (212) 696-0333

Massey Knakal Realty

Services

275 Madison Avenue

3rd Floor

New York NY, 10016

D ear F r i ends ,

Thi s r epor t pr ov i des an over v i ew of the r es i dent i al r ental

m ar ket r ents thr oughout N or ther n M anhattan aver a ge appr o

fr om l as t year s aver age of $32 per squar e foot. H ow ever , th

be r ent s tabi l i zed. Our s tudy found that, on aver age, uptow n

per squar e foot. Assum i ng these aver age m ar ket r ents hol d

32.4% of ups i de for s tabi l i zed bui l di ngs thr oughout N or th

Thi s i m pl i ed ups i de expl ai ns the cur r ent tr end for bui l di ng

bui l di ngs . Inves tor s bel i eve that such r egul a ted m ul t i fam i l y

that com e w i th r egul ated uni t tur nover . D espi te a dec l i ne i n

t i nue to pur chase bui l di ngs w i th such ups i de at r el at i vel y l o

In pr oper t i es w her e such ups i de i s not pr esent, i nves tor s w

abl e to i nc r ease r ents as eas i l y . D ata obtai ned fr om com pa

fr ee m ar ket com ponents cur r ent l y conf i r m s thi s tr end, as

r ates and pr i ces per squar e foot than bui l di ngs oper at i ng be

Pl ease feel f r ee to contac t us w i th any ques t i ons r egar di ng

ef for ts i n pr ov i di ng H ar l em i nves tor s and ow ner s w i th the

InvestmentSales InvestmentResearch

N O R TH ER N MA N H A TTA N

R ESI D EN TI A L R EN TA L R EPO R T 2009

N O R TH ER N MA N H A TTA N C O N D O MI N I U M REPO

Shimon Shkury

Investment Sales:


Victor Sozio



Ivan Petrovic

Holly Daddario

Brent Rance

p. (212) 660-7729

f. (212) 696-0333


Services

275 Madison Avenue

3rd Floor

New York NY, 10016


2008 tr ades show the aver age pr i ce per squar e foo t for N or

foot, a 3% decr ease fr om 2007 f i gu r es . W hi l e thi s sugges ts

um e s l ow ed cons i der abl y i n the second hal f of 2008 w i th u

Gi ven ever yone s hous i ng m ar ket concer n, the bi g ques t i on i

pr i ces . Our i ndus tr y sour ces say pr i ce po i nt i s supr em e tod

buyer s ar e l ook i ng for the bes t val ue for thei r dol l ar thr ou

achi eved on sm al l uni ts at pr i ce poi nts be l ow $500,000. W

squar e foot ( num ber s that ar e w el l bel ow l as t year s $800+ f i

poi nts w i th so m any other condom i ni um s to choose fr om .

W i th new cons tr uc t i on r es tr i c t i ng new suppl y for l eas t the

i n dem and once thi s econom y tur ns ar ound, one coul d ar gu

pass up.

Thi s ex tens i ve r epor t contai ns condom i ni um sel l - out dat a

Spanni ng sever al year s of ac t i v i ty , the r epor t conta i ns a

both r ecent and futur e devel o pm ents . The uptow n condom iand w e hope thi s r epor t pr ov i des you w i th fr esh a per spec

h o o d .

For fur ther i nfor m ati on, pl ease feel f r ee to contac t us at a

NORTHERN MANHATTAN OFFICE / RETAIL REP

Shimon Shkury

Investment Sales:


Victor Sozio



Ivan Petrovic

Holly Daddario

Brent Rance

p. (212) 660-7729

f. (212) 696-0333


Services

275 Madison Avenue

3rd Floor

New York NY, 10016


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