CPEX Quarterly Investment Sales Report Methodology

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2 CPEX Quarterly Investment Sales Report Methodology CPEX Real Estate s Quarterly Investment Sales Report is a comprehensive survey of commercial real estate sales recorded during the second quarter of 2015 in each of the five boroughs of New York City. The report analyzes development, industrial, mixed-use, multi-family, office, retail, and specialty use asset classes. This aggregated survey of sales data information was collected and analyzed using NYC s Department of Finance Rolling Sales Data and PropertyShark.com, with sales in each asset class verified by CPEX s corresponding team of property type specialists. Careful attention has been paid to accurately summarize the data studied for the period between April 1 and June 30, Transactions under $100,000 have been removed from the report along with sales involving residential condominiums. 110th Street was used as the border separating transactions occurring in Manhattan and Northern Manhattan. Development sales include NYC Class V and Z properties as well as those properties that CPEX identified as being purchased specifically for development purposes. Industrial sales include NYC Class E, F, and G buildings. Mixed-use sales include NYC Class C7, D6, D7, K4, and S buildings, while multi-family sales cover NYC Class C, D, and N buildings. Office sales include NYC Class L and O buildings, and retail sales involve NYC Class J, K, O9, select R, and Y properties. Specialty use comprises NYC Class I, M, P, and W properties. For more information about the CPEX Quarterly Investment Sales Report, or to learn more about the specific transactions included in the report, please contact one of our property type specialists at (718) or visit our website at

3 DEVELOPMENT 2Q15 STATS Brooklyn yet again was a strong force in the development market with nearly half of the total transactional volume for New York City during the second quarter. While the amount of buildable square feet that sold dropped by 30% compared to the same period in 2014, the lack of air rights led to premium pricing, as the price per buildable square foot doubled year over year. Queens also saw a significant spike in pricing, actually surpassing Brooklyn in price per buildable square foot. Northern Manhattan and the Bronx saw a spike in total trades and dollar volume as investors looked to capitalize on the market before pricing accelerates to the other major New York City markets. Through mid-year 2015, there have been 424 transactions in the development market, totaling just over $4.9 billion in sales at an average of approximately $260 per buildable square foot. 207 $2.6B+ Price Per Buildable Square Foot Borough BSF PPBSF Brooklyn % $532,578, % 2,672, % $ % Manhattan % $1,618,152, % 3,058, % $ % N. Manhattan & The Bronx % $189,698, % 2,650, % $ % Queens % $312,188, % 1,531, % $ % Staten Island % $5,177, % 54, % $ % Total % $2,657,794, % 9,967, % $ % 3

4 INDUSTRIAL 2Q15 STATS Despite a slight drop in the total number of transactions from the first quarter of 2015, Brooklyn s industrial sales market still made up approximately half of the overall transactional volume and dollar volume in New York City to date. Although Queens fell off the first quarter pace slightly, Northern Manhattan and the Bronx filled the void with more than double the transactional volume and square feet from the first quarter. All told, the first half of 2015 saw 291 industrial transactions and nearly four million square feet that traded for an aggregate sales value of over $860 million. 118 $311M+ Price Per Square Foot Borough SF PPSF Brooklyn % $163,645, % 937, % $ % Manhattan 0 N/A $0 N/A 0 N/A N/A N/A N. Manhattan & The Bronx % $85,368, % 486, % $ % Queens % $58,880, % 264, % $ % Staten Island % $3,751, % 16, % $ % Total % $311,645, % 1,704, % $ % 4

5 MIXED-USE 2Q15 STATS Although mixed-use sales slowed after a fast start in the first quarter, activity increased significantly across the board compared to the second quarter of Only Northern Manhattan and the Bronx experienced a dropoff in sales, due to a lack of inventory and also heightened activity by investors focused on the other boroughs. Through the first half of 2015, there have been 671 mixeduse transactions, totaling nearly 7.5 million square feet and over $3.6 billion in sales. 329 $1.4B+ Price Per Square Foot Borough SF PPSF Units Sold Avg. Cap Rate Brooklyn % $259,006, % 739, % $ % % 7.07% Manhattan % $808,703, % 1,057, % $ % 1, % 6.09% N. Manhattan & The Bronx % $264,952, % 1,406, % $ % 1, % 3.71% Queens % $139,841, % 404, % $ % % 6.88% Staten Island % $2,891, % 17, % $ % % 7.24% Total % $1,475,395, % 3,625, % $ % 3, % 6.30% 5

6 MULTI-FAMILY 2Q15 STATS Brooklyn continues to be the most popular among the boroughs for multi-family investors, comprising nearly 48% of the second quarter transactional volume. Premium pricing in Manhattan, Northern Manhattan and the Bronx, and Queens drove the average price per square foot up close to 50% even with almost 20% more residential units and over 500 properties changing hands. Overall, 952 multi-family transactions have led to the sale of more than 19,000 units totaling 17 million square feet, for a total dollar volume of nearly $5.3 billion. 454 $2.4B+ Price Per Square Foot Borough SF PPSF Units Sold Avg. Cap Rate Avg. GRM Brooklyn % $969,759, % 2,886, % $ % 3, % 4.05% Manhattan % $552,011, % 555, % $ % % 2.84% N. Manhattan & The Bronx % $606,453, % 2,523, % $ % 2, % 3.29% Queens % $273,395, % 760, % $ % % 5.50% Staten Island 2 0.0% $1,975, % 12, % $ % % N/A N/A Total % $2,403,595, % 6,738, % $ % 8, % 3.68%

7 OFFICE 2Q15 STATS While Manhattan once again led all of the boroughs in office sales, the number of largescale, multimillion dollar transactions fell precipitously after a strong first quarter. Whereas the first three months of 2015 saw 17 sales with a price north of $50 million, April through June saw just five sales of such magnitude. Of the five, the more than 430,000 square foot office building at Northern Boulevard in Queens sold for $71 million, the principal reason for Queens being the second most active borough for office sales. The first six months of the year have seen 122 transactions totaling $4.3 billion in the sale of almost seven million square feet of office space. 53 $903M+ Price Per Square Foot Borough SF PPSF Brooklyn % $44,445, % 100, % $ % Manhattan % $714,547, % 999, % $ % N. Manhattan & The Bronx % $10,305, % 37, % $ % Queens % $108,226, % 593, % $ % Staten Island 5 N/A $25,970,000 N/A 275,199 N/A $94 N/A Total % $903,494, % 2,006, % $ % 7

8 RETAIL 2Q15 STATS Brooklyn comprised a little less than half of the total number of transactions in the retail sales market during the second quarter, with Queens following close behind. Total dollar volume for the second quarter increased 128% over the first quarter with three Manhattan transactions of over $200 million, including the $355 million sale of 144 W. 34th Street in Chelsea. Through June 30th, retail sales in New York City have produced 291 total transactions for an average of $1,031 per square foot. 142 $1.6B+ Price Per Square Foot Borough vs. 2Q14 vs. 2Q14 SF vs. 2Q14 PPSF vs. 2Q14 Avg. Cap Rate Brooklyn % $158,412, % 299, % $ % 5.77% Manhattan % $1,201,058, % 445, % $2, % N/A N. Manhattan/Bronx % $55,211, % 212, % $ % 8.30% Queens % $189,276, % 388, % $ % 6.01% Staten Island % $9,900, % 25, % $ % N/A Total % $1,613,859, % 1,371, % $1, % 6.31% 8

9 SPECIALTY USE 2Q15 STATS Specialty use sales showed a drop in the number of transactions and total dollar volume quarter over quarter. Although Brooklyn and Queens had the most transactions for the first half of 2015, specialty use sales showed a drop across the board in all boroughs for the second quarter, due to less demand on the market. 19 $387M+ Price Per Square Foot Borough SF PPSF Brooklyn % $17,550, % 60, % $ % Manhattan % $12,250, % 21, % $ % N. Manhattan & The Bronx % $1,982, % 3, % $ % Queens % $33,800, % 170, % $ % Staten Island 2 N/A $1,440,000 N/A 7,700 N/A $187 N/A Total % $67,022, % 264, % $ % 9

10 CPEX REAL ESTATE TEAM Executive Team Multi-Family Sales Industrial Sales & Leasing Mixed-Use Timothy D. King Managing Partner Brian T. Leary Managing Partner Gregory H. Roberts Chief Operating Officer Carlos J. Matos Sales Manager Stephen Safina Director Multi-Family - Brooklyn Alyona Chystyakova Multi-Family - Brooklyn Thomas Ryan Multi-Family - Brooklyn Brian T. Leary Managing Partner Industrial Sales - Brooklyn Harrison MacDonnell Industrial Sales - Brooklyn Elizabeth Malone Industrial Sales - Brooklyn Lawrence Sarn Director Mixed-Use - Brooklyn Bryan Hurley Mixed-Use - Brooklyn Thomas Gollenberg Mixed-Use - Brooklyn Development & Conversion Sales Sean R. Kelly, Esq. Managing Director Development & Conversion James O Neill Development & Conversion Sean Sears Development & Conversion Gina Damond Development & Conversion Jason Weisfeld Development & Conversion Catherine Vintonik Development & Conversion Brandon Seidenberg Multi-Family - Queens Caroline Mahony Multi-Family - Queens Retail Sales Andre Sigourney Director Retail Sales Harrison Balisky Retail Sales Dimitri Venekas Retail Sales Nash Larmoyeux Retail Sales Justin Walsh Industrial Sales - Brooklyn Ryan Slattery Industrial Sales - Queens Mark Muñoz Industrial Sales - Queens Chase Reiter Mixed-Use - Queens Noel Archer Mixed-Use - Queens 10

11 Office Sales & Leasing Purchase Acquisitions Accounting Marketing/HR Rich Novak Director Office Leasing Rosanna Tapang Office Leasing Patrick Welch Office Leasing Retail Leasing Ryan Condren Managing Director Retail Leasing - Brooklyn George Danut Director Retail Leasing - Brooklyn Keat Chew Retail Leasing - Brooklyn Zachariah Clickman Retail Leasing - Queens Timothy D. King Managing Partner Acquisitions Brian T. Leary Managing Partner Acquisitions Lease Acquisitions Brian T. Leary Managing Partner Acquisitions Rich Novak Director Acquisitions Rosanna Tapang Acquisitions Advisory Robert Walsh Senior Managing Director Advisory James Kelly Accountant Research Nick Bohlen, Research Rachel Hall, Research Graphic Design Joseph Feminella, Graphic Design Alex DiNuzzo, Graphic Design Sophie Edelman, Graphic Design Wesley Tseng, 3D Renderings Louisa Graham, PR/Marketing Samantha Schroeter, PR/Marketing Katherine Schneider, Human Resources Jessica Deng, Social Media Technology Robert H. Ralston Senior Consultant, Networking Colin R. Cogle Consultant, Networking Eamon Carey Phone Systems, Networking Martin Volerich Senior Web Developer, Web David Heinzerling Retail Leasing - Queens 11

12 PREPARED BY THE CPEX INVESTMENT SALES TEAMS 81 WILLOUGHBY STREET, 8TH FLOOR BROOKLYN, NY