Manhattan 2013 Mid-Year Sales Report

Transcription

1 Manhattan 2013 Mid-Year Sales Report by Ariel Property Advisors Released July 2013 Join Our List: or visit arielpa.com Ariel Property Advisors Building Results 122 East 42 nd Street, Suite New York NY arielpa.com 1

2 z z Manhattan 2013 Mid-Year Sales Report Manhattan 2013 Mid-Year Sales Report Dear Friends, Investment property sales in Manhattan (south of East 96th Street and south of West 110th Street) during the first half of 2013 ( 1H13 ) showed year over year declines in transaction and property volume, but moderately strong growth in dollar volume. Though much of the growth in dollar volume came from a string of institutional commercial and office deals, a resurgence of development site sales also played a key role. For 1H13, Manhattan saw 274 transactions consisting of 351 properties totaling $10.56 billion in gross consideration. This represents a 12% decrease in transaction volume, a 9% decrease in property volume and a 28% increase in dollar volume compared to the first half of 2012 ( 1H12 ), which saw 310 transactions comprised of 384 properties totaling $8.199 billion in gross consideration. Total 1H13 statistics also reflect an expected decline from figures exhibited in the second half of 2012 ( 2H12 ), which were higher than usual in response to the expiration of the Bush tax cuts. Manhattan multifamily properties remained in very high demand in 1H13, although it was a less active half compared to 1H12 and 2H12. Prices, however, are at the highest levels seen since 2007, and more owners may decide to list properties in 2H13 as interest rates begin to rise. Razor thin vacancy levels are driving up rents and condominium prices are rising sharply as buyer demand meets scarce product. Both trends are fueling a tremendous appetite for development site sales throughout Manhattan and are causing prices per buildable square foot to surpass heights achieved during the last cycle. In fact, some sites in prime locations are seeing values north of $600 per buildable square foot with one site in West Chelsea selling for as high as $800 per buildable square foot. With general economic optimism, rising fundamentals, continued residential scarcity and more financing available, we expect this momentum to continue through the end of the year as some owners who missed out on the last peak choose to sell during this cycle. Positive economic trends and sounder financial markets are also driving a number of retail and office deals worth billions of dollars, on a full or partial sale basis. As figures for the second quarter of 2013 demonstrate that there has been strong improvement from the first quarter, we therefore expect stronger sales volume and higher-than-average pricing to continue over the balance of the year. We hope that you find this report informative as we provide you with an organized overview of values and trends for all asset classes in Manhattan. For a detailed complimentary evaluation of your property or comparable sales and trends in a specific area, please contact a member of our Manhattan Sales Team. We wish you all a healthy and relaxing summer. Warmest Regards, Shimon Shkury President x.11 sshkury@arielpa.com Randy Modell Vice President x.17 rmodell@arielpa.com Victor Sozio Vice President x.12 vsozio@arielpa.com Michael A. Tortorici Vice President x.13 mtortorici@arielpa.com Howard Raber, Esq. Associate Vice President x.23 hraber@arielpa.com 2013 Mid-Year Snapshot* Dollar Volume $ billion 28% increase compared to 1H 2012 Transaction Volume Property Volume % decrease compared to 1H % decrease compared to 1H 2012 Dollar Volume Comparison By Location Graph 20+ Midtown West Legend: Midtown East Downtown West Downtown East Upper East Side Upper West Side 20% 40% Transaction Volume Comparison By Location Graph 19+ Downtown West Legend: Midtown West Midtown East Downtown East Upper East Side Upper West Side 7% 6% 9% 18% 19% 18% 18% 12% 14% 19% Ariel Property Advisors arielpa.com *this analysis does not include partial interest transactions 2 Ariel Property Advisors Building Results 122 East 42 nd Street, Suite New York NY arielpa.com

3 Manhattan 2013 Mid-Year Sales Report: Market Observations Office Comparing dollar volume of first half of 2013 to the first half of 2012, the market is up 71% with $5.85 billion in gross consideration verses $3.43 billion in gross consideration. It is interesting to note that this increase is despite a 40% decrease in the number of properties that sold due to more billion dollar transactions taking place in comparison to the first half of 2012 most notably the General Motors Building at 761 Fifth Avenue (a 40% stake sold for approximately $1.4 billion, approx. $1,700/sf); 650 Madison Avenue ($1.3 billion, approx. $2,300/sf); and the Sony Building at 550 Madison Avenue ($1.1 billion, approx. $1,287/sf). We anticipate 2013 will close with Office dollar and sales volume both exceeding 2012 levels. Development Sites Comparing dollar volume of first half 2013 to first half of 2012, the market is up 105% with $1.4 billion in gross considerations versus $683 million. Prime development sites in Manhattan with scale are trading at pre-recession levels, with some sites trading at north of $600 per buildable square foot. Transactions and property sales volume have also increased compared to the first half of A notable transaction is th Avenue, which will have access to the Highline, and sold for $800 per buildable square foot. Hotels & Retail Sites Comparing dollar volume of the first half 2013 to the first half of 2012 the market is up 15% with just over $1 billion in gross consideration versus $893 million in gross consideration. This increase is despite a 49% decrease in the amount of properties sold and highlights the strong hotel and retail market. We anticipate this trend will continue and the remainder of 2013 will see higher transactions and an increased number of property sales compared to Two notable transactions include the 226-room Holiday Inn Manhattan 6th Avenue, located at 125 W. 26th St., that sold for $113 million and the 203-room Alex Hotel, located at 205 East 45th Street, that was sold to a hotel group for $115 million. Multifamily While sales volume dipped in the 1H13 compared to 1H12 and 2H12, pricing is as strong as ever. Rising rents and low interest rates have pushed the average capitalization rate down to 4.46%. The average price per square foot is up to $736, the average price per unit is $536,000 and the average gross rent multiple is up to Notable examples include Columbus Avenue, a 27-unit walk-up building, which sold for $10.1 million ($536/ sf); nd Avenue, a 15-unit walk-up building, which sold for $9.1 million ($862/sf); and 325 East 10th Street, a 18-unit walk-up building, sold for $8.5 million ($773/sf). We expect this strong pricing to bring more properties to market over the second half, especially if interest rates rise to a point where refinancing is less attractive. Dollar Vol. Product Type 1H 2013 % Change 1H '13-2H '12 2H 2012 % Change 1H '13-1H '12 1H 2012 Commercial & Hotel $1,029,309,273-51% $2,096,212,605 15% $893,565,125 Multifamily $1,760,538,723-49% $3,471,660,196-31% $2,540,274,033 Ind / Gar / Dev $1,400,319,177-29% $1,975,467, % $683,409,781 User $461,883,544-15% $546,077,750-20% $576,141,145 Office $5,852,563,636 27% $4,625,115,150 71% $3,429,470,366 Special Purpose $60,600,000 26% $48,150,000-21% $76,329,600 Grand Total $10,565,214,353-17% $12,762,683,352 28% $8,199,190,050 Transaction Vol. Commercial & Hotel 14-61% 36-47% 27 Multifamily % % 132 Ind / Gar / Dev 58-11% 65 28% 45 User 65 7% 61 1% 65 Office 22-50% 44-38% 35 Special Purpose 4 9% 4-27% 6 Grand Total % % 310 Property Vol. Commercial & Hotel 16-60% 41-49% 32 Multifamily % 264-6% 178 Ind / Gar / Dev 71-25% 95 27% 56 User 67 7% 62-2% 68 Office 26-47% 49-40% 44 Special Purpose 4 9% 4-27% 6 Grand Total % 515-9% 384 *Ind / Gar / Dev: Industrial / Garage / Development Ariel Property Advisors Building Results 122 East 42 nd Street, Suite New York NY arielpa.com 3

4 Manhattan 2013 Transaction Map & Overview By Property Type Legend Elevatored Buildings Walk-Up Buildings Vacant Buildings Vacant lot Mixed-Use Buildings Commercial Buildings / Hotels Special Purpose Garage Office 4 Ariel Property Advisors Building Results 122 East 42 nd Street, Suite New York NY arielpa.com

5 z z Manhattan 2013 Mid-Year Sales Report Manhattan 2013 Regional Overview Manhattan Neighborhood Transaction Volume Property Volume Dollar Volume Midtown West $2,114,319,362 Midtown East $4,247,155,473 Downtown West $733,908,927 Downtown East $583,506,756 Upper East Side $963,692,726 Upper West Side $1,922,631,109 Grand Total $10,565,214,353 Multifamily Pricing Indicators Cap Rate $/SF 4.46% $736 GRM $/Unit $536k Dollar Volume Breakdown By Property Type 10+ Legend: Commercial & Hotel Ind / Gar / Dev Multifamily Office Special Purpose User 10% 13% 17% 55% 1% 4% Transaction Volume Breakdown By Property Type 5+ Commercial & Hotel Legend: Ind / Gar / Dev Multifamily Office Special Purpose User 5% 21% 40% 8% 2% 24% Ariel Property Advisors Building Results 122 East 42 nd Street, Suite New York NY arielpa.com 5

6 H1 Highlighted Transactions 2013 Real Estate Timeline Sony Building 550 Madison Avenue GE Building 30 Rockefeller Plaza General Motors Building 761 5th Avenue C.I.T. Building 650 Madison Avenue 2H H H H H H 2013 Partial Interest: $1,100,000,000 Sale Date: 3/15/2013 Partial Interest*: $1,307,965,050 Sale Date: 3/19/2013 Price: $1,400,000,000 Sale Date: 6/5/2013 Price: $1,300,000,000 Sale Date: 6/15/2013 *not included in sales analysis Manhattan Real Estate Timeline Legend: Transaction Volume Dollar Volume $8b $7b $6b $5b $4b $3b $2b $1b H H H H H H 2013 Trans Vol: 204 Trans Vol: 142 Trans Vol: 248 Trans Vol: 311 Trans Vol: 422 Trans Vol: 274 Dollar Vol: $5,757,398,760 Dollar Vol: $5,230,188,683 Dollar Vol: $7,658,793,585 Dollar Vol: $8,234,190,050 Dollar Vol: $12,762,683,352 Dollar Vol: $10,565,214,353 Economy Jobless rate drops to 9.7% U.S. economy grows 3.2% in first quarter - economy appears to be slowly improving Economy adds 431,000 jobs in May, mostly related to the 2010 census Republicans take back House of Representatives and advances in Senate. Andrew Cuomo becomes governor of NY, Republicans rebalace state gov t houses U.S. Federal Reserve buying government debt in effort to maintain low interest rates Home sales at lowest level in 10 Years White House announces bi-partisan tax compromise extending all Bush tax cuts for 2 years, including the 15% capital gains tax Gross domestic product, was revised lower to an annual growth rate of 2.8% in the three months ending in December Gross domestic product, was revised lower to an annual growth rate of 2.8% in the three months ending in December NYS unemployment rate drops by 20 basis points, the largest decline since 2004 U.S. housing prices declined again in the first three months of 2011 Hiring slowed in May with only 54,000 jobs added NYS economy adds 13,600 private sector jobs New York State legislators reached a deal on rent laws Foreclosure filings in NYS have dropped 85% since September New York District economy expands, but at slower pace NYS Labor Department reported the state added 14,100 private sector jobs Construction permits for new buildings, alterations & demolition increased by about 12% 30-year bond declined 61 basis point from 3.51% to 2.9% Real GDP increases 2.5% Mortgage rates hit record lows Manhattan accounts for 80% of multifamily dollar volume in Q311 U.S. unemployment rate falls to 9.0% Conference Board report shows improving U.S. economy Reports show real estate market improving nationwide National Home Building Index reaches 2007 levels Fed plans to keep rates near zero through 2014 Existing home sales up 4.3% in January U.S. unemployment rate falls to 2009 levels U.S adds 227,000 jobs in February Manhattan rents break pre-economic crash records Supreme Court declines to hear challenge to rent laws Manhattan rents break pre-economic crash records Supreme Court declines to hear challenge to rent laws Study shows large NYC rental buildings burdened with highest property taxes Downtown Brooklyn led city in job growth and wages, report shows Manhattan rents rise again in July NYC multifamily transactions up 31 percent year-over-year Fed Chairman signals new efforts to boost the economy NYC multifamily sales volume dips in July, but trend continues to look up NY state adds 3,300 private sector jobs in August Home prices increase in 20 major cities for third consecutive month U.S. creates 114,000 jobs in September; unemployment rate falls to 7.8 percent NYC multifamily sales jump in August New York City multifamily transactions jump 26 percent in the third quarter GDP increases 2 percent in the third quarter Congress settles uncertainty over Capital Gains tax Dollar value of NYC multifamily transactions jump 86 percent in November 2012 compared to November 2011 NYC multifamily sales rise to $7.8 Billion in 2012, a 54 percent increase from 2011 World-Class Civil Rights Museum planned for Harlem Manhattan real estate transactions reach $21.1 billion in 2012 U.S. home prices rise 5.5% Manhattan and Brooklyn rents increase in March After-effects of big 2012 linger, but tight inventory pushing prices higher First quarter multifamily transaction volume holds steady yearover-year U.S. Economy adds 165,000 jobs in April State announces support for affordable housing projects Fed weighing future monetary policy options New York City named world s most competitive city NYC multifamily sales in April stable month-over-month City & State unemployment rates fall to 09 levels 6 Ariel Property Advisors Building Results 122 East 42 nd Street, Suite New York NY arielpa.com

7 Manhattan Development Projects In Progress Borough-Wide Project Updates: Manhattan Featured Development Site Transactions 1 Mar 13 $31,000, East 86th Street Glenwood acquires potential UES development site for $313 pbsf The World Trade Center Current Stage: In Progress Projected Cost: $3.2billion Projected Completion Date: Mar 13 $103,400, South Street The property, listed as 250 South St., changed hands for about $103,400,000 on March Mar 13 $46,500, Cherry Street Extell paid $46.5 million to acquire Pathmark s long-term lease. 2nd Avenue Subway 4 Jun 13 $55,000, West 77 Street Naftali Group purchased the garage located between Broadway and Amsterdam Avenue. The garage will be razed to give way for a 100,000-square-foot luxury condo development. Current Stage: Phase I Projected Cost (Phase I): $4.4 billion Projected Completion Date (phase 1): The first phase, from 63rd to 96th streets, is expected to be completed by December, Manhattan H1 13 Development* Activity By Neighborhood Location Total Dollar Value Traded Total Transactions Total Properties Traded Total BSF Alphabet City $23,882, ,951 Chelsea $39,121, ,413 Highline Development Current Stage: Phase I Projected Cost (Phase I & II): $152.3 million Projected Completion Date (phase 1): 2014 Chinatown $3,406, ,445 Civic Center $23,167, ,588 Clinton $30,743, ,290 Fashion $93,908, ,672 Seward Park Mixed-Use Development Project Current Stage: RFP Project has completed the formal City land use review process. Gramercy $23,130, ,149 Greenwich Village $101,000, ,097 Kips Bay $204,375, ,347 Lower East Side $171,289, ,063 Midtown East $5,450, ,775 Midtown West $25,100, ,139 Murray Hill $25,000, ,781 SoHo $17,250, ,735 TriBeCa $11,500, ,325 Upper East Side $86,062, ,041 Upper West Side $142,100, ,672 Grand Total $1,026,487, ,845,483 *includes vacant land & conversion properties only Other NYCEDC Projects In the works: The East Midtown Waterfront Project will fill a major gap in the Manhattan Waterfront Greenway between East 38th and East 60th Streets along the East River, while providing much-desired waterfront access and public open space resources for the communities of East Midtown and the public at large. The City of New York has opened the first phase of its ambitious project for improving the East River Waterfront Esplanade, a two-mile-long, City-owned public open space extending from the Battery Maritime Building to the south to Montgomery Street to the north. Alive and bustling and open on Sundays Essex Street Market is a place you ll be tempted to eat your way through. The Fulton Nassau Crossroads Program is a voluntary storefront and façade improvement program. This unique public-private partnership aims to improve pedestrian and retail conditions along lower Manhattan s primary retail corridor, drawing from the area s rich and diverse architectural heritage. With millions of dollars spent building the Brooklyn Cruise Terminal plus millions spent renovating the Manhattan Cruise Terminal at Pier 88 and Pier 90, the NYCruise Terminals have become premiere ports of call. for more info visit: Ariel Property Advisors Building Results 122 East 42 nd Street, Suite New York NY arielpa.com 7

8 Manhattan Development News March 13 April The City Council approved the South Street Seaport redevelopment plan. Developers will tear down the Pier 17 mall and replace it with a new complex that will feature a green roof and free public space, and add two new food markets. Construction is scheduled to begin on October 1. The project will be funded with more than $200 million in private investment. The City Council also voted to approve rezoning Hudson Square, bordered by Houston and Canal streets to the north and south, Sixth Avenue and Washington Street to east and west. Trinity Real Estate owns about 40 percent of the district, which has historically been home to old printing plants, but residential development will be allowed under the rezoning. Between 2,000 and 3,000 new apartment units and a 444-seat elementary school are expected to be built in the community Dozens of mid-20th century buildings located within the proposed Midtown East Rezoning District are so energy inefficient they should be razed and new more efficient towers built in their place, according to a new report by Terrapin Bright Green, an environmental consulting group. Most of the single-glazed curtain walled buildings leak, have outdated heating, cooling, and ventilation systems, and aren t solid enough to be retrofitted. A new building could have 44 percent more square footage and still use 5 percent less energy, the report said Long-Delayed Battery Park Pier A, Now Plans To Open In May MoMA expects to have American Folk Art Museum demolished by the end of this year. New tower still to be built Culture Shed, an exhibition and event space venue, is being proposed for Hudson Yards adjacent to the High Line. The design calls for four levels of galleries, an open-air café, and a 125-foot-tall shell that could be extended from the building over the plaza and more than double the first floor space. Promoters say the Culture Shed s expanded shell could be used for a number of activities including a farmers market, skating rink, ticketed concerts, and theatrical performances Related Companies announced that the 1.7 million square foot, 895 foot tall South Tower at the corner of 10th Avenue and 30th Street in Hudson Yards is more than 80 percent committed. Coach Inc. has purchased 740,000 square feet for their global headquarters, L Oreal USA has leased 402,000 square feet for their U.S. corporate headquarters, and SAP has leased 115,000 square feet on the top four floors of the building. Construction began last year and occupancy in the LEED Gold South Tower is expected in A few blocks downtown at West 15th Street, the City Council gave the green light to Youngwoo & Associates to redevelop Pier 57 into an urban mall. The developer will renovate an existing building and install stacked shipping containers that will house retail tenants. About 100,000 square feet of public space will be created, primarily on the property s roof, where the Tribeca Film Festival will have an outdoor theater. The corner of Houston and Lafayette Streets in SoHo is also headed for a makeover. The Landmarks Preservation Commission approved razing the current buildings-a BP gas station, the Puck Fair bar, and a former mechanic shop. The step was necessary before the property owner could move forward with plans to develop 30,000 square feet of retail space and 40,000 square feet of office space on the site The NYC Planning Commission kicked off the official public review of the East Midtown Rezoning, a 73-block area surrounding Grand Central Terminal. The plan seeks to replace some buildings that are more than 70 years old with new, state-of-the-art, energy efficient Class A commercial buildings so that Midtown will continue to attract tenants. The rezoning covers the area generally bounded by East 39th Street to the south, East 57th Street to the north, Second and Third Avenues to the east and a line 150 feet east of Fifth Avenue to the west. 8 Ariel Property Advisors Building Results 122 East 42 nd Street, Suite New York NY arielpa.com

9 Manhattan Development News May 13 June 13 July The planned Cornell NYC Tech campus on Roosevelt Island cleared its final land use hurdle after receiving approval from the New York City Council. Cornell Tech expects to break ground on Roosevelt Island in early 2014, with the first phase to be completed in 2017, and full build-out planned for At least eight buildings on Broadway between Canal and Worth are being converted from mixed-use to full residential, which will add nearly 500 new residential units to the community, according to the Tribeca Citizen. Currently more than 1,000 units are housed in buildings from Canal to Warren More than 600,000 square feet of office space leased in Times Square in the last 18 months has been taken by tech companies including Yahoo and Microsoft. A study by the Times Square Alliance shows that tech companies have leased about 33 percent of the total square footage in offices in the area since December 2011, and signed 87 percent of the leases during that period. Tech companies are reaching their capacity in Midtown South, Chelsea, and Flatiron. The NYC Planning Commission voted to extend the operating permit for Madison Square Garden for 15 years, which would give the owners of the arena time to either move or upgrade the transportation hub under the arena. While moving or upgrades can t be forced, if certain criteria are met the permit would be expanded beyond 15 years, said Amanda Burden, planning commissioner. The original Penn Station was demolished 50 years ago and since then commuters have been subjected to dark and crowded underground corridors Four architectural firms have released unique designs that would transform Pennsylvania Station from a dark underground tunnel into an urban showpiece. The Municipal Art Society asked Diller Scofidio & Renfro, SHoP Architects, Skidmore Owings & Merrill, and H3 Hardy Collaboration Architecture to reimagine Pennsylvania Station claiming the station isn t sustainable in its current state because it doesn t meet the needs of New Yorkers and the region. Although the Madison Square Garden Company, which operates the site, has asked for its permit to be extended indefinitely, the New York City Planning Commission voted to limit the permit to 15 years, and Community Board 5 and the Manhattan Borough President have recommended limiting the permit to 10 years. The City Council has the final vote on the proposal Time Warner Inc. is negotiating with Related Companies to move its headquarters into an 80-story tower at 33rd Street and 10th Avenue in Hudson Yards, the WSJ reported. The main offices for Time Warner and HBO would be consolidated and the company would own between 1.1 million and 1.3 million square feet of the 2.4 million-square-foot building. Related was selected in 2008 to develop Hudson Yards, a $15 billion mixed-use complex that will be built on the 26-acre site of a former Long Island Rail Road storage yard. Construction began last year on the first Hudson Yards office tower, which will be anchored by Coach Inc. Time Warner s current headquarters in a 1 million-square-foot tower at Columbus Circle was built by Related 10 years ago. The media giant has been seeking new space for several years. Ariel Property Advisors Building Results 122 East 42 nd Street, Suite New York NY arielpa.com 9

10 2013 Featured Transactions by Ariel Property Advisors 163 West 80th Street Location In Upper West Side Property Type: Condo Building Dimensions: 19 x 89, 5 Stories Units: 5 Building Size: 9,624 SF 620 Broadway Unit 1 Location In NoHo Property Type: Retail Coop Unit Size: 4,300 SF Annual Maintenance: $29,290 Asking Price: $8,950,000 Asking Price: $7,000, Fulton Street Location In Financial District Property Type: Vacant Lot Lot Size: 2,189 SF Buildable SF: 29,890 SF Under Contract 313 West 77th Street Location In Upper West Side Property Type: Walk-Up Building Dimensions: 17 x 88, 5 Stories Units: 11 Building Size: 5,898 SF Price: $5,200,000 Sale Date: 4/29/2013 Price Per SF: $882 Price Per Unit: $472, nd Avenue Location In Murray Hill Property Type: Mixed Use Building Dimensions: 21 x 40, 4 Stories Units: 1 Building Size: 4,356 SF Price: $2,750,000 Sale Date: 6/21/2013 Price Per SF: $631 Price Per Unit: $2,750, Columbus Avenue Location In Upper West Side Property Type: Walk-Up Building Dimensions: 25 x 68, 5 Stories Units: 16 Building Size: 8,305 SF Under Contract 10 Ariel Property Advisors Building Results 122 East 42 nd Street, Suite New York NY arielpa.com

11 About Ariel Property Advisors Investment Sales Brokerage NYC Ariel Property Advisors is a New York City investment property sales firm founded by Shimon Shkury. From multifamily portfolios to office buildings and vacant lots to warehouses, the Company has successfully handled nearly every different kind of asset class and transaction size. Our success has led us to develop a vast network of relationships with investors, developers, institutions, brokers and other market participants throughout the region. Our Approach Ariel Property Advisors is committed to providing unmatched value for our clients by combining top-notch, relationship-driven investment sales professionals with cutting edge technology and research support. For every deal size and asset type, we assign a team of professionals to ensure superior asset positioning, broad marketing efforts, sophisticated negotiation tactics and a smooth closing. All clients benefit from the close collaboration of senior and junior professionals. Exclusive Market Research Our investment research professionals strive to provide our sales staff, clients and industry leaders with the latest market information. Our expertise in multifamily sales is supported by our New York City multifamily research reports, which are produced and distributed monthly, quarterly, and annually. We also produce a variety of comprehensive research reports that illustrate the latest in real estate and economic trends throughout the boroughs. Asset Evaluation Utilizing 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. Combining comprehensive financial analyses with real time market data, our Asset Evaluation will help you both establish the current market value of the asset and identify the primary value drivers affecting the price. Our team will not only review today s pricing environment but also explore every possible opportunity that could result in maximizing the asset s value, be it today or in the future. The best part it s free. For More Information Please call or visit arielpa.com Ariel Property Advisors Building Results 122 East 42 nd Street, Suite New York NY arielpa.com 11

12 To learn more about current market conditions or if you would like a comprehensive Asset Evaluation for your property, please do not hesitate to contact us using the information below: Phone: Left to right Shimon Shkury ext. 11 sshkury@arielpa.com Randy Modell ext. 17 rmodell@arielpa.com Victor Sozio ext. 12 vsozio@arielpa.com Michael A. Tortorici ext. 13 mtortorici@arielpa.com Howard Raber, Esq. ext. 23 hraber@arielpa.com If you would like to use or quote this report on the web, we ask that you quote the source as Manhattan Sales Report by Ariel Property Advisors and link report from our website page ( research/reports/) Methodology: The report tracks development, multifamily, industrial, and other commercial property sales over $1 million in the borough. The report does NOT track commercial condos, office condos and partial interest sales. Manhattan is defined as an area south of E. 96th Street and south of W. 110th Street MANHATTAN 2013 MID-year Sales Report by Ariel Property Advisors Released July 2013 Know The Value Contact us to request a Complimentary Asset Evaluation Join Our Network Do The Research Know The Market arielpa.com To visit our website please go to arielpa.com or scan the tag to the right with your smart phone 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 carefully verify each item of income, and all other information contained herein.