mailer - lev 3q15 final
TRANSCRIPT
EAST HARLEM
CU
SHM
AN &
WAK
EFIE
LD27
5 M
adiso
n Av
enue
, Thi
rd F
loor
New
Yor
k, N
Y 10
016
nyinvestmentsales.com
Market Update Q3 2015
$10,
475,
000
265
Plea
sant
Ave
nue
New
York
, NY
Mix
ed U
se
$5,9
50,0
0012
1-12
3 13
8th
Stre
etH
arle
m, N
ew Yo
rkD
evel
opm
ent
$3,5
00,0
0023
21 1
st A
venu
eH
arle
m, N
ew Yo
rkM
ixed
Use
FOR
SALE
FOR
SALE
FOR
SALE
The
depi
ctio
n in
the
inclu
ded
phot
ogra
ph o
f any
per
son,
entit
y, sig
n, lo
go o
r pro
pert
y, ot
her t
han
Cus
hman
& W
akefi
eld’s
(C&W
) clie
nt a
nd th
e pr
oper
ty
offe
red
by C
&W, is
incid
enta
l only
, and
is n
ot in
tend
ed to
conn
ote
any a
ffilia
tion,
conn
ectio
n, as
socia
tion,
spon
sors
hip
or ap
prov
al by
or b
etw
een
that
whi
ch
is in
ciden
tally
dep
icted
and
C&W
or
its c
lient
. Thi
s list
ing
shall
not
be
deem
ed a
n of
fer
to le
ase,
subl
ease
or
sell
such
pro
pert
y; an
d, in
the
even
t of a
ny
tran
sact
ion
for s
uch
prop
erty,
no
com
miss
ion
shall
be e
arne
d by
or p
ayab
le to
any c
oope
ratin
g bro
ker e
xcep
t if o
ther
wise
pro
vided
pur
suan
t to
the e
xpre
ss
term
s, ra
tes a
nd co
nditi
ons o
f C&W
’s ag
reem
ent w
ith it
s prin
cipal,
if, as
and
whe
n su
ch co
mm
issio
n (if
any)
is ac
tuall
y rec
eived
from
such
prin
cipal.
(A
copy
of
the
rate
s and
cond
ition
s ref
erre
d to
abov
e w
ith re
spec
t to
this
prop
erty
is av
ailab
le up
on re
ques
t.)
$3,5
00,0
00
30
1 Ea
st 1
03rd
Str
eet
Har
lem
, New
York
Mul
tifam
ily
$2,6
00,0
0041
6 Ea
st 1
15th
Str
eet
Har
lem
, New
York
Mix
ed-U
se
$2,5
00,0
00
19
91 M
adiso
n Ave
nue
Har
lem
, New
York
Mul
tifam
ily
FOR
SALE
FOR
SALE
FOR
SALE
Lev
Kim
yaga
rov,
Dire
ctor
(2
12) 6
60 7
729
lev.k
imya
garo
v@cu
shw
ake.
com
Edw
ard
Pier
repo
nt, A
ssoc
iate
(212
) 589
518
2 e
dwar
d.pi
erre
pont
@cu
shw
ake.
com
Eric
Roth
, Ass
ociat
e(2
12) 6
60 7
757
eric
.roth
@cu
shw
ake.
com
Wha
t is
my
prop
erty
wor
th?
Plea
se c
all f
or c
ompl
imen
tary
eva
luat
ion.
MARKET UPDATE
With condo prices throughout Manhattan soaring over $1,500 per SF and over $1,800 per SF for new construction, it has become clear that condos and even more so luxury condos are the New York City developer’s play. In its entirety, Manhattan is diluted with recent condo conversions and ground up construction as the market out-paces itself quarter after quarter. Defying the trends, East Harlem (East of Fifth Avenue and north of 96th Street), has upheld as a rental market. If you take a look at the provided sample of about 600 transactions from new construction buildings, the numbers do all the talking. Although condo prices agree to increase with the rest of the borough, they are still outpaced by rental prices in East Harlem. Since 2012 rental prices have increased nearly 21%, averaging a growth of 6.5% annually. These figures trump the condos 15% since 2012 and 4.5% annually. Harlem as a whole, but particularly East Harlem, is behind the curve on prices in Manhattan and as the luxury bubble continues to spread north, the gap is starting to close.
The upside of rental prices in East Harlem has not only steered developers but has been the driving factor behind the notable increase in land prices. On a buildable square basis the land prices in East Harlem have increased an astronomical 171% since 2012 averaging a growth of 41% annually. Using these figures the prices are on path to break $300 per buildable square foot in the very near future.
2012 2013 2014 2015% Change From 2012 to Present: 15.06%Average % Change Per Annum: 4.5%
$760$740
$720$700$680$660$640$620$600
$760$755
$735
$660
$50$45$40$35$30$25$20$15$10$5$0
2012
$36
2013
$40
2014
$41
2015
$44
% Change From 2012 to Present: 20.78%Average % Change Per Annum: 6.51%
Price Per SF - Rentals
The key to any growing market is new development. In the last couple of years, East Harlem has seen a burst of multifamily development. These projects are being headed by some of the city’s major developers such as HAP, Continuum Company, Blumenfeld Development and SKA Marin. New projects draw other developers to any region, East Harlem has further tried to draw devel-opment by pushing to re-zone large sections of Madison, Park and Lexington Avenues to allow for taller, mixed-use construction. This would make it worth the play of more major developers, as well as strengthen both the retail and residential aspects of the enterprising neighborhood.
Price Per SF - Condos
% Change From 2012 to Present: 171.26%Average % Change Per Annum: 41.02%
New Developments
Price Per BSF - Land$250
$0 2012
$87
2013 2014 2015
$236
$139$117
$200
$150
$100
$50
146 East 126th Street – Blumenfeld rental development planned in a T-shape will be a large, 231,900 SF multifamily building. The first two floors are set aside to be commer-cial space totaling 34,444 SF. The remaining will be divided into 233 residential units. The make up of the units will include 66 studios, 145 one-bedrooms and 22 two-bedrooms. The developer has assigned 47 units inclusion-ary housing.
2211 Third Avenue – HAP rental develop-ment totaling 120,000 SF. The building will be split into 78,000 SF of residential, 26,000 SF of retail, 5,000 SF of parking and 1,000 SF of community facility space. The project is an 80/20 deal therefore 20% of housing will be deemed affordable. These units will build up a total 10 stories.
1800 Park Avenue – Ian Bruce Eichner of Continuum Company development totaling over 696,000 SF. The break up will be 63,200 SF of commercial space and 633,700 SF of residential space. This will make for Harlem’s tallest building ever at 19 stories rising 352 feet. The developer has decided to keep 11% (70) of the 650 units affordable. The building will offer 123 parking spaces after the variance of zoning to include more retail.
1918 First Avenue – Former Draper Hall a retired nurses’ dormitory has been leased to a developer to convert the site into a subsidized senior housing building. This conversion will house 203 units in the same 14-story, 123,000 SF shell. Developer SKA Marin leased the subject property from the city’s Health and Hospitals Corporation for $100,000 per year. They brought in Dattner Architects and work is under way.