MetroGrid Report - Eastern Consolidated...1 estimates that over 4,300 apartments will be developed by the end of this year in Lower Manhattan, bringing the district’s population

FOCUS ON NYC SUBMARKETS

September 2017

MetroGrid Report: Tribeca

RETAIL DOMINATES TRIBECA SALES IN 1H 2017

Retail properties dominated the investment sales market in Tribeca in the first half of 2017, accounting for nearly 60 percent of the $158 million in trades during this period.

The retail properties sold included eight condos that ranged from 121-133 Hudson Street, which sold for $18 million, or $2,670 per square foot for the ground floor space, to 25 N. Moore, which sold for $3.5 million, or $1,639 per square foot for the ground floor space.

The largest transaction in Tribeca in the first six months of the year was comprised of two retail buildings--Cape Advisors’ sale of 57 and 59 Murray Street, which traded for $25 million. The buildings are adjacent to a block through assemblage along West Broadway where Cape Advisors is building a ten-story, 23-unit luxury condo project with 10,000-square-feet of ground floor retail space. Eastern Consolidated’s Capital Advisory Division recently arranged $52 million in construction financing for this condo development at 65 West Broadway.

MetroGrid Report | TribecaFOCUS ON NYC SUBMARKETS

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As new residential units come online, more retail will be needed to accommodate the influx of new residents. Community Board 1 estimates that over 4,300 apartments will be developed by the end of this year in Lower Manhattan, bringing the district’s population to 73,818 an increase of over 114 percent from 34,420 residents in 2000.

Tribeca has become a highly desirable neighborhood for buyers and renters who are pushing condominium prices and residential rents to the highest levels in New York City.

The average price for residential condos sold in Tribeca in 2Q 2017 increased 41 percent year-over-year to $6.5 million, or $2,451 per square foot, according to REBNY.

Apartments in Tribeca also rent for a premium with median asking rents of $4,880 for one bedroom apartments and $8,400 for two bedroom apartments, Streeteasy reports.

Yet, asking retail rents in Tribeca remain among the most affordable in New York City, especially when compared to rents in neighboring SoHo. As a result, retail properties in Tribeca have tremendous potential rental upside.

Retail rents for ground floor space on Broadway in Tribeca range from $88 to $200 PSF, compared to $550 to $993 PSF on Broadway from Houston Street to Broome Street just a few blocks north in SoHo, even though Tribeca offers the same historic, cast iron buildings as well as a growing population. Retail rents on Broadway from Battery Park to Chambers Street in FiDi also are higher, ranging from $150 to $600 PSF.

Overall the dollar volume of Tribeca’s investment property sales fell 92.1 percent to $158 million in 1H 2017 from over $2 billion in 1H 2016. Volume spiked in 1H 2016 due to several significant trades including the $1.77 billion sale of a 2.6 million-square-foot office building at 388-390 Greenwich Street in June, and a $136 million leasehold at 370 Canal Street in April.

RReR

Population Growth in Manhattan Community District 1

POPULATION 2000 2010 2012 2013 2014

Population 34,420 60,978 65,450 66,640 66,896

Percent Increase 77% 7% 2% 0.4%

2015 2016 2017*

67,768 69,512 73,818

1% 3% 6%

*Note: Built and expected residential units counts are only approximation. Final numbers may vary.

Tribeca is known for its abundance of excellent restaurants.

U.S. Census Estimate based on expected residential units*

Source: Community Board 1


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BEDROOMS MONTHLY RENT

Studios $4,000

1 Bedrooms $4,880

2 Bedrooms $8,400

3 Bedrooms $15,495

Tribeca Average Residential Rents

Source: Streeteasy

STREET MONTHLY RENT

Church Street $148-$400

Broadway $88-$200

Canal Street $96-$139

Franklin Street $91-$140

Leonard Street $99-$200

Duane Street $60-$116

Chambers Street $89-$216

Average Retail Rents

CONDOMINIUM SALES 2Q17 1Q17 2Q16 %CHGE FROM 1Q17 %CHGE FROM 2Q16

Average Price (thousands) $6,500 $6,393 $4,594 2% 41%

Median Price (thousands) $5,150 $4,602 $4,050 12% 27%

Tribeca Condominium Sales

Source: REBNY

CONDOMINIUM SALES $PSF 2Q17 1Q17 2Q16 %CHGE FROM 1Q17 %CHGE FROM 2Q16

Average Price $2,451 $2,447 $1,951 0% 26%

Median Price $2,221 $2,175 $1,919 2% 16%

Source: REBNY

Source: Agorafy

Tribeca Average Retail Rents


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2013 UNITS

137 Franklin Street 3

482 Greenwich Street 8

116 John Street 418

67 Liberty Street 14

87-89 Leonard Street 6

111 Washington 500

250 West Street 111

93 Worth Street 96

84 White Street 34

Total 1190

2015 UNITS

100 Barclay Street 161

20 Exchange Place 350

92 Fulton 10


71 Laight Street 32

56 Leonard Street 146

115 Nassau Street 68

83 Walker Street 9

12 -14 Warren Street 30

290 West 13

Total 872

2016 UNITS

11 Beach Street 27

5 Beekman Place 68

319 Broadway 8

99 Church Street 157

56 Fulton Street 120


70 Pine Street 644

101 Murray Street 139

80 South Street 125

70 Vestry Street 47

101 Wall Street 52

50 West 191

140 West Street 161

Total 1744

Manhattan Community District 1 2012-2017 Estimated Residential Units

2017+ UNITS

21 Ann Street N\A

1 Beekman Place 29

45 Broad Street 245

346 Broadway 600

355 Broadway 98

360 Broadway N\A

350 Broadway 68

361 Broadway 14

371 Broadway 53

372 Broadway 6

391 Broadway 4

396 Broadway 52

233 Broadway 34

87 Chambers 18

49-51 Chambers 81

246 Front Street N/A

118 Fulton 483


102 John Street 92

151 Maiden Lane 80

75-83 Nassau Street 197

45 Park Place 46

22 Reade Street N/A

2 Rector Street 452

42 Trinity Place 85

68-74 Trinity Place 111

1 Wall Street 524

110 Wall Street 205

180 Water Street 601

Total 4306

2014 UNITS

371 Broadway 59

11-15 Leonard Street 6

15 Leonard St 6

11 North Moore Street 19

19 Park Place 24

401 Washington Street 35


Total 256

2012 UNITS

25 Broad Street 307

136 Church Street 12

254 Front Street 40

46 Lispenard 11

55 Murray 4

200 North End Ave 191

300 North End Ave 264

225 Rector Place 304

333 Rector Place 174

8 Spruce Street 903

37 Warren Street 28


Total 2305

Source: Community Board 1


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MAP PROPERTY TYPE SALE PRICE ADDRESS SF $/SF

1 MULTIFAMILY $21,250,000 74-76 LEONARD ST 24,423 $870

2 MULTIFAMILY $19,031,370 148 DUANE ST (3) 18,436 $1,032

3 MULTIFAMILY $10,725,000 90 CHAMBERS ST 8,878 $1,208

4 OFFICE $11,500,000 106 FRANKLIN ST 11,000 $1,045

5 OFFICE CONDO $4,600,000 46 WHITE ST 2,881 $1,597

6 RETAIL $25,000,000 57-59 MURRAY ST 15,700 $1,592

7 RETAIL $18,000,000 121-133 HUDSON ST (1,3) N/A N/A

8 RETAIL $11,718,500 339-343 GREENWICH ST (3) 4,800 $2,441

9 RETAIL $11,500,000 415 GREENWICH ST (3) 5,040 $2,282

10 RETAIL $7,000,000 66 WHITE ST (3) 2,375 $2,947

11 RETAIL $6,000,000 249 CHURCH ST (3) 1,600 $3,750

12 RETAIL $4,500,000 42 LISPENARD ST (3) 2,085 $2,158

13 RETAIL $3,800,000 8 JAY ST (3) 2,850 $1,333

14 RETAIL $3,500,000 25 N MOORE ST (3) 2,135 $1,639

TOTAL $158,124,870

Notes:

(1) Partial Interest(2) Ground Lease (3) Condo/Coop

Tribeca Investment Property Sales 1H 2017

Source: Acris, Property Shark, RCA, Costar and other sources deemed reliable.


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JAN 1, 2017 - JUN 30, 2017 JUL 1, 2016 - DEC 31, 2016

NEIGHBORHOOD TRANSACTIONS $-VOLUME TRANSACTIONS $-VOLUME

Chelsea 16 $249,101,906 31 $1,128,678,424

Chinatown 6 $41,753,575 6 $69,056,445

East Village 15 $177,877,500 27 $318,995,206

Fidi 7 $1,845,000,000 8 $1,075,158,415

Garment District 4 $351,665,000 18 $828,592,512

Gramercy 5 $180,994,714 8 $87,050,000

Greenwich Village 10 $273,574,500 16 $566,890,099

Kips Bay 8 $186,300,000 7 $826,526,875

Lower East Side 14 $150,444,000 12 $183,850,000

Midtown East 23 $3,110,145,878 37 $1,308,241,197

Midtown West 26 $1,713,295,545 34 $4,580,116,651

Nolita 5 $52,240,000 6 $55,742,500

Nomad/Flatiron 11 $463,051,000 17 $1,823,324,578

Soho 9 $260,935,648 14 $255,054,998

Tribeca 14 $158,124,870 9 $527,615,000

Upper East Side 48 $732,986,520 61 $827,331,914

Upper West Side 42 $512,315,820 32 $871,798,119

West Village 21 $493,230,242 15 $154,106,750

TOTAL 284 $10,953,036,718 358 $15,488,129,683

Market Performance | Tribeca Compared to Other Core Manhattan Neighborhoods

CHANGE: 2H 16 TO 1H 17

TRANSACTIONS $-VOLUME

-48.4% -77.9%

0.0% -39.5%

-44.4% -44.2%

-12.5% 71.6%

-77.8% -57.6%

-37.5% 107.9%

-37.5% -51.7%

14.3% -77.5%

16.7% -18.2%

-37.8% 137.7%

-23.5% -62.6%

-16.7% -6.3%

-35.3% -74.6%

-35.7% 2.3%

55.6% -70.0%

-21.3% -11.4%

31.3% -41.2%

40.0% 220.1%

-20.7% -29.3%

74-76 LEONARD STREET$21,250,000

148 DUANE STREET$19,031,370

90 CHAMBERS STREET$10,725,000

Select Tribeca Investment Sales 1H2017Source: Acris, Property Shark, RCA, Costar and other sources deemed reliable.


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JAN 1, 2016 - JUN 30, 2016 CHANGE: 1H 16 TO 1H 17

TRANSACTIONS $-VOLUME TRANSACTIONS $-VOLUME

36 $821,087,543 -55.6% -69.7%

7 $74,290,244 -14.3% -43.8%

23 $300,291,400 -34.8% -40.8%

19 $2,480,578,290 -63.2% -25.6%

14 $889,383,287 -71.4% -60.5%

9 $249,831,540 -44.4% -27.6%

12 $375,015,250 -16.7% -27.0%

13 $345,000,769 -38.5% -46.0%

10 $206,900,000 40.0% -27.3%

34 $5,134,526,813 -32.4% -39.4%

33 $6,357,107,109 -21.2% -73.0%

7 $191,950,000 -28.6% -72.8%

20 $892,565,053 -45.0% -48.1%

21 $1,277,846,026 -57.1% -79.6%

11 $2,008,811,164 27.3% -92.1%

61 $1,236,337,628 -21.3% -40.7%

49 $810,770,606 -14.3% -36.8%

25 $317,318,062 -16.0% 55.4%

404 $23,969,610,784 -29.7% -54.3%

JAN 1, 2017 - JUN 30, 2017

TRANSACTIONS $-VOLUME

16 $249,101,906

6 $41,753,575

15 $177,877,500

7 $1,845,000,000

4 $351,665,000

5 $180,994,714

10 $273,574,500

8 $186,300,000

14 $150,444,000

23 $3,110,145,878

26 $1,713,295,545

5 $52,240,000

11 $463,051,000

9 $260,935,648

14 $158,124,870

48 $732,986,520

42 $512,315,820

21 $493,230,242

284 $10,953,036,718

RETAIL58%

MULTIFAMILY32%

OFFICE10%

Breakdown of Tribeca Investment Sales 1H2017

57-59 MURRAY ST$25,000,000


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Eastern Consolidated’s Exclusives | Tribeca

Property Type Retail Condo

Location Tribeca

Square Footage 3,732 SF

Selling Price $3,695,000

68 Thomas Street


Location Tribeca



62 White Street

157 Hudson Street


Location Tribeca




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Location Tribeca



68 Thomas Street


Location Tribeca



62 White Street

157 Hudson Street


Location Tribeca



Eastern Consolidated’s Retail Exclusives | Tribeca

Property Type Retail Space for Lease

Location Tribeca


Selling Price $150 PSF

112 Hudson Street


Location Tribeca


Selling Price Upon Request

356 Broadway

140 Franklin Street


Location Tribeca


Selling Price $140 PSF


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Eastern Consolidated’s Select Closed Transactions | Tribeca

Property Type Commercial: Sold

Location Tribeca


443 Greenwich Street

Property Type Mixed Use: Sold

Location Tribeca


13-17 Laight Street

71 Laight Street

Property Type Development: Sold

Location Tribeca



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Eastern Consolidated’s Transactions | Tribeca

Property Type Retail: Leased

Location Tribeca


81 Franklin Street


Location Tribeca


80 Lafayette

106 Reade


Location Tribeca


Property Type Commercial: Sold

Location Tribeca


443 Greenwich Street

Property Type Mixed Use: Sold

Location Tribeca


13-17 Laight Street

71 Laight Street

Property Type Development: Sold

Location Tribeca


INVESTMENT SALESRETAIL LEASINGCAPITAL ADVISORY

WWW.EASTERNCONSOLIDATED.COM355 LEXINGTON AVENUE

NEW YORK, NY 10017F. 212.499.7718O. 212.499.7700

Documents

MetroGrid Report - Eastern Consolidated...1 estimates that over 4,300 apartments will be developed by the end of this year in Lower Manhattan, bringing the district’s population