report august 2017 - nym€¦ · report august 2017 peter von der ahe o 212.430.5114 m...
TRANSCRIPT
NYM INVESTMENTREPORT AUGUST 2017
www.newyorkmultifamily.com
PETER VON DER AHEO 212.430.5114 m [email protected]
5 Multifamily Strategies for a Flat Market
Stock market trading activity is very low. According to a WSJ article because the economy is not too hot,
and not too cold, investors are acting as if the best move was not to make any move at all. In the world of investing, is holding cash (and not investing) a good investment?
For NYC multifamily, after the pricing peak in late 2015 and subsequent transition (where prices declined between 5-8%), pricing has been somewhat flat in 2017. Multifamily investors are asking the same question: what is the right move in a flat market?
While the market may not be moving up or down today, investors should prepare for what’s ahead. Standing still can cost you. There are several strategic moves investors could make. Let’s explore 5 possibilities:
#1 Exploit Market InefficienciesOne reason the market is flat is there is no industry-wide consensus that pricing is moving up or down. By definition, there is confusion. Investors should exploit this inefficiency. Its one reason to love commercial real estate. For example, certain sellers will discount the future value of their asset, by lowering future projections too much, creating a buying opportunity. Others will “overprice” their properties on the market, limiting buyer activity. This leads to something we call “sellers fatigue” and many times these properties sell 9-12 months later below market value. As DL would say, “hang around the hoop.”
#2 RenovateSometimes the best return
on new equity actually exists in your current holdings. In flat markets, you may not be buying and selling, but it’s important to stay in motion, be creative, and create value. Renovate, utilize unused air rights or square footage, restructure leases, and reduce expenses by increasing efficiency. These value added activities will... ( continued on page 7 )
06 WHY NYM?Learn why our clients choose the most specialized multifamily team in NYC
03 manhattanActive Listings & Recent Sales in Manhattan below 96th Street
02 contracts+ CLOSINGS
See what's gone under contract and closed since January 1st
05 UPPER MANHATTAN & Bronx
Active Listings & Recent Sales in Upper Manhattan and the Bronx
07 ADVERTISING
04 BROOKLYN & QUEENS
Active Listings & Recent Sales in Brooklyn and Queens
in this issue
13-Story, New Construction,Elevator Building in the LES.
78 UNITS63,410 SF
JUST CLOSED
$61,500,000
$634,000,000+signed contracts and closings this year
$107,905,000 $26,950,000 $63,847,500 $84,950,000 $224,505,000 $126,645,000
VISION BUILDERS PORTFOLIO
CONTRACT SIGNED$21,000,000
35 CLAVER PLACECLOSED
$14,200,000
265-273 WEST 146TH STREET
CLOSED$23,000,000
339 EAST 75TH STREET
CLOSED$9,800,000
LORING PLACE NORTH PORTFOLIO
CLOSED$38,500,000
BK-18 PORTFOLIOCLOSED
$72,930,000
JONES L.E.S.CLOSED
$61,500,000
WEST 151ST ST PORTFOLIO
CONTRACT SIGNED$18,500,000
832 AVENUE OF THE AMERICAS
CLOSED$12,750,000
46 BANK STREETCLOSED
$6,260,000
231-235 WEST 230TH STREET
CLOSED$20,000,000
509 SARATOGA AVENUE
CLOSED$5,500,000
63 PERRY STREETCLOSED
$18,000,000223 MOTT STREET
CLOSED$9,500,000
56 WEST 11TH STREET
CLOSED$37,750,000
JEFFERSON-MACDONOUGH BROOKLYN
CONTRACT SIGNED$15,750,000
FRESH POND ROAD PACKAGE
CONTRACT SIGNED$4,300,000
WEST 10TH STREET
CONTRACT SIGNED$18,000,000
NORTH 10TH STREET
CONTRACT SIGNED$5,300,000
EAST 220TH STREET
CONTRACT SIGNED$7,450,000
WEST 10TH STREET
CONTRACT SIGNED$23,000,000
MONROE PL. & HENRY ST.
CLOSED$11,200,000
277 WEST 11TH STREET
CLOSED$20,000,000
104 EAST 85TH STREET
CLOSED$12,500,000
165 AVENUE B
CLOSED$7,215,000
15 WILSON AVENUE
CLOSED$2,350,000
2 ADDITIONAL PROPERTIES
CLOSED$3,650,000
7 ADDITIONAL PROPERTIES
CLOSED$22,950,000
3 ADDITIONAL PROPERTIES
CONTRACTS SIGNED$9,375,000
DRIGGS AVENUE
CONTRACT SIGNED$4,750,000
4 ADDITIONAL PROPERTIES
CLOSED$7,445,000
316 LEXINGTON AVENUE
CLOSED$7,037,500
104 EAST 30TH STREET
CLOSED$7,150,000
30-58 AND 30-64 34TH STREET
CLOSED$20,500,000
9TH AVE. & WEST 52ND ST.
CONTRACT SIGNED$10,950,000
523B EAST 85TH STREET
CLOSED$8,140,000
3 ADDITIONAL PROPERTIES
CLOSED$14,500,000
2 ADDITIONAL PROPERTIES
CONTRACTS SIGNED$10,300,000
2512 UNIVERSITY AVENUE
CLOSED$4,650,000
122 4TH AVENUECLOSED
$2,100,000295 NORTH 7TH STREET
CLOSED$1,850,000
2 ADDITIONAL PROPERTIES
CONTRACTS SIGNED$3,200,000
2017 YEAR-TO-DATE CONTRACTS SIGNED
NEW YORK MULTIFAMILY
We have been busy this year. How can the most active NYC Multifamily team
help you?Call Peter: (212) 430-5114
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JAN FEB MAR APR MAY JUN
MANHATTAN
JOE KOICIMTel: (212) [email protected]
DAVID LLOYDTel: (212) [email protected]
DANNY HANDWEILERTel: (212) [email protected]
COREY ISDANERTel: (212) [email protected]
LOGAN MARKLEYTel: (212) [email protected]
277 West 11th Street SOLD22,686 SF • $20,000,000
NEW YORK MULTIFAMILY
West 19th St ON MARKET38 Units • $33,000,000
West 43rd St ON MARKET9,550 SF • $12,250,000
12 Perry Street SOLD25 Units • $25,132,000
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AUGUST 2017www.newyorkmultifamily.comwww.newyorkmultifamily.com
ON MARKETDOWNTOWN
BROADWAY
$52,000,000BUILDABLE SF 64,430
NEWYORK MULTIFAMILY NICHE EXPERTISE
BROOKLYN AND QUEENS
SHAUN RINEYTel: (718) [email protected]
MICHAEL SALVATICOTel: (718) [email protected]
TOMSHIHADEHTel: (718) [email protected]
DANGREENBLATTTel: (718) [email protected]
DYLANWALSHTel: (212) [email protected]
NEW YORK MULTIFAMILY
ON MARKETBROOKLYN, NY
SPENCER STREET STUDENT APARTMENTS
$48,950,00082 UNITS | SF 96,246 | 4.6% CAP RATE
16 Monroe Pl and 268 Henry St SOLD19 Units • $11,200,000
Inception Portfolio ON MARKET 112 Units • $31,500,000
FPR-Onderdonk Package ON MARKET16 Units • $6,700,000
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AUGUST 2017
The Jefferson-MacDonough Collection UNDER CONTRACT• $15,750,000
AUGUST 2017
NEWYORK MULTIFAMILY NICHE EXPERTISE
www.newyorkmultifamily.com
UPPER MANHATTAN / BRONX
www.newyorkmultifamily.com
SETH GLASSERTel: (212) [email protected]
MICHAEL FUSCOTel: (212) [email protected]
JACOB KAHNTel: (212) [email protected]
JONAH OFFITZER Tel: (212) [email protected]
NEW YORK MULTIFAMILY
East 220th St UNDER CONTRACT 49 Units • $7,450,000
231-235 West 230th St SOLD93 Units • $20,000,000
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ON MARKETWASHINGTON HEIGHTS
EDGECOMBE AVENUE
$65,000,000127 UNITS | SF 168,000
Hobart Avenue ON MARKET56 Units • $11,995,000
Audubon Avenue ON MARKET34,385 SF • $30,000,000
NNN PROPERTIESWHERE WOULD YOU PUT THE MONEY IF YOU SOLD?We sell more Triple-Net Properties than any other firm in the country.
Transitioning from an average Triple-Net Property typically DOUBLES or, in some cases, TRIPLES your net cash flow. We invite you to let us demonstrate how we can increase your cash flow. To the right is a sampling of our NNN activity.
PETER VON DER AHE | 212.430.5114EMAIL SUBJECT LINE: “NNN” TO [email protected]
AUGUST 2017
NEW YORK MULTIFAMILY- 6 -
BOSTON MARKET AVAILABLECap Rate: 3.75% Asking Price: $4,480,000
HARDEE'S CLOSEDCap Rate: 6.00% Sale Price: $2,326,467
ENTERPRISE AVAILABLECap Rate: 5.25% Asking Price: $1,085,390
BOB EVANS CLOSEDCap Rate: 5.75% Sale Price: $2,652,174
WHY OUR CLIENTS CHOOSE THE New York Multifamily TEAM?
NICHE EXPERTISEWe specialize only in multifamily properties, only in New York City, customizing our strategy around you.
CREATING OPPORTUNITIESWe are positioned to source exclusive opportunities for our clients – our sellers frequently become buyers with NYM.
MIDDLE MARKETBacked by the nation’s largest private client brokerage, we bridge the gap between private and institutional capital.
BROKERAGE AS A VERBWe don’t simply market properties – we aggressively sell them in pursuit of the best outcomes for clients.
MMCC COMMERCIAL FINANCING
AUGUST 2017
NEWYORK MULTIFAMILY NICHE EXPERTISE
www.newyorkmultifamily.comwww.newyorkmultifamily.com
NEW YORK MULTIFAMILY
Strong, existing relationships with both national and regional lenders. With more than 10 years in the real estate industry, Andrew leads our capital team in securing commercial debt financing for an array of property types.
ANDREW DANSKER(212) [email protected]
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pay off in multiples in the future.
#3 RefinanceThere is a paradox of the banking industry. When you don’t need money, banks are willing to lend it, and when you do…the lending windows are closed. Flat markets can be a reminder to refinance under leveraged buildings so you have a dry powder for future opportunities.
#4 Trade to Improve Cash FlowInvestment properties in NYC (regardless of location) sell at a premium, and owners can capitalize on this arbitrage. For example, selling a NYC apartment property and purchasing a triple-net leased (NNN)
asset typically improves your cash flow by 2x-3x. If prices remain stagnant for several years (or decline), the benefits are multiplied.
#5 Trade to Improve LocationClosely related to “improving cash flow”, is improving location. After market peaks, class “A” properties in “A” locations are priced very similarly to “C” properties in “C” locations. Take advantage and upgrade the quality and location of your asset. Many choose not to make this move because the free cash flow may decrease slightly. This is a temporary illusion. From a net worth perspective 5 to 7 years after this transition has been made, your upgraded investment will likely be more valuable. Great investors
play the long game.
I don’t like the metaphor of the real estate market as a repeating cycle. Although there are times when that description fits, often it doesn’t. It obscures your viewpoint and judgment. The only market you know, is the one you currently have, and even if its flat, there are opportunities to create value for yourself and your investors.
PETER VON DER AHEO 212.430.5114 m [email protected]
5 Multifamily Strategies for a Flat Market(continued from cover)
ADVERTISING SECTION
NYM INVESTMENT REPORTM A N H AT TA N I B R O O K LY N I Q U E E N S I B R O N X
NEW YORK MULTIFAMILYNICHE EXPERIENCE
260 MADISON AVENUE 5TH FLOORNEW YORK, NY 10016
NYC'S LEADING MULTIFAMILYINVESTMENT SALES TEAM
183 $1.8SALES
TOTAL SALES2015 + 2016
TOTAL VOLUME2015 + 2016
BILLION