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arielpa.nyc | 212.544.9500

Presented By:

Shimon ShkuryPresident

Ariel Property Advisors

COMPLEMENTARY DIVISIONS

• Investment Sales

• Investment Research

• Capital Services

• Quality Brokerage Services

• Asset Evaluations

• Exclusive Market Reports

ABOUT ARIEL PROPERTY ADVISORS

Vision | Structure | Discipline | Skills | Support

LEGAL OUTREACH

AGENDA

TODAY’S MARKET LOOKING FORWARD

NYC 1H ‘16 VOLUME BREAKDOWN VS. 2H ‘15

Transaction Volume

Dollar Volume

PropertyVolume

-8% %-1 %-7

MANHATTAN

MANHATTAN 1H ‘16 VOLUME BREAKDOWN VS. 2H ‘15

Transaction Volume

Dollar Volume

PropertyVolume

*-13% %-12 %-24

*Includes $5.5 billion Stuy-Town sale in 2H '15

MANHATTAN 1H ‘16 MANHATTAN RETAIL SHOWS SIGNS OF SOFTENING

Availability in SoHo

Availability on Prime 5th Avenue

31% %25

ASKING RENTS: +9% RENTS IN SOHO VS. 2015

MANHATTAN 1H ‘16 DEVELOPMENT PRICING PLATEAUS

Remains Steady

Development DollarVolume vs. 2H ‘15

$618 /BSF %-39

BROOKLYN

BROOKLYN 1H ‘16 VOLUME BREAKDOWN VS. 2H ‘15

Transaction Volume

Dollar Volume

PropertyVolume

-2% %+6 %-3

BROOKLYN 1H ‘16 DEVELOPMENT ACTIVITY EXPERIENCES CORRECTION

Remains Steady

Development DollarVolume vs. 2H ‘15

$241/BSF %-13

BROOKLYN 1H ‘16 BROOKLYN CONSTRUCTION PIPELINE

New Units areCondo

Units Completedin 2016

%86,073

+4%Average Rental Price vs. 2015

6% OF UNITS HAVE CONCESSIONS: 2X MORE THAN 2015

BROOKLYN 1H ‘16 RENTAL MARKET IN TRANSITION

QUEENS

QUEENS 1H ‘16 VOLUME BREAKDOWN VS. 2H ‘15

Transaction Volume

Dollar Volume

PropertyVolume

-15% %-6 %0

QUEENS 1H ‘16 VALUE GAP ALONG 7-TRAIN

7 7M

ANHATTAN

QUEENS

Sunnysid

e | $

2,287

Long Is

land C

ity |

$2,905

Mid

tow

n | $4,2

57

Hudson Y

ards |

$4,6

74

Woodsid

e | $

2,112

Jacks

on Heig

hts |

$2,10

9

Elmhurs

t | $

2,013

Corona |

$1,9

68

Flush

ing |

$2,068

NORTHERN MANHATTAN

NORTHERN MANHATTAN 1H ‘16 VOLUME BREAKDOWN VS. 2H ‘15

Transaction Volume

Dollar Volume

PropertyVolume

+60% %-4 %-15

NORTHERN MANHATTAN 1H ‘16INSTITUTIONAL TRANSACTIONS DOMINATE THE MARKET

+68%Average Transaction Size vs. 2H 2015

NORTHERN MANHATTAN 1H ‘16FUTURE REZONING HELPS PROPEL PRICING

$/BSFvs. 2H’15

Transaction Volumevs. 2H ‘16

+13% %-9

BRONX

KEE STYANKEE STADIUM

BRONX 1H ‘16 VOLUME BREAKDOWN VS. 2H ‘15

Transaction Volume

PropertyVolume

%+19 %+14Dollar

Volume

-4%

+11%Average Pricing Increase vs. 2015

BRONX 1H ‘16 BRONX MULTIFAMILY CONTINUES STRONG APPRECIATION

BRONX 1H ‘16 INDUSTRIAL & DEVELOPMENT REMAINS STRONG

Dollar Volume vs. 2H ‘15

%+80

OUTLOOK 2016 CAPITAL MARKETS

Traditional Banks More Conservative

Investors Getting Into Lending Game

Transitional/Debt Funds More Opportunistic

OUTLOOK 2016 MARKET FACTORS

Global Economic Uncertainty

International Capital

Diverse Tenancy

City Administration

Interest Rates

CONCLUSION

2016: AN INFLECTION YEAR

Prices = Continue Upward TrajectoryDollar Volume = Lower Than 2015, Still Strong

PANELISTS

MICHAEL STOLERManaging Director at

Madison Realty Capital, Host and Executive Producer of “The Stoler Report-New York’s

Business Report”

QAHIR MADHANYPrincipal in the

Real Estate Group at Blackstone

JASON HARTManaging Director of

The Carlyle Group

BEN CURTISSVice President at

Kushner Companies

THANK YOU FOR ATTENDINGFor a copy of this presentation please visit arielpa.nyc