MetroGrid Report - Eastern Consolidated
Transcript of MetroGrid Report - Eastern Consolidated
FOCUS ON NYC SUBMARKETSDecember 2017
MetroGrid Report: Long Island City
MetroGrid Report | Long Island CityFOCUS ON NYC SUBMARKETS
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Institutional investors are continuing to buy properties in Long Island City, accounting for 39% of the buyers in Q1-3 2017, while 55% were private investors. TIAA and Metropolitan Realty Associates recorded the largest deal so far this year with the purchase of a 256,000-Square-foot, three-story industrial building at 48-49 35th Street for $55 million.
Of the $256 million in assets sold this year, nearly half were industrial properties. Asking rents for industrial space have risen 115% in the past five years, indicating a healthy appetite for this asset class.
Development site sales fell to six transactions totaling $53 million in Q1-3 2017, their lowest level in five years. With 17.7 million square feet of projects under construction or proposed, however, the area continues to be one of the hottest areas for development in New York City rivaled only by Williamsburg and Downtown Brooklyn.
Since 2013, nearly 22,000 multifamily units spanning 20 million square feet have been built, are under construction, or proposed in Long Island City, which has led to an influx of new residents. Between 2005 and 2014 in zip code 11101 alone, the population jumped by 39% to 26,360 residents and the average household income more than doubled to $70,120.
Asking residential rents for new construction average $60+ per square foot south of the bridge, and $50 per square foot north of the bridge, while condos average $1,250 per square foot south of the bridge and $952 per square foot north of the bridge.
Despite residential growth and rising pedestrian counts, retail services have lagged. Since 2013, 15,395 square feet of retail has been built;
33,731 square feet is under construction; and 368,000 square feet has been proposed. Asking retail rents are affordable, generally under $100 per square foot.
A 2017 survey conducted by the Long Island City Partnership revealed that of the 1,347 participants that lived or worked in Long Island City, 56% felt a need for more restaurants, 54% for pharmacies, and 52% for grocers.
Long Island City Investment Highlights Q1-3 2017
• Investment property sales totaled $256 million Q1-3 2017, 76% drop compared to Q1-3 2016.
• Industrial acquisitions accounted for $121 million, or 47% of total dollar volume.
• Largest trade: 256,000 SF industrial site at 48-39 & 48-49 35th Street for $55 million.
• Development acquisitions accounted for $53.4 million, or 21% of total dollar volume.
• LIC investor composition: 55% private; 39% institutional; 4% user; 2% international.
Dear Friends,
We are pleased to share our latest Metrogrid Report for Long Island City, which provides an overview of investment sales activity in the area since 2013.
The report shows that investment property sales volume peaked in Long Island City in 2016 with $1.4 billion in transactions, of which institutional investors accounted for 44% of the trades, up from 4% in 2013.
This year however, Long Island City hasn’t been immune to the citywide downturn in investment property sales with dollar volume falling to $256 million in Q1-3 2017, a 76% drop from the first three quarters of 2016 and a 66% decline in transactions to 17 trades.
For more detailed information about the investment sales market or to request an evaluation of your holdings, please feel free to contact a member of our sales team.
Warm regards,
Peter HauspurgChairman & CEO
Long Island City Investment Property Sales Overview
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2017 Q1-3 2016 2015 2014 2013 TOTALS
# OF TRANS. $-VOLUME # OF
TRANS. $-VOLUME # OF TRANS. $-VOLUME # OF
TRANS. $-VOLUME # OF TRANS. $-VOLUME # OF
TRANS. $-VOLUME
Dev Site 6 $53,400,000 22 $242,899,646 23 $451,584,063 24 $460,629,381 22 $201,047,686 97 $1,409,560,775
Hotel 0 $0 0 $0 0 $0 1 $22,039,369 0 $0 1 $22,039,369
Industrial 5 $120,709,000 17 $584,124,560 15 $226,700,000 13 $148,356,339 15 $157,654,167 65 $1,237,544,065
Multifamily 2 $22,450,930 12 $291,881,156 7 $106,785,161 0 $0 10 $144,760,970 31 $565,878,217
Office 3 $57,530,000 6 $306,945,000 2 $149,000,000 7 $456,156,569 4 $36,116,046 22 $1,005,747,615
Retail 1 $2,900,000 3 $9,730,000 3 $9,330,000 0 $0 4 $15,286,493 11 $37,246,493
TOTAL 17 $256,989,930 60 $1,435,580,362 50 $943,399,223 45 $1,087,181,657 55 $554,865,361 227 $4,278,016,534
Source: Various Sources
INVESTOR COMPOSITION
2017 Q1-3 2016 2015 2014 2013
Cross-Border 2% 5% 0% 13% 3%
Institutional 39% 44% 11% 32% 4%
Private 55% 49% 69% 51% 91%
REIT/Listed 0% 0% 15% 3% 2%
User/Other 4% 2% 4% 1% 1%
Source: RCA
TOP FOREIGN INVESTORS - SINCE 2013
# OF TRANS $-VOLUME
Canada 2 $98,500,000
United Kingdom 2 $67,948,021
China 1 $65,831,491
Argentina 1 $13,700,000
Qatar 1 $10,735,751
Japan 1 $5,000,000
2017 Q1-3 2016 Q1-3 2015 Q1-3 2014 Q1-3 2013 Q1-3 TOTALS
# OF TRANS. $-VOLUME # OF
TRANS. $-VOLUME # OF TRANS. $-VOLUME # OF
TRANS. $-VOLUME # OF TRANS. $-VOLUME # OF
TRANS. $-VOLUME
Dev Site 6 $53,400,000 21 $177,068,155 20 $426,514,063 17 $298,499,381 15 $115,230,045 79 $1,070,711,644
Hotel 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0
Industrial 5 $120,709,000 14 $569,624,560 10 $155,775,000 10 $114,156,339 11 $118,029,167 50 $1,078,294,065
Multifamily 2 $22,450,930 8 $257,900,000 5 $98,702,400 0 $0 7 $103,504,550 22 $482,557,880
Office 3 $57,530,000 5 $49,445,000 1 $142,000,000 5 $305,199,069 3 $32,300,000 17 $586,474,069
Retail 1 $2,900,000 2 $6,500,000 3 $9,330,000 0 $0 3 $8,386,493 9 $27,116,493
17 $256,989,930 50 $1,060,537,715 39 $832,321,463 32 $717,854,788 39 $377,450,255 177 $3,245,154,151
LIC Investment Sales Overview
Investment Sales Volumes | 1st-3rd Quarter 2013-2017
Investment Sales Volumes | 2013 - 3rd Quarter 2017
Investment Sales Buyer Composition
MetroGrid Report | Long Island CityFOCUS ON NYC SUBMARKETS
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Source: Various Sources
Investment Sales Comps 1st-3rd Quarter 2017MAP PROPERTY TYPE SALE DATE ADDRESS SALE PRICE SF $/SF
1 MULTIFAMILY 6/29/2017 4707 39th St $13,470,930 35,700 $377
2 MULTIFAMILY 7/26/2017 43-39 & 43-35 42nd St $8,980,000 23,520 $382
3 INDUSTRIAL 3/8/2017 48-39 & 48-49 35th St $54,990,000 280,750 $196
4 INDUSTRIAL 5/23/2017 43-10 23rd St * $54,000,000 130,000 $415
5 INDUSTRIAL 7/18/2017 3624 & 3630 13th St $5,000,000 12,500 $400
6 INDUSTRIAL 7/20/2017 3829 24th St $3,750,000 7,500 $500
7 INDUSTRIAL 7/24/2017 1025 48th Ave $2,969,000 5,900 $503
8 OFFICE 3/10/2017 30-12 41st Ave $27,050,000 46,808 $578
9 OFFICE 6/13/2017 21-07 41st Ave $25,000,000 91,145 $274
10 OFFICE 3/30/2017 12-01 44th Ave $5,480,000 9,620 $570
11 RETAIL 6/12/2017 3727 32nd St $2,900,000 4,772 $608
TOTAL $203,589,930
Notes: * Partial interest transfer (unknown %), 130,000 SF represents full building
Development Site Sales 1st -3rd Quarter 2017
NO. PROPERTY TYPE SALE DATE ADDRESS SALE PRICE ZFA $/ZFA ZONING
12 DEV SITE 5/1/2017 2243 Jackson Ave $23,000,000 88,445 $260 R7X, C2-5, M1-4/R6B, LIC
13 DEV SITE 6/7/2017 37-14 34th St $16,500,000 58,500 $282 M1-2/R6A, LIC
14 DEV SITE 6/26/2017 40-36 24th St $5,000,000 22,500 $222 M1-2/R5B, LIC
15 DEV SITE 8/11/2017 3843 12th St $3,300,000 25,800 $128 M1-3
16 DEV SITE 8/9/2017 3823 28th St $2,825,000 10,042 $281 M1-2/R5B, LIC
17 DEV SITE 1/10/2017 37-24 34th St $2,775,000 9,195 $302 M1-2/R6A, LIC
TOTAL $53,400,000
GRAND TOTAL $256,989,930
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SF COMPLETED CONSTRUCTION PROPOSED TOTALS
HOTEL 441,946 517,378 533,495 1,492,819
INDUSTRIAL 674,641 11,250 275,000 960,891
MULTIFAMILY 6,634,115 6,608,037 6,531,446 19,773,598
OFFICE 192,770 1,100,000 1,732,876 3,025,646
RETAIL 15,395 33,731 367,990 417,116
TOTAL 7,958,867 8,270,396 9,440,807 25,670,070
Development Overview | Since 2013
Source: CoStar
COMPLETED CONSTRUCTION PROPOSED TOTALS
SF 6,634,115 6,608,037 6,531,446 19,773,598
UNITS 8,023 6,948 6,902 21,873
Multifamily Development
New Building Permits Density 2016
Source: NYC DOB
Development Project Map | Since 2013
Source: CoStar
COMPLETED
CONSTRUCTION
PROPOSED
* Values reflect SF totals
MetroGrid Report | Long Island CityFOCUS ON NYC SUBMARKETS
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43-25 HUNTER STREETTHE HAYDEN
22-44 JACKSON AVE5POINTZ
23-01 42ND ROAD1 QPS TOWER
STATUS YEAR BUILT ADDRESS DEVELOPER PROPERTY TYPE GROSS SF RESI UNITS STORIES
Completed 2016 44-41 Purves St The Rabsky Group Residential 260,000 284 25
Completed 2017 44-26 Purves St Brause Realty & Gotham Organization Residential with Commercial 275,000 272 33
Completed 2017 23-01 42nd Road Property Markets Group, Kamran Hakim, and New Valley Residential with Commercial 470,000 391 44
Completed 2017 43-25 Hunter St Rockrose Development Corp. Residential with Commercial 965,000 974 50
Construction 2017 42-12 28th St Heatherwood Communities Residential with Commercial 485,000 477 61
Construction 2018 22-44 Jackson Ave G&M Realty Residential with Commercial 1,070,000 1115 49
Construction 2018 29-22 Northern Blvd Simon Baron Development Group Residential with Commercial 500,000 467 44
Construction 2018 28-02 Jackson Ave Tishman Speyer and H&R REIT Residential with Commercial & Manufacturing 1,705,000 1871 56
Construction 2018 43-22 Queens St Rockrose Development Corp. Residential with Commercial 715,000 773 54
Construction 2019 28-07 Jackson Ave Tishman Speyer Commercial 1,780,000 -- 29
Proposed 2019 30-20 Northern Blvd Alma Realty Commercial 410,000 -- 10
Proposed 2020 2303 44th Road Stawski Partners Residential with Commercial 1,205,000 923 66
Proposed 2020 23-15 44th Dr United Construction & Development Group Residential with Commercial 975,000 802 68
Proposed 2022 5-40 & 4-99 44th Dr TF Cornerstone Inc. Residential with Commercial, Manufacturing & Community 800,000 1000 --
Proposed 2034 Anable Basin Site Plaxall Realty (Owner) Residential with Commercial, Manufacturing & Community 5,800,000 5000 70
Select Development Projects | Recently Completed, In Construction, Proposed
Source: Various Sources
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$5
$10
$15
$20
$25
2013 2014 2015 2016 2017
All Rent
NNNRent
$400
$550
$700
$850
$1,000
$1,150
$1,300
2013 2014 2015 2016 2017
North of Bridge
South of Bridge
$40
$45
$50
$55
$60
$65
$70
2013 2014 2015 2016 2017
North of Bridge
South of Bridge
Market Rents and Pricing
Residential Rents (Elevator) - Asking $/SF Residential Condos (Elevator) - Closing $/SF
Industrial Rents - Asking $/SF
Neighborhood Demographics
ZIP CODE 2005 2014 % INCREASE
11101
POPULATION 18,974 26,360 38.9%
AVERAGE HOUSEHOLD INCOME 34,539 70,120 103.0%
11104
POPULATION 23,910 25,720 7.6%
AVERAGE HOUSEHOLD INCOME 37,221 54,119 45.4%
11109
POPULATION 820 5,630 586.6%
AVERAGE HOUSEHOLD INCOME 109,438 151,045 38.0%
Source: LIC BID Annual Report 2017
Source: CoStar Source: CoStar, Agorafy
Source: CoStar Source: Property Shark
Pedestrian Counts
PEDESTRIAN COUNTS 2016 2017 % INCREASE
QUEENS PLAZA
QUEENS PLAZA / 27TH ST AM 1,847 1,971 6.71%
QUEENS PLAZA / 27TH ST PM 2,841 2,951 3.87%
COURT SQUARE
44TH DRIVE / HUNTER STREET 2,656 2,858 7.61%
44TH DRIVE / JACKSON AVENUE (N&S) 934 960 2.78%
CORRIDOR LOW HIGH
Jackson Ave $50 $110
Vernon Blvd $30 $75
Greenpoint Ave $40 $45
Northern Blvd $30 $40
Van Dam St $30 $45
36th Ave $30 $60
44th Dr $40 $70
Retail Rents - Asking $/SF
Source: UnitedStatesZipcodes.org
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
2013 2014 2015 2016 2017
Residential Condos (Elevator) - $/SF
North of Bridge
South of Bridge
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
2013 2014 2015 2016 2017
Residential Condos (Elevator) - $/SF
North of Bridge
South of Bridge
NORTH OF BRIDGE
SOUTH OF BRIDGE
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
2013 2014 2015 2016 2017
Residential Condos (Elevator) - $/SF
North of Bridge
South of Bridge
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
2013 2014 2015 2016 2017
Residential Condos (Elevator) - $/SF
North of Bridge
South of Bridge
NORTH OF BRIDGE
SOUTH OF BRIDGE
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
2013 2014 2015 2016 2017
Residential Condos (Elevator) - $/SF
North of Bridge
South of Bridge
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
2013 2014 2015 2016 2017
Residential Condos (Elevator) - $/SF
North of Bridge
South of Bridge
NNN RENT
ALL RENT
MetroGrid Report | Long Island CityFOCUS ON NYC SUBMARKETS
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Eastern Consolidated Select Current Sales Exclusives
Speedway Package: 39-02 Queens Boulevard
Property Type Development Site
Location Long Island City
Square Footage 169,500 SF
Asking Price $45,500,000 (for both properties)
Speedway Package: 39-04 Northern Boulevard
Property Type Development Site
Location Long Island City
Square Footage 32,350 SF
Asking Price $45,500,000 (for both properties)
Property Type Development Site
Location Long Island City
Square FootageLot Size: ±16,850 SF Approved Plans: ±71,347 SF
Asking Price $15,500,000
37-29 31st Street
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Eastern Consolidated Select Current Leasing Exclusives
Property Type Development Site
Location Long Island City
Square Footage 169,500 SF
Asking Price $45,500,000 (for both properties)
34-40 11th Street
Property Type Development Site
Location Long Island City
Square Footage 32,350 SF
Asking Price $45,500,000 (for both properties)
Property Type Warehouse Space for Lease
Location Long Island City
Square Footage 26,000 SF
Asking Rent Upon Request
Property Type Commercial Space for Sublease
Location Long Island City
Square Footage 66,000 RSF on the Second Floor
Asking Rent Upon Request
The Factory: 30-30 47th Avenue
47-09 5th Street
Property Type New Construction Retail Space for Lease
Location Long Island City
Square Footage 4,300 SF
Asking Rent $90 PSF
Property Type Development Site
Location Long Island City
Square FootageLot Size: ±16,850 SF Approved Plans: ±71,347 SF
Asking Price $15,500,000
MetroGrid Report | Long Island CityFOCUS ON NYC SUBMARKETS
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Eastern Consolidated Select Closed Sales
45-56 Pearson Street
Property Type Development Site: Sold
Location Long Island City
Square Footage 169,500 SF
Selling Price $43,500,000
22-12 Jackson Avenue
37-10 Crescent Street
Property Type Development Site: Sold
Location Long Island City
Square Footage 32,350 SF
Selling Price $9,737,500
Property Type Development Site: Sold
Location Long Island City
Square Footage 36,552 SF
Selling Price $6,500,000
Property Type Development Site: Sold
Location Long Island City
Square Footage 169,500 SF
Selling Price $43,500,000
Property Type Development Site: Sold
Location Long Island City
Square Footage 32,350 SF
Selling Price $9,737,500
Property Type Development Site: Sold
Location Long Island City
Square Footage 36,552 SF
Selling Price $6,500,000
INVESTMENT SALESRETAIL LEASINGCAPITAL ADVISORY
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