rose by 3.3 percent and the unemployment rate was 4.3 percent, an all-time low as the city continues adding jobs. The average daily hotel occupancy rate was 89.8 percent, and venture capital increased 66.3 percent in 2Q17 from 2Q16.
Interest rates remain historically low with 30-year, fixed-rate mortgages still hovering around 4 percent, and in Harlem, rents are strong and condo prices are rising.
All of these factors make this a perfect time to see what your property is worth. Please feel free to call me for a complimentary asset evaluation.
Warm regards,
Lev
Lev Kimyagarov | Upper Manhattan
MARKET UPDATE | Q3 2017
Dear Friends,
No doubt were seeing a shift in the commercial real estate market with total investment property sales dropping year-over-year.
In Upper Manhattan, were finding that this decline is due to a lack of inventory, not a lack of demand. For properties priced right the commercial sales market is still robust making this a good time to consider selling, particularly multifamily properties facing increased scrutiny from city government and possibly rising expenses.
We also expect investor interest In East Harlem properties to increase if the East Harlem Rezoning Plan is adopted. The Planning Commission recently approved the proposal, and its now undergoing its final review in the City Council.
Economic indicators remain positive, as the New York City economy continues to boom. In the second quarter, New York Citys gross city product
LEV KIMYAGAROV SENIOR [email protected]
WHATS YOUR PROPERTY REALLY WORTH IN TODAYS MARKET?
Lev Kimyagarov | Upper Manhattan
MARKET UPDATE | Q2 2017
In East Harlem, it appears that the pending East Harlem Rezoning plan and the recently adopted Affordable New York Housing Program, which is making rental development possible again, led to increased development sales in the first half of 2017.
Development properties accounted for nearly 30 percent of all investment property sales in East Harlem in 1H 2017, with multifamily properties at 47.5 percent and 1-4 family buildings at 14.7 percent.
In West Harlem, multifamily sales dominated, accounting for 60.3 percent of the total investment sales in the first six months of 2017, followed by 1-4 family sales at 14.4 percent, and retail property sales at 11.6 percent.
DEVELOPMENT ACCOUNTS FOR 30% OF TRANSACTIONS IN EAST HARLEM 1H 2017
EAST HARLEM# OF DEALS $ VOLUME % OF $-VOL Avg $/SF Avg Cap Avg GRM
1-4 Family 8 $24,625,000 14.7% $821 - -Development/Land 5 $49,114,359 29.3% $207/ZFA - - Garage/Industrial 1 $3,700,000 2.2% $509 - - Multifamily 7 $79,550,000 47.5% $353 4.15% 16.72 Office 0 $0 0.0% - - -Retail 1 $10,500,000 6.3% $1,765 - -
22 $167,489,359
WASHINGTON HEIGHTS / INWOOD# OF DEALS $ VOLUME % OF $-VOL Avg $/SF Avg Cap Avg GRM
1-4 Family 0 $0 0.0% - - - Development/Land 0 $0 0.0% - - - Garage/Industrial 0 $0 0.0% - - -Multifamily 17 $188,532,500 93.9% $380 4.52% 14.59 Office 0 $0 0.0% - - -Retail 1 $12,225,000 6.1% $484 - -
18 $200,757,500
WEST HARLEM# OF DEALS $ VOLUME % OF $-VOL Avg $/SF Avg Cap Avg GRM
1-4 Family 8 $26,905,500 14.4% $810 - -Development/Land 0 $0 0.0% - - -Garage/Industrial 1 $3,450,000 1.8% $298 - - Multifamily 11 $112,805,000 60.3% $455 4.52% 14.67 Office 2 $22,400,000 12.0% $460 4.63% -Retail 2 $21,650,000 11.6% $2,749 5.04% -
24 $187,210,500
308 EAST 109TH STREET | 24,655 SF | ASKING PRICE: $17,100,000
NEW EXCLUSIVE
Lev Kimyagarov | Upper Manhattan
MARKET UPDATE | Q2 2017
Neighborhood $
NEIGHBORHOOD $ VOLUME
WASHINGTON HEIGHTS
36%
W HARLEM34%
E HARLEM30%
RESIDENTIAL CONDO MARKET OVERVIEWHarlem Condo Sale Prices
EAST HARLEM 2Q17 1Q17 2Q16 % FROM 1Q17 % FROM 2Q16AVERAGE PRICE (THOUSANDS) $763 $636 $744 20% 2%MEDIAN PRICE (THOUSANDS) $665 $614 $659 8% 1%AVERAGE PRICE/FT $902 $880 $814 2% 11%MEDIAN PRICE/FT $950 $898 $864 6% 10%
WEST HARLEMAVERAGE PRICE (THOUSANDS) $1,159 $979 $817 18% 42%MEDIAN PRICE (THOUSANDS) $996 $900 $743 11% 34%AVERAGE PRICE/FT $1,070 $958 $945 12% 13%MEDIAN PRICE/FT $1,079 $982 $964 10% 12%
Upper Manhattan Median RentsEAST HARLEM WEST HARLEM WASHINGTON HEIGHTS/INWOOD
Studios $1,750 $1,650 $1,573 1 Bed $2,099 $1,975 $1,750 2 Bed $2,450 $2,175 $2,275 3 Bed $3,091 $3,150 $2,816
UPPER MANHATTAN TRANSACTIONS OVERVIEW
32 WEST 125TH STREET*RETAIL, 5,950 SFAsset Class $-Volume
1-4 Family
Development/Land
Garage/Industrial
Mulfamily
Office
Retail
Specialty
Total $-Volume
ASSET CLASS $ VOLUME
64%
9%
9%8%4%
MULTIFAMILY
OFFICE
RETAIL
1-4 FAMILY
DEVELOPMENT/LAND
GARAGE/INDUSTRIAL
1%
WEST HARLEM
EAST HARLEM
WASHINGTON HEIGHTS
$10,500,000
* LEV KIMYAGAROV INVOLVED WITH TRANSACTION AT PREVIOUS FIRM
1516 PARK AVE & 94 EAST 111TH STREET*DEVELOPMENT/LAND, 48,599 ZFA
$10,250,000
109 EAST 102ND STREET MULTIFAMILY, 30,129 SF
$14,700,000
150 WEST 145TH STREET*DEVELOPMENT/LAND 37,768 ZFA
$10,100,000
RESIDENTIAL RENTAL MARKET OVERVIEW
SELECT CLOSED TRANSACTIONS 1H 2017
LEV KIMYAGAROV SENIOR [email protected] 355 LEXINGTON AVENUE
NEW YORK, NY 10017
Lev Kimyagarov | Upper Manhattan
MARKET UPDATE | Q2 2017
WHATS YOUR PROPERTY REALLY WORTH IN TODAYS MARKET?
PLANNING COMMISSION APPROVES EAST HARLEM REZONING
On October 2, the New York City Planning Commission approved the East Harlem Rezoning Plan with a modification that limits the height of new buildings to 32 stories, even on the widest avenues of Park, Third, and Second Avenues. The City Council is now reviewing the full proposal.
The goal of the rezoning plan is to develop and preserve affordable housing and promote economic opportunity in an area generally bounded by 104th Street to the south, East 132nd Street to the north, Park Avenue to the west, and Second Avenue to the east.
The city estimates over the next 10 years the rezoning will result in as many as 3,500 new units of housing, with a significant number permanently affordable; 122,000 square feet of new retail stores and restaurants; and 275,000 square feet of office and industrial space.
Focus on corridors and transit-oriented development
Balance of growth and preservation
Creation of affordable housing opportunities
Zoning requirements to produce spaces for jobs
Improvements to the public realm
Source: NYC Planning
