Manhattan New Development Market Report

Updated: 2Q11

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Table of Contents:

1. Introduction
2. Market Snapshot
3. Neighborhood Price Trends
   • Harlem
   • Upper West Side
   • Upper East Side
   • Midtown West
   • Midtown East
   • Murray Hill
   • Chelsea
   • Gramercy Park
   • Greenwich Village
   • East Village
   • SoHo
   • Lower East Side
   • TriBeCa
   • Financial District
   • Battery Park City
4. The Report Explained

Introduction

MNS is proud to present the Second Quarter 2011 edition of our New Development Market Report. New Development Sales data, defined as such “Arms-Length” first offering transactions where the seller is considered a “Sponsor”, was compiled from the Automated City Register Information System (ACRIS) for sponsor sales that traded during the First Quarter of 2011 (01/01/11 - 03/31/11).

Market Snapshot

Year-over-Year Manhattan New Development Condominium sales numbers are up, 6% on a price per square foot basis ($1,238/SF this quarter versus $1,185/SF in 2Q10) and 18% on an average sales price (just $1.85M this quarter versus just under $1.6M in 2Q10). Compared to 1Q11, Manhattan New Development price per square foot averages are down 3%, while average sales prices are virtually flat.

Market up-swings:

Although absorption was relatively static, Flatiron had the most positive change this quarter, with the closings of 15 Union Square West and the mighty $13M Cupola apartment at 141 Fifth Ave forcing the neighborhood average up over 50% from last quarter.

Bringing the Lower East Side’s quarterly average price per square foot finally over the $1,000 benchmark was the Karl Fisher designed 7 unit 263 Bowery Condominium. This neighborhood had a 19% increase from last quarter on a price per square foot basis and also had the highest concentration of 2 bedroom units sold as compared to other supply within the neighborhood.

With only 1 closing of the small units at Trump Soho Hotel Condominium this quarter, versus 6 records in 1Q11, Soho’s average sales price buoyed 24%. In addition, over 80% of Soho’s sold inventory was units over 1,500 SF, just second to Tribeca’s 86% 1500+ market.

Market down-swings:

While last quarter we saw Greenwich Village and Chelsea sales at a high point, closings this quarter brought those neighborhood averages down about 50%. The Devonshire dominated the Greenwich Village market, and while these sales brought the neighborhood down from $1,805/SF to $1,548/SF, the neighborhood remained static when compared to a year ago. In Chelsea, where MNS sold the remaining 7 units at Loft 25, the initial closings at the +Art averaging $1,067/SF, buried the $1,351/SF average from last quarter.

Inventory analysis:

The second quarter of 2011 brought 20% more sponsor sales to the city registry, compared to last quarter. Of note this quarter, Midtown west emerged with 12% of Manhattan’s New Development sales primarily from Sheffield 57, Griffin Court and The Dillon.

The 2Q11 New Development inventory winner was the Financial District with the same 16% that Harlem had last quarter. FIDI is also speeding in a positive direction in regards to absorption, and along with Tribeca and Battery Park City, lower Manhattan almost doubled its absorption rate to an average of about 40 units per month.