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TEAM KNAKAL 2014 BUILDING SALES JOURNAL

Massey Knakal Realty ServicesMassey Knakal Realty Services

2 3TEAM KNAKAL 2014 BUILDING SALES JOURNAL TEAM KNAKAL 2014 BUILDING SALES JOURNAL

Servicing Clients’ Needs Create Record $2.2 BILLION Year For Team Knakal2014 was a record year for Massey Knakal’s chairman, Bob Knakal, and his personal sales brokerage team. They closed on transactions having an aggregate value of approximately $2.2 billion dollars. This was the highest annual total for Mr. Knakal in his 31 year career brokering the sale of properties in New York City.

Last year, Team Knakal closed 54 transactions which included the sale of 142 properties. In each case, the Team exclusively represented the seller. These properties contained over 6 million square feet of existing, or buildable, square feet. “We owe a tremendous debt of gratitude to our clients, colleagues and friends for making a year like this possible,” stated Mr. Knakal who went on to say, “By making sure that our team always prioritizes our relationships with our clients more than the transactions themselves, we are able to execute the overwhelming majority of our sales for clients we have represented in the past. These long-term relationships are one of the keys to the success of our team.”

Mr. Knakal also gives credit to his broker coach, Rod Santomassimo, of the Massimo Group, with whom he has been working for nearly four years. “Rod pushes me to do better than my best every day. Results like this would not have been possible without him.”

“We are very happy with our production last year and although we expect the number of properties sold to be down slightly this year, the dollar volume should rise and values should continue to rise as well. Therefore, we expect to have a very productive year again in 2015,” stated Jonathan Hageman, who is Mr. Knakal’s partner and has served as the sales team manager for Team Knakal for over 12 years.

This newsletter will review some of transactions closed by Team Knakal in 2014. The Team is happy to provide complimentary opinion of value reports for property owners in the New York metropolitan area.

PROPERTY HIGHLIGHTS

SALE TRANSACTIONS PROPERTIES SOLD

SQUAREFEET

AGGREGATE CONSIDERATION

54+6M$2.2B

TEAM KNAKAL - YEAR-END REVIEW

PERCENTAGE OF TEAM KNAKAL TRANSACTIONS TO MASSEY KNAKAL YEAR-END TOTAL

TEAM KNAKAL TO MASSEY KNAKAL YEAR-END REVIEW

TOTAL SALES TRANSACTIONS: 321

17% 30% 55%

TOTAL PROPERTIES SOLD: 467

TOTAL AGGREGATE CONSIDERATION: $4.03B

142



Team Knakal Sells 21 Penn Plaza For $244 MILLIONA partnership of Savanna and The Feil Organization hired Team Knakal to handle the sale of 21 Penn Plaza (aka 360 West 31st Street), a 16-story, 373,000 sf, Class B office building. The property was sold to TIAA-CREF in December of 2014 for $244 million. Boasting approximately 98.75’ of frontage on Ninth Avenue and approximately 220’ on West 31st Street, the property was ideally located in the revitalized Penn Plaza District. At the time of sale, the property was approximately 98.44% occupied, which partly reflected the area’s transformation that had driven nearby vacancy rates to historic lows. On average, the office space leased for $39.68 per rentable square foot, about 30% below the Penn Plaza/Hudson Yards market average of $55.34 at the time of sale. This below-market performance was a function of lease signings occurring prior to 2011 when the sellers originally purchased the building. Furthermore, given that

approximately 67% of the building’s leases were expiring by 2018, new ownership will be able to immediately take advantage of significant upside potential.

“After another successful transaction with him in the neighborhood, we decided to give Bob the opportunity to compete for the assignment to sell our office building at 21 Penn Plaza. He and his team gave us a valuation that was tangibly higher than the other brokers we interviewed and also told us that the buyer would not be one of the typical buyers of this type of asset. The buyer did indeed fall into the non-typical category for this type of asset and the price Bob achieved for us was in excess of his valuation. We are extremely pleased with the quality of the execution we received here.” – Nick Bienstock, Savanna Partners

21 PENN PLAZA



53 Building, 1,259 Unit Kew Gardens Portfolio Sold For $216 MILLIONTeam Knakal has sold a garden apartment complex consisting of 53 buildings, known as the Kew Gardens Hills Portfolio, in a transaction valued at $216,000,000. The buildings comprise approximately 24.6 acres within the Kew Gardens Hills neighborhood of Queens and contain a total of 1,259 residential units. Market rents throughout

the property averaged approximately 33% below market in the neighborhood, allowing new ownership to potentially greatly increase their bottom line in the near term. The sale represents the fourth largest asset to be sold (by units) within the five New York City boroughs, including Manhattan, within the past six years.

Massey Knakal Sells Portion of 2.2 Million Buildable SF Development Site For $238 MILLIONIn a transaction valued at $238 million, Tishman Speyer acquired adjacent, undeveloped parcels of land in the Hudson Yards district on Manhattan’s far West Side. The full-block site, located on 10th Avenue between 34th and 35th Streets allows the developer to purchase additional development rights allowing for a 2.85 million-square-foot mixed-use tower. The two parcels were acquired in separate transactions for a total of $438 million. One plot was owned by Sherwood Equities and the other by the Rosenthal family.

Team Knakal represented the Rosenthal family in the sale of its site, while Sherwood sold its portion of the site for $200 million.

“Massey Knakal achieved a pricing level which was above and beyond our expectations. They secured worldwide attention by positioning this site as the most significant in the marketplace. Their creative approach led to a smooth and successful close.” – Peter Rosenthal

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Team Knakal Sells East Side Elevator Portfolio For $126.25 Million The sale included a 5 building multifamily portfolio consisting of 267 units across 5 trophy assets all located on the east side of Manhattan throughout the Upper East Side / East Village. The Portfolio consists of 264 residential units, 2 commercial units and 1 professional unit totaling approximately 144,043 gross square feet. The Portfolio featured one property located in the East Village and four properties located in the Upper East Side. In aggregate, the properties sold for $126,250,000 which equated to approximately a 4.50% Cap Rate, 16 times gross rent and $877.00 per square foot. The four properties located on the Upper East Side were sold to a first time multifamily buyer and the fifth property located on the Lower East Side sold to a well-known long-time Manhattan multifamily owner.

Last Remaining Unsold Sponsor Units Sold In The Corinthian For $147 MILLIONThe Spitzer family retained Team Knakal in early 2014 to procure a purchaser for their 144 remaining sponsor units within The Corinthian on East 38th Street, which was originally built by the family in 1988. At the time of construction, the property was the largest residential building in all of New York city at over 1.1 million square feet. After a short marketing campaign, Team Knakal was able to facilitate an all cash transaction at $147,000,000 which was $2 million above the asking price. The units combined to total roughly 150,747

sellable square feet and were dispersed throughout the building. The offering presented a unique opportunity for investors to either continue operating the units as rentals with substantial in place revenue or to renovate them for sale to end users in an area with minimal supply. The overall sale price equates to over $1,000,000 per unit and over $975 per net square foot which was approximately 86% of the average sellout within the building at the time of sale.



Prime Corner Development Site At 59th Street And Third Avenue Sold For $100 MILLION985-989 Third Avenue is a uniquely located, mixed-use development opportunity on the southeast corner of East 59th Street and Third Avenue; directly across from the world famous Bloomingdale’s department store and the Bloomberg Building. The property benefited from significant frontage along both East 59th Street and Third Avenue in what is

considered one of the premier retail submarkets in all of Manhattan. The parcel allowed for a total development of approximately 89,480 buildable square feet. Within the first week of being on the market, Harry Macklowe executed a hard contract and closed on the purchase for $100 million.

Team Knakal Sells ~300,000 BSF Development Site In Hudson Yards For $112 MILLIONThis sale handled by Team Knakal was a block-through development site featuring 125 feet of frontage on both West 38th and 39th Street just east of Ninth Avenue. The site was uniquely located within the Garment Center Special Purpose Zoning District and allowed for both commercial and/or residential uses. As such, the maximum FAR of 12.0

in this zoning district allowed for a development of up to approximately 296,250 square feet per the as-of-right zoning. The existing site consisted of a 2-story commercial building occupied by R/GA which will vacate the building in mid-late 2015. The property was sold to prominent hotel developer Sam Chang for $112 million.

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With about $27 billion being spent on private and public developments in and around the Hudson Yards, the neighborhood has already begun its transformation into what will be one of the most dynamic places to work, live and visit. Whether it’s the Hudson Yards, Manhattan West, the High Line or the Hudson Yards Boulevard & Park, there is something for everyone, as detailed and update below.

The Hudson YardsIt is anticipated that more than 24 million people will visit the largest development project since Rockefeller Center every year. Construction began on the first tower at the corner of Tenth Avenue and 30th Street in December 2012 with recent announcements of L’Oréal USA and SAP joining Coach as anchor tenants. Slated for completion in 2015, 10 Hudson Yards already stands well above the celebrated High Line spur. Also adjacent to the High Line spur and scheduled to open in 2015 will be the Hudson Yards Fairway. Landing Fairway Market as the anchor food market at Hudson Yards will offer the first major amenity for the area. Additionally, Time Warner expects to acquire more than one million square feet of the available commercial space in 30 Hudson Yards located at the southwest corner of Tenth Avenue and West 33rd Street. Most recently, Neiman Marcus announced plans to open a luxury store to anchor this massive development with a 250,000 square foot, multilevel shop slated to open in fall 2018. Nearly two years after breaking ground, this massive project has begun to transform the Far West Side’s landscape and re-shape the city’s skyline.

Manhattan WestLocated on Ninth Avenue, stretching from West 31st to West 33rd Streets, is Brookfield’s $4.5 billion Manhattan West development project, which will feature 7 million square feet of office, residential, retail and outdoor space. Two iconic office towers soaring as high as 62 stories will make up the next generation of skyscrapers changing the City’s skyline forever. This LEED Gold project will offer slab-to-slab tower heights of up to 13’6” with floor-to-ceiling glass. Brookfield recently finished decking over the railroad tracks and is now finalizing its payment to buy building bonuses needed to erect its residential tower on the site at 3 Manhattan West, which is slated to rise 62 stories and contain 844 residential

units. The company plans to break ground on this mixed-use building in early 2015. Additionally, the project will feature a tremendous 1.5 acre outdoor public space which is the width of two city blocks and the length of Bryant Park. The new 65,000 square feet of public space will be the home of inspiring events and will provide ample space for lunch and leisure time. The size, scope, and location of this project will provide for not only increased foot traffic and visibility, but will also be an attractive destination for future tenants given the new retail options and outdoor space.

No. 7 Subway ExtensionThe No. 7 Subway extension is the first addition to New York City’s mass transit system in more than a generation. Hudson Yards, an area isolated for decades by a massive, open rail yard, is transforming into one of the city’s most convenient neighborhoods with the historic introduction of the extension of the No. 7 Subway from its current terminus at Times Square to a new station at West 34th Street between Tenth and Eleventh Avenues. With construction coming to completion soon, the West Side will finally be connected to the rest of city in February 2015, paving the way for what will be a dynamic place to work, visit and live.

Hudson Yards Boulevard & ParkHudson Park & Boulevard, a fundamental element of the new Hudson Yards district, will help transform the area from a desolate industrial neighborhood to a vibrant, pedestrian-friendly mixed-use district. The approximate 4 acre system of broad tree-lined parks and open space, will run between 10th and 11th Avenues from West 33rd to West 39th Streets. The Park will extend from West 33rd to West 39th Streets. The Boulevard will extend from West 33rd to West 38th Streets on the east side of the Park and from West 35th to West 38th Streets on the west side, and will be approximately 30 feet wide. The Park & Boulevard will be built in two phases. The first phase presently under construction, is located between West 33rd and West 36th Streets. The second phase is located between West 36th Street and West 39th Street. Phase one of the Park & Boulevard will be open with the No. 7 Subway in 2015. When complete, Hudson Park will become an instant favorite, joining this city’s other great urban public spaces like Bryant Park, Union Square Park and Hudson River Park.

$27 BILLION IN CAPITAL INVESTMENT IN SURROUNDING NEIGHBORHOOD

The High LineThe High Line’s transformation from an abandoned elevated railway into a state-of-the-art park was recently completed in September 2014, connecting the Meatpacking District and West Chelsea with the No. 7 Subway station, the Javits Center and the Hudson Yards neighborhood. In 2006, construction began on the High Line project to turn it into a 6.7 acre elevated park spanning 22 blocks. Section 1 of the High Line opened to the public on June 9, 2009 and runs from Gansevoort Street to West 20th Street. Section 2, between West 20th and West 30th Streets, opened in June 2011. The third and final section, which was recently completed in September 2014, extends from West 30th Street and 10th Avenue to West 34th and 12th Avenue.

Moynihan StationThe James A. Farley Post Office Building is undergoing a massive transformation into the new Manhattan home for Amtrak. The project is advancing in phases with the first phase now under construction. This phase consists of three separate construction projects which will create access to the Penn Station tracks and platforms through the James A. Farley Post Office Building for the first time. Construction on the first phase began in September 2012 and will continue through 2016. The main goal of the project is to alleviate pedestrian congestion at Penn Station by allowing passengers to access Amtrak, New Jersey Transit, and Long Island Railroad trains at a farther west entrance located at the Farley Post Office. This would consequently make Midtown Manhattan more welcoming to both New Yorkers and visitors, while also encouraging train travel from New York City throughout the U.S.

T H E H U D S O N Y A R D S• 17 million square feet of commercial and residential space• 5 office towers• 5,000 residences• Estimated cost: $15 Billion

T H E H I G H L I N E• Runs from Gansevoort Street to West 34th Street• Final phase completed in 2014• Estimated cost: $240 Million

N O . 7 S U B W A YE X T E N S I O N

• Expected to be completed in 2015• Estimated cost: $2.4 Billion

J A V I T S C E N T E R• Renovation includes 110,000 square feet expansion for busiest convention center in the U.S.• Estimated cost: $463 Million

M A D I S O NS Q U A R E G A R D E N

• Completed $1 Billion transformation

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• Approx. 4 acres of outdoor space• Phase 1 expected to be completed completed in 2015• Estimated cost: $30 Million

M O Y N I H A N S T A T I O N• Being transformed into new home for Amtrak• Phase 1 expected to be completed in 2016• Estimated cost: $3.2 Billion

M A N H A T T A N W E S T• 7 million square feet of premier office, residential, retail, and outdoor space• Estimated cost: $4.5 Billion

Neighborhood Focus: Hudson Yards



Team Knakal Sells Prime Corner Site Across From Both Moynihan And Penn Stations For $65 MILLION

The sale for $65 million consisted of a development site at 415 Eighth Avenue which is ideally located in the Penn Station neighborhood on the southwest corner of Eighth Avenue and West 31st Street with additional frontage on West 30th Street. Uniquely positioned across the street from the Moynihan Station project, Penn Station, and the newly renovated Madison Square Garden, this exceptional mixed-use development opportunity boasted approximately 50 feet of frontage on Eighth Avenue and 137’ on West 31st Street. Additionally, the site ran through the block to 30th Street where it contained another 25’ of frontage making it an ideal entrance point for future residential tenants. Given the site’s location and current zoning parameters, it could hold a development of approximately 87,633 BSF, however, due to the availability of additional air-rights that are being exclusively handled by Massey Knakal on behalf of the Moynihan Station Development Corp., there is potential for the development to be further increased in size.

“When we considered selling 415 Eighth Avenue, we met with several brokers to obtain their perspective on our property. Bob Knakal and his team were, by far, the most optimistic in terms of our property’s value, to the point where we thought they were being overly aggressive. We decided to give Bob a shot and in a short period of time, he and his team produced results for us that exceeded our collective expectations. Savanna Partners highly recommends Bob and his team to any seller wanting to maximize their results.” – Christopher Schlank, Savanna Partners

Team Knakal sold the corner development site at 560 Seventh Avenue for $62.305 million to a group headed by two first-time hotel developers. The property is located in an M1-6 zone in the Special Midtown District with approximately 74’ of frontage along Seventh Avenue and 125’ on West 40th Street. Zoning allowed for up to approximately 98,760 buildable square feet as-of-right and up to a maximum of approximately 128,388 BSF through bonuses and/or transfers. The property was formerly home to Parsons - The New School for Design. The building was delivered vacant except for one tenant (Garment Center Congregation) on the ground floor and basement with a long term lease through 2076. Per the existing lease, the purchaser planned to relocate the synagogue to temporary space, while they develop the project.

“When we decided to sell 560 Seventh Avenue, we interviewed several of the top brokerage firms in town. All of the firms told us the value of the property was approximately $40 million. Bob Knakal, and his sales team at Massey Knakal, told us the site was worth $60 million. At first we were skeptical but Bob was able to clearly articulate his methodology and we decided to go with him. As you can imagine, my Board and I are extremely pleased with our $62.3 million sales price. I highly recommend Bob and his team and, in fact, we are already working on another transaction together.”– Roy Moskowitz, Parsons The New School for Design

Massey Knakal Sells Southern Brooklyn Portfolio For $78 MILLION

Massey Knakal sold a portfolio of multi-family buildings located in the Brighton Beach, Sheepshead Bay and Bensonhurst neighborhoods of Brooklyn in a transaction valued at $78,000,000. The seven buildings, located within a three mile stretch of southern Brooklyn, combine for nearly 410,000 square feet and house 481 rent stabilized units. The portfolio contained significant upside with rents at the time of sale averaging just $18 per net square foot approximately in a market that yields rents from $24-$25 per net square foot. Additionally, the buildings all benefit from close proximity to the B, F, and Q subway lines as well as nearby shopping districts on Brighton Beach Avenue and Kings Highway.

Upper Manhattan Residential Portfolio Sold By Massey Knakal For $72.5 MILLIONMassey Knakal successfully executed the sale of the Upper Manhattan Residential Portfolio in a transaction valued at $72,500,000. The portfolio was comprised of ten properties, five walk-up and five elevator buildings, which totaled approximately 378,000 square feet and included 404 units. All ten buildings are located within one or two blocks of Yeshiva University and are bound by West 187th Street to the north, West 182nd Street to the south, Laurel Hill Terrace to the east, and Saint Nicholas Avenue to the west. Eight of

the ten properties are pre-war buildings featuring spacious layouts, while the remaining two are art-deco and have larger units with accents such as sunken living rooms. All of the properties would be conducive to condominium conversion in the future. Furthermore, the portfolio’s close proximity to several neighborhood anchors including Yeshiva University, New York Presbyterian Hospital and the Port Authority Bus Terminal will continue to attract residents and create rental growth as leases turn over.

Team Knakal Sells Times Square South Development Site For $62.3 MILLION



Team Knakal Sells 163,000 BSF Downtown Development Site For $46 MILLION Team Knakal has sold an approximately 163,080 buildable square foot development site on the east side of Nassau Street between Fulton and John Street in a transaction valued at $46,000,000. 75-81 Nassau Street represents an ideal mixed-use development opportunity as the C5-5/LM zoning designation allows for a maximum FAR of 15.0, 10.0 of which can be utilized for residential use. In a separate transaction, the purchaser also acquired the neighboring parcel to the north at 83 Nassau Street as well as air-rights from 85 Nassau Street creating an assemblage of over 200,000 total buildable square feet. As the realization of $30 billion in public and private investments continues to take shape in Lower Manhattan, this corridor of Nassau Street is ideally positioned to capitalize on the foreseen growth.

Corner Mixed-Use Development Site Sold At The Border OfChelsea / NoMad For $36.8 MILLIONTeam Knakal arranged for the sale of the irregularly shaped lot with approximately 68 feet of frontage along Avenue of the Americas and 125 feet of frontage along West 30th Street for a residual price of $36.8 million approximately. The corner site was improved with a 1-story retail building with parking on the roof in addition to a parking lot located midblock between Broadway and Avenue of the Americas. The existing retail building was currently occupied by 4 tenants. The property was delivered “as-is”, with each tenant having a buyout clause within their lease. The lot is approximately 6,997 square feet and allowed for approximately 70,000 BSF.

Massey Knakal Shatters Bronx Price Per Square Foot Record With $34.6 MILLION Sale

Team Knakal has sold two premier retail assets located along the thriving Fordham Road retail corridor in the Bronx in a transaction valued at $34,600,000. 305 & 315 East Fordham Road are two contiguous 2-story structures totaling approximately 30,230 gross square feet and are comprised of seven retail spaces with over 195’ of combined frontage. This exceptionally well positioned retail asset features several credit tenants including Planet Fitness, The Vitamin Shoppe and Metro PCS, all of which are in place on a long term basis. Fordham Road is characterized as the premier retail thoroughfare in the Bronx and is experiencing an influx of national tenants. The sale price equates to approximately $1,146 per square foot, which is the third highest price per square foot ever achieved borough-wide and a new record for the immediate neighborhood.

Team Knakal Sells UWS Redevelopment ForArchdiocese Of NY For$50 MILLION

Team Knakal has sold a corner building at 555 West End Avenue, located in the Upper West Side, in a transaction valued at $50 million. The Archdiocese of New York retained the team to sell the vacant high school as a redevelopment opportunity in the coveted neighborhood. The 41,561 square foot building featured approximately 80’ of frontage on West End Avenue and 100’ on West 87th Street which provides for significant natural light and air. Investors additionally benefit from approximately 39,149 square feet of unused air rights, however, due to historic district regulations, it is unclear how much of this additional square footage will actually be able to be used. The property’s location and beautiful architecture attracted a plethora of interest that resulted in receiving over 35 offers and a purchase price in excess of $1,200 per square foot.

Massey Knakal Sells2 Retail CondominiumsAt The Barbizon/63 For$48.2 MILLION

Two retail condominiums situated at the base of Barbizon/63 at 817 Lexington Avenue were sold in a transaction valued at $48,200,000. The fully-leased condominiums total approximately 47,197 gross square feet across the ground floor, second floor, cellar, sub-cellar, and second sub-cellar of Barbizon/63, a landmarked luxury condominium property. Equinox controls both retail condominiums with long-term leases, of which they sublease a portion to SoulCycle. Equinox’s original lease was signed almost twenty years ago in 1996, which set the in-place rent significantly below market. Based on current comparable rents, the current rent is approximately 75% below market. The asset will undoubtedly benefit from a substantial rent increase upon the expiration of the current lease in 2022, particularly as it benefits from approximately 178 feet of valuable frontage along Lexington Avenue and 63rd Street. The sale price equates to a 2.3% cap rate.



Massey Knakal Sells NoMadDevelopment Site To First TimeForeign Buyer For $25.5 MILLIONTeam Knakal has sold a development site located at 264 Fifth Avenue, on the southeast corner of 29th Street and Fifth Avenue, in a transaction valued at $25,500,000. The site is an excellent mixed-use development opportunity totaling approximately 30,000 buildable square feet and featuring 130’ of combined frontage on both Fifth Avenue and East 29th Street. The existing structure consists of a 13,875 square foot, 5-story, mixed-use building and all tenants were month-to-month or had leases expiring in the near term. NoMad has transformed into one of Manhattan’s best live/work neighborhoods and is enriched by a variety of new businesses, renowned restaurants and upscale residences. The sale price equated to approximately $850 per buildable square foot, a new record for the area.

Team Knakal Sells Entire Garment Center Condominium As ADevelopment Site For $23.5 MILLIONTeam Knakal arranged for the sale of all 16 condominium interests (in separate but cross-collateralized transactions) located at 319-321 West 38th Street. The property features approximately 46’ of frontage in the heart of the Garment Center in a zoning district that allows for up to approximately 54,830 BSF through bonuses and/or transfers. The residential condominium consisted of only 9,575 SF approximately at the time of sale. The purchaser plans to erect a boutique hotel in one of the hottest sub markets in Manhattan. The sales price of $23.5 million equates to about $450 per buildable square foot, after the additional purchase of DIB air rights.

Massey Knakal Sells Contract ForSubstantial Gain For $21 MILLIONTeam Knakal assisted the contract vendee in selling the contract for a West 19th Street, 5-story, 21,800 square foot conversion opportunity in the West Chelsea neighborhood. The property has 50 feet of frontage and benefits from strong ceiling heights throughout, ranging from 16’ on the ground floor to 13’ on the upper loft levels. The rooftop was leased to Verizon Wireless with a near term expiration and two 5-year renewal options. There were no other leases at the time of sale allowing for imminent conversion into luxury condominiums. The original seller did not want to hire a broker and did an off market deal, signing a contract at $18.2 million. The original sellar did not have to pay a brokerage commission but left $2.8 million on the table. The sales price of $21 million equated to about $963/sf for the existing structure.

Elevator Apartment Building Sold In Hell’s Kitchen For $32.3 MILLIONMassey Knakal sold a 6-story mixed-use property on the southwest corner of Tenth Avenue and West 58th Street in a transaction valued at $32,300,000. 885 Tenth Avenue consists of three retail stores and 37 large residential units totaling approximately 37,183 square feet. Of the 37 residential units, 24 were fair market, 12 were rent stabilized and 1 was rent controlled at the time of sale. Due to the significant percentage of rent regulated units and substantially below market average rents being achieved throughout the remaining fair market units, the property contained tremendous upside potential.

Massey Knakal Sells Iconic Retail Asset In Astoria For $32 MILLIONTeam Knakal has sold an approximately 51,000 square foot retail asset at 2856 Steinway Street located in the thriving Astoria, Queens submarket in an all-cash transaction valued at $32,000,000. The 3 story building is uniquely positioned with substantial frontage on two of the neighborhood’s most active corridors and is fully occupied by three credit tenants including NYSC, Duane Reade and Chase Bank. The attractive leases provided a long-term commitment to the space with robust net operating income in-place. Astoria has established itself as one of the most desirable submarkets outside of Manhattan as it is currently experiencing over $2 billion of private and public investments. This transaction is a testament to the surging demand for income producing assets in emerging markets outside of Manhattan that are poised to flourish for years to come.

Team Knakal Sells Financial District BlockfrontFor $30.15 MILLIONA 47-unit mixed-use building located on the northern block front of Coenties Slip between Pearl and Water Streets was sold by Team Knakal in a transaction valued at $30,150,000. 66 Pearl Street is a landmarked building totaling approximately 43,500 square feet and features over 250’ of wrap around frontage. The property consists of 5 buildings that were connected internally and contains 42 residential apartments with 5 commercial spaces on the ground floor. Of the 42 residential units, 34 were free market and 8 were rent stabilized at the time of sale. The location of 66 Pearl Street and the immediate value-add potential represented an ideal addition to the purchaser’s rapidly expanding mixed-use portfolio. This sale represents the second time Team Knakal has sold this asset.



Massey Knakal SellsHudson HeightsApartment Building For $10.1 MILLION

730 West 183rd Street, a 44 unit walk-up apartment building located in the coveted Hudson Heights neighborhood of Northern Manhattan, was sold by Team Knakal in a transaction valued at $10,100,000. The approximately 40,000 square foot building consisted of 21 three-room, 14 four-room, and 8 five-room apartments. At the time of sale, average rents were significantly below market translating into an ideal value-add opportunity for an investor. Several factors including the property’s premier location next to the bustling Broadway and 181st Street retail corridor as well as its close proximity to a number of transportation hubs allowed Team Knakal to achieve a sale price of nearly $230,000 per unit.

Massey Knakal Sells Two Adjacent Office Buildings In Union, New Jersey For $1.9 MILLION

Massey Knakal has sold two adjacent office buildings located at 1185 & 1191 Morris Avenue just off the Garden State Parkway in Union, New Jersey. The two, 3-story buildings offer a combined 18,624 gross square feet of recently renovated office space. The properties benefitted from their easy accessibility from both nearby major highways and the NJ transit railroad station within walking distance. The transaction was valued at $1,900,000, which represents a 5.8% cap rate, an incredible figure for the submarket.

IMD Building SoldIn Lower Manhattan For $3.6 MILLION

55 Ann Street, a 4-story mixed-use property in Lower Manhattan, was sold by Team Knakal in a transaction valued at $3,650,000. The 4,860 square foot structure was fully leased at the time of sale offering prospective purchasers a valuable investment opportunity. Additionally, the nearly 9,500 square feet of unused air-rights, coupled with an ideal location, just 3 blocks from Fulton Center, bodes well for long-term development potential.

Massey Knakal Sells Central Park South Master Lease For $18 MILLIONMassey Knakal closed in mid-2014 on the sale of a retail and professional cooperative controlled by a 20-year Master Lease at 200 Central Park South in a transaction valued at $18,000,000. The fully leased co-op consists of 17 professional spaces and 4 retail spaces occupied by stable tenants, including Le Pain Quotidien, sports apparel retailer SBR Multi Sports, and two of New York’s largest piano dealers. The property benefits significantly from its highly visible corner location just steps from Columbus Circle, offering tremendous foot traffic and close proximity to multiple subway lines. The mix of medium-term leases for the professional spaces and a long-term commitment by Le Pain Quotidien and Faust Piano provide the purchaser both stable income from strong rents as well as the potential to capture upside as the Columbus Circle corridor continues to flourish.

Corner Mixed-Use Property In Lower East Side Sold For Over $1,000 PSF Team Knakal sold a 6 story, mixed-use walk up building in the Lower East Side in an all-cash transaction valued at $12,850,000. The 17 unit building located at 269 East Houston contains approximately 12,504 square feet and includes two retail stores and a mixture of rent stabilized and fair market residential units. The building also receives supplemental income from cellular antennas on the roof. Overall, several of the residential units are well below market and can realize significant upside in the future. The sale price equates to $1,028 per square foot, one of the highest ever recorded in this neighborhood for similar assets.

Team Knakal Sells Financial District Development Site For $15.3 MILLIONTeam Knakal has sold an approximately 47,800 buildable square foot commercial development site located at 120-122 Water Street in a transaction valued at $15,300,000. The subject properties consist of one 5-story mixed-use building and one 4-story mixed-use building totaling 14,015 square feet. Due to the lack of height restriction the site is well positioned to accommodate a large hotel development. Lower Manhattan has emerged as one of the top tourist destinations in New York City and the demand for new hotels has never been greater.

Massey Knakal Realty Services

22 TEAM KNAKAL 2014 BUILDING SALES JOURNAL

Chairman212.696.2500 [email protected]

During Mr. Knakal’s 31 year career, he has sold over 1,700 buildings having an aggregate market value of over $12.5 Billion. He is a graduate of The Wharton School at The University of Pennsylvania and formed Massey Knakal with Paul Massey in 1988. In 1990, he was awarded Crain’s New York Business “40 Under 40” awarded annually to 40 business people under forty years of age for outstanding achievement in the New York business community. He has twice been the recipient of the Robert T. Lawrence Award in the Real Estate Board of New York’s Most Ingenious Deal of the Year Contest. In 2009, Mr. Knakal was named one of the Top 10 Investment Sales Brokers in the United States by Real Estate Forum magazine. In 2010, he won REBNY’s Louis Smadbeck Broker Recognition Award for Lifetime Achievement in Commercial Brokerage.

Team Manager / Partner212.696.2500 [email protected]

Hageman is currently the Sales Team Manager for Chairman Robert A. Knakal, overseeing the day to day operations of his team which specializes in the Penn Station/Hudson Yards area of Manhattan. Throughout his career he has been involved in the aggregate sale of over $6 billion in real estate sales in the New York area. Born and raised in Buffalo, New York, Mr. Hageman graduated from the State University of New York at Albany with a Bachelor of Science degree in Business Administration, concentrating in Finance.

Mr. Hageman’s career at Massey Knakal began in 2002 as an Information, Technology and Office Administrator, when he directly worked for Vice President Christy Moyle and CEO/Founding Partner Paul Massey. He was later promoted to Associate for Mr. Knakal in 2003 and then again in 2005 to his current position.

COMPANY UPDATEOn December 31, 2014 Cushman & Wakefield acquired Massey Knakal Realty Services. We believe that the acquisition will only add to the number of existing services we are able to provide our clients while also allowing you to tap into Cushman & Wakefield’s global platform. Furthermore, for C&W, the acquisition enhances the firm with a more formidable Capital Markets presence in the New York Tri-State region. As a result, we are incredibly excited for this next chapter and we look forward to continuing to assist you on all of your real estate needs in 2015.

ROBERT KNAKAL

JONATHAN HAGEMAN

Massey Knakal, New York’s #1 building sales fi rm* for more than a decade, has joined forces with Cushman & Wakefi eld. Together, we have created a dominant force in the market, transforming the way the world works, shops and lives.

This game-changing collaboration combines the superior local expertise and market knowledge of Massey Knakal with the global capabilities and international reach of Cushman & Wakefi eld, right here in New York’s global hub of capital markets. Together, we will build on our Client Only commitment—and grow our business by serving you better than ever before.

To learn more visit cushmanwakefi eld.com or masseyknakal.com

When local, block-by-block real estate expertisemeets unrivaled global reach,everything is possible.Cushman & Wakefi eld is proud to announce its acquisition of Massey Knakal.

*CoStar Group. Total number of transactions $500,000 and over.

ROBERT KNAKAL’S TRANSACTIONAL SUPPORT TEAM

JONATHAN HAGEMANSales Team Manager212.696.2500 [email protected]

ELYSA BERLINDirector of Sales212.696.2500 [email protected]

JENNIFER DJURKOVICAssociate212.696.2500 [email protected]

ZACHARY ROSENBERGAssociate212.696.2500 [email protected]

JOHN FONTANAAnalyst212.696.2500 [email protected]

THOMAS WILLOUGHBYGraphics Associate212.696.2500 [email protected]

LEICA MELITONAdministrative Assistant212.696.2500 [email protected]

DAVID KALISHDirector of Sales212.696.2500 [email protected]

GEORGE D’AMBROSIOAssociate212.696.2500 [email protected]

CHARLOTTE MYERSAssociate212.696.2500 [email protected]

PATRICK YANNOTTAAssociate212.696.2500 [email protected]

DALLAS RAPOPORTAnalyst212.696.2500 [email protected]

ERIN MITCHELLExecutive Assistant212.696.2500 [email protected]

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