In the Arbor Manhattan Multifamily Data Book 2014 Q4, Ivan Kaufman and the Arbor team provide an overview for the following: economic overview, sales market, rental market, and new development.

1. Manhattan
Multifamily Data Book
Q4 2014
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3. Manhattan Multifamily Data Book
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Table of Contents
Headlines ................................................................ 2
Economic Overview
Employment ................................................................ 4
Unemployment ................................................................ 5
Consumer Price Index ................................................................ 6
Sales Market
Volume and Price ................................................................ 9
Cap Rate ................................................................ 10
Top Buyers and Sellers ................................................................ 11
Investor Composition ................................................................ 12
Cross‐Border Capital Flows ................................................................ 13
Rental Market
Average Asking Rent and Vacancy ................................................................ 15
Net Absorption ................................................................ 17
New York City Submarkets ................................................................ 18
New Development
Manhattan Completions ................................................................ 20
New York City Submarkets ................................................................ 21

4. Manhattan Multifamily Data Book
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Headlines
 New York City employment increased by 107,000 jobs during 2014, a 2.6% increase.
 The unemployment rate for reached 6.2%, down from 7.8% one year ago and the lowest rate since October 2008.
 Sales volume for Manhattan multifamily properties totaled $9.8 billion during 2014, the highest annual total since 2006.
 The average sale price during 2014 was $444,667/Unit, a 19% increase compared to 2013.
 The average cap rate during 2014 was 4.1%, down from 4.4% during 2013 and the historical low on records going back 15 years.
 The average asking rent for multifamily properties in Manhattan reached $4,162/Unit at the end of 2014, a 3.4% increase over the 2013
average of $4,025/Unit and the highest year‐end average on record.
 The vacancy rate finished the year at 2.9%, higher than the 2013 rate of 2.3% and the most recent low of 2.0% measured during 2006.
 Net absorption remained positive during 2014, at 2,769 units, and was slightly higher than the 2013 total of 2,721.
 A total of 28,816 new units are expected to be completed in New York City overall from 2015 through 2019, representing 15.9% of the
existing inventory and making it one of the most active markets in the U.S., trailing only Charlotte’s 16.4% development rate.
 There were 1,845 units added to the Manhattan market during 2014, up from 1,520 during 2013 and representing 1.6% of the existing
inventory. Over the next four years, 15,465 units are expected to be completed, representing 11.9% of the existing inventory.
Q4 2014

5. Economic Overview
Manhattan Multifamily Data Book
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6. Manhattan Multifamily Data Book
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Source: Arbor, U.S. Bureau of Labor Statistics, New York State Department of Labor
Employment Growth
New York City employment increased by 107,000 jobs during 2014, a 2.6% increase, although slightly lower than the 121,000 jobs that
were added during 2013. Employment in the U.S. overall increased by 2.3% for the 12 months ending in December 2014.
Current Employment Statistics, Total Nonfarm, 12‐Month Percent Change
‐6.0%
‐4.0%
‐2.0%
0.0%
2.0%
4.0%
Dec‐04 Dec‐05 Dec‐06 Dec‐07 Dec‐08 Dec‐09 Dec‐10 Dec‐11 Dec‐12 Dec‐13 Dec‐14
U.S. Recession United States New York City

7. Manhattan Multifamily Data Book
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Source: Arbor, New York State Department of Labor
Employment By Industry
New York City, Thousands, December 2014
Goods
Producing
193,100
5% Trade,
Transportation,
and Utilities
617,500
15%
Information
186,800
5%
Financial
Activities
451,900
11%
Professional
and
Business
Services
678,000
16%
Education and
Health Services
872,000
21%
Leisure and
Hospitality
403,800
10%
Other Services
181,300
4%
Government
543,300
13%
Employment Growth By Industry
New York City, 12‐Month Percent Change, December 2014
‐1.0% 1.0% 3.0% 5.0%
Goods Producing
Trade, Transportation,
and Utilities
Information
Financial Activities
Professional and
Business Services
Education and
Health Services
Leisure and Hospitality
Other Services
Government
Total Nonfarm

8. Manhattan Multifamily Data Book
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Source: Arbor, U.S. Bureau of Labor Statistics, New York State Department of Labor
The unemployment rate for New York City reached 6.2% in December 2014, down from 7.8% one year ago and the lowest rate since
October 2008. The unemployment rate for the U.S. overall fell to 5.6%, down from 6.7% year‐over‐year.
0.0%
2.4%
4.8%
7.2%
9.6%
12.0%
Dec‐04 Dec‐05 Dec‐06 Dec‐07 Dec‐08 Dec‐09 Dec‐10 Dec‐11 Dec‐12 Dec‐13 Dec‐14
U.S. Recession United States New York City
Unemployment Rate
Current Population Survey, Labor Force Statistics

9. Manhattan Multifamily Data Book
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Source: Arbor, U.S. Bureau of Labor Statistics, New York State Department of Labor
The U.S. Consumer Price Index (CPI) for the New York metropolitan area increased 0.3% during the 12 months ended in December 2014.
The CPI for the U.S. overall increased 0.7% during the same time period, well below the Federal Reserve’s target rate of 2.0%.
‐4.0%
‐2.0%
0.0%
2.0%
4.0%
6.0%
Dec‐04 Dec‐05 Dec‐06 Dec‐07 Dec‐08 Dec‐09 Dec‐10 Dec‐11 Dec‐12 Dec‐13 Dec‐14
U.S. Recession United States New York‐Jersey City‐White Plains, NY‐NJ
Consumer Price Index
All Urban Consumers (CPI‐U), All Items, 12‐Month Percent Change, Seasonally Adjusted, 1982‐84=100

10. Sales Market
Manhattan Multifamily Data Book
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11. Manhattan Multifamily Data Book
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Sales volume for Manhattan multifamily properties totaled $9.8 billion during 2014, the highest annual total since $10.6 billion in sales
were recorded during 2006. The average sale price during 2014 was $444,667/Unit, a 19% increase compared to 2013, although remained
lower than the 15‐year high of $453,392/Unit average during 2011.
Source: Arbor, Real Capital Analytics
Sales Volume and Price
Manhattan, Multifamily, $2.5 Million and Larger
$0
$120,000
$240,000
$360,000
$480,000
$600,000
$0.0
$1.4
$2.8
$4.2
$5.6
$7.0
4Q04
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
Sales Volume ($, Billions) 10‐Year Quarterly Average Sale Price ($/Unit, 12‐Month Weighted Average)

12. Manhattan Multifamily Data Book
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The average cap rate for Manhattan multifamily sales during 2014 was 4.1%, down from 4.4% during 2013 and the historical low on
records going back 15 years. The U.S. overall average cap rate was 6.1% ruing 2014, compared to 6.3% during 2013.
Average Cap Rate
Manhattan, Multifamily, $2.5 Million and Larger, Excluding Portfolio Transactions, 12‐Month Weighted Average
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
4Q04
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
United States Manhattan
Source: Arbor, Real Capital Analytics

13. Manhattan Multifamily Data Book
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Top Buyers
Manhattan, Multifamily, 24‐Month Total As Of December 2014
Properties
Volume
($ Millions)
Thor Equities 38 $1,352.8
HFZ Capital Group 5 $1,113.4
Brookfield Asset Mgmt 5 $917.3
SL Green 24 $773.9
Rainbow Estates Group 73 $599.9
Clipper Equity 2 $591.6
Cammeby's Int'l Group 12 $579.7
Stellar Management 8 $558.3
Fortress 4 $538.4
L&M Development Partners 22 $492.6
Top Buyers and Sellers
Top Sellers
Properties
Volume
($ Millions)
Extell 3 $976.0
Urban American Management 7 $961.9
Fannie Mae 5 $917.3
City Investment Fund 5 $917.3
Stonehenge Partners 25 $831.9
Bettina Equities 27 $800.0
CalPERS 3 $649.0
Westbrook Partners 5 $577.4
Sapir Organization 1 $518.0
Schneider & Schneider 2 $485.0
Source: Arbor, Real Capital Analytics

14. Manhattan Multifamily Data Book
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Investor Composition
0%
20%
40%
60%
80%
100%
2012 2013 2014
User/Other Private Public Listed/REITs
Cross‐Border Institutional
Manhattan, Multifamily, $2.5 Million and Larger
Cross‐Border Buyer Type
12‐Months Ended December 2014
Cross‐Border Capital Flows
16%
10%
74%
Institutional
Private
Public Listed/REITs
Cross‐Border Origin
75%
9%
16% Americas
AsiaPac
EMEA
Source: Arbor, Real Capital Analytics

15. Manhattan Multifamily Data Book
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Top Countries of Origin
Manhattan, Multifamily, $2.5 Million and Larger
2012 2013 2014 Total
Properties
Volume
($ Millions)
Properties
Volume
($ Millions)
Properties
Volume
($ Millions)
Properties
Volume
($ Millions)
Canada 2 $49.6 2 $23.5 9 $987.0 13 $1,060.2
Kuwait 1 $143.1 1 $143.1
Japan 1 $6.7 1 $107.0 2 $113.7
United Kingdom 2 $112.3 2 $112.3
China 1 $10.8 1 $99.8 2 $110.5
Turkey 1 $52.5 1 $52.5
Brazil 1 $32.0 1 $32.0
Israel 1 $3.7 3 $23.4 4 $27.1
Switzerland 1 $22.5 1 $22.5
Cayman Islands 1 $15.4 1 $15.4
All Others 1 $3.7 2 $17.6 3 $21.2
Cross‐Border Capital Flows
Source: Arbor, Real Capital Analytics

16. Rental Market
Manhattan Multifamily Data Book
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17. Manhattan Multifamily Data Book
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The average asking rent for multifamily properties in Manhattan reached $4,162/Unit at the end of 2014, a 3.4% increase over the 2013
average of $4,025/Unit and the highest year‐end average on record. The vacancy rate finished the year at 2.9%, higher than the 2013 rate
of 2.3% and the most recent low of 2.0% measured during 2006.
Source: Arbor, REIS
Average Asking Rent and Vacancy
Manhattan, Multifamily
0.0%
1.2%
2.4%
3.6%
4.8%
6.0%
$2,000
$2,700
$3,400
$4,100
$4,800
$5,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Asking Rent ($/Unit) Asking Rent Forecast ($/Unit) Vacancy (%) Vacancy Rate Forecast (%)

18. Manhattan Multifamily Data Book
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Asking Rent vs. Effective Rent Ratio
Manhattan, Multifamily
90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Asking Rent vs. Gross Revenue Ratio
Manhattan, Multifamily
90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Arbor, REIS
 The asking rent vs. effective rent ratio
for Manhattan multifamily properties
was 98.3% during 2014, essentially
unchanged compared to 2013, although
higher than the 15‐year low of 95.3%
reported during 2003.
 The highest ratio during the last 15‐years
was 98.8% during 2000.
 Manhattan’s asking rent to gross
revenue ratio fell to 97.0% during 2014,
from 97.6% during 2013.
 The highest rent to revenue ratio over
the last 15‐years was 98.9% reported
during 2000.
 The recent lowest ratio was 5.4% during
both 2002 and 2003.

19. 0
1,200
2,400
3,600
4,800
6,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Aborption (Units) Aborption Forecast (Units)
Manhattan Multifamily Data Book
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Net absorption in Manhattan remained positive during 2014, at 2,769 units, and was slightly higher than the 2013 total of 2,721. The high
on record was during 2012, at 5,715 units. Forecasts expect the absorption rate to increase in the next five years.
Net Absorption
Manhattan, Multifamily
Source: Arbor, REIS

20. Manhattan Multifamily Data Book
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New York City Multifamily Rental Submarkets
Key Indicators
Total
Inventory
(Units)
Completions
(12‐Mo
Total Units)
Net
Absorption
(12‐Mo
Total Units)
Vacancy Rate (%) Average Asking Rent ($/Unit)
4Q14 3Q14 4Q13 4Q14 3Q14 4Q13 %Chg(Q) %Chg(Y)
Bronx County 12,257 0 ‐12 1.1% 0.9% 1.0% $1,164 $1,181 $1,172 ‐1.4% ‐0.7%
Kings County 27,750 2,377 1,525 6.3% 3.8% 3.5% $1,962 $1,937 $1,882 1.3% 4.3%
Manhattan 114,965 1,845 2,769 2.9% 2.6% 2.3% $4,162 $4,157 $4,025 0.1% 3.4%
Midtown West 26,983 883 635 4.5% 3.2% 3.7% $4,245 $4,269 $4,160 ‐0.6% 2.0%
Morningside/
Washington Hts
8,519 42 75 1.7% 1.9% 2.1% $2,431 $2,402 $2,404 1.2% 1.1%
Stuyvesant/Turtle Bay 22,845 0 ‐182 3.0% 3.2% 2.2% $4,457 $4,442 $4,060 0.3% 9.8%
Upper East Side 16,446 209 126 1.0% 0.6% 0.5% $3,925 $3,906 $3,915 0.5% 0.3%
Upper West Side 16,458 414 125 3.9% 3.9% 2.2% $4,663 $4,647 $4,506 0.3% 3.5%
West Village/
Downtown
23,714 297 349 2.1% 2.0% 2.3% $4,221 $4,218 $4,174 0.1% 1.1%
Queens County 26,726 1,077 1,686 3.0% 2.9% 5.5% $1,833 $1,843 $1,750 ‐0.5% 4.7%
New York City 181,698 5,299 4,327 3.3% 2.7% 2.9% $3,281 $3,283 $3,188 ‐0.1% 2.9%
Source: Arbor, REIS

21. New Development
Manhattan Multifamily Data Book
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22. Manhattan Multifamily Data Book
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0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Completions (Units) Forecasted Completions (Units)
There were 1,845 units added to the Manhattan multifamily market during 2014, up from 1,520 during 2013 and representing 1.6% of the
existing inventory. There are 3,844 units expected to be completed by the end of 2015 and more than 15,000 over the next four years.
New Development
Manhattan, Multifamily
Source: Arbor, REIS

23. Manhattan Multifamily Data Book
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New Development by Submarket
New York City, Multifamily, Projected Completions 2015‐2019
Total Inventory
(Units)
New Development
(Units)
Development
(%)
Bronx County 12,257 1,342 10.9%
Kings County 27,750 8,388 30.2%
Manhattan 114,965 15,465 13.5%
Midtown West 26,983 6,269 23.2%
Morningside/Washington Hts 8,519 625 7.3%
Stuyvesant/Turtle Bay 22,845 1,758 7.7%
Upper East Side 16,446 1,282 7.8%
Upper West Side 16,458 2,340 14.2%
West Village/Downtown 23,714 3,191 13.5%
Queens County 26,726 3,621 13.5%
New York City 181,698 28,816 15.9%
Source: Arbor, REIS
 A total of 28,816 new multifamily units
are expected to be completed in the
New York City market from 2015
through 2019, representing 15.9% of the
existing inventory.
 New York City remains one of the most
active markets in the U.S., trailing only
Charlotte’s 16.4% development rate.
 In Manhattan, 15,465 units are expected
to be completed, representing 13.5% of
the existing inventory.
 Kings County, comprising Brooklyn, is
expected to have a 30.2% development
rate, the highest concentration of
development among New York City
submarkets.
 The Morningside Heights/Washington
Heights submarket has the lowest
concentration of development, at 7.3%.

24. ARBOR.COM • 1.800.ARBOR.10
About Us
Founded by Chairman and CEO Ivan Kaufman, Arbor Commercial Mortgage, LLC and Arbor Commercial Funding, LLC are
national direct lenders specializing in loan origination and servicing for multifamily, seniors housing, healthcare and other
diverse commercial real estate assets. Arbor is a 2013 Top 10 Fannie Mae DUS® Multifamily Lender by volume, a Freddie
Mac Program Plus® Seller/Servicer and Small Balance Loan lender, an FHA Multifamily Accelerated Processing
(MAP)/LEAN Lender, a HUD‐approved LIHTC Lender as well as a CMBS, Bridge and Mezzanine lender, consistently
building on its reputation for service, quality and flexibility. With a current servicing portfolio of more than $11 billion,
Arbor is a primary commercial loan servicer and special servicer rated by Standard & Poor’s and holds an Above Average
rating from Standard & Poor’s. Arbor is also on the Standard & Poor’s Select Servicer List and is a primary commercial
loan servicer and loan level special servicer rated by Fitch Ratings.
Arbor Commercial Mortgage, LLC also manages Arbor Realty Trust, Inc., a real estate investment trust, (REIT), formed to
invest in mortgage‐related securities, real estate‐related bridge, junior participating interests in first mortgages,
mezzanine loans, preferred and direct equity investments and in limited cases, discounted mortgage notes and other real
estate related assets. Arbor is headquartered in Uniondale, NY, with full‐service lending offices throughout the United
States. For more information about Arbor, visit www.arbor.com.
For Further Information Contact:
Matt Maison
Director, Research and Analysis
Arbor Commercial Mortgage, LLC
375 Park Avenue, Suite 3401
New York, NY 10152
T: 646.963.6352
mmaison@arbor.com
The research contained in this report should not be construed as a solicitation to and/or trade. All opinions, news,
research, analyses, prices or other information is provided as general market commentary and not as investment advice;
all information is subject to change. Arbor, its members, shareholders, employees, agents and representatives do not
warrant the completeness, accuracy or timeliness of the information supplied, and shall not be liable for any loss or
damages, consequential or otherwise, which may arise from the use or reliance on the content contained herein. Past
performance is not indicative of future performance.