Robert Knakal presents the NYC Multifamily Sales Market Overview as a keynote address during the Massey Knakal Multifamily Summit (GreenPearl Events).

1. NEW YORK CITY MULTI-FAMILY SALES MARKET OVERVIEW ROBERT A. KNAKAL

2. Source: Massey Knakal Realty Services NYC Investment Property Sales Volume (1984-2010) VOLUME OF SALES

3. Source: Massey Knakal Realty Services NYC Investment Property Sales Volume (1984-2010) VOLUME OF SALES

4. Source: Massey Knakal Realty Services NYC Investment Property Sales Volume (1984-2010) VOLUME OF SALES

5. TURNOVER RATES (ANNUALIZED)

6. BUILDING SALES VOLUME (NUMBER OF BUILDINGS SOLD) 2005 – 1H 2010, MANHATTAN

7. BUILDING SALES VOLUME (NUMBER OF BUILDINGS SOLD) 2005 – 1H 2010, CITYWIDE

8. CITYWIDE DOLLAR VOLUME (AGGREGATE SALES PRICE) 2005 – 1H 2010, ALL SALES (IN BILLIONS)

9. MANHATTAN DOLLAR VOLUME (AGGREGATE SALES PRICE) 2005 – 1H 2010, ALL SALES (IN BILLIONS)

10. AVERAGE PPSF MANHATTAN – FROM PEAK TO 2009 -32%

11. AVERAGE PPSF MANHATTAN PPSF

12. AVERAGE CAP RATES MANHATTAN CAP RATE

13. CAP RATES Source: Massey Knakal Realty Services, Miller Cicero (2003-2008) MANHATTAN APARTMENT BUILDINGS (1984-2010)

14. WALK-UP CAP RATES COMPARED TO GRM Source: Massey Knakal Realty Services, Miller Cicero (2003-2008) MANHATTAN WALK-UP APARTMENT BUILDINGS (1984-2010)

15. ELEVATOR CAP RATES COMPARED TO GRM Source: Massey Knakal Realty Services, Miller Cicero (2003-2008) MANHATTAN ELEVATOR APARTMENT BUILDINGS (1984-2010)

16. CAP RATES COMPARED TO MORTGAGE RATES Source: Massey Knakal Realty Services, Miller Cicero (2003-2008), Federal Reserve Bank MANHATTAN APARTMENT BUILDINGS (1984-2010)

17. LEVERAGE (CAP RATES MINUS MORTGAGE RATES) Source: Massey Knakal Realty Services MANHATTAN APARTMENT BUILDINGS (1984-2010)

18. CAP RATES COMPARED TO 10-YEAR T-BILL Source: Massey Knakal Realty Services, Miller Cicero (2003-2008), US Treasury MANHATTAN APARTMENT BUILDINGS (1984-2010)

19. RISK PREMIUM (CAP RATES MINUS 10-YEAR T-BILL) Source: Massey Knakal Realty Services MANHATTAN APARTMENT BUILDINGS (1984-2010)

20. APARTMENT BUILDINGS WALK-UP and ELEVATOR SALES Source: Massey Knakal Realty Services *annualized

21. APARTMENT BUILDINGS WALK-UP SALES Source: Massey Knakal Realty Services 2009 1H 2010 *annualized

22. APARTMENT BUILDINGS ELEVATOR SALES Source: Massey Knakal Realty Services 2009 1H 2010 *annualized

23. MULTIFAMILY ANALYSIS CAP RATES Source: Massey Knakal Realty Services WALK-UP ELEVATOR 2007 2009 2010 Change from 2009 Change from 2007 Manhattan 3.18% 4.71% 5.08% +37 +190 Northern Manhattan 5.11% 5.53% 6.01% +48 +90 Bronx 5.85% 7.84% 7.97% +13 +212 Brooklyn 5.27% 6.14% 6.26% +12 +99 Queens 5.32% 6.04% 6.56% +52 +124 2007 2009 2010 Change from 2009 Change from 2007 Manhattan 4.40% 5.46% 6.08% +62 +168 Northern Manhattan 5.43% 7.02% 7.26% +24 +183 Bronx 7.45% 7.51% 7.30% -21 -15 Brooklyn 5.91% 7.60% 7.09% -51 +118 Queens 6.45% 6.72% 7.20% +48 +75

24. MULTIFAMILY ANALYSIS GRM Source: Massey Knakal Realty Services WALK-UP ELEVATOR 2007 2009 2010 Change from 2009 Change from 2007 Manhattan 15.35 11.66 11.23 -0.43 -4.12 Northern Manhattan 11.45 8.25 7.70 -0.55 -3.75 Bronx 7.81 7.16 7.45 +0.29 -0.36 Brooklyn 10.12 9.42 9.92 +0.50 -0.20 Queens 11.21 9.93 9.62 -0.31 -1.59 2007 2009 2010 Change from 2009 Change from 2007 Manhattan 16.75 13.30 11.67 -1.63 -5.08 Northern Manhattan 12.54 8.47 8.90 +0.43 -3.64 Bronx 8.45 6.94 6.88 -0.06 -1.57 Brooklyn 10.96 8.78 8.64 -0.14 -2.32 Queens 12.13 9.14 9.56 +0.42 -2.57

25. MULTIFAMILY ANALYSIS PRICE PER SQUARE FOOT Source: Massey Knakal Realty Services WALK-UP ELEVATOR 2007 2009 2010 Change from 2009 Change from 2007 Manhattan $522 $434 $406 -6% -22% Northern Manhattan $170 $124 $109 -12% -36% Bronx $85 $69 $59 -14% -31% Brooklyn $110 $126 $196 +56% +78% Queens $117 $133 $189 +42% +62% 2007 2009 2010 Change from 2009 Change from 2007 Manhattan $556 $505 $634 +26% +14% Northern Manhattan $307 $161 $128 -20% -58% Bronx $108 $88 $96 +9% -11% Brooklyn $188 $160 $181 +13% -4% Queens $220 $190 $185 -3% -16%

26. MULTIFAMILY ANALYSIS PRICE PER UNIT Source: Massey Knakal Realty Services WALK-UP ELEVATOR 2009 2010 Change from 2009 Manhattan $347,630 $387,900 +12% Northern Manhattan $115,780 $88,240 -24% Bronx $73,522 $79,379 +8% Brooklyn $131,574 $136,431 +4% Queens $143,450 $137,552 -4% 2009 2010 Change from 2009 Manhattan $355,181 $319,823 -10% Northern Manhattan $92,733 $114,782 +24% Bronx $70,643 $66,262 -6% Brooklyn $129,672 $145,908 +13% Queens $108,383 $132,826 +23%

27. 1. VOLUME – Continued Increases 3. FINANCING – Strong MULTI-FAMILY MARKET CONCLUSIONS: 2. PRICES – Uncertain

28. THINGS TO KEEP AN EYE ON: 1. Unemployment 3. Housing Market 4. Inflation 5. Fed Monetary Policy 6. Deleveraging 2010 and BEYOND 2. Supply vs. Demand