2015’s Multifamily Momentum Carries Over Into January
Q1 2016 figures are just around the corner, but recently released statistics from Bisnow partner Ariel Property Advisors' “Multifamily Month in Review: January 2016” suggest the incredible strength seen in 2015 sales has carried into the new year.
For the month, NYC saw 59 transactions comprised of 76 buildings and totaling $1.37B. This is a 68% increase in dollar volume, a 14% decrease in transaction volume, and a 22% decrease in building volume compared to January 2015, which saw 69 transactions comprised of 98 buildings totaling $815.7M.
Year-over-year pricing metrics also show values holding in Manhattan, which had cap rates and gross rent multiples even with last year’s levels, and higher pricing metrics seen in Brooklyn, Queens, Northern Manhattan and The Bronx.
To get a more in-depth look, Ariel gave us a look at each borough’s Q1 successes.
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Manhattan led all submarkets in January with 13 buildings trading across 12 transactions totaling $541.8M, a 77% increase in dollar volume compared to January 2015. The Maidman family sold 326 East 82nd St, a 71-unit walk-up building, for $27M, or $670/SF.
Led by the $200.85M sale of Riverton Houses, a massive 1,229-unit complex in Central Harlem, Northern Manhattan also had a strong start to the year.
In Brooklyn, World Wide Group purchased a new-construction elevated building at 110 Green St in Greenpoint for $103M, or $559/SF. The deal is Greenpoint’s first recorded transaction over $100M.
Queens saw two institutional-caliber transactions take place. One occurred at 41-23 Crescent St, a 140k SF mixed-use building that sold for $97M, or $693/SF. In Flushing, Pinnacle Group purchased a 145-unit elevator building at 142-20 Franklin Ave for $43M, equating to $333/SF.
With a number of small to midsized buildings traded, the Bronx recorded the most transactions of any submarket in January. One notable sale occurred in Kingsbridge Heights, where a portfolio of four buildings on Grand Avenue spanning 101k SF sold for $17M and almost 11 times the gross rent.
Ariel Property Advisors continues to see strong action in terms of contract signings and closings. A team led by Victor Sozio and Shimon Shkury recently closed The West 141st Street Portfolio (pictured), a three-building package containing 144 residential units, for $42.1M. Its sales price is more than double its 2013 sales price of $20.3M.
