Multifamily dollar volume jumped 111 percent in September 2014 compared to September 2013, and soared 191 percent compared to the previous month, according to Ariel Property Advisors’ Multifamily Month in Review: New York City for September 2014.
In September, New York City saw 71 transactions comprised of 138 buildings totaling $1.790 billion in gross consideration, compared to September 2013, which saw 64 transactions comprised of 143 buildings totaling $849.315 million in gross consideration. In August, 85 buildings traded across 57 transactions totaling $614 million.
“Due to an increase in institutional transactions, multifamily dollar volume in September surged, surpassing the July and August totals combined and contributing to a strong third quarter,” said Shimon Shkury, president of Ariel Property Advisors. “We think the September activity is a harbinger for a very strong fourth quarter.”
The following is a breakdown of the September 2014 volume by submarket:
Manhattan. Manhattan spearheaded the city’s strong month with 20 buildings trading across 15 transactions totaling $1.055 billion in gross consideration. Two Upper East Side packages specifically pushed dollar volume. A package of mixed-use elevatored buildings located on East 88th Street and 2nd Avenue sold for $485 million, or $592 per square foot. Another package of elevatored buildings located on East 89th Street and 1st Avenue sold for $270 million, which translates to $749 per square foot.
Queens. A $216 million portfolio sale in Kew Gardens, Queens, contributed to the submarket seeing 27 buildings trade across 9 transactions totaling $273.242 million in gross consideration. Another notable transaction took place in Flushing, where an 86-unit elevatored building sold for $17 million, or $239 per square foot. In Hollis, a four building walk-up portfolio sold for just over $17 million, which translates to $112 per square foot.
Northern Manhattan. Northern Manhattan experienced a solid month as the submarket saw 35 buildings trade across 12 transactions totaling $165.092 in gross consideration. Of note, a Colorado-based REIT sold a 17 building, 259-unit portfolio in Central Harlem for $66 million, which translates to $314 per square foot.
The Bronx. The Bronx had a strong month with 20 transactions comprised of 31 buildings valued at $159.996 million. One significant transaction was a 200-unit East Tremont portfolio that sold for $24 million, or $126 per square foot. Taking a look at pricing metrics, the borough’s 6-month trailing average for cap rate dipped below 6.00 percent for the first time, sitting at 5.99 percent.
Brooklyn. Brooklyn saw 25 buildings trade across 15 transactions totaling $136.550 million in gross consideration. Several portfolio transactions took place including a 52-unit package of walk-up buildings located at 107-113 Greenpoint Avenue in Greenpoint, which sold for $23.75 million, or $616 per square foot. On Flatbush Avenue in Prospect Lefferts Gardens, three mixed-use buildings sold for $4.75 million, which translates to $283 per square foot.
For the six months ended in September 2014, the average monthly transaction volume declined slightly to 66 transactions per month. The average monthly dollar volume decreased slightly to $886.560 million.
The multifamily transactions included in the analysis occurred at a minimum sales price of $1 million, with a minimum gross area of 5,000 square feet, and with a minimum of 10 units.
More information is available from Mr. Shkury at 212-544-9500, ext. 11, or firstname.lastname@example.org. For a copy of the report, please see http://arielpa.com/newsroom/report-MFMIR-Sep-2014.
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