The dollar volume of New York City multifamily sales rose 16 percent in August 2014 compared to August 2013, while transaction volume fell by 19 percent, according to Ariel Property Advisors’ Multifamily Month in Review for August.
For the month, New York City saw 54 transactions comprised of 81 buildings totaling $601.172 million in gross consideration compared to August 2013, which saw 67 transactions comprised of 103 buildings totaling $518.247 million in gross consideration. The August 2014 figures declined compared to July 2014, which saw 74 transactions over 113 buildings and $702.277 in gross consideration.
“Multifamily trading in August was characterized by single asset transactions rather than institutional sales,” said Shimon Shkury, president of Ariel Property Advisors. “This continues the trend seen in June and July as strong pricing suggests a lack of supply throughout the city.”
The following is a breakdown of the August 2014 volume by submarket:
Northern Manhattan. With 16 transactions comprised of 31 buildings totaling $186.231 million in gross consideration, Northern Manhattan was the most active submarket across all metrics. An 86-unit elevatored, mixed-use building located in Hamilton Heights anchored the region’s strong month as the property sold for $32.5 million, which translates to $326 per square foot. In East Harlem, a 46-unit mixed-use building located on 2nd Avenue and 108th Street sold for $8 million, or $324 per square foot.
Brooklyn. Dollar volume in Brooklyn rose to $185.885 million, which is a 56 percent increase compared to August 2013 and a 66 percent increase compared to July 2014. Brooklyn saw two large single assets trade for over $50 million including 100-116 South 4th Street, a newly-constructed elevatored building located in Williamsburg, which sold for $52 million, or $662 per square foot. In Sunset Park, a 32-unit elevatored building sold for $8.87 million, translating to $197 per square foot.
Manhattan. Manhattan saw mostly single assets trade as nine buildings traded across eight transactions totaling $155.801 million in gross consideration. A 71-unit elevatored building in Kips Bay stood out as the month’s largest transaction, selling for $43.625 million, or $702 per square foot. On 5th Avenue in Flatiron, a 25-unit mixed-use building sold for $24.726 million, or $1,893 per square foot.
The Bronx. The Bronx had a quiet month with 13 transactions comprised of 16 buildings totaling $64.255 million in gross consideration. A walk-up, mixed-use building located in Kingsbridge Heights just off of the prime Fordham Road retail corridor sold for $13.3 million or $268 per square foot. In Riverdale, a 55-unit elevatored building sold for $11 million, or $229 per square foot.
Queens. Queens saw three buildings trade across four transactions totaling $9 million in gross consideration. A 16-unit mixed-use walk-up building located in Astoria sold for $4.3 million, or $299 per square foot, while a 12-unit mixed-use building in Ridgewood transacted at $3 million, or $328 per square foot.
For the six months ended in August 2014, the average monthly transaction volume remained steady at 64 transactions per month. The average monthly dollar volume decreased slightly to $781,443,744.
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 email@example.com. For a copy of the report, please see http://arielpa.com/newsroom/report-MFMIR-Aug-2014.
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