New York City multifamily transactions increased 21 percent and the dollar volume of those deals rose 18 percent in March compared to February, according to Ariel Property Advisors’ Multifamily Month in Review: New York City for March.
This March, the city saw 41 transactions totaling $340.857 million in gross consideration, compared to the previous month, which saw 34 transactions totaling $288.65 million in gross consideration.
Year-over-year, however, multifamily transactions fell 21 percent, building volume decreased 22 percent, and dollar volume declined 16 percent compared to March 2012, which saw 52 transactions comprised of 67 buildings totaling $403.899 million in gross sales.
“Transaction volume in March dipped year-over-year as expected because of the unusually low inventory of properties available during the first quarter,” said Shimon Shkury, president of Ariel Property Advisors. “In terms of transaction and dollar volume, however, March was the strongest month so far this year, which could be an indication that sales will gradually increase over the next several months.”
The following is a breakdown of the March 2013 multifamily data by submarket: NYC
Northern Manhattan was the only submarket that posted year-over-year gains across the board in March. Two buildings that took up a dominant portion of these transactions include 1423 Amsterdam Avenue, which sold for $17 million, and 500 Fort Washington Avenue, which sold for $8.62 million.
Manhattan led the city in dollar volume in March with $151.7 million in sales over nine transactions comprised of 15 buildings. A portfolio of buildings purchased on the Upper West Side for $70 million accounted for a significant portion of this activity.
The Bronx had nine multifamily transactions totaling $57.790 million in gross consideration, which was a modest increase month-over-month and relatively stable year-over-year.
Brooklyn saw a relatively active month with 11 transactions comprised of 12 buildings totaling $63.1 million in gross consideration. Flatbush was particularly active with six sales taking place for the month, the largest of which was a $22.9 million deal for a transitional housing property.
Queens had a relatively light March; three transactions totaling $12.8 million in gross consideration.
Trailing 6-Month Sales Averages: For the six months ended in March 2013, the average monthly transaction volume was 56 transactions per month, down from an average of 59 transactions per month for the six months ended February 2013. The six-month average dollar volume was $615 million per month, down from $639.8 million during the previous six-month period
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-Mar-2013.
The Multifamily Month in Review: New York City tracks sales of multifamily buildings with a minimum sales price of $1 million, with a minimum gross area of 5,000 square feet, and with a minimum of 10 units.
Please refer to our Comp-Trak application for a full list of transactions across the five boroughs.
The unemployment rate in New York City fell to 8.4 percent in April from 8.9 percent in March and in New York State fell to 7.8 percent from 8.2 percent during the same period, the NY State Labor Department reported. From April 2012 to April 2013, New York City showed a net gain of 82,100 private sector jobs, an increase of 2.5 percent , making it one of the most rapidly growing areas in the state.
Opening four Metro-North stations on the east side of The Bronx at Hunts Point, Parkchester, Morris Park, and Co-op City could create up to 5,400 new jobs, increase home values by more than $140,000, and add more than $1 billion to the local economy, according to a study written by Bronx Borough President Ruben Diaz Jr. and state Sen. Jeff Klein. The new stations would be located along the existing tracks between Penn Station and Connecticut and open up job opportunities for about 160,000 Bronx residents living nearby.
Simone Development expects to complete its 285,000 square foot, two-level Throggs Neck Shopping Center in the Ferry Point section of The Bronx in early 2014. Leases have been signed by anchor tenant Target, as well as TJ Maxx, Applebee’s, and MetroOptics Eyewear.
The 13-acre Starlight Park, featuring a new ball field, basketball courts, playgrounds, a picnic area, paved waterfront pathways, and floating docks from which to launch canoes and kayaks, has reopened on The Bronx River. However, three pedestrian bridges to connect the park to The Bronx River Greenway still need to be built, and 11 acres of parkland remain undeveloped.
Reasonable rents and large apartments are luring young people to buildings in Eastern Crown Heights, Brooklyn, on the Brownsville border, according to an article in DNAinfo New York. The article profiled newlyweds that hunted for apartments in Bushwick, Park Slope, Prospect Heights, Astoria, and Williamsburg before finding Eastern Crown Heights. They rented a gut-renovated, two-bedroom apartment for $1,700 a month on Montgomery Street, between Schenectady and Utica Avenues.
At least eight buildings on Broadway between Canal and Worth are being converted from mixed-use to full residential, which will add nearly 500 new residential units to the community, according to the Tribeca Citizen. Currently more than 1,000 units are housed in buildings from Canal to Warren.