Multifamily sales were booming in the 2Q of 2015, boasting a huge increase since last year, according to a recent report.
Dollar volume of multifamily sales shot up to $3.3 billion in the second quarter of 2015, a 74 percent increase since the second quarter of 2014, according to a 2Q report from Ariel Property Advisors.
In the second quarter of this year, there were 225 transactions in New York City made up of 364 buildings totaling $3.3 billion. In addition to the 74 percent increase, there was a 33 percent increase in transaction volume, and a 12 percent increase in property volume compared to 2Q 2014, which saw 325 properties trade in 169 transactions, totaling $1.9 billion.
“New York City multifamily sales have had an incredible first half and we expect this momentum will carry through to the end of the year, from both a transactional and pricing perspective,” said Shimon Skhury, president of Ariel Property Advisors.
“As owners and buyers anticipate rising interest rates later this year, many are eager to do deals now to lock in current rates.”
In Brooklyn, institutional level multifamily deals were the big highlight of the 2Q, with six transactions trading for more than $35 million, and two that were more than $150 million.
Kushner Companies and LIVWRK’s purchase of 184 Kent Avenue, a 374,274 s/f luxury rental building, for $275 million, was the largest deal, while one of the most telling was a 200-unit Crown Heights building that sold for $44 million – twice what the seller paid for the building in 2013.
In Manhattan, foreign investors and institutional funds were some of the biggest players in the 2Q, with Akelius Real Estate Management, the U.S. branch of a Swedish investment firm, picking up a $167.5 million Gramercy building at 372 Second Avenue, while in the East Village, an 80/20 program building at 223-237 E. 6th Street was bought by Abro Management from the Hudson Companies for $60 million.
In Northern Manhattan, though transaction, building and unit volume were down from the same time last year, the neighborhood’s dollar volume rose 24 percent year-over-year as pricing heated up and more single-asset deals took place.
The sale of 1501 Lexington Avenue for $92 million, a 161-unit mixed-use building one block from the 96th Street subway station, was one of the biggest deals for Northern Manhattan in the 2Q, as well as 3621-3629 Broadway, a 65,000 s/f mixed-use building in Hamilton Heights that sold for $25.5 million.