TerraCRG, Brooklyn’s leading investment sales firm, released its quarterly Brooklyn Market Report today, analyzing investment sales transactions by asset class across the borough.
In the first quarter of 2022, Brooklyn investment sales transactions totaled $2 billion in total dollar volume from 365 transactions. Despite a 48% dip in dollar volume from the previous quarter, the market is now surpassing pre-pandemic levels with a 32% increase over the first quarter of 2020, and a 45% increase over the fourth quarter of 2019.
Large institutional transactions were a major highlight in the Brooklyn market for the first quarter of 2022. The top 10 transactions by dollar volume accounted for 39% of the total dollar volume for the borough. The Greater Downtown Brooklyn region saw the quarter’s largest transaction with 9 & 11 Metrotech Center. Cleveland based investor Boyd Watterson Asset Management purchased the leasehold of the properties, which includes The City of New York as its major tenant and owner of the land underneath the buildings, from Brookfield Asset Management for $306.5M.
“The first quarter’s closing activity is a direct continuation of the robust fourth quarter of last year,” said Ofer Cohen, Founder and CEO of TerraCRG. “All asset classes in Brooklyn are continuing to witness a strong demand from institutional capital and family offices, especially shovel-ready residential development sites and last-mile distribution assets. These forces will continue to play out through the rest of 2022.”
TerraCRG completed three of the top 10 transactions for the quarter: the residential development site at 575 Grand Street in Williamsburg, which sold for $42.5M; the Midwood Portfolio for $41.88M, which consisted of four elevator rent-stabilized multifamily buildings in the Central Brooklyn neighborhood of Midwood; and the industrial property at 360 Kingsland Avenue in Greenpoint, which sold for $30M.