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Multifamily sales top $1B for second month in a row

New York City multifamily sales in October surpassed $1 billion for the second consecutive month and only the fourth time this year, according to Ariel Property Advisors’ Multifamily Month in Review: New York City for October.

Dollar volume in the multifamily market reached $1.173 billion in October, a 59 percent jump from $735.818 million in October 2013, however, transactions declined 30 percent to 57 from 81 in October of last year, and building volume declined 12 percent to 99 from 113 during the same period.

October followed an unusually robust September that recorded 74 transactions comprised of 151 buildings totaling $1.848 billion.

Shimon Shkury
Shimon Shkury

“The New York City multifamily market saw a strong kickoff to the fourth quarter and we’re expecting the year to end on a high note,” said Shimon Shkury, president of Ariel Property Advisors.

“We’re aware of a number of major deals that are scheduled to close before December 31st and a multitude of new contract signings suggest that this momentum will carry into 1Q2015.”
MFMIROctober 2014
Northern Manhattan led the city in multifamily volume in October as the sub-market saw 23 buildings trade in 14 sales totaling $554.773 million.

The $465 million sale of a 1,677 unit multifamily portfolio in East Harlem played a major part in October’s activity. The price translates to $245 per square foot and $277,608 per unit. In Washington Heights, an elevatored building located at 672-674 St. Nicholas Avenue transacted for $13.5 million, or $320 per square foot.
Manhattan saw a 19 percent increase in dollar volume year-over-year to $299.440 million as 14 buildings traded across 10 transactions.

Of note, two mixed-use buildings located on the corner of 9th Avenue and 14th Street in Chelsea that sold for a combined $105 million, and includes some development rights. Investors are expecting major local attractions such as the High Line and Chelsea Market to continue to drive rents higher.

Brooklyn experienced a solid month with 18 transactions comprised of 34 buildings totaling $168.079 million in gross consideration.
A 46-unit elevatored building located at 1030 Carroll Street in Crown Heights sold for $9 million, which represents $220 per square foot and a cap rate under 4 percent. I

Queens saw 14 buildings trade across seven transactions totaling $116.503 million. The most significant deal was the $88.5 million sale of a newly constructed 214-unit elevatored building located at 12-27 Broadway in Astoria. The building sold for $613 per square foot, which represents a 40 percent increase from similar new construction buildings that sold last year.

The Bronx had a quiet month as it saw eight transactions comprised of 14 buildings totaling $33.875 million in gross consideration.

In Bedford Park, a 55-unit walk-up building sold for $6.2 million, which translates to $113 per square foot. Another walk-up building in the Kingsbridge Heights section of the borough sold for $5 million, or $149 per square foot.

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