That said, significantly increased bidding activity on recent assignments suggests higher volume is just around the corner.
In May 2011, there were 19 multifamily transactions in New York City consisting of 29 buildings with 1,078 units and totaling $144.263 million in gross consideration. April 2011 saw 32 multifamily transactions consisting of 55 buildings with 2,193 units and totaling $308 million.
Citywide in May 2010, there were 33 multifamily transactions comprised of 47 buildings and totaling $199 million in gross consideration.
“After rather significant increases in transaction and dollar volume in March and April, May showed a marked decline in multifamily trading activity,” said Shimon Shkury, president of Ariel Property Advisors.
“Recent bidding activity for multifamily assets, however, has actually been higher compared to recent months and a year ago, which is a strong indication that prices will increase. As a result, we’re optimistic that transactions will pick up over the course of the year.”
The report breaks down May 2011 multifamily activity broadly by the areas of Manhattan below 96th Street, Northern Manhattan, Queens, Brooklyn, and the Bronx.
In Manhattan below 96th Street, 10 buildings with 189 units traded in eight transactions for a total dollar value of $34 million. The average price per square foot for the month was just over $432, but several properties, like 245 Mulberry Street and 212 Eighth Avenue, saw prices of more than $625 per square foot.
In Queens, two buildings with 268 units traded in two transactions for a total dollar value of $59.95 million. Queens saw the highest dollar volume thanks to the $57.75 million sale of 245-10 Grand Central Parkway South, a housing complex that contains three buildings with 240 units and also includes several open areas that could be developed.
In the Bronx, four buildings with 500 units traded in four transactions totaling over $28.6 million. The sale of 999 East Tremont Avenue and 2008 Bryant Avenue accounted for almost $25 million of this total. These two properties were sold to the same buyer and averaged around $56,700 per unit.
In Brooklyn, 12 buildings with 96 units traded in four transactions totaling $19 million. A notable eight-building package sold in the desirable Boerum Hill area. The property located at 525-35 and 539-41 Atlantic Avenue sold for $10 million, or $410 per square foot and $333,000 per unit (though the price per unit number may be misleading due to the ground floor retail).
Northern Manhattan saw only one multifamily sale at 630 West 172nd Street, a property with 25 units that sold for $2.14 million or $85,000 per unit.
The report also introduced Ariel Property Advisors’ six-month trailing monthly averages for dollar volume and transaction counts. Expanding transaction data with this method is intended to better identify the general direction of sales activity.
Notably, the six-month trailing averages for the period ended May 2011 posted modest declines compared to the previous six-month period.
