NEW YORK, NY – January 6, 2020 – The New York City multifamily market continued to experience weakness at the start of the fourth quarter amid the ongoing effects of NY’s new rent regulation laws. While sales and building volume in October recorded double-digit percentage declines on a year-over-year basis, all three volume metrics jumped versus the previous month, according to Ariel Property Advisors’ “Multifamily Month In Review.”
In October, New York City saw $1.4 billion in multifamily sales take place across 23 transactions and 38 buildings. When compared to October 2018, transaction and building volume dropped 39% and 42%, respectively. Dollar volume soared 132%, due to two large deals in Northern Manhattan. Compared to September 2019, dollar, transaction, and building volume rose 775%, 64%, and 124%, respectively, which largely be attributed to two large deals.
The priciest sale in October was L+M Development Partners’ $1.16 billion acquisition of a portfolio of buildings from Brookfield Properties in East Harlem. The six properties consist of 2,654 residential units and 40 non-residential units. Two-thirds of the units will be converted into affordable apartments and L+M purchased the properties through its Workforce Housing Fund.
Another notable sale was Fairstead Capital’s purchase of Harlen Housing, a two-building, 214-unit affordable housing portfolio in Central Harlem that sold for $75.5 million. Ariel Property Advisors represented the buyer and seller of the two affordable buildings, which are located at 50 West 139th Street and 560 Lenox Avenue and contain 214 residential units.
Ariel Property Advisors is a commercial real estate services and advisory company located in New York City. The company covers all major commercial asset types throughout the NY metropolitan area, while maintaining a very sharp focus on multifamily, mixed-use and development properties. Ariel’s Research Division produces a variety of market reports that are referenced throughout the industry.
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The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee the accuracy of any information provided herein. As an example, all zoning information, buildable footage estimates and indicated uses must be independently verified. Vacancy factors used herein are an arbitrary percentage used only as an example, and does not necessarily relate to actual vacancy, if any. The value of this prospective investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket, and other factors which your tax advisor and/or legal counsel should evaluate. The prospective buyer should carefully verify each item of income, and all other information contained herein.