NEW YORK, NY – August 5, 2025 – Northern Manhattan’s investment sales volume totaled $224 million in H1 2025, a 57% decline year-over-year and the second-lowest half in a decade after H2 2020, according to Ariel Property Advisors’ Northern Manhattan 2025 Mid-Year Commercial Real Estate Trends report. Transaction volume fell 27% over this period to just 35 trades.

“The multifamily market was particularly hard hit in the first half of the year, experiencing record-low dollar volume and near record-low transactions in part because of the continued fallout from the Housing Stability and Tenant Protection Act of 2019 (HSTPA),” according to Ariel Senior Director Sam Schertz. “Many of the multifamily properties sold were distressed foreclosures, with values falling 50% to 60% from previous prices.”

Director Alexander Taic added, “In contrast, the development sector saw year-over-year gains in both dollar volume and transactions with growth driven by New York City’s housing crisis and government initiatives like City of Yes and 485-x tax incentives. Community revitalization efforts and infrastructure projects also boosted activity in areas like East Harlem, which accounted for 50% of transactions and 70% of dollar volume.”

Multifamily Highlights

      • Dollar volume in the first six months of the year totaled $94.9 million, a 61% year-over-year decline, while transactions totaled 21, down 40% from the same period last year.
      • An example of distress was the sale of a 36-unit building at 140 Wadsworth Avenue in Washington Heights, which sold for $5.9 million after foreclosure, notably down from its $9 million purchase price in 2015. Additionally, a portfolio of five rent-stabilized buildings in Washington Heights with 125 units sold for $8.8 million, a 64% drop from its 2018 purchase of $24.4 million.
      • The sale of 2283 3rd Avenue to Slate Asset Management for $28.25 million ($555/SF) was an outlier because of its premium valuation, which was largely attributed to a 421-a tax abatement set to expire in 2034. Most trades were closer to an average of $200/SF.

Development Highlights

      • The development sector posted a 56% year-over-year increase in dollar volume to $61.6 million. Transactions totaled 10, up 43% over the same period.
      • This rebound follows a prolonged slowdown from H2 2022 through H1 2024 and is largely driven by renewed interest stemming from City of Yes policy changes and the 485x tax abatement.
      • One standout transaction was 157-181 East 108th Street, sold by Ariel Property Advisors, which fetched $17.25 million, or $193/BSF. A private school acquired this property at a premium with plans to build a 64,000-square-foot athletic facility.

Ariel Property Advisors’ Northern Manhattan 2025 Mid-Year Commercial Real Estate Trends report is availablehere.