NEW YORK, NY – October 19, 2016 – Following several consecutive months that each saw more than $1 billion in multifamily property sales, New York City experienced its lightest month of multifamily sales activity so far in August. Much of this decline can be attributed to a lack of institutional-caliber deals during the month, as only three transactions topped $40 million in August.

For the month, New York City saw 48 transactions comprised of 63 buildings totaling $574.7 million in gross consideration. This represents a 32% decrease in dollar volume and a 25% decline in building volume compared to August 2015, which saw $842.6 million in gross consideration across 48 transactions comprised of 84 buildings.

Submarket Overview

Manhattan:

Manhattan led the city in dollar volume with $168.19 million in multifamily sales across 16 transactions consisting of 19 buildings. On the Upper East Side, a 40-unit 20,540 square foot walk-up multifamily building at 341-343 East 65th Street sold for $16.5 million, which represents $803 per square foot. In the East Village, 94 Saint Marks Place a 10-unit walk-up building traded for $6.4 million, which translates to $912 per square foot or $640,000 per unit.

Brooklyn:

Brooklyn was a close second with $159.7 million in multifamily sales across 9 transactions during August. Notable among them was Sugar Hill Capital Partners’ purchase of 315 Seigel Street, a 51-unit walk-up building in East Williamsburg, for $39.5 million, a value that represents a relatively high price per square foot of $742. In Crown Heights, a 29-unit elevatored mixed-use building at 90-94 Sullivan Place sold for $21.5 million, or $458 per square foot.

Northern Manhattan:

Following a very strong July that saw over $400 million in multifamily transactions, Northern Manhattan had a relatively light August with $70.2 million in sales. In Washington Heights, an elevatored mixed-use building at 220 Wadsworth Avenue sold for $15.6 million, which translates to $275 per square foot, and reportedly a capitalization rate of 3.42%. Elsewhere, in Central Harlem the walk-up building 208 West 140th Street traded for $6.25 million or $409 per square foot.

The Bronx:

The Bronx saw 6 transactions totaling $20.1 million in August as all of the deals that closed for the month were under $5 million. In Crotona Park, a 21-unit walk-up building at 878 East 176th Street sold for $3.5 million, which represents to $191 per square foot. Also notable was 2275 Morris Avenue in Fordham, the 28-unit mixed-use building traded for $4.65 million, or $233 per square foot.

Queens:

Queens saw 582 units trade across just 9 transactions totaling $156.4 million in gross considerations for the month of August. RCR purchased a pair of elevatored buildings at 41-15 50th Avenue & 45-41 39th Place for $48.5 million, which translates to $294 per square foot or $303,125 per unit. Another notable transaction was Zara Realty’s purchase of 51-25 Van Kleeck Street, a 76-unit elevatored building in Elmhurst, that which traded for $21.1 million or $325 per square foot, which reportedly represents a cap rate of 3.35% and a gross rent multiple of 15.81.

For the six months ending in August 2016 the average monthly transaction volume increased slightly to 61 transactions per month and the average monthly dollar volume decreased slightly to $1.2 billion.

To view the full report, please click here: http://arielpa.com/report/report-MFMIR-Aug-2016