NEW YORK, NY – April 27, 2015 – First quarter New York City multifamily dollar volume rose 6 percent year-over-year to $3.324 billion, with Manhattan and Brooklyn each accounting for more than $1 billion in sales, according to Ariel Property Advisors’ Multifamily Quarter in Review New York City: Q1 2015.

Transaction volume rose 7 percent to 208 and the number of buildings traded declined 13 percent to 338 in the first quarter 2015, compared to the first quarter of 2014, which saw 194 transactions, 387 buildings sold, and total dollar volume of $3.13 billion. Compared to the fourth quarter 2014, transaction and building volume rose 9 percent and 1 percent, respectively, while dollar volume declined 18 percent.

“New York City multifamily property sales saw a robust kick off to the year as first quarter figures outpaced those seen one year ago,” said Shimon Shkury, president of Ariel Property Advisors. “The quarter ended on a high note as a surge in institutional and portfolio deals in March drove big dollar volume gains in Brooklyn and Manhattan.”

Mr. Shkury also noted that pricing continued to advance year-over-year. In Manhattan, the average price per square foot is approaching $900 while average capitalization rates are coming in under 4 percent. Northern Manhattan, Brooklyn, and Queens are consistently seeing cap rates below 5 percent, and cap rates in the Bronx have fallen below 6 percent.

The following is a breakdown of the first quarter 2015 volume by submarket:

• Brooklyn. Two massive Brooklyn portfolios in East Flatbush and Brighton Beach drove the borough’s first quarter activity, which consisted of 114 buildings trade, among 63 transactions and $1.079 billion in dollar volume. Dollar volume for the quarter almost doubled that of the 4Q14, and was 48 percent higher than the first quarter of last year. In Crown Heights, 494 Sterling Place sold for almost $800 per foot, and over $600,000 per unit.

• Manhattan. Manhattan showed significant year-over-year gains in the first quarter across the board. For the quarter, the borough saw 42 trades across 69 buildings, totaling $1.333 billion in gross consideration, a 24 percent, 44 percent, and 9 percent increase over last year’s totals, respectively. One of the notable sales was a five-building package that sold for over $1,500 per foot in NoLiTa on Elizabeth Street, one of the city’s most quickly appreciating areas. Another was the sale of 311-29 West 50th Street, a 104 unit elevatored building that sold for $72 million or $888 per square foot.

• Northern Manhattan. Northern Manhattan was relatively stable quarter-to-quarter, with a strong uptick year-over-year. For the quarter, the borough saw 34 trades across 50 buildings and just over $400 million in gross consideration. Compared to last year, these figures were up 21 percent, 22 percent, and 53 percent, respectively. The average price per foot surpassed $300 in the region this quarter, an all-time high. The submarket’s continued growth is evident in the recent sale of 567-69 West 125th Street, which closed for $533 per square foot. Over in East Harlem, a newly constructed elevatored building sold for $465 per square foot.

• The Bronx. The first quarter brought mixed results for The Bronx, showing robust transaction and dollar volume compared to last quarter, but down from a big 1Q2014. The borough in total saw 49 sales across 68 buildings, and $340.240 million in gross consideration. Pricing in the borough continues to climb, reaching $135 per square foot in the last six months. The largest sale in the borough took place at 2001 Story Avenue in Castle Hill, for $66 million, or $156 per foot.

• Queens. Queens made a fair amount of noise this quarter, topping figures seen in 4Q14 but falling short of 1Q14 levels.The 20 transactions, 37 buildings, and $169.237 million in gross consideration which traded represent quarter-to-quarter increases of 54 percent, 76 percent, and 21 percent, respectively. An Astoria portfolio purchased by Kushner Companies in January was the largest sale of the quarter, at $51 million, or $401 per square foot.

The multifamily transactions included in the analysis occurred at a minimum sales price of $1 million, with a minimum gross area of 5,000 square feet, and with a minimum of 10 units.