For the month, New York City saw 34 transactions comprised of 55 buildings totaling $1.68 billion in gross consideration. November transaction volume was down 19%, but building volume rose 8% versus the prior month. Dollar volume surged 116% from the previous month, reaching its highest level since March, with six transactions priced at $100 million or above accounting for 77% of the month’s activity.
Submarket Overview
Manhattan:
Manhattan led the city, capturing 65% of the city’s dollar volume, with $1.09 billion in multifamily sales across 12 transactions consisting of 16 buildings. Much of this dollar volume was driven by Blackstone’s purchase of Kips Bay Court for $620 million, which represents $748 per square foot and $687,361 per unit. In Chelsea, a 27-unit walk-up building at 222-224 West 21st Street sold for $29.40 million or $1,310 per square foot, which represents a reported capitalization rate of 4.87% and a gross rent multiple of 16.54.
Northern Manhattan:
For the month, Northern Manhattan had $122.40 million in sales across 4 transactions, more than double the $54.76 million the submarket saw in October. All 4 transactions for the month were in Washington Heights. One particularly noteworthy sale was a 31-unit walk-up building at 643 West 171st Street, which sold for $9.85 million, representing $379 per square foot and $317,742 per unit.
Brooklyn:
Brooklyn saw $103.73 million in multifamily sales across 7 transactions and 12 properties in November. In Williamsburg, a 95-unit elevator building at 230 North 9th Street sold for $68.8 million, or $961 per square foot and $724,211 per unit. Another standout sale was in Flatbush, a 16-unit two building portfolio at 1368 Nostrand Avenue & 241 Linden Boulevard, which sold for $3.71 million, representing $252 per square foot and $231,563 per unit.
The Bronx:
The Bronx registered 8 transactions in November totaling $80.99 million across 537 units. In Fieldston, a 44-unit walk-up building at 6211 Broadway traded for $9.50 million, or $224 per square foot and $215,909 per unit. Another significant transaction was in Westchester Square, a 25-unit walk-up building at 2235 Gleason Avenue, which traded for $4.26 million or $205 per square foot.
Queens:
While Queens saw just 3 transactions for the month, two large sales drove dollar volume to $276.50 million, a 389% jump from the same month a year earlier. The first of those transactions was A&E Real Estate Holdings and Benedict Realty Group’s purchase of a 495-unit, 10-building portfolio that was spread throughout Queens. The portfolio traded for $130 million or $340 per square foot and $262,626 per unit. The other notable sale for the month was 90-02 Queens Boulevard & 87-28 58th Avenue in Elmhurst, the 145-unit mixed-use elevator building, which includes a five-story parking garage, traded for $125 million.
For the six months ending in November 2016, the average monthly transaction volume fell to 51 transactions per month and the average monthly dollar volume increased to $1.096 billion.
To view the full report, please click here: http://arielpa.nyc/research/report-MFMIR-Nov-2016
