Bklyn Investment Sales Dip, Prices Up in ‘16

Tropp: “The strength in pricing is particularly impressive and is indicative of investor confidence.”

NEW YORK CITY—Brooklyn’s investment property sales softened in 2016, following the record-setting 2015, yet prices across most asset types appreciated, according to Ariel Property Advisors’ newly released Brooklyn 2016 year-end sales report.

The city’s biggest borough saw 1,327 transactions last year, which consisted of 1,646 properties valued at approximately $7.8 billion. The figures represent year-over-year declines in dollar, transaction and property volume by 16%, 7% and 18%, respectively. Downtown Brooklyn and Park Slope captured the bulk of activity, accounting for nearly 31% of the submarket’s dollar volume, driven by several large-scale multifamily and development transactions.

Brooklyn’s multifamily sector fared better in terms of transaction volume and pricing versus the development and office markets. While multifamily dollar volume fell 12% year-over-year to $4.02 billion, the number of transactions rose marginally to 865. Multifamily pricing metrics climbed higher for the year, rising 9% overall. More specifically, price per square foot and price per square unit both increased an impressive 15% from 2015 levels.