The largest sale transaction in the first six months of this year in New York City was the $2.2-billion purchase of 245 Park Ave. by Chinese conglomerate HNA Group.

NEW YORK CITY—Uncertainty on borrowing rates and in the foreign markets are to blame for a significant decline in investment sales consideration and activity in Manhattan, as well as the outlying boroughs.

According to a report released by the Real Estate Board of New York, year-to-year total investment sale consideration declined 39% to $18 billion citywide, while the total number of transactions declined 6% to 2,419 in the first half of 2017.

Manhattan investment sales consideration decreased 49% to $10.7 billion in the first half of 2017 compared to $21.2 billion in the first half of 2016. While transactions in Manhattan accounted for 60% of New York City's total investment sales consideration, that market share was the smallest Manhattan has accounted for since REBNY started tracking sales in the first half of 2014. Manhattan investment sales activity dipped 8% to 467 transactions in the first half of 2017 from 508 in the first half of 2016.

“While high value investment sales transactions continued to close across the boroughs this half of the year, uncertainty over rising interest rates and foreign capital has given investors pause,” says REBNY president John Banks. “Meanwhile, this has created more opportunity for lower-priced parcels with development potential following the extension of the Affordable New York Housing Program, formerly known as 421-a, this year.”

The largest single property sale transaction in the first half of this year was the $2.2-billion trade of the 1.8-million-square-foot 245 Park Ave. office building from a joint venture of Brookfield Property Partners and the New York State Teachers' Retirement System to Chinese conglomerate HNA Group. The only other sales transaction to crack the billion-dollar mark was the sale of 60 Wall St. in a deal Globest.com reported in January was valued at $1.04 billion. Coming in at number three was the $686-million sale for a 50% stake in Worldwide Plaza, located on the block bounded by Eighth Avenue, West 50th Street, Ninth Avenue, and West 49th Street.

Investment sales consideration fell 14% in Brooklyn; reaching $3.6 billion in the first half of 2017 compared to $4.2 billion in the first half of 2016, while total transactions dipped 6% to 849 from 901.

Queens saw a 14% decrease in total consideration to $2.0 billion from $2.4 billion, while the number of transactions ratcheted down 4% to 552 in the first half of 2017 from 576.

The Bronx suffered a decrease of 20% to $1.2 billion in the first half of 2017 from $1.5 billion a year earlier, while total transactions declined18% year-over-year to 361 from 441.

The sole bright spot in New York City was Staten Island, which enjoyed an impressive 61% increase in total considerations year-over-year to $300 million, while total transactions rose 23% to 190 in the first half of 2017 as compared to the first six months of 2016.

Other key takeaways from the report included:

• Total consideration for Multifamily rental buildings with an elevator sales dropped 51% to $1.9 billion in the first half of 2017 from nearly $4 billion in the first half of 2016, while transactions decreased 26% to 121 from 163 transactions.

• Office properties sales consideration declined 40% to $7.3 billion from $12 billion, while transaction volume dipped eight% to 185 from 201.

• Garages, gas stations, and vacant land total consideration fell 46% to $919 million from $1.7 billion, while activity increased 25% to 506 from 406 transactions.

New York

Queens saw a 14% decrease in total consideration to $2.0 billion from $2.4 billion, while the number of transactions ratcheted down 4% to 552 in the first half of 2017 from 576.

The Bronx suffered a decrease of 20% to $1.2 billion in the first half of 2017 from $1.5 billion a year earlier, while total transactions declined18% year-over-year to 361 from 441.

Other key takeaways from the report included:

• Office properties sales consideration declined 40% to $7.3 billion from $12 billion, while transaction volume dipped eight% to 185 from 201.

• Garages, gas stations, and vacant land total consideration fell 46% to $919 million from $1.7 billion, while activity increased 25% to 506 from 406 transactions.

Instant Insights /

Manhattan Investment Sales Value Falls Dramatically in First Half of Year

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