New York, NY—New York's multifamily market has seen an overalllag in investment sales since the passage of the Housing Stabilityand Tenant Protection Act of 2019. However, a recent uptick inactivity in the Northern Manhattan area suggests that investors arebecoming active again, according to Ariel Property Advisors.

"The Housing Stability and Tenant Protection Act of 2019eliminated or altered many different legal mechanisms to increaserents. We're still seeing how the market will adjust, but it isclear that investors are basing values much more off of in-placecash-flow versus future upside," says Victor Sozio, executive vicepresident and founding member of Ariel Property Advisors, tellsGlobeSt.com. "While this new legislation has presented itschallenges, investors have begun to reassess pricing andstrategies. We anticipate higher transaction volume in the upcomingmonths to end the year."

The Bright Lights of Northern Manhattan

Northern Manhattan has been a particularly bright spot latelywith two large transactions skewing the overall dollar volumefigure. In East Harlem, for example, L + M Development Partnerspurchased a portfolio of buildings from Brookfield Properties for$1.16 billion. The six properties consist of 2,654 residentialunits and 40 non-residential units. Two-thirds of the units will beconverted into affordable apartments, with L+M purchasing theproperties through its Workforce Housing Fund.