NEW YORK CITY-Multifamily transactions recorded this past January were 76% higher than deals reported a year earlier, according to Ariel Property Advisors.
In the locally-based investment sales company's Multifamily Month in Review released today, the firm says that the dollar volume generated by multifamily transactions in New York City closed in January were 107% higher than dollar volume posted in January 2013.
In January 2014, New York City saw 58 transactions comprised of 93 buildings totaling $707.3 million in gross consideration, compared to January 2013, which saw 33 transactions comprised of 70 buildings totaling nearly $341.1 million in gross consideration.
“The growth in January's year-over-year numbers suggests that 2014 is going to be a robust year for New York City multifamily sales, in terms of both pricing and volume,” says Shimon Shkury, president of Ariel Property Advisors. “Contract signings and new listing activity we've seen during the first quarter back this up.”
Highlights from the five boroughs include Brooklyn being the most active in terms of transactions, building, and dollar volume with 22 sales taking place throughout the borough involving 40 buildings. Brooklyn also showed positive gains month-over-month in dollar and building volume, Ariel officials say. Multifamily sales in the borough totaled approximately $240 million in gross consideration, a large portion of which came from a four-building portfolio in Brighton Beach that traded for $70 million.
Manhattan posted with $235.6 million in gross dollar volume in January with more than 11 transactions and 14 buildings. A single building that sold at 15 Cliff St. in the Financial District netted $95 million, which translated to just under $600 per foot. Also of note in Manhattan, the average cap rate for the six months ended in January fell to 3.95%, which is the first time the six-month average has fallen below 4%, the report states.
The Bronx realized significant increases over a lackluster January 2013, with dollar volume totaling $157.973 million based on 14 transactions and 22 buildings. A family-owned portfolio on Pelham Parkway sold for more than $52 million or approximately $156 per foot.
Northern Manhattan saw eight sales take place, a slight increase both month-over-month and year-over-year, but only $55 million in dollar volume.
Queens posted seven buildings sales at a total of $18.2 million.
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