NEW YORK CITY—Dollar volume on multifamily property sales in the past three months vaulted 167% citywide year over year, while the number of sales rose 61% over first-quarter 2013 levels, Ariel Property Advisors said Tuesday. Every submarket covered in the firm's latest quarterly report on the sector showed gains across pricing metrics in the six months that March 31.
During Q1, New York City saw 160 transactions comprised of 293 buildings totaling $2.465 billion in gross consideration, Ariel says. That compares to 106 transactions comprised of 182 buildings totaling $922.786 million a year ago. As is typical, Q1 volume was off compared to Q4 volume due to the seasonal rush to get sales done by year's end.
“The impressive year-over-year gains in transactions, dollar volume and pricing in the first quarter continued the trend we saw in the latter part of 2013, when large institutional deals dominated sales activity,” says Shimon Shkury, Ariel's president. “Our firm's contract signings and bidding activity indicate that this trend will continue.”
The leader by a wide margin for volume of transactions was Brooklyn, which saw a 200% Y-O-Y increase to 129 sales during Q1. Its dollar volume of $786.66 million was comparable with Manhattan's market-leading $878.7 million, although that tally was reached with just 29 assets changing hands during the quarter. When Northern Manhattan—counted as a separate market from Manhattan south of 96th Street—is factored in, the borough's sales total reaches just under $1.1 billion.
The other boroughs, as well, made strong showings during Q1. Dollar volume on apartment sales in the Bronx rose 322% Y-O-Y to $363.858 million. About one quarter of that tally was the first closing in what will eventually be a $270-million, 35-property acquisition by the Related Cos. and a group of pension funds. The Y-O-Y dollar volume increase for Queens was even stronger, with the borough's $258.361 million in sales nearly five times the dollar volume seen in Q1 the year prior.
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