NEW YORK CITY—While month-to-month comparisons show a stable market, a lack of institutional and portfolio transactions in July has caused multifamily transaction, building and dollar volume here to fall year-over-year.
Ariel Property Advisors reports that in July, New York City saw 62 transactions comprised of 81 buildings totaling $601 million in gross sales. Compared to July 2013, there was 3% decrease in transaction volume, a 35% decrease in building volume and a 43% decrease in dollar volume. Ariel reports that in July 2013, New York City saw 64 multifamily transactions comprised of 125 buildings totaling $1.058 billion in gross sales.
Dollar volume in July 2014 was virtually unchanged compared to a month earlier, while transaction and building volume declined by 14% and 27%, respectively.
“With the exception of Northern Manhattan there were fewer institutional and portfolio sales citywide in July, which resulted in a year-over-year decline in dollar volume,” says Shimon Shkury, president of Ariel Property Advisors. “Because multifamily pricing remained strong across all submarkets, the report indicates that the decline was due to a lack of available supply rather than a lack of demand.”
Although dollar volume declined 70% to $178.9 million in July 2014 compared to July 2013, Manhattan had the highest dollar volume in the city during July of this year with 12 buildings sold in 11 transactions. Northern Manhattan was the lone exception to the city's overall trend of experiencing fewer portfolio sales, as 24 buildings traded in 11 transactions totaling $148.6 million. Multifamily volume in the Bronx remained relatively stable with 25 buildings trading in 22 transactions totaling $143.4 million.
Rounding out the activity in the boroughs, Brooklyn posted declines from the previous month with 13 transactions covering 15 buildings totaling $90.868 million, while Queens had a light month with just five buildings trading in five deals totaling $39.3 million.
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