NYC Multifamily Sales Approached $1.8B in September

NEW YORK CITY—Multifamily sales dollar volume in New York City soared in September of this year, rising 111% and 191% as compared to September of last year and August 2014 respectively.

Ariel Property Advisors reported the prodigious sales volume increases in its monthly multifamily month in review report.

In September 2014, New York City saw 71 transactions comprised of 138 buildings totaling $1.79 billion in gross consideration, compared to September 2013, which saw 64 transactions comprised of 143 buildings totaling $849.315 million in gross consideration. In August of this year, 85 buildings traded that involved 57 transactions totaling $614 million.

“Due to an increase in institutional transactions, multifamily dollar volume in September surged, surpassing the July and August totals combined and contributing to a strong third quarter,” said Shimon Shkury, president of Ariel Property Advisors. “We think the September activity is a harbinger for a very strong fourth quarter.”

In its borough breakdown, Ariel Property Advisors reports that Manhattan led the way in September with 15 transactions involving a total of 20 buildings totaling $1.055 billion in gross consideration. Two Upper East Side packages specifically pushed dollar volume, Ariel states. A package of mixed-use elevator buildings on East 88th Street and 2nd Avenue sold for $485 million, or $592-per-square-foot. Another package of elevator buildings on East 89th Street and 1st Avenue sold for $270 million or $749-per-square-foot.

The big deal in Queens in September was a $216-million portfolio sale in Kew Gardens. Sales volume in September in Queens totaled $273.242 million in gross consideration. Northern Manhattan experienced a solid month as the submarket saw 35 buildings trade across 12 transactions totaling approximately $165.1 million in gross consideration.

The Bronx had a strong month with 20 transactions comprised of 31 buildings valued at an eyelash under $160 million. Brooklyn saw 25 buildings trade across 15 transactions totaling $136.5 million in gross consideration

For the six months ended in September 2014, the brokerage firm reports that the average monthly transaction volume declined slightly to 66 transactions per month. The average monthly dollar volume decreased slightly to $886.56 million.