Driven by a trio of $200 million-plus deals, the city’s multifamily sector climbed to more than $3 billion worth of sales in the third quarter.
The third quarter saw 213 multifamily transactions comprised of 330 buildings across the five boroughs for a total sales volume of $3.26 billion, according to Ariel Property Advisors’ quarterly market report.
In September alone, the sector witnessed 20 deals greater than $20 million, three of which were greater than $200 million. “September pushed things over the hump and got us to a very positive number,” Ariel Vice President Mike Tortorici said.
Year-to-year, dollar totals were up 46 percent and the number of deals climbed 16 percent, although building totals saw a slight decrease of 2 percent. The 213 deals closed in the third quarter were the most since the end of 2012, when 255 were completed.
Ariel President Shimon Shkury said the figures from the third quarter are even more impressive considering the fourth quarter of 2012 saw a somewhat artificially inflated transaction volume due to the impending changes to the capital gains tax at the end of that year.
The strength of the asset class, low interest rates and robust capital markets should carry the strong multifamily market through the end of the year, Shkury added.
The quarter’s banner deals included Laurence Gluck’s Stellar Management and the Chetrit Group’s $485-million purchase of a portfolio of Upper East Side elevator buildings on 88th Street and developer Ben Shaoul’s $270-million buy about a block away.
In Queens, Hudson Realty’s $216 million sale of its 1,269-unit portfolio in Kew Gardens Hills pushed that borough to the highest year-over-year sales gain in the city, climbing 165 percent to $347.8 million.
Transactions rose 6 percent on the year and the number of buildings trading hands remained flat at 37.
Brooklyn deals were up 15 percent on the year and sales totals rose 50 percent to $505 million.