The Real Deal New York

NYC multifamily sales slow down in July, as dollar volume hovers above $1B

Fairstead’s Savoy Park purchase is the city’s top multifamily deal in July

September 21, 2016 07:30AM
By Kyna Doles

Ariel Property Advisors

(credit: Ariel Property Advisors)

Less is more in New York City’s multifamily market. As the number of sales continued to decline in July, the price of those deals remained relatively strong.

Sales of multifamily buildings in July totaled $1.1 billion, a 6 percent drop in dollar volume compared to the same period in 2015, according to the latest report from Ariel Property Advisors TRData LogoTINY. Citywide dollar volume fell 16 percent from the prior month. Meanwhile, the number of sales totaled 109 in July, down from 142 year-over-year.

Fairstead Capital’s purchase of Savoy Park for $315 million was the month’s largest multifamily deal and one of the year’s most expensive to date. The apartment complex is made up of seven buildings and 1,790 rent-stabilized apartments.

Northern Manhattan took in a total of $453.7 million in sales for July, which includes the Savoy sale, a 67 percent increase in dollar volume from June, although sales were lower compared to the same period in 2015.

The rest of Manhattan saw 25 building sales totaling $250 million. Aside from transaction volume which fell slightly from June, building and dollar volume was up 65 percent and 75 percent respectively. The Upper West Side landed Manhattan’s priciest deal of the month. Crest Realties closed on the purchase of 118 East 93rd Street, 38-unit rental building, for $38.5 million, or $870 per square foot.

In Brooklyn, sales took a major downturn in July. The borough saw only 25 sales from 15 transactions totaling $198 million. In comparison, Brooklyn took in $302 million from 48 multifamily sales in the prior month. Brooklyn’s top deal for the month was the sale of three rental buildings at 24-30 Rogers Avenue and 637-641 St Marks Avenue in Crown Heights for $14.2 million. Landlord Yeshaya Wasserman acquired the 70 apartments from Excelsior Equities.

Unlike the rest of the boroughs, Queens did not see an uptick in prices even as the number of sales fell from June. Sales were largely made up of less than $10 million deals and totaled $70 million for the month. Dollar volume was down 81 percent compared to June, while the number of buildings fell from 16 to eight.

Bronx sales picked up in July after a slow month in June, but sales remained lower compared to the same period last year. Dollar volume, which totaled $113.5 million  in July was down 59 percent year-over-year. Building volume also fell in half to 24. Notable transactions include the sale of 2715 Webb Avenue for $8.6 million and a 1085 Nelson Avenue for $8 million.