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NYC multifamily spending took a dive in August
Dollar volume drops under $600M for the month: Ariel Property Advisors
Spending on multifamily buildings across New York City was significantly down in August, with only $575 million in sales for the month, according to the latest report from Ariel Property Advisors.
The slowdown broke a several month-long trend of $1 billion in deals. Dollar volume for the final full month of summer fell 62 percent from the prior month and 32 percent compared to the same period last year.
Multifamily investors also purchased fewer buildings. Unlike the 112 buildings sold this time a year ago, only 63 rental buildings sold in August. Three of those properties sold for $40 million or more, including RCR Management’s purchase of two Sunnyside rental buildings for $49 million.
In Manhattan, which accounted for nearly 30 percent of the city’s dollar volume, sales from 19 multifamily buildings totaled $168.2 million, half the dollar volume compared to August 2015.
Brooklyn had the second highest dollar volume behind Manhattan. The borough saw 16 multifamily sales across nine transactions. Dollar volume from those deals totaled $158.7 million, and was down 42 percent year-over-year and 35 percent from July. Among the top sales, Sugar Hill Capital Partners purchased 315 Seigel Street in Williamsburg for $39.5 million, and one of Chaim Miller’s distressed rental buildings at 90-94 Sullivan Street in Crown Heights sold for $21.5 million.
Like Brooklyn, all metrics were down across the board in the Bronx. Seven buildings sold across six transactions totaling $20.1 million, a more than 80 percent decline from the $100 million plus in deals seen in July and in August of last year.
Queens’ multifamily market showed the only major improvements in August, with dollar volume nearly rivaling Brooklyn’s at $156.5 million. Dollar volume showed an 818 percent improvement year-over-year and jumped 122 percent from July. Just as impressive, the number of deals climbed from 4 during the same period last year to 12 in August. In another major multifamily deal for the borough, Sentinel Real Estate Corporation scooped up a trio of buildings at 3100 Brighton 2nd Street, 219 and 231 Brightwater Court for $57 million.