Multi-family transactions up in NYC: report

Ariel Property Advisors

The number of New York City multi-family transactions jumped significantly in the
third quarter of 2011, with Manhattan below 96th Street accounting for 80
percent of the total, according to a report from Ariel Property Advisors released today.

Citywide, there were 115 multi-family transactions that traded for a total
of $1.6 billion in the third quarter, up year-over-year from 69 transactions trading for $457.8 million, and up from 88 transactions valued at $1 billion in second-quarter 2011.

Third-quarter 2011 volume increased dramatically in Manhattan compared to the same period the previous year. Between July and September, Manhattan below 96th Street saw 44 transactions valued at more than $1.3 billion, up from 17 transactions in that area valued at approximately $222.97 million in gross consideration, for the same period last year.

“Institutional and international investors are seeking multi-family
real estate in Manhattan below 96th Street because they see it as a
safe haven,” according to Michael Tortorici, vice president of Ariel
Property Advisors. “Several $100 million-plus deals and a number of
small multi-family portfolios are propelling the borough to heights
not seen since 2008.”

Northern Manhattan had nine multi-family transactions with a gross consideration of $67 million in the third
quarter of 2011, compared to the same period last year which saw 12 building deals, at approximately $41 million in total.

Outside of Manhattan, the report notes strong demand in Brooklyn, steady light activity in Queens and falling deal flow in the Bronx, but modest increases in the prices per square foot and prices per unit in that borough. The report did not include Staten Island.

— Miranda Neubauer