The Real Deal New York

Multi-family deals rose to $7.8 billion in 2012

Upper Manhattan saw highest increase in transaction volume

January 17, 2013 05:30PM
By Katherine Clarke

Credit: Ariel Property Advisors

Multi-family property transactions accounted for $7.8 billion in New York City real estate deals in 2012, according to a report by Ariel Property Advisors, a 54 percent increase from the previous year. There were 639 multi-family transactions in the five boroughs during the year, the report shows, while in 2011 there were just 470 trades totaling $5.06 billion.

The volume of deals was boosted greatly by a rush in fourth-quarter transactions, said Shimon Shkury, president of Ariel Property Advisors, as sellers rushed to close transactions to avoid increases in capital gains taxes. “Prices were also on the rise as demand driven by rising rents and low interest rates continued to outpace even elevated supply levels,” Shkury said.

Upper Manhattan saw the largest increase year-over-year in multi-family transaction volume. There was a 70 percent increase in transactions in Upper Manhattan compared to 2011 and an 83 percent increase in dollar volume.

Brooklyn was also on the radar of investors as a series of institutional and midrange multi-family deals closed during the year at prices almost comparable to Manhattan core assets, according to Ariel’s research. The borough saw 173 multi-family transactions totaling $1.16 billion, a 41 percent year-over-year increase in transaction volume and a 51 percent increase in dollar volume. –Katherine Clarke

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