Institutional investors busied themselves buying up Bronx investment properties in 2012 as they looked for places to park their capital, according to a report by Ariel Property Advisors released today.
The number of investment properties sold in the borough jumped 46 percent compared to the prior year, while the dollar volume of those deals shot up by 63 percent, the report shows. There were a total of 220 commercial real estate transactions totaling $1.28 billion, compared to 147 transactions totaling $613 million in 2011. Thirty-seven of the year’s transactions were priced at more than $10 million.
“Last year, the Bronx experienced the most active investment property sales market since the 2008 financial crisis occurred,” said Ariel vice president Scot Hirschfeld. “With prices soaring and yields falling in other areas of New York City, we’re seeing that investors are increasingly choosing the Bronx as a destination — not an alternative — for their capital.”
Multi-family sales accounted for the largest percentage of capital coming into the Bronx in 2012. There were 126 multi-family transactions totaling $966 million in gross consideration, a dramatic increase over 2011, which saw 92 transactions totaling $555 million. Development sites accounted for 23 transactions worth $64 million. The average price per buildable square foot came in at approximately $30 for the borough, the company said. –Katherine Clarke