NYC multifamily sales reach $3.8B in Q3

New York City’s multifamily market saw moderate growth during the third quarter of the year, with dollar volume totaling nearly $3.8 billion, a 21 percent increase from the previous quarter, according to the latest report from Ariel Property Advisors.

The city had 184 multifamily transactions comprising of 369 building sales, down 15 percent and 1 percent respectively from the second quarter. Transaction volume fell 14 percent over last year and building volume increased only 3 percent.

“Prices are up considerably, and this is driving up dollar volume higher despite the number of properties trading at or below what we saw last year,” said Shimon Shkury, president of Ariel Property Advisors.

Manhattan made a comeback after trailing behind Brooklyn’s strong dollar volume in the second quarter. The borough grossed $1.8 billion in multifamily sales, an 89 percent jump over last quarter. Blackstone Group closed on one of the city’s largest deals during the quarter, with the $690 million purchase of the Caiola portfolio. Manhattan saw 99 building sales across 44 transactions, a 43 percent increase and 2 percent decline respectively from the second quarter.

Brooklyn sales lowered after a spectacular second quarter for the borough. The area netted $751.3 million in sales, down 31 percent from last quarter, but 50 percent higher year-over-year. Building and transaction volume also took a hit in the third quarter. The borough had 71 sales and 37 transactions, a 9 percent and 27 percent decline from the previous quarter.

Even with fewer building trades, Queens saw an increase in dollar volume. Sales in the borough totaled $203 million, a 19 percent increase quarter-over-quarter. The area saw 13 transactions consisting of 19 sales, including the $134 million sale of the Opal in Kew Gardens Hills.

The Bronx had three large portfolio sales, including an 11-building package Black Spruce Management picked up in June for $51.5 million. Overall, the borough saw a decline in sales across the borough compared to the last quarter and year. Dollar volume fell 7 percent from the second quarter to $445 million, and the area saw 71 sales across 37 transactions.

Multifamily sales in Northern Manhattan gained momentum in the third quarter. The area grossed $573.6 million in sales, a 29 precent jump from last quarter and 12 percent rise year-over-year. Hillcrest Acquisitions purchased a 21-building portfolio in West Harlem for nearly $149 million, contributing to the area’s 76 building sales and 32 transactions.