The Real Deal New York

Multi-family trades plummet, following big Q4

March 25, 2013 01:30PM

New York City multi-family investors appear to have taken a breather in January, following a tremendous surge in deal volume in December as they braced for increases in capital gains taxes.

The number of multi-family deals in the five boroughs decreased by 34 percent in January, according to data provided to The Real Deal by Ariel Property Advisors, with just 35 deals taking place compared with 25 in December. There was also a 68 percent drop in the dollar volume of those deals, the data show, from $979.28 million to just $312.78 million.

The lull may not last long, however. Ariel President Shmon Shkury said he is seeing a marked uptick in deals since the beginning of February, although data for February was not yet available.

“After a slow start to the new year, the market picked up and we’re seeing bidding wars on the available properties, including large multi-family portfolios, and a wave of contract signings,” he said. “The new deals that are coming to market have seen immediate interest, and in some cases, are being put under contract above the asking price within weeks.”

Manhattan sales accounted for most of the city’s multi-family deals in January. Kushner Companies’ $130 million purchase of an East Village portfolio of walk-up buildings accounted for the majority of transaction dollar volume in the borough, which hit a total of $150.46 million.

Nine Trades Took Place in Brooklyn in the first month of the year, totaling $42 million, while just five deals took place in Queens, accounting for a dollar volume of $13.58 million. –Katherine Clarke