The number of multifamily transactions in Manhattan fell while total deal volume soared in April, the most recent report from Ariel Property Advisors shows.
The 38 transactions, comprised of 53 buildings, represented a 22 percent drop year-over-year, while the total volume of sales — more than $619.2 million — was 50 percent more than last April’s sum of $413 million. In April of 2012, 49 transactions comprised of 69 buildings were closed.
Average capitalization rates for Manhattan multifamily transactions during the last two quarters fell to 4.64 percent, from 5.15 percent at this time last year, the report shows. In Brooklyn, the average cap fell to 6.22 percent, down from 7.41 percent year-over-year, and to 5.89 percent from 6.32 percent in Queens.
“Despite low sales volume, multifamily prices continue to rise as high demand confronts few available properties on the market,” Shimon Shkury, president of Ariel Property Advisors said in a statement provided to The Real Deal. “These rising prices and the financing environment, which has seen interest rates starting to tick up in the last month, may incentivize more owners to list properties during the second half of the year.” –Guelda Voien