Manhattan investment sale prices up 20 percent since boom

Activity up 41 percent year-over-year, data show

New York /
Jul.July 18, 2013 04:30 PM

New York City real estate may not be quite back to the dizzying heights of the 2007 peak, but the climb back seems to be strong and swift. Property sales activity clocked in at $17.96 billion in the first half of 2013, a year-over-year increase of 41.3 percent, according to data from Real Capital Analytics provided to The Real Deal.

“We’re at an interesting point in the cycle where investors and owners are taking different perspectives on value,” said Real Capital’s Dan Fasulo. “This leads to more activity.”

Every major sector saw an increase in total dollar volume of sales activity, the data show (See chart below).

Prices have increased by 20 percent in the overall Manhattan market and 9 percent in the boroughs since the peak in the fourth quarter of 2007, making New York City one of the few U.S. markets that have seen an appreciation relative to peak levels.

Most notably, prices in the Manhattan apartment sector have jumped 30 percent since the peak, the largest such increase nationwide. The apartment sector saw total sales activity of $5.25 billion year-to-date, including the New York City buildings that were part of Lehman Brothers’ sale of Archstone’s apartment portfolio to Sam Zell’s Equity Residential and AvalonBay Communities.

Indeed, though the office market was anchored by the return of the billion-dollar transaction, as The Real Deal reported, Fasulo said the improvement was across the board.

“The big deals might drive the headline numbers, but properties are trading all over the city,” he said.

Inventory was also a factor, Fasulo said, with a lot of top-tier properties, such as Westbrook Partners’ 295 Madison Avenue and 444 Madison Avenue, hitting the market.

(Westbrook had also offered four residential buildings as part of the portfolio, which HFZ Capital Group purchased for $600 million, as the Wall Street Journal reported today.)

Looking forward, Fasulo was bullish about the second half of 2013, saying there was a tendency for an uptick in the second half of the year.

“We’re certainly on pace to match or surpass 2012, which was a very strong year with an explosive fourth quarter,” he said.

Massey Knakal Chairman Robert Knakal also predicted a surge in activity in the second half of the year, as The Real Deal reported. Neil Helman of Avison Young previously told The Real Deal that New York remains extremely attractive to foreign investors and sovereign wealth funds.


Related Articles

arrow_forward_ios
Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
Here’s what the $10M-$30M NYC investment sales market looked like last week
Here’s what the $10M-$30M NYC investment sales market looked like last week
Clockwise: 138 Bruckner Boulevard in the Bronx, 305 East 61st Street, 161 Lexington Avenue and 539 West 54th Street (Google Maps)
Dozen deals spell big week for Manhattan investment sales
Dozen deals spell big week for Manhattan investment sales
(iStock/Illustration by Kevin Rebong for The Real Deal)
NYC investment sales hit multi-year peak to end 2021
NYC investment sales hit multi-year peak to end 2021
A photo illustration of 51-53 East 73rd St, 300 De Witt Ave, 137 Bayard Street and 3044 Coney Island Ave (LoopNet, Rosewood Realty Group/Illustration by Steven Dilakian for The Real Deal)
Ten mid-market investment sales to start your day
Ten mid-market investment sales to start your day
(Illustration by The Real Deal)
Manhattan investment sales top pre-pandemic levels in Q4 comeback
Manhattan investment sales top pre-pandemic levels in Q4 comeback
Renderings of 80 South Street (Oceanwide Holdings, iStock)
Chinese developer defaults on $175M loan for languishing Manhattan supertall site
Chinese developer defaults on $175M loan for languishing Manhattan supertall site
Ashkenazy Acquisition Corporation's Ben Ashkenazy; Clipper Equity’s David Bistricer; Fetner's Hal Fetner; L+M Development Partners's Ron Moelis (Google Maps, Ashkenazy Acquisition Corporation, Fetner, Clipper Equity, L+M Development Partners)
Everything must go: I-sales skyrocket in year-end blowout
Everything must go: I-sales skyrocket in year-end blowout
836 Broadway, 72-79 Warren Street, 82-89 West Broadway, 1124 First Avenue, 290 Dyckman Street, and 2957 Shell Road (Google Maps)
17 investment sales make for a year-end smorgasbord
17 investment sales make for a year-end smorgasbord
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...