February was another strong month for multifamily building sales in the city, as the dollar volume of those deals skyrocketed 186 percent year-over-year, according to the latest monthly report from investment firm Ariel Property Advisors.
There were 97 multifamily properties sold in February, up 59 percent from the 61 buildings that month last year. The 40 deals citywide totaled nearly $680 million, while 32 deals totaled a mere $237.7 million in the previous 2013 period.
Compared to January, the sales pace did not change much. There were 95 buildings sold for a combined $721 million. Therefore, the building amount dropped by 2 percent and the dollar volume slipped 6 percent.
Manhattan, as per usual, dominated with dollar volume, generating $157.8 million from six deals over seven buildings. An Asian investment firm’s $99.8 million purchase of the Grayson rental building in Kips Bay from Silverstone Property Group was the highlight. The deal lifted Manhattan dollar volume, though the number of transactions did not change year-over-year.
“Manhattan was a little light this time around because of supply, but that’s being made up for in the outer boroughs,” Michael Tortorici, Ariel Property Advisors vice president and the report’s editor, told The Real Deal.
Tortorici said he expects the year-over-year growth to taper off later this year, given the explosive end of 2012 that led to a weak start to 2013.
“Tight inventory, robust buyer demand, and inexpensive financing continued to steadily push prices upward,” said Shimon Shkury, founder of Ariel Property Advisors.
Brooklyn was the busiest borough – with 52 properties among 18 deals totaling $343.5 million. Dollar volume was up 43 percent from January. The top deal was Jared Kushner’s purchase of a six-building portfolio in Brooklyn Heights from the Brooklyn Law School for $36.5 million.
In January, Brooklyn trounced Manhattan and the other boroughs with 22 sales across 40 buildings totaling $239.98 million, bolstered by the sale of a four-building portfolio in Brighton Beach that traded for over $70 million, as previously reported.