$12.6B: NYC multifamily dollar volume in 2014

Closed sales of properties up by 39 percent, says report from Ariel Property Advisors

Jan.January 26, 2015 01:10 PM

The dollar volume of New York City multifamily sales in 2014 skyrocketed to nearly $12.6 billion, according to a year-end report from Ariel Property Advisors.

Volume increased by 39 percent from $9.1 billion in 2013. The surge is even greater – 50 percent – compared to 2012, when the city saw $8.4 billion in dollar volume. For every borough except Brooklyn, institutional deals exceeding $20 million accounted for more than half of all multifamily deals. In Brooklyn, those transactions comprised 47 percent.

Brooklyn saw more multifamily sales than any other borough, with 222. The market there also saw the biggest spike in dollar volume, which is up by a whopping 88 percent to $2.4 billion from $1.3 billion. Notable deals include 101 Third Avenue, a Boerum Hill rental building for which a private European investor paid $52.2 million, or $746 per square foot.

There were 761 multifamily sales, a year-over-year increase of 8 percent, involving 1,413 properties, a 13 percent year-over-year increase. Neighborhoods such as the Upper East Side, East Harlem, Brooklyn Heights, Kew Gardens and Morrisania dominated.

The number of Manhattan deals dropped slightly, but the dollar volume climbed by 15 percent to $5.1 billion from $4.5 billion. One of the biggest deals was the Chetrit Group and Stellar Management’s purchase of two Upper East Side rental buildings at 1660 2nd Avenue and 160 East 88th Street for a combined $485 million.

“Current owners are choosing not to sell because they cannot find suitable replacement assets that offer the same returns and upside,” the report stated, “and buyers are paying ever higher premiums to own core Manhattan assets.”

Queens and the Bronx also posted strong sales in 2014. The average capitalization rate for Bronx multifamily buildings fell more than 100 basis points year-over-year to 6.1 percent, data showed.

Related Articles

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

Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)

New NYC rent law “beginning to shut down investment”

Numbers were down across the board (Credit: iStock)

New York’s multifamily market had its slowest first half of the year since 2011

201 West 92nd Street and 78 Riverside Drive (Credit: Google Maps)

Acuity Capital lands $324M refi on 28-building multifamily portfolio

185 S. Fourth St. and Largo co-founder Nicholas Werner (Credit: Google Maps)

Largo buys another Williamsburg rental building for $32M

Partnership for New York City CEO Kathryn Wylde, Dan Garodnick and Slate Property Group's David Schwartz (Credit: Getty Images)

Real estate pros call tenant takeover bill flawed

The total dollar value of deals in 2019 dropped 40 percent from the year before to $6.91 billion (Credit: Unsplash)

Multifamily market had its worst year since 2011

Harbor Group International's Jordan Slone and Kushner Companies's Charlie Kushner  (Credit: Sasha Maslov, Harbor Group)

Multifamily still delivers as investors avoid rent control