Multifamily trades in the upper portion of Manhattan jumped 92 percent year-over-year in January, according to a new report from Ariel Property Advisors.
The area saw 13 deals in January worth $115 million, compared with eight deals worth $59 million during the same period last year. RCR Management, for example, bought a six-story rental building at 225 Central Park North for $33 million.
Overall, the size and quantity of New York City multifamily deals grew in January. There were 65 deals involving 86 buildings and $739 million — an increase in deal volume by 14 percent and transaction volume by 8 percent, according to the report.
Manhattan saw the closings of 21 properties totaling $249 million. In one of the standout trades, Gaia Real Estate and Acro Group picked up a Murray Hill rental building called the Montrose for $75 million, and is planning a condo conversion.
There were 15 deals in Brooklyn and 13 in Queens – totaling $230 million and $73 million respectively. The Bronx had one of its weaker months, with 15 deals totaling $70 million. Nevertheless, prices are still on the rise in the borough, according to Shimon Shkury, president of Ariel Property Advisors.
“Pricing has been particularly strong in the Bronx where the average cap rate in the last six months fell below 6 percent,” Shkury said.
Despite the year-over-year growth, the results did not hold a candle to December 2014, as many deals close by the year’s end for tax purposes. In December, 116 multifamily buildings traded in deals worth a total of $1.59 billion.