The Real Deal New York

NYC multifamily sales hit a slump in October

Dollar volume falls under $1 billion September mark
By Kyna Doles | December 21, 2015 06:20PM

New York City’s multifamily market slowed in October to its lowest level since April, according to a report from Ariel Property Advisors.

Dollar volume from sales across the city was down 53 percent from $1.7 billion in September, to $783 million in October. Sales slipped even further from last year’s figures. Dollar volume was down 58 percent compared to $1.8 billion in October 2014.

The city saw 85 sales across 51 transactions, a 38 percent and 18 percent decline respectively from the previous month.

“While the multifamily market got off to a slower [fourth-quarter] start in October, we believe this results from the lack of supply, not demand,” said Ariel Property Advisors’ Shimon Shkury. “Pricing remains very healthy for property owners and we’re expecting a strong finish to the year on several fronts.”

Brooklyn had the most impressive month compared to its neighboring boroughs, including Manhattan which dominated sales in September.

Dollar volume from Brooklyn sales totaled $232 million in October, a 4 percent increase from the previous month.
The borough saw 23 sales from 12 transaction, including Oak Tree’s $60.2 million acquisition for a 149-unit portfolio spanning Clinton Hill, Crown Heights and Fort Greene.

Manhattan multifamily sales took a hit across the board when it came to dollar volume, building sales and transaction volume. The area had $210.4 million in sales during October, a fraction of the $1.1 billion it reached the prior month. Nineteen buildings sold in 15 transactions, a decline from the 58 sales Manhattan saw in September.

Among those deals, Benchmark Real Estate Group picked up a pair of Chelsea rental buildings for $26.5 million.
Despite sluggish sales across the city, the Bronx had the strongest month overall. Sales jumped 463 percent from $29.7 million in September to $167.3 million in October. The area had more building sales than any other borough in October, with 25 buildings trading across 10 deals. Helping to boost sales, Asden Properties scooped up a 13-building portfolio in the area for $90 million.

Two sales in Queens accounted for 83 percent of the borough’s dollar volume. Galil Management purchased a 52-unit rental building at 83-30 Kew Gardens Road for $53 million and a Jackson Heights multifamily sold for $22 million. The borough had a total of seven sales and six transactions totaling $67.6 million.