The Real Deal New York

Bronx i-sales grew in first half of 2016, multifamily market remained strong

Overall pricing and number of sales rose year-over-year
By Kyna Doles | July 28, 2016 05:31PM

Ariel Property Advisors

(credit: Ariel Property Advisors)

Buyers aren’t shying away from the Bronx’s investment sales market, even as the rest of the city saw the number of deals shrink in the first six months of the year, according to the mid-year report from Ariel Property Advisors.

Sales from 322 properties and 188 deals in the borough totaled $1.4 billion in the first half of 2016. Dollar volume rose seven percent year-over-year and property volume increased 10 percent.

The borough’s top deals include a 38-building multifamily portfolio that Harbor Group International and Isaac Kassirer bought for $140 million and a Bronx factory building that sold for $44 million to the Bluestone Group TRData LogoTINY and the Altmark Group.

The Bronx’s multifamily market continued to flourish, with dollar and property volume up from the first half of 2015. Sales of multifamily buildings totaled $989.3 million, and accounted for 73 percent of all property types. Dollar volume was up 12 percent-year-over-year and sales volume increased from 68 to 200 in the first six months of 2016.

Development sites also saw modest sales growth. Dollar volume for dev site deals totaled $262.7 million, a 12 percent jump over the first half of 2015, while building volume rose 10 percent to 322. Developers Joshua and Jack Guttman shelled out $24 million for a 10.5-acre site in Hunts Point and the city tapped developers to build an affordable housing complex at a Mott Haven development site.

Commercial sales volume took a hit, slipping from 32 to 24 year-over-year, but buyers spent 13 percent more this year than in the first half of 2015.

The market will likely remain steady through the remainder of the year, with little change in pricing and property volume, Ariel Property Advisors said.