The six-year run-up in Brooklyn’s investment sales market has come to an end, as the borough saw a 17 percent decrease in investment sales in 2016 from the previous year, according to a new report from TerraCRG.
Brooklyn saw 1,504 transactions in 2016 for a total sales volume of $7.8 billion, the commercial brokerage’s data showed. That was down from $9.5 billion worth of sales in 2015, and a 20 percent drop-off in the number of trades.
The average price per square foot continued to climb. The price per square foot for development sites rose by 5 percent to $206 per square foot, while values for multifamily properties climbed 18 percent to $361 per square foot.
The Jehovah’s Witnesses’ sale of its Watchtower portfolio in Dumbo represented 11 percent of sales in 2016, totaling $855 million, the report showed. Kushner [TRDataCustom], CIM Group and LIVWRK paid a combined $685 million for two of the sites, at 85 Jay Street and 25-30 Columbia Heights.
“In 2017, we expect the Brooklyn market to continue to stay strong. With no major portfolio trade such as the Watchtower, total dollar volume will either plateau or decline slightly. While inventory continues to be tight, prices of walk-up multifamily assets are expected to remain very strong,” TerraCRG CEO Ofer Cohen said.