UPDATED, Feb. 2, 4:55 p.m.: After steady growth in volume in recent years, the Brooklyn multifamily market hit its first reality check in 2016. The year’s activity fell far below the peak numbers of 2015, according to a new year-end report from Ariel Property Advisors.
The borough saw 865 multifamily transactions totaling $4 billion for the year, 12 percent less than the $4.5 billion in sales in 2015, but 13 percent above 2014 totals. That’s because, despite a slight slowdown in transaction activity, prices continued to rise.
All pricing indicators for the Brooklyn multifamily market pointed north, registering a 9 percent growth overall, while price per square foot climbed 15 percent to $376 per square foot.
Several large multifamily transactions drove the year’s dollar volume. One was Greystar Real Estate Partners’ $125 million purchase of two rental buildings in Williamsburg, and World Wide Group’s $103 million acquisition of 130-unit Greenpoint rental known as the Viridian.
The numbers here refer to an analysis of multifamily assets above $850,000. In another analysis of the multifamily market by Ariel , limited to assets with 10 units or more, the activity drop-off was more drastic, with dollar volume dropping 28 percent to $2.7 billion and transactions dropping 22 percent. Pricing showing the same 9 percent growth.