Sales volume falls, prices rise in BK multifamily market in 2016

The borough's 865 deals totaled $4B: Ariel Property Advisors

New York /
Feb.February 02, 2017 03:20 PM

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 TRData LogoTINY, 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.


Related Articles

arrow_forward_ios
Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
Here’s what the $10M-$30M NYC investment sales market looked like last week
Here’s what the $10M-$30M NYC investment sales market looked like last week
Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)
New NYC rent law “beginning to shut down investment”
New NYC rent law “beginning to shut down investment”
Numbers were down across the board (Credit: iStock)
New York’s multifamily market had its slowest first half of the year since 2011
New York’s multifamily market had its slowest first half of the year since 2011
186 North 6th Street and 165 North 5th Street in Brooklyn (Avison Young)
Co-living firm’s ex-flagship asks $65M
Co-living firm’s ex-flagship asks $65M
7 DeKalb Avenue with Avanath Capital Management CEO Daryl Carter and Daniel Brodsky (Brodsky, Avanath Capital, Getty)
Brodsky selling DoBro apartments for $100M
Brodsky selling DoBro apartments for $100M
Meyer Orbach with One and Two Sutton Place North (CityRealty)
Meyer Orbach, Josh Gotlib close on $850M of Solow apartments
Meyer Orbach, Josh Gotlib close on $850M of Solow apartments
From left: Wafra’s Fawaz Al-Mubaraki and The Westover Companies’ Guntram Weissenberger with 138 East 12th Street (JLL, Getty, Wafra, The Westover Companies)
Wafra sells East Village’s The Nathaniel for $57M
Wafra sells East Village’s The Nathaniel for $57M
From left: 608 Fifth Avenue, 22 North Loop Road, 38 West 36th Street (608 Fifth, Weiss/Manfredi, Morphosis, and Handel Architects, Apartments, Getty)
Top 10 Manhattan loans: Big lending enters deep freeze
Top 10 Manhattan loans: Big lending enters deep freeze
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...