The Real Deal New York

Multifamily market in BK, Queens rebounds

Queens had its first $100M+ deal in November
January 12, 2018 09:30AM

The multifamily market bounced back in Brooklyn, and Queens but stayed in the red in Manhattan.

The total dollar volume for the city was $578 million across 40 deals, down 25 percent year-over-year and 15 percent from October, according to a report from Ariel Property Advisers. The number of deals and buildings traded increased by 25 and 30 percent year-over-year, indicating that while a slew of smaller deals in the outer boroughs closed in November, big-ticket deals remained sparse.

In Manhattan, there were nine single-asset deals in November totaling $75 million, the lowest since February 2011. The largest transaction was a $17.5 million deal for a 40-unit building at 37-39 King Street in Soho.

In Northern Manhattan, 15 buildings traded in eight deals totaling $105 million, up 76 percent from the previous month. The largest deal was Heritage Realty’s purchase of a 162-unit portfolio three buildings in Inwood, in three separate transactions, for a total of $41 million.

Brooklyn’s dollar volume grew by 200 percent to $104 million across nine deals, up from $35 million in 2016. The priciest trade in the borough was the sale of an East Flatbush portfolio with 127 units for $26.5 million. David Malek’s Malek Management and Peter Rubenwurzel’s Coney Realty Group were the buyers.

Queens was the star of November, with dollar volume skyrocketing to $183 million across five deals, thanks to the borough’s first transaction above $100 million. That was Treetop Development’s $135 million purchase of a 924-unit rental complex at 711 Seagirt Avenue in Far Rockaway. The dollar volume was 641 percent higher than last November, and 350 percent higher than October.

The Bronx saw more modest increases with a total dollar volume of $110 million for nine deals, up 30 percent from last November’s $85 million.