Prices for multifamily properties in the Bronx had the strongest gains of any New York submarket in 2017, with price per unit and price per square foot both rising by 7 percent, according to a new report from Ariel Property Advisors.
The price per unit in the borough last year went up to $176,000, while the price per square foot went up to $196, the report says. The biggest multifamily deal of the year was the $78 million purchase of 2862-2864 Park Avenue in Mott Haven, which spans 150,000 square feet and contains 520 units.
Volume in the borough dropped — as it did in many other parts of the city — but the declines in the Bronx were not as steep as they were elsewhere. Dollar volume checked in at $2.17 billion in 2017, a 2 percent drop from 2016, and the year saw 300 transactions across 452 buildings, both drops of 15 percent from the prior year, according to the report.
The biggest share of the action took place in the southwest Bronx, which saw 48 percent of the borough’s dollar volume. This was followed by the northwest Bronx at 30 percent, the southeast Bronx at 15 percent and the northeast Bronx at 7 percent.
A majority of the money was concentrated in the borough’s multifamily properties, which took up 59 percent of the dollar volume and 50 percent of the transaction volume. However, dollar volume within multifamily properties still fell, dropping 12 percent to $1.27 billion.
The borough’s development market comprised 31 percent of overall transaction volume in the Bronx, with 161 properties overall worth $430.35 million. One of the larger deals was Extell’s $75 million sale of the Whitestone Multiplex Cinemas site at 2505 Bruckner Boulevard to Innovo Property Group and Square Mile Capital, where the buyers plan to add up to 740,000 square feet of industrial space to help attract e-commerce companies to the site.
Other large Bronx deals for 2017 included the roughly $115 million sale of 260-268 East 161st Street, the roughly $44 million sale of 2103 Honeywell Avenue and the $20 million sale of 231 West 230th Street.