The multifamily market hit a summer slump

The dollar volume of deals in July fell 37% below the monthly average

New York /
Sep.September 18, 2018 06:00 PM

From left: 838 West End Avenue, 495 East 188th Street in the Bronx, and Isaac Kassirer (Credit: Luxury Rentals Manhattan, Apartments, and Emerald Equity Group)

New York’s multifamily market hit a summer slump.

The city saw 38 transactions across 70 buildings worth a total of $530.81 million in July, according to a report from Ariel Property Advisors. Compared to the monthly average for the first half of the year, this was a 37 percent drop in dollar volume and an 8 percent drop in transaction volume. Building volume ticked up by 3 percent.

Compared to June, dollar volume dropped by 23 percent, transaction volume dropped by 10 percent, and building volume went up by 17 percent. New York’s multifamily market had already slowed down during the second quarter of the year compared to the first quarter, seeing a 3 percent drop in dollar volume, a 22 percent drop in transaction volume and a 24 percent drop in building volume.

The only submarket that saw dollar volume increase in July was the Bronx, while the largest market share was in Brooklyn.

A pair of major deals from Isaac Kassirer, however, buoyed sales volume.

Manhattan saw just seven transactions across 14 buildings for $176.64 million in July. This was a 24 percent decrease compared to the first half of the year for transaction volume, a 37 percent decrease for dollar volume and a 24 percent increase for building volume. The largest deal was the $72 million sale of 832-838 West End Avenue on the Upper West Side, which Kassirer flipped to Akelius Real Estate Management after signing a contract for it late last year for $64.5 million.

The slowest submarket in July was Northern Manhattan, which had just one deal for one building: the roughly $7.43 million sale of 561-63 West 140th Street.

The Bronx, which got off to a strong start this year, continued to fare well in July with nine transactions across 17 buildings for $91.95 million. This was a 3 percent decline by building volume but a 6 percent increase by transaction volume and an 8 percent increase by dollar volume. Kassirer had the largest deal in this borough as well thanks to his $25.75 million sale of a multifamily portfolio to a private family completing a 1031 exchange.

Brooklyn also had a solid month with 15 sales across 30 properties for $220.25 million. Dollar volume dropped by 32 percent, but transaction volume increased by 15 percent, and building volume increased by 33 percent. The largest deal was the $50 million sale of 3528 Mermaid Avenue, a 264-unit mixed-use property on Coney Island.

Queens had six deals across eight buildings for $34.55 million in July. These were 20 and 14 percent increases in transaction and building volume, respectively, and a 55 percent decrease in dollar volume. The largest deal was the $11 million sale of 23-05 29th Street in Astoria, a 23-unit building that developer Ilias Thedoropoulos sold to investor Rey Nieto.


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
This former plantation in Virginia was purchase by an Air Force veteran who later found out his relatives had been enslaved there. (Google)
Air Force vet unknowingly buys home where his ancestors were enslaved
Air Force vet unknowingly buys home where his ancestors were enslaved
The Colorado Fire burns down toward the Bixby Bridge in Big Sur, California, early Saturday morning. (Photo by Karl Mondon/MediaNews Group/The Mercury News via Getty Images)
Wildfire near Big Sur sends hundreds fleeing
Wildfire near Big Sur sends hundreds fleeing
360 Kingsland Avenue in Greenpoint, Brooklyn (Google)
Sitex Group pays $30M for Greenpoint industrial property
Sitex Group pays $30M for Greenpoint industrial property
(Getty)
Intel investment in new Ohio chip plant could reach $100B
Intel investment in new Ohio chip plant could reach $100B
Et tu, Caravaggio? Roman home asking $534M gets zero bids at auction
Et tu, Caravaggio? Roman home asking $534M gets zero bids at auction
Et tu, Caravaggio? Roman home asking $534M gets zero bids at auction
arrow_forward_ios

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

Loading...