The investment property sales market in Manhattan had a strong 2018, with large institutional deals driving dollar volume to its highest level since 2016.
Overall, the borough saw $24.4 billion worth of activity across 501 transactions and 626 buildings, according to a report from Ariel Property Advisors. These were respective year-over-year increases of 33 percent, 2 percent and 8 percent.
The large increase in dollar volume was driven by massive deals including Google’s roughly $2.4 billion acquisition of Chelsea Market. Midtown West had the largest total number of sales by dollar volume at $7.54 billion, followed by Midtown East at $7.01 billion.
Office and commercial properties made up 58 percent of Manhattan’s total dollar volume at $14.05 billion, and multifamily properties were the top category by number of transactions with 194 deals across 248 buildings.
Notable multifamily deals in the borough for 2018 included the $416.1 million sale of 101 West End Avenue from Equity Residential to the Dermot Company and a Dutch pension fund and the $83 million sale of 102-116 Eighth Avenue from the Brodsky Organization to Dalan Management Associates.
Development sites had a solid year as well with 73 deals across 122 properties for a total value of $3.82 billion. This was a 36 percent increase in dollar volume, but that total may be skewed by developers looking to acquire more significant projects, according to Ariel. Silverstein Properties, for instance, acquired The Walt Disney Company’s portfolio on West 66th Street for $1.15 billion.
Ariel Property Advisors director Andre Sigourney said he expects to see a solid Manhattan market in 2019 as well.
“There remains a strong appetite for land,” he said, “and developers are enthusiastic about producing new office product to compete with Hudson Yards.”