NYC Multifamily building sales plummeted in 2019

Small and midsize portfolio deals almost halved as a new rent law passed

New York /
Jan.January 15, 2020 09:00 AM
(Credit: iStock)

(Credit: iStock)

A clear picture of the effect of rent law reforms on New York’s multifamily housing market has emerged, and it’s not looking good for small and midsize sales.

Last year, the number of New York multifamily building transactions valued between $7 million to $75 million dropped 45 percent, from 385 sales in 2018 to 212 sales in 2019, according to the Commercial Observer, citing data from Ackman Ziff.

The city’s landlords were dealt a blow last summer as a new rent law was ushered in by a progressive wave of Democratic state lawmakers in Albany. The legislation, passed in mid June, drastically limited landlords’ ability to raise rents and evict tenants, reducing the value of buildings with rent-stabilized apartments.

The uncertainty of what legislators would enact was followed by uncertainty about the new law’s effect, depressing sales of multifamily buildings last year.

The Ackman Ziff report follows a drumbeat of others pointing to declines in the sector. A PropertyShark study found that In the first 11 months of 2019, the city recorded $7.3 billion in multifamily transactions — $3.8 billion less than the same period in 2018. That’s a decline of 34 percent.

Ariel Property Advisors last year issued figures for the third quarter that represented declines of 47 percent year-over-year in Manhattan, 49 percent in Brooklyn, 61 percent in the Bronx, 53 percent in Queens and 77 percent in northern Manhattan.

Rent reforms aren’t the only battle building owners have lost. Last month, a judge overturned a decision to rezone Inwood for more development, after tenant advocates launched a longshot campaign. The ruling is being appealed by the de Blasio administration. [CO] — David Jeans 


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
Loan surge at NYCB points to recovery of multifamily market
Loan surge at NYCB points to recovery of multifamily market
Loan surge at NYCB points to recovery of multifamily market
79 Clifton Place in Clinton Hill, Brooklyn and Freo Group CEO Matthias Luecker
Freo Group shops Clinton Hill multifamily for $35M
Freo Group shops Clinton Hill multifamily for $35M
215 West 84th Street and Naftali Group CEO Miki Naftali (Google Maps, Getty)
After $71M building purchase, Naftali tells tenants to scram
After $71M building purchase, Naftali tells tenants to scram
From left: 30 East 14th Street, 156 William Street, 196 7th Avenue and 66 West 88th Street (StreetEasy, Google Maps)
Blue Man Group’s school sells in FiDi for $20M
Blue Man Group’s school sells in FiDi for $20M
215 West 84th Street and Miki Naftali (Google Maps, Getty)
Naftali Group picks up UWS apartments for $71M
Naftali Group picks up UWS apartments for $71M
arrow_forward_ios

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

Loading...