NYC investment sales showed signs of recovery at end of 2020

Overall dollar volume in Q4 was $4.7B

New York /
Jan.January 25, 2021 02:45 PM
Related’s Stephen Ross and 265-275 Cherry Street (Google Maps; Getty)

Related’s Stephen Ross and 265-275 Cherry Street (Google Maps; Getty)

New York City’s investment sales market is showing some modest signs of recovery.

According to the latest quarterly report from i-sales brokerage Ariel Property Advisors, the total dollar volume in the fourth quarter was $4.7 billion, up 18 percent from the third quarter total. That was just about a half of the total volume during the same period last year, but the quarter-over-quarter jump is noteworthy, said Ariel’s president Shimon Shkury.

“We’re starting to see real evidence of improvement, not just in transaction volume, not just in pricing, but in general activity and fundamentals as well,” he said.

During the second and third quarters, Shkury said, investors were reluctant to make deals because of mounting uncertainty stemming from the pandemic. But almost a year into the health crisis, they have more data to work with — and thus, can “get a lot more comfortable with investing,” as Shkury put it.

Still, the number of transactions hasn’t recovered to 2019 levels: There were 290 i-sales at the end of 2020, down by 19 percent from the third quarter.

Manhattan’s multifamily market recorded just over $1 billion in transactions. That’s 4.5 times what it was in the third quarter, and a slight increase over the same period in 2019, according to the report.

The increase was partly fueled by Related Companies’ $424 million buy of a pair of Section 8 buildings on the Lower East Side. The deal, which closed on Dec. 28, was the largest multifamily transaction in 2020, according to the brokerage. The buildings at 265-275 Cherry Street, known as Lands End II, hold about 500 units in total, The Real Deal previously reported.

Multifamily also led the way in the Bronx, where the total dollar volume in that sector was $255 million.

In Queens, the warehouse and storage sector — which has been one of the few bright spots in the pandemic-driven downturn — fared best. In Q4, investors poured $148 million into the industrial sector, exceeding last year’s $123 million. CubeSmart’s $48.5 million purchase of a 79,694-square-foot self-storage facility at 33-24 Woodside Avenue in Sunnyside was one of the biggest deals.

CubeSmart is also expanding in Brooklyn: The company purchased a 79,000-square-foot storage facility at 338 3rd Avenue in Gowanus for $77 million, and paid $50 million for a new ground lease at a nearby lot at 163 6th Street, where a 76,000-square-foot storage building is already located, The Real Deal previously reported.

Staten Island also saw some gains in the industrial sector. Most recently, DH Property Holdings purchased a 45-acre parcel at 1900 South Avenue for $66 million, and is planning to develop a warehouse as big as 400,000 square feet. The deal closed on Dec. 30.





    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
    Chetrit’s Queens industrial loft signs warehouse startup for 90K sf
    Chetrit’s Queens industrial loft signs warehouse startup for 90K sf
    Chetrit’s Queens industrial loft signs warehouse startup for 90K sf
    Donald Trump (Getty)
    Pandemic dashed one-quarter of Trump’s NYC retail tenants
    Pandemic dashed one-quarter of Trump’s NYC retail tenants
    NYC hotels hoping for holiday business swell likely to be disappointed
    NYC hotels hoping for holiday business swell likely to be disappointed
    NYC hotels hoping for holiday business swell likely to be disappointed
    Princeton proud: Eric Schmidt reportedly bidding to save club
    Princeton proud: Eric Schmidt reportedly bidding to save club
    Princeton proud: Eric Schmidt reportedly bidding to save club
    Children’s Magical Garden at at 157 Norfolk Street (Google Maps, Facebook)
    Children’s Magical Garden claps back against developer who claimed defamation
    Children’s Magical Garden claps back against developer who claimed defamation
    Clockwise from top left: 2875 Morningside Heights, 38-21 12th Street in Long Island City, 46 Nevins Street in Brooklyn (Google Maps)
    Investors flip NYC industrial, hotel, office buildings in pre-holiday frenzy
    Investors flip NYC industrial, hotel, office buildings in pre-holiday frenzy
    Mitchell Kossoff (iStock)
    Mitch Kossoff to plead guilty
    Mitch Kossoff to plead guilty
    arrow_forward_ios

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

    Loading...