NY investment sales hit lowest point since pandemic began

In Q1, sales totaled $1.84B

New York /
May.May 03, 2021 09:00 AM
440 West 57th Street and 15 Park Row (Google Maps)

440 West 57th Street and 15 Park Row (Google Maps)

New York City’s investment sales market hit a new low in the first quarter of 2021.

The total dollar volume of deals recorded in the first quarter was $1.84 billion, down 75 percent compared from the same period last year, and down 67 percent from the fourth quarter of 2020, according to Ariel Property Advisors’ quarterly investment sales report. There were 311 total closed i-sales between January and March.

While the data would seem to indicate that the market is backsliding, that’s not necessarily the case, said Shimon Shkury, president of Ariel Property Advisors.

Many deals that were in contract at the onset of the pandemic finally closed at the end of 2020, resulting in a higher total sales volume in the fourth quarter, Shkury noted. And because not many contracts were signed during the pandemic, not many closings happened in the first quarter. But that’s getting better, he said.

“The first few months of the year have been robust in terms of contract signings,” he said. “We’re in the upswing of a recovery right now.”

He cited recent in-the-works deals such as Moinian Group buying SL Green’s 20 percent stake in the Sky apartment tower at 605 West 42nd Street, and RXR Realty acquiring the rental portion of CIM Group and LIVWRK’s 85 Jay Street.

“I think that moving forward in the year, we’ll see larger transactions taking place,” he said.

But there’s still a long way to go, particularly for the office market, which was hit especially hard during the pandemic — and the first quarter of the year was no different. Only six office deals closed in the city between January and March, down 71 percent from a year ago, and 57 percent from the fourth quarter.

The largest deal that closed during the first quarter was the 600-room Watson Hotel at 440 West 57th Street, which sold for nearly $155 million — or about $260,000 per key — to Yellowstone Real Estate Investments. The buyer bought the leasehold on the property along with the mortgage held by HSBC. The previous owner, BD Hotels, defaulted on that loan last year.

The first quarter’s largest multifamily sale was a pair of buildings at 15 Park Row and 19 Ann Street in the Financial District, which J&R Music World sold to Atlas Capital Group for $142 million.





    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
    (Moinian Group, CVS)
    CVS signs lease for 512 7th Avenue store
    CVS signs lease for 512 7th Avenue store
    Paramount CEO Albert Behler and 60 Wall Street (Getty, Paramount Group)
    Paramount Group plans $250M facelift for 60 Wall
    Paramount Group plans $250M facelift for 60 Wall
    U.S. President Joe Biden removes his mask before speaking about updated CDC mask guidance. (Getty)
    In CDC we trust: Mask guidance prompts changes
    In CDC we trust: Mask guidance prompts changes
    Commercial real estate investment was harder-hit in the New York metro and Bay Area than in Greater Los Angeles. (iStock)
    LA was top spot for commercial property investment in Covid-ravaged year
    LA was top spot for commercial property investment in Covid-ravaged year
    Major real estate stocks ended in negative territory this week. (Getty)
    Real estate stocks, markets jittery over inflation
    Real estate stocks, markets jittery over inflation
    arrow_forward_ios

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

    Loading...