New York’s multifamily market had a strong first half to 2018 after suffering a near-death experience last year, with Brooklyn outpacing Manhattan for the highest dollar volume in the city.
Overall, the city saw 251 transactions across 416 buildings worth $5.34 billion during the first six months of the year, according to a new report from Ariel Property Advisors. Although building volume was largely unchanged compared to the first six months of 2017, dollar volume rose 64 percent, and transaction volume went up 13 percent. There have been six transactions worth more than $100 million so far in 2018, compared to just one at this point last year.
The multifamily market did slow down slightly in the second quarter of 2018 compared to the first quarter. Dollar volume was $2.63 billion, a 3 percent decline; transaction volume was at 110, a 22 percent decline; and building volume was 179, a 24 percent decline.
Manhattan saw 53 transactions across 63 buildings worth $1.75 billion during the first half of the year. These represent marginal decreases compared to last year for transaction and building volume but a huge increase of 107 percent for dollar volume. The largest deal during the second quarter was Dalan Management and Elion Partners’ $66 million purchase of a double apartment building on the Upper West Side. All three metrics in Northern Manhattan (a separate market) went up compared to last year. The area saw 35 transactions across 59 buildings for $492.35 million, representing respective increases of 9, 31 and 21 percent. The largest deal in the second quarter was Gould Investors’ purchase of 155-159 East 96th Street for $25.45 million.
In the Bronx, 112 buildings were traded across 53 transactions for $548.41 million during the first half of the year. Transaction volume stayed the same compared to last year, while dollar volume dropped by 20 percent and building volume went up by 27 percent. The second quarter’s largest deal was Bernard Miller Entities’ $20.55 million purchase of 3508 Kings College Place and 263 East Gun Hill Road. Brooklyn led the way in dollar volume for the first half of the year, with $2.12 billion across 83 transactions and 145 buildings. This represented a 161 percent increase in dollar volume, a 41 percent increase in transaction volume and a 4 percent increase in building volume year over year. The dollar volume increase is largely due to the $904.61 million sale of Starrett City, the largest deal for 2018 so far in New York.
Queens was relatively quiet yet again, seeing 27 transactions across 37 buildings worth $424.79 million. Although this was an 8 percent increase in transaction volume, it was a 57 percent drop in building volume and a 15 percent drop in dollar volume compared to last year. The second quarter’s largest deal was the $127.5 million sale of Treetop Development’s central Queens portfolio.