New York’s multifamily market saw more than $2B worth of deals in Q3

Manhattan drove dollar volume with $1.1B in transactions

101 West End Avenue and Sam Zell (Credit: Getty Images)
101 West End Avenue and Sam Zell (Credit: Getty Images)

New York’s multifamily market continued to rebound from a moribund 2017 with a strong third quarter, seeing year-over-year gains in dollar volume, transaction volume and building volume, according to the latest multifamily report from Ariel Property Advisors.

The city saw 115 multifamily deals across 186 buildings worth $2.23 billion overall. This marked a 40 percent increase in dollar volume, a 12 percent increase in transaction volume and a 22 percent increase in building volume year over year. Dollar volume did drop by 7 percent compared to the second quarter, while transaction volume rose by 6 percent, and building volume rose by 9 percent.

Manhattan drove the market by dollar volume with $1.12 billion in sales, almost half of the city’s total amount and a 69 percent increase from last year’s third quarter. Transaction volume stayed flat at 26 deals, while building volume increased by 32 percent to hit 41. The largest deal was Equity Residential’s sale of 101 West End Avenue to the Dermot Company and Dutch pension fund PGGM for $416.1 million.

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Northern Manhattan was the only bleak spot in the multifamily market, seeing declines in dollar, building and transaction volume compared to the third quarter last year. It saw 11 deals across 17 buildings for $119.66 million, respective declines of 45, 35 and 61 percent. The largest deal was the $18.45 million sale of 3440 Broadway from the estate of Upper East Side landlord Jacques Chretien to Harlem-based landlord Big City Realty.

The opposite was true in The Bronx, which saw annual gains across the board. The borough saw 32 transactions across 58 buildings worth $334.38 million overall. This was a 60 percent increase by transaction volume, a 41 percent increase by building volume and a 68 percent increase by dollar volume. The largest deal was The Lightstone Group’s $53 million purchase of three Bronx properties billed as the “Pelham Parkway Portfolio” at 2197 Cruger Avenue, 2198 Cruger Avenue and 2180 Bronx Park East.

Brooklyn was the submarket with the most transactions, seeing 35 deals across 56 buildings for $561.32 million overall. These were year over year increases of 9 percent, 22 percent and 51 percent, respectively. The largest deal was the $50 million sale of 3528 Mermaid Avenue, a 264-unit mixed-use building on Coney Island.

Queens was quiet yet again in the third quarter with just 11 transactions across 14 buildings for $93.33 million. However, these all still marked increases from last year’s third quarter. Transaction volume went up by 120 percent, while building volume rose by 75 percent and dollar volume rose by 95 percent. The largest deal was the $19.1 million sale of 29 Beach 32nd Street, a 107-unit building on Far Rockaway.