Ariel Property Advisors Provides Insights into Nuanced NYC Market

Investors that are ready to pick up their pencils and make some deals are looking for an edge in the New York City market, and they’re finding it with Ariel Property Advisors. 

Ariel has a proven track record of success in both up and down markets that stems from three key components – a strong team, detailed market information and the ability to execute. In the current market, those attributes are more important than ever. “In any crisis, there’s also an opportunity,” said Shimon Shkury, President and Founder. “Our goal is to identify opportunities, and in cases where there are problems, we identify solutions so that our clients have options and can choose the best course.”

Three Groups, One Team

Ariel is organized into separate groups for investment sales, capital services and research. All three work together as one team reflecting the firm’s number one value–collaboration–with the research group also capturing and sharing insights for external use.

In fact, research was one of the catalysts for starting the company because when the firm launched in 2011, there was a lack of specific market data and truly insightful research. Founding Partner Ivan Petrovic recalled, “We designed our system around how we operate, prioritizing the centralization of data and resources which ultimately supports our One Team collaborative approach.”

Partner Sean R. Kelly, Esq. added, “The company has created an impressive and robust database, as well as its own “broker hub” that everyone at Ariel can access. We value sharing information about the market and clients with all our colleagues rather than operating in silos as many competitors and larger firms do.”

Ariel also produces 28 research reports annually on the multifamily market and submarkets of Manhattan, Northern Manhattan, Brooklyn, Queens and the Bronx, and creates 500+ on-demand reports for clients and the media. 

“The way we work with market information strengthens our bonds with long-time clients and gives us a great foundation to build new relationships,” said Founding Partner Michael Tortorici. “We take great pride in using our platform to provide solid advice grounded in the best market intel available and, when needed, to seamlessly execute transactions regardless of location or complexity.” 

Over the past decade Ariel has grown into a 60-person operation that has evaluated close to $200 billion in properties. Last year, Ariel completed investment sales and capital services transactions with a total aggregate value of $945 million across 103 trades involving more than 170 properties and advised on the value of 1,344 assets. 

The firm and its partners also have been recognized with numerous honors and awards, including the Commercial Observer’s Power 100, Crain’s list of Notable Leaders in Real Estate, GlobeSt. and Real Estate Forum’s Multifamily Influencer Award, Commercial Property Executive’s Top Broker and Best Investment Transaction (Portfolio), Connect Media’s Top Broker Award in Investment Sales and Capital Services and CoStar’s Power Broker Award.

Investment Sales: Leader in the Multifamily Market 

Ariel’s team, market insights and ability to execute on deals have helped position the firm as a leader in the New York City multifamily market. Among multifamily sales both over and below $25 million, Ariel consistently ranks among the top five most active multifamily brokers in New York City, both in the number of properties sold and total dollar volume of sales. Notably, the firm has been the top multifamily brokerage in the Bronx for the past two years, including arranging $255 million in multifamily sales last year – 27% of the dollar volume sold in that borough in that asset class.

The firm’s sharp focus on the multifamily sector has enabled brokers to develop an expertise across all asset types including free market assets such as smaller Tax Class A and B properties, rent-stabilized properties and the capital “A” affordable housing asset class, comprised of complex Section 8 and LIHTC deals.

Detailed market data is a critical commodity. Ariel understands there is a huge variance in market performance and asset values when you start digging into the specific type of multifamily asset and individual submarket.

The affordable housing market in particular has its own unique metrics and variables, such as regulatory agreements on things like rent contracts and tax incentives, all of which can influence future operating income and property values. Layered on top is the fact that New York City is very nuanced in terms of regulation, zoning, political issues and submarkets. That depth of understanding is evident in Ariel’s successful track record in selling affordable housing. For example, one of the major deals the firm brokered in the past year was the $232.8 million purchase and preservation of a 13-building affordable housing LIHTC portfolio consisting of 1,047 units in Manhattan, the Bronx and Brooklyn. Additionally, in May, Ariel arranged the sale of the Sea Park affordable housing portfolio, consisting of three multifamily properties and one development site in Coney Island, Brooklyn, for $150 million, one of the largest multifamily deals closed in Brooklyn to date in 2023. 

Founding Partner Victor Sozio noted, “We pride ourselves in our ability to thoroughly analyze large affordable housing portfolios with complex capital stacks. We can provide this analysis and make recommended courses of action for clients in a more timely and much more economical manner than traditional firms. It’s easy for an advisor to say, ‘this is what I would do if I were in your shoes,’ but our team can back that up with a comprehensive evaluation and our transaction history.”

Capital Services: Local and National Scope

Ariel’s Capital Services Group combines institutional-level expertise with the customer service of a nimble team skilled at working through complex financial transactions for clients with commercial properties nationwide including multifamily, mixed-use, medical office, industrial and development assets. 

“Serving clients in the New York metro area as well as across the country, Ariel’s Capital Services brokers have cultivated a network of lenders, strengthening current relationships and developing new ones due to their consistent deal flow and market knowledge,” said Paul McCormick, Partner, Sales Management. “The brokers are supported by a back office of analysts and associates who underwrite each deal. Our priority is running a process to obtain the best financing for our clients based on their needs.”

One Team Culture Fosters Collaboration

A core component of Ariel’s culture is the firm’s “One Team” philosophy. The fact that a client has an entire team behind their property is a tremendous value add. The firm’s partners are an important part of that equation, with senior leadership continuing to play a hands-on role in advising clients and working on transactions. 

Ariel has built its operating procedures and vision around a company value that focuses on empowerment. The mission statement of Ariel is to empower clients, employees and communities to reach their full potential. Aside from building a successful business, team members are also involved in their community supporting numerous non-profits, charities and professional organizations. 

That culture starts with hiring the right people. It also involves innovation, education and creating an environment where everyone is rooting for each other to be successful. 

“If you look at all of the bigger national companies that we compete against as an army, we would be the special ops unit in that army,” Shimon Shkury, President and Founder said. “We can be nimble and add real value to a client immediately without having to navigate any corporate noise or shareholder concerns.” 

This article was produced by The Real Deal’s Brand Studio Team in conjunction with Ariel Property Advisors. For more information about working with our Brand Studio Team please click here.