According to a report from Ariel Property Advisors, New York City multifamily sales have been experiencing a healthy spring season. The firm’s Multifamily Month in Review for March showed an increase in sales, with Brooklyn taking the lead as most active of the boroughs.
There were a total of 50 multifamily transactions—62 buildings whose sales came to $392.4 million for the month. This represents a 43 percent increase in volume compared to the month previous. Of the 62 buildings that traded in March, 22 were in Brooklyn, where the borough’s 18 transactions carved out $69 million of total sales.
“The March numbers reinforce our belief that 2012 will be a very strong year for the multifamily market,” said Shimon Shkury, president of Ariel Property Advisors. “From rising rents to the availability of financing to the scarcity of product, the scales are clearly tipped in favor of sellers.”
Overall, Ariel’s analysis found that March numbers in Manhattan lagged sales seen in the borough the previous month—in fact transactions dropped 23 percent and the number of buildings traded dropped 50 percent. A look back to March 2011, however, shows how much the market has improved in the long term. The dollar volume for March 2011 was a dismal $38.9 million. It jumped to $212.8 million in March 2012.
The report surveys building sales over $1 million.