Report: New York Multifamily Sales Up


The number of multifamily property sales in New York City increased 19 percent year-over-year to 1,230, according to a new report from Ariel Property Advisors. The dollar volume of the sales also increased, up 4 percent to $8.87 billion.

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Northern Manhattan and Brooklyn both experienced gains in pricing, with cap rates declining over 100 basis points. Dollar volume in Northern Manhattan more than doubled to $1.6 billion while Brooklyn registered an 18 percent jump to $1.2 billion.

mfyir13 Report: New York Multifamily Sales UpThe multifamily market in Queens also had a big year, with dollar volume up 214 percent year-over-year to $1.088 billion. Significant transactions in the borough included the sale of 41-23 Crescent Street in Astoria for $688 per square foot.

Deal flow was less robust in Manhattan below 96th Street, where the number of multifamily transactions declined 28 percent to 144 in 2013. The dollar volume of those deals also fell 28 percent to $3.897 billion.

“New York City multifamily assets saw aggressively higher prices throughout all submarkets and pricing metrics in 2013 as demand, driven by rising rents and low interest rates, continued to outpace supply,” said Shimon Shkury, president of Ariel Property Advisors, in a statement.  “Average capitalization rates dropped while gross rent multiples, prices per square foot, and prices per unit rose.”

The deals analyzed by Ariel Property Advisors included those with a minimum sale price of $1 million, a minimum gross area of 5,000 square feet and a minimum of 10 units.