Dollar volume dropped 43% year-over-year, but jumped 42% over last quarter: report
The New York City multifamily market rebounded from a near-lifeless first quarter, but was still sluggish relative to the same period last year.
Overall, 278 buildings were traded in 119 deals that totaled $1.9 billion, up 42 percent from the first quarter, but down 43 percent compared with last year, according to a report by Ariel Property Advisors. As for pricing, both the Bronx and Queens saw prices appreciate while Brooklyn continued to soften.
In Manhattan, the total dollar volume was $507 million across 31 deals, the largest of which was FBE Limited’s $50 million purchase of a four-building portfolio in the Upper West Side’s Manhattan Valley.
Northern Manhattan saw a 181 percent increase in dollar volume: a total of $342 million was spent in 24 transactions, with four deals exceeding $20 million. The biggest transaction was the $40 million purchase of a 119-unit building at 385-395 Fort Washington Avenue in Washington Heights.
In Brooklyn, 90 buildings traded for $502 million in 29 sales, three of which were north of $75 million. That’s 9 percent fewer transactions than last quarter, and 76 percent more in dollars spent. The biggest deal, and the only one over $100 million, was Fairstead Capital’s purchase of a 42-building affordable-housing portfolio in Sunset Park from E&M Associates.
The Bronx gets the gold star this quarter for being the only sub-market to see more multifamily dollars spent than last year. The borough saw 20 trades for a total of $325 million, a 16 percent increase from 2016, but no growth relative to the previous quarter. Isaac Kassirer’s Emerald Equity Group had its hand in two significant transactions, as the seller of a 209-unit portfolio to Pistilli Realty for $38.5 million, and the buyer of Prana Investments’ 291-unit Fordham portfolio for $49 million.