NEW YORK CITY — New York City’s multifamily market showed year-over-year gains across all metrics in September with the number of buildings sold and the dollar volume of the trades jumping 64 percent and 71 percent, respectively, according to Ariel Property Advisors’ Multifamily Month in Review for September.
For the month, transactions rose a modest 6 percent to 53 transactions comprised of 110 buildings totaling $657.281 million, compared to September 2012, which saw 50 transactions comprised of 67 buildings totaling $384.570 million.
Compared to the prior month of August, September showed a 7 percent increase in building volume, a 23 percent increase in dollar volume, and a 21 percent decline in transaction volume.
“Multifamily dollar volume remained strong in September, reflecting the significant number of institutional portfolio sales that took place during the month,” said Shimon Shkury, president of Ariel Property Advisors. “Additionally, we saw solid pricing metrics across all submarkets, particularly in Queens.”
The following is a breakdown of the September 2013 multifamily data by submarket:
Manhattan. With 14 transactions comprised of 43 buildings totaling $323.074 million in gross consideration, Manhattan led the month in transactions, buildings sold and dollar volume. One notable transaction consisted of a $71.5 million sale of seven adjacent buildings in Kips Bay at Third Avenue and 33rd Street. That price translated to nearly $772 per square foot and $464,000 per unit. Another notable trade was the $22 million sale of 357 West 45th Street, which translated to $554 per square foot and $271,000 per unit.
Brooklyn. Brooklyn had an active month with 13 transactions comprised of 20 properties totaling $121.718 million in gross consideration. JDS Development’s sale of 202 8th Street in Gowanus was a notable transaction that sold for $37.75 million, which translates to $669 per square foot at $740,000 per unit. Another was 180 Scholes Street, a 34 unit walk-up building in Williamsburg that sold for $18.5 million, or $352 per square foot.
Northern Manhattan. The multifamily market in Northern Manhattan saw seven transactions consisting of 21 buildings and $107.665 in gross consideration, a year-over-year increase in dollar and building volume, but a decline month-to-month. Portfolio sales continue to account for a significant portion of the activity uptown.
The Bronx. Multifamily transactions in the Bronx totaled 13 in September and the dollar value of those trades totaled $80.99 million. Three elevatored buildings located at 751 Gerard Avenue, 1014 Gerard Avenue and 2675 Creston Avenue sold for $21 million, which translates to $92 per square foot and $103,960 per unit. 283 East 234th Street sold for an impressive $3.825 million, which is $142 per square foot and $159,375 per unit.
Queens. Queens bounced back from a lackluster August with six sales totaling $23.834 million in gross consideration. Included in this was a prime, corner Astoria multifamily building located at 25-88 28th Avenue that sold for $3.334 million, or $312 per square foot. In Woodside, a 41 unit property sold for $6.25 million, which translates to $202 per square foot and $152,000 per unit.
The report’s analysis of the six months ended in September 2013 shows that in Queens the average cap rate dropped to 4.98 percent and the average gross rent multiple rose to 10.79 compared to 5.93 percent and 9.62, respectively, for the six months ended September 2012.
Also in this six month period, average monthly multifamily transaction volume ticked up to 60 transactions per month. For the third month in a row, the six-month average monthly dollar volume also went up, reaching $742.582 million in September.
The multifamily transactions included in the analysis occurred at a minimum sales price of $1 million, with a minimum gross area of 5,000 square feet, and with a minimum of 10 units.
Ariel Property Advisors is a New York City investment property sales firm with an expertise in the multifamily market. The firm also produces a number of research reports including the Multifamily Month in Review: New York City; Multifamily Quarter in Review: New York City; Multifamily Year in Review: New York City; and semi-annual sales reports on Manhattan, Northern Manhattan, Brooklyn, Queens, and the Bronx. More information is available at arielpa.com.