NEW YORK CITY—The dollar volume of New York City’s multifamily transactions in June jumped 107 percent from May and 21 percent year-over-year, according to Ariel Property Advisors’ Multifamily Month in Review for June.
In June, the city saw 55 multifamily transactions comprised of 84 buildings totaling $929 million in gross consideration, compared to 61 transactions comprised of 85 buildings totaling $449.68 million in May 2013, and 58 transactions comprised of 84 buildings totaling $765 million in sales in June 2012. While transaction volume was down slightly on a month-to-month and year-over-year basis, the updated figures for June confirm an even stronger second quarter for multifamily sales than previously reported.
“The June figures are noteworthy because of the month’s strong institutional sales consisting of 10 transactions that traded north of $20 million,” said Shimon Shkury, president of Ariel Property Advisors. “Also remarkable was the jump in dollar volume for multifamily transactions in Queens—3,848 percent year-over-year and 503 percent month-to-month—to $240.8 million.”
Manhattan led the month in transaction and dollar volume with 16 sales comprised of 31 buildings totaling $427 million in gross consideration. The largest deal of the month took place at 1710 Third Avenue, a 521-unit elevatored multifamily building with retail on the corner of Third Avenue and 96th Street that sold for $252 million. This transaction represented nearly $500,000 per unit and $495 per square foot. Another notable sale was 203 West 107th Street, a 28-unit elevatored building between Broadway and Amsterdam Avenue. Selling for $10.75 million, the transaction reportedly represents a rent multiple north of 23 times.
Queens had a robust month in terms of dollar volume with over $240.8 million in sales taking place across seven transactions. These sales included the $85.25 million acquisition by Treetop Development of Saxon Hall, a 16-story rental apartment complex located at 62-60 99th Street in Rego Park. The price represents roughly $170 per square foot.
Northern Manhattan also had an active month with $113.8 million in sales taking place over nine transactions. The largest was the sale of the Dunbar portfolio, a 550 unit portfolio that sold for $55 million. Impressive numbers were also seen in the sale of 283 West 147th Street, which sold for $3 million or $278 per square foot.
Brooklyn saw 12 transactions comprised of 15 buildings totaling $69 million in gross consideration. Notable sales include 93 India Street, a 20-unit walk-up in Greenpoint that sold for $7.6 million or $432 per square foot. In Brooklyn Heights, a 10-unit walk-up at 161 Columbia Heights sold for $3.95 million, which translates to over $630 per square foot. Several other sales saw cap rates below 5 percent.
The Bronx saw a relatively steady level of activity compared on a month-to-month and year-over-year basis with 11 trades comprised of 14 buildings totaling $78.68 million. Nearly half of this dollar volume came from the sale of 1749 Grand Concourse, a 275 unit elevatored building in Mount Hope that sold for $35 million. The sale represents $83 per square foot and $127,273 per unit.
For the six months ended in June 2013, the average monthly transaction volume dropped to 44 transactions per month. The six-month average dollar volume also fell to $$500.360 million per month. The declines reflect the first time in the last six months that the exceptionally high figures of December 2012 are not included, so they paint a more accurate picture of multifamily sales activity during the first half of the year.
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; Brooklyn Mid-Year and Year-End Sales Reports; Northern Manhattan Mid-Year and Year-End Sales Reports; and the Bronx Mid-Year and Year-End Sales Reports. More information is available at arielpa.com.