Bolstered by large portfolio transactions and a robust September, New York City multifamily figures experienced a strong third quarter and gained momentum heading into year-end.
New York City saw 184 transactions comprised of 369 buildings totaling $3.8 billion, down 15 percent and 1 percent respectively from the second quarter, but a 21 percent increase from the previous quarter, according to the latest report from Ariel Property Advisors
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Transaction volume fell 14 percent over last year and building volume increased only 3 percent. “Prices are up considerably, and this is driving up dollar volume higher despite the number of properties trading at or below what we saw last year, ” said Shimon Shkury, president of Ariel Property Advisors.
Manhattan made a comeback after trailing behind Brooklyn’s strong dollar volume in the second quarter. The borough grossed $1.8 billion in multifamily sales, an 89 percent jump over last quarter. Blackstone Group closed on one of the city’s largest deals during the quarter, with the $690 million purchase of the Caiola portfolio.
Manhattan saw 99 building sales across 44 transactions, a 43 percent increase and 2 percent decline respectively from the second quarter. Brooklyn sales lowered after a spectacular second quarter for the borough. The area netted $751.3 million in sales, down 31 percent from last quarter, but 50 percent higher year-over-year.
Building and transaction volume also took a hit in the third quarter. The borough had 71 sales and 37 transactions, a 9 percent and 27 percent decline from the previous quarter. Even with fewer building trades, Queens saw an increase in dollar volume.
Sales in the borough totaled $203 million, a 19 percent increase quarter-over-quarter. The area saw 13 transactions consisting of 19 sales, including the $134 million sale of the Opal in Kew Gardens Hills. The Bronx had three large portfolio sales, including an 11-building package Black Spruce Management picked up in June for $51.5 million. Overall, the borough saw a decline in sales across the borough compared to the last quarter and year.
Dollar volume fell 7 percent from the second quarter to $445 million, and the area saw 71 sales across 37 transactions. Multifamily sales in Northern Manhattan gained momentum in the third quarter. The area grossed $573.6 million in sales, a 29 precent jump from last quarter and 12 percent rise year-over-year. Hillcrest Acquisitions purchased a 21-building portfolio in West Harlem for nearly $149 million, contributing to the area’s 76 building sales and 32 transactions.