Ariel Property Advisors' Multifamily Month In Review: NYC multifamily dollar volume in October surpasses $1 billion for second consecutive month

New York City multifamily dollar volume in October surpassed $1 billion for the second consecutive month and only the fourth time this year, according to Ariel Property Advisors' Multifamily Month in Review: New York City for October. Dollar volume in the multifamily market reached $1.173 billion in October, a 59 percent jump from $735.818 million in October 2013, however, transactions declined 30 percent to 57 from 81 in October of last year, and building volume declined 12 percent to 99 from 113 during the same period. October followed an unusually robust September that recorded 74 transactions comprised of 151 buildings totaling $1.848 billion. "The New York City multifamily market saw a strong kickoff to the fourth quarter and we're expecting the year to end on a high note," said Shimon Shkury, president of Ariel Property Advisors. "We're aware of a number of major deals that are scheduled to close before December 31st and a multitude of new contract signings suggest that this momentum will carry into 1Q2015." The following is a breakdown of the October 2014 volume by submarket: * Northern Manhattan. Northern Manhattan led the city in multifamily volume in October as the sub-market saw 23 buildings trade across 14 transactions totaling $554.773 million in gross consideration. The $465 million sale of a 1,677 unit multifamily portfolio in East Harlem played a major part in October's activity. The price translates to $245 per s/f and $277,608 per unit. In Washington Heights, an elevatored building located at 672-674 St. Nicholas Avenue transacted for $13.5 million, or $320 per s/f. * Manhattan. Manhattan saw a 19 percent increase in dollar volume year-over-year to $299.440 million as 14 buildings traded across 10 transactions. Of note, two mixed-use buildings located on the corner of 9th Avenue and 14th Street in Chelsea that sold for a combined $105 million, and includes some development rights. Investors are expecting major local attractions such as the High Line and Chelsea Market to continue to drive rents higher. * Brooklyn. Brooklyn experienced a solid month with 18 transactions comprised of 34 buildings totaling $168.079 million in gross consideration. A 46-unit elevatored building located at 1030 Carroll Street in Crown Heights sold for $9 million, which represents $220 per s/f and a cap rate under 4 percent. In East Williamsburg, a portfolio of three contiguous newly-constructed walk-up buildings at 168-172 Meserole Street sold for $15.25 million, which translates to just under $700 per s/f. * Queens. Queens saw 14 buildings trade across seven transactions totaling $116.503 million in gross consideration. The most significant deal was the $88.5 million sale of a newly constructed 214-unit elevatored building located at 12-27 Broadway in Astoria. The building sold for $613 per s/f, which represents a 40 percent increase from similar new construction buildings that sold last year. * The Bronx. The Bronx had a quiet month as it saw eight transactions comprised of 14 buildings totaling $33.875 million in gross consideration. In Bedford Park, a 55-unit walk-up building sold for $6.2 million, which translates to $113 per s/f. Another walk-up building in the Kingsbridge Heights section of the borough sold for $5 million, or $149 per s/f. For the six months ended in October 2014, the average monthly transaction volume increased to 65 transactions per month. The average monthly dollar volume increased to $997.825 million. The multifamily transactions included in the analysis occurred at a minimum sales price of $1 million, with a minimum gross area of 5,000 s/f, and with a minimum of 10 units. More information is available from Shkury at 212-544-9500, ext. 11, or [email protected]. For a copy of the report, please see http://arielpa.com/newsroom/report-MFMIR-Oct-2014.