Ariel Property Advisors: Outer boroughs dominate NYC multifamily sales In June, city sees $1 billion in trades for the month

New York, NY New York City multifamily sales remained largely stable with strong dollar volume and fewer transactions in June. Brooklyn drove most of the month’s activity, supported by Northern Manhattan and Queens. In June, New York City saw 74 transactions comprised of 148 buildings totaling $1 billion in gross consideration. This represents an 8% increase dollar volume, a 9% decrease in transaction volume and a 28%% decline in building volume compared to the same time period last year, which saw $934 million in gross consideration across 74 transactions comprised of 148 buildings. Submarket Overview: Manhattan: Manhattan had a light month seeing 10 transactions across 16 buildings totaling $142 million in gross consideration. Brooklyn: With $302 Billion in dollar volume, Brooklyn led May in terms of dollar volume. The activity was led by the $49.55 million purchase of the Bergan Gardens multifamily complex, a portfolio of 6 walk-up buildings on the border of Bergen Beach and Flatlands. The Bronx: The Bronx saw 14 transactions totaling $75 million in June. While this represents a sharp increase across the board compared to May, it falls far short of the $187 million in gross considerations in 2015. However, a 135-unit elevatored complex was bought by Skyc Management for $24.6 Million at $177 per square foot. Also notable was 3307 Hull Avenue which traded at a 4% cap rate and an 11.9 GRM. Northern Manhattan: Led by the sale of the 236-unit, elevatored mixed-use building at 1951-1965 1st Avenue, for $103 Million, or $412 per square foot, Northern Manhattan had another strong month. The submarket as a whole saw 16 buildings trade across 13 transactions, totaling $259 million in gross consideration. Another notable transaction was Prana Investment’s purchase of a three building walk-up portfolio in Washington Heights for $45.8 million, or $307 per square foot. Queens: Queens experienced an extremely active month headlined by Related Companies purchase of a 444-unit Section 8 multifamily portfolio in Astoria $121 million, or $363 per square foot. Also notable was A&E Real Estate’s buying of La Mesa Verde Apartments in Jackson Heights for $72.1 million or $376 million, a 324-unit elevatored building. For the six months ending in June 2016, the average monthly transaction volume increased slightly to 60 transactions per month. With the sale of Stuyvesant Town, no longer skewing the numbers, the average monthly dollar volume decreased significantly to $1.255 billion. To view the full report, please click: http://arielpa.com/report/report-MFMIR-Jun-2016