New York, NY Ariel Property Advisors’ Research Division has released its highly regarded Multifamily Month in Review for October 2015, which provides a monthly overview of market activity, benchmark transactions, revenue and expense trends and current events that impact the multifamily real estate market. Though Brooklyn and especially the Bronx saw notable sales increases during October 2015, New York City’s multifamily sales volume overall took a breather in October. Manhattan and Northern Manhattan had particularly light months, with the majority of transactions coming in at prices under $35 million. For the month, New York City saw 51 transactions comprised of 85 buildings totaling $782.662 million in gross consideration. This represents a 27% decrease in transaction volume, a 28% decrease in building volume and a 58% decrease in dollar volume compared to October 2014, which saw 70 transactions comprised of 118 buildings totaling $1.863 billion in gross consideration. “While the multifamily market got off to a slower 4Q start in October, we believe this results from the lack of supply, not demand,” said Shimon Shkury, President of Ariel Property Advisors. “Pricing remains very healthy for property owners and we’re expecting a strong finish to the year on several fronts.” The following is a breakdown of the October 2015 volume by submarket: Brooklyn led all sub-markets in October with 23 buildings trading across 12 transactions totaling $231.958 million in gross consideration – a 23% increase compared to October 2014. A portfolio of four buildings spread spanning Clinton Hill, Crown Heights and Fort Greene made up the submarket’s largest transaction, selling for $60.2 million, or $453 per s/f. New York REIT continued to sell off its non-core assets, as they disposed of 163 Washington Ave., a 16-story, 40,000 s/f rental building constructed in 2009. The building traded for $38 million, or $914 per s/f. Manhattan saw 15 trades consisting of 19 buildings totaling $210.448 million in gross consideration. Benchmark Real Estate Group sold a pair of mixed-use rental buildings located at 246 and 248 10th Ave. in Chelsea for $26.5 million, or just over $1,300 per s/f. Benchmark paid $14.4 million for the buildings just last year. The sub-market’s largest transaction occurred in Gramercy, where 152 East 22nd St. sold for $33.5 million, or $1,367 per s/f. The Bronx had an impressive month as it experienced a year-over-year spike of 132% in dollar volume with $167,290,000 in gross consideration. One key highlight was the $90 million sale of the Continental Portfolio, a package of 13 buildings containing 612 units throughout The Bronx. The sale translates to a sub-5% capitalization rate and is, to date, the largest multifamily sale of 2015. In the Bronxdale neighborhood, a pair of elevatored buildings totaling 226,036 square feet sold for $30.6 million, or $135 per s/f. Pricing continues to rise throughout the Bronx, as the trailing 6-month average gross rent multiple has topped 10, hitting 10.14 times. Northern Manhattan had a sluggish month, as the submarket saw 11 buildings trade across 8 transactions totaling $105.325 million in gross consideration. The sub-market’s largest trade took place in Inwood, where a 115-unit elevatored building exchanged hands for $31 million, or $283 per s/f. Queens’ multifamily figures were bolstered by two large single-asset trades, which accounted for roughly 84 percent of the borough’s dollar volume in October. The larger of the two trades involved 83-30 Kew Gardens Road, an 89,721 elevatored building consisting of 52 units. The property sold for $35 million, or $390 per s/f. In Jackson Heights, 94-02 35th Ave. sold for $22 million, which equates to just under $200 per s/f. For the six months ending in October 2015, the average monthly transaction volume decreased to 64 transactions per month. The average monthly dollar volume also decreased slightly to $1.096 billion. For a copy of the report, please visit: http://arielpa.com/report/report-MFMIR-Oct-2015   Tags: