Ariel Property Advisors releases Multifamily Month in Review: March 2016

New York, NY Recording the highest number of sales and greatest total dollar volume so far in 2016, March multifamily sales helped drive strong 1Q 2016 figures, according to Ariel Property Advisors’ newly released Multifamily Month in Review: March 2016. The report showed a significant improvement from lagging February sales activity and showed modest appreciation across several pricing metrics. In March, New York City saw 69 transactions comprised of 129 buildings totaling $1.597 billion in gross consideration. This represents a 50% increase in transaction volume, a 79% increase in building volume and an 86% increase in dollar volume compared to February, which saw 46 transactions comprised of 72 buildings totaling $860.882 million in gross consideration. Year-over-year, March’s figures represent a 25% decline in transaction volume and a 13% dip in dollar volume. “March’s numbers reflect a more positive shift heading into the second quarter. This reaffirms our position that New York City multifamily market is poised to continue a positive trajectory in 2016,” said Shimon Shkury, president of Ariel Property Advisors. Manhattan saw 14 multifamily transactions consisting of 19 buildings for $786.305 million in gross consideration. The month’s largest transaction was a pair of mixed-use buildings at 1347 & 1191 2^nd Avenue on the Upper East Side. Totaling $310 million, the transaction represented $832 per square foot over $900,000 per unit. Madison Realty Capital expanded its portfolio with the purchase of 160 East 48^th Street, a 300-unit mixed-use building for $270 million purchase, or $907 per square foot. The Bronx led the city in transaction and building volume in March, with 63 buildings trading across 23 transactions both of which more than tripled February’s output. The borough’s building volume was boosted significantly by one 34-building portfolio trade. At 2691 Reservoir Avenue, an elevatored mixed-use building in Kingsbridge, for $17.35 million, or $315 per square foot. For the last six months, the average multifamily price per foot in The Bronx was $173, compared to $138 in the same period a year ago. Brooklyn had 18 trades across 25 buildings and $353.297 million in gross consideration over the course of the month. In Williamsburg, 237-261 North 9^th street surpassed $1,100 per square foot, with a total price of just under $80 million. The borough’s largest trade also came out of Williamsburg with the sale of two back-to-back new construction buildings at 246 North 8^th Street and 255 North 7^th Street for $125 million. Northern Manhattan was relatively flat after two months of strong gains to start the year. The largest trade of the month was the West 141^st Street Elevatored Portfolio, a 144-unit package which sold for $42.1 million. In Washington Heights, another elevatored building at 854 West 80^th Street sold for $16.8 million, or $361 per square foot. Queens had a light month, with only 5 transactions occurring across 6 buildings totaling $38.345 million in gross consideration. Though heavily retail-driven, a mixed-use building at 159-01 Northern Boulevard in Murray Hill changed hands for $13.75 million, or $643 per square foot. For the six months ended in March 2016, the average monthly transaction volume increased slightly to 57 transactions per month, but remains notably down on a year-over-year basis.  The average monthly dollar volume dropped slightly to $1.965 billion. To review the report, please click here: http://arielpa.com/report/report-MFMIR-Mar-2016