Bronx multifamily market is on solid footing

Multifamily real estate in the Bronx is on solid footing. Transaction volume year-to-date has achieved the same level as the total transaction volume for 2009. With attractive financing rates and the fact that Fannie Mae has continued to lend, the Bronx multifamily market has not only seen an increase in transaction volume, but an increase in total dollar volume as well. To date, the total dollar volume for 2010 is $624.773 million for 158 transactions, which is almost double the dollar volume as for calendar year 2009 of $320.485 million with 159 transactions. The average transaction price has also seen a significant increase in the past year, achieving an average price of $4.462 million in 2010 to date as opposed to $2.563 million in 2009. Although we have not yet returned to the 2008 levels, transaction volume is up, average price per transaction is up and the demand for multifamily buildings in the Bronx is up. The demand for middle market product has continued to fortify the fundamentals in the Bronx market. With a return to the market of strong family ownership and private investors who sat out the run-up prior to 2008, the Bronx is continuing to be in demand. All information for this article was based on data reported to CoStar Group. Jon Taubes is an executive director at Besen & Associates, Bronx, N.Y.