New York City multifamily sales gain ground in February according to Ariel Property Advisors' Multifamily Month in Review

The number of multifamily buildings sold in New York City in February 2014 jumped 59% and the dollar volume of those trades soared 186% compared to February 2013, according to Ariel Property Advisors' Multifamily Month in Review for February. February saw 97 multifamily buildings sell over 40 transactions for a total value of $679.96 million, compared to 32 multifamily transactions comprised of 61 buildings totaling $237.7 million in gross consideration in February 2013. "New York City multifamily sales showed large year-over-year growth in February, continuing the impressive trend we saw at the start of the year," said Shimon Shkury, president of Ariel Property Advisors. "Tight inventory, robust buyer demand, and inexpensive financing continued to steadily push prices upward." Month-to-month, the number of buildings sold increased a slight 2% and the dollar volume of the deals declined a modest 6% compared in February compared to January, which saw 95 buildings trade with a total dollar volume of $721 million. The following is a breakdown of the February 2014 multifamily data by submarket: * Brooklyn was the most active in terms of transactions and building volume with 52 buildings trading across 18 sales, for a total of $343.5 million in gross consideration. Although month-to-month transaction volume was relatively flat, building and dollar volume rose 30% and 43%, respectively, from January, and the borough's activity greatly surpassed the activity of a year ago when there were nine transactions totaling $27.98 million. A significant chunk of that volume was accounted for by the sale of a multifamily portfolio by the Brooklyn Law School in Brooklyn Heights, and a 28-building package mostly in Crown Heights and Prospect Park South. * Manhattan led the way in terms of dollar volume, totaling $157.798 million in gross consideration across just six transactions and seven buildings. Transaction volume was flat year-over-year but dollar volume was propped up by the sale of The Grayson at 247 East 28th Street for just under $100 million, nearly double the $53 million paid for the same asset in 2012. At over $900 per foot, and reportedly under a 4.5% cap rate, this stands out as a significant market bellwether. *The Bronx saw steady sales on a month-to-month basis, but made huge leaps on a year-over-year basis. The borough saw 27 buildings trade for a total of $129.555 million, figures three times and five times greater than a year ago, respectively. A row of multifamily properties on Haviland Avenue accounted for eight of these buildings, averaging $105 per square foot, and $97,000 per unit. *Northern Manhattan was the one exception to the rule this month, showing declines both month-to-month and year-over-year with $37.575 million in gross consideration across four buildings. Pricing, however, is as strong as ever. Each transaction this month occurred at over $220 per square foot, continuing the pricing climb. The average price per foot in Northern Manhattan has been $237 over the last six months, compared to $174 a year ago. *Queens had a relatively light month, with just four transactions totaling $11.505 million. Despite the slow market, pricing remains strong for the borough, with cap rates around 5% along with prices per foot and prices per unit on par with metrics in Northern Manhattan and Brooklyn. For the six months ended in February 2014, average monthly transaction volume dropped slightly to 60 transactions per month, but the six-month average dollar volume increased to $885 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 square feet, and with a minimum of 10 units.