Ariel Property Advisors' Second Quarter Multifamily Report shows 48% increase in multifamily transacations

Multifamily transactions continued to climb in New York City, increasing 48 percent in the second quarter 2012 compared to the second quarter 2011, according to Ariel Property Advisors' Multifamily Quarter in Review: New York City. Throughout New York City during the second quarter 2012, there were 144 multifamily transactions comprised of 193 buildings totaling approximately $1.379 billion in gross consideration, compared to second quarter 2011, which had 97 multifamily transactions consisting of 149 buildings valued at $1.031 billion. The second quarter gains were more modest compared to the first quarter of 2012, which saw 129 transactions comprised of 198 buildings totaling $1.055 billion in gross consideration. "Our research demonstrates the tremendous upward momentum both sellers and buyers are experiencing in today's multifamily market," said Shimon Shkury, president of Ariel Property Advisors. "Recent bidding activity, low interest rates, and increasing prices lead us to believe that this pace should carry on through the end of the year." Below are key highlights from the second quarter report: Manhattan (below 96th Street): As expected, Manhattan led the city in dollar volume with $629 million in gross consideration in the second quarter, accounting for 46 percent of the city's total volume. Fewer portfolio sales compared to the first quarter 2012 led to a 25 percent quarter-over-quarter drop in the number of buildings traded, but year-over-year the number of buildings traded increased 30 percent. The second quarter 2012 also registered an impressive average price per square foot of $574,which is 26 percent higher than last quarter, and 12 percent higher compared to the second quarter 2011. Brooklyn: In terms of the number of transactions and buildings sold, Brooklyn was New York's most active sub-market in the second quarter of 2012. Year-over-year, the number of multifamily transactions in the borough climbed to 39 from 24, a 63 percent increase; building volume rose to 60 from 45, a 33 percent increase; and dollar volume jumped to $348 million from $152.796 million, an 128 percent increase. Brooklyn captured 25 percent of the city's multifamily dollar volume, and 31 percent of the city's multifamily building volume in the second quarter. The Bronx: The Bronx had a very active second quarter, posting major gains compared to the first quarter. Quarter-over-quarter, multifamily transactions were up to 31 from 23, a 33 percent increase; building volume was up to 42 from 30, a 39 percent increase; dollar volume rose to $203 million from $103 million, a 97 percent increase; and median prices rose to $4.375 million from $3.9 million, a 12 percent increase. The average price per unit fell 15 percent and the average price per square foot dipped 9 percent in the second quarter compared to last quarter, but this can be partially attributed to a few large portfolios whose pricing metrics dragged down the averages. Transaction and dollar volume also increased 17 percent and 41 percent, respectively, in the second quarter 2012 compared to second quarter 2011 figures. Northern Manhattan: While the first quarter saw several portfolio sales, the second quarter was dominated by a number of smaller transactions. The result was a 21 percent quarter-over-quarter decline in dollar volume to $133.6 million from $169 million. It's worth noting, however, that multifamily transactions in Upper Manhattan more than doubled and dollar volume jumped 136 percent in the second quarter 2012 compared to the second quarter 2011. Queens: Following a strong first quarter 2012 for Queens' multifamily sales, second quarter 2012 multifamily transactions declined slightly. However, second quarter 2012 transactions represent an improvement compared to the second quarter last year. In the second quarter 2012, there were 13 multifamily transactions consisting of 13 buildings valued at $64.9 million, compared to the second quarter of 2011, which had eight multifamily transactions, comprised of nine buildings valued at $75.8 million. Though few trades take place, investors thrive on the boroughs steady, reliable returns. More information is available from Mr. Shkury, 212-544-9500, ext. 11, [email protected]. For a copy of the report, please see http://arielpa.com/newsroom/report-MFQIR-Q2-2012. Ariel Property Advisors is a New York City investment property sales firm with an expertise in the multifamily market. The firm also produces a number of research reports including the Multifamily Month in Review: New York City; Multifamily Quarterly Review: New York City; Northern Manhattan Year-End Sales Report; Northern Manhattan Fundamentals Report; Brooklyn Year-End Sales Report 2011;and The Bronx Year-End Sales Report 2011. More information is available at arielpa.com.