NEW YORK, NY – April 17, 2012 – (RealEstateRama) — New York City multifamily transactions jumped 34 percent in the first quarter of 2012 compared to the same period last year, and were up 11 percent compared to the fourth quarter of 2011, according to Ariel Property Advisors’ Multifamily Quarter in Review: New York City.
In the first quarter of 2012, New York City recorded 145 multifamily transactions comprised of 222 buildings totaling $1.15 billion in gross consideration, compared to first quarter 2011 figures of 108 multifamily transactions comprised of 137 buildings totaling $548.9million in gross consideration, and fourth quarter 2011 figures of 131 multifamily transactions consisting of 137 buildings and totaling $1.47 billion in gross consideration.
“Our first quarter 2012 report shows that in terms of dollar volume and number of buildings sold, demand is surging for multifamily assets in Manhattan,” Shimon Shkury, president of Ariel Property Advisors. “In Brooklyn, first quarter dollar volume for multifamily properties is up a healthy 75 percent and the number of multifamily buildings sold nearly doubled, compared to the same period of 2011. Prices for multifamily buildings in Brooklyn appear to be rising at a faster rate than any other sub-market, which is following the borough’s trend of rapidly rising rents.”
Mr. Shkury continued, “Our research also shows that portfolio sales are returning to Upper Manhattan, which in the first quarter of 2012 saw four portfolio trades. We see this type of activity as a sign of investors’ faith in the area and that banks are more comfortable making loans on such packages.”
Below are key highlights from the Multifamily Quarter in Review: New York City:
Manhattan: Manhattan had 36 transactions, comprised of 62 buildings with a total value of $574 million in the first quarter of 2012, compared to 19 transactions, comprised of 23 buildings with a total value at $128 million in the first quarter of 2011. The borough’s average price per square foot is up 43 percent and average price per unit increased 52 percent compared to the first quarter last year.
Brooklyn: In the first quarter 2012, Brooklyn had 42 transactions, consisting of 59 buildings totaling $181 million, compared to 24 transactions, consisting of 33 buildings valued at $88.6 million.
Northern Manhattan: Northern Manhattan in the first quarter had 26 transactions comprisedof 42 buildings, valued at $167 million, compared to 25 transactions, comprised of 37 buildings valued at $103 million in the first quarter of 2011. Prices ticked up a modest six percent on a price per square foot basis and 16 percent on a price per unit basis compared to the first quarter last year.
The Bronx:A lack of portfolio sales led to a dip in dollar volume in the first quarter compared to the fourth quarter of 2011, but year over year comparisons with the first quarter of 2011 show significant gains across the board. In the first quarter 2012, The Bronx had 26 transactions consisting of 40 buildings totaling $136 million, compared to 23 transactions, consisting of 27 buildings totaling $105.7 million in the first quarter of 2011. Prices are increasing moderately and consistently as investors seek out the higher returns the borough offers.
Queens: Following a relatively light year for Queens multifamily sales, the first quarter 2012 improved significantly from the fourth quarter of 2011. Queens saw 16 transactions, made up of 22 buildings totaling $98 million in the first quarter of 2012, compared to eight transactions, consisting of 11 buildings totaling $69 million in the fourth quarter 2011, and 17 transactions, consisting of 17 buildings valued at $122.9 million in the fourth quarter of 2011.
More information is available from Mr. Shkury at 212-544-9500,ext. 11, or sshkury (at) arielpa (dot) com. For a copy of the report, please visit http://arielpa.com/newsroom/report-MFQIR-Q1-2012.
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 ofresearch reports including the Multifamily Month in Review: New York City;Northern Manhattan Sales Report; Northern Manhattan Commercial Report; and the Northern Manhattan Residential Rental Report. More information is available at arielpa.com.
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Ariel Property Advisors (para.1)»
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Gail M. Donovan
Director of Communications
Ariel Property Advisors
P: (212) 544-9500 ext. 19
C: (917) 301-5706
gdonovan (at) arielpa (dot) com
