NEW YORK, NY – June 14, 2012 – (RealEstateRama) — New York City multifamily transaction volume rose 29 percent in April 2012 compared to April 2011, but year-over-year dollar volume fell by 18 percent, according to Ariel Property Advisors’ Multifamily Month in Review: New York City.
April 2012 multifamily sales saw 44 transactions comprised of 64 buildings totaling $376.832 million in gross consideration, compared to April 2011, which saw 34 transactions comprised of 61 buildings totaling $462.291 million in gross consideration.
“The decline in dollar volume reflects less activity on the institutional end and more activity by private investors,” said Shimon Shkury, president of Ariel Property Advisors. “We believe the fact that more small to mid-size transactions are occurring underlies a more sustainable upward trend.”
Figures from April 2012 represent a 12 percent decrease in transaction volume and a 4 percent decrease in dollar volume, but also a 3 percent increase in building sales volume compared to March 2012, which saw 50 transactions comprised of 62 buildings totaling $392.365 million in gross consideration.
“Activity is clearly trending up as this is the third month in a row with at least 44 transactions taking place and it is the fifth month in a row where dollar volume exceeded $375 million,” Mr. Shkury said. “Since 2009, multifamily sales have been bumpy with months that were either very active or more lackluster. We are now witnessing a consistent level of building sales indicative of a healthy market, and the strong recent activity leads us to believe that these metrics are poised to go higher over the new few months.”
• Manhattan led April in dollar volume with $139.405 million in gross sales taking place over nine transactions comprised of 13 buildings. Compared to March 2012, transaction volume and building volume are marginally down and dollar volume declined by 34 percent, primarily due to a lack of large institutional sales.
• Brooklyn had another very active month, leading the submarkets covered in this report in terms of building volume and coming in a close second in terms of dollar volume. For the month, there were 11 transactions comprised of 20 buildings totaling $112.911 million in gross consideration. A large portion of this came from the sale of a two multifamily portfolios by Urban American that sold for just over $60 million.
• Northern Manhattan multifamily sales activity bounced back in April after a relatively light March as nine transactions took place comprised of 14 buildings totaling $60.475 million in gross consideration. The area has seen a flurry of portfolio sales activity since the beginning of the year and this continued in April with four such transactions.
• The Bronx saw 11 transactions comprised of 13 buildings totaling $40.915 million in gross consideration. Transaction and building volume roughly matched March 2012 levels, but dollar volume dipped 31percent. We continue to see prices shift up throughout the borough.
• Queens saw four transactions comprised of four buildings totaling $23.125 million in gross consideration. Considering the small sample size, this is roughly on pace with March 2012 figures. The borough also continues to outperform monthly figures seen throughout 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 see http://arielpa.com/newsroom/report-MFMIR-Apr-2012.
Photo caption:
Shimon Shkury, president of Ariel Property Advisors.
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• Ariel Property Advisors (para.1)»
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• Multifamily Month in Review: New York City (para.1)»
http://arielpa.com/newsroom/report-MFMIR-Apr-2012
• Shimon Shkury (para.3)»
http://arielpa.com/about/team/shimon-shkury/
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.
Media contact:
Gail M. Donovan
Director of Communications
212-544-9500, ext. 19, or 917-301-5706
gdonovan (at) arielpa (dot) com
