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Research - APRIL 26, 2019

NYC multifamily transactions fall below 100 transactions for first time since Q2 2010

by Andrea Zander

During the first quarter of 2019, the New York City multifamily market experienced declines in comparison to 2018, according to research by Ariel. With the political power shift that occurred in the New York State Assembly during this past November, impending legislation pertaining to rent regulation is expected to be enacted later this year.

New York City saw 75 multifamily transactions comprised of 110 buildings totaling $2 billion in gross consideration for the first quarter of the year. When compared to the previous quarter, these figures represent year-over-year decreases of 31 percent and 59 percent for transaction and building volume, respectively. New York City has not seen transaction volume fall below 100 transactions since second quarter 2010. In fact, transaction volume has not been this low since the third quarter of 2010. With regard to dollar volume, the gross consideration this quarter is a 48 percent decrease year over year. Overall, there were 11 portfolio transactions versus 43 such transactions in first quarter 2018.

Manhattan experienced declines across the board during first quarter 2019. There were 21 transactions comprised of 29 buildings totaling $801 million in gross consideration. These figures demonstrate a 40 percent decline in transaction volume, 51 percent decline in building volume and 51 percent decline in dollar volume when measured against Q4 2018. In terms of pricing, the average dollar per square foot decreased by 8 percent to $858, while cap rates remained steady averaging at 3.72 percent compared to last year’s trailing months.

The largest multifamily sale for the first quarter was 450 Washington St. in Tribeca for $260 million by The Related Companies, at $851 per square foot.

 

To read the report, click here.

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