1. real estate

The Besen Buzz
Winter 2015 | Volume 4 | Issue 9
www.besengroup.com
NYC SEES RECORD BREAKING INVESTMENT SALES IN 2014, 2015 POISED TO CONTINUE
Transaction volume higher than ever, dollar volume up 33% for the year
Message From The CEO
Michael Besen
CEO
The Besen Group
2014 was a truly remarkable year for NYC investment
sales, reaching new heights in transaction volume
and pricing. Our dollar volume almost doubled as we
completed several portfolio and assemblage sales.
Certain dynamics were reminiscent of 2007, when
the market hit an all-time high of $62B. While total
dollar volume didn’t surpass that amount, number
of transactions was a record-breaking 3,151. Sales
activity in the boroughs continued to accelerate, as an
array of capital sources opened their investment coffers
to burgeoning neighborhoods. More discretionary
sellers appeared to capitalize on favorable market
conditions. Despite astounding price levels, smart
operators still found ways to generate returns.
This was a growth year for our company in other ways as well. We bolstered our
team with eight new investment sales brokers, increased our marketing presence,
and fostered synergies among the divisions in our full-service platform to better
serve our clients. Many thanks to the entire team at The Besen Group and to our
clients, and continued success into 2015.
2013 - 2014 NYC CRE Sales: All Asset Classes [1]
% Change
2013
2014
Total Volume ($B)
$42.2B
$55.9B
32.5%
# of Transactions
2,540
3,151
24.1%
Median Price/SF
$313
$358
14.4%
Average Cap Rate (%)
5.0%
4.6%
-9.5%
In 2014, over $55.9 billion1 in NYC commercial real estate transactions was
reported by the Costar Group across 3,151 total transactions1. 2014 dollar
volume in NYC was 32.5% higher than the $42.2 billion1 reported in 2013
across 2,540 total transactions.
HIGHLIGHTED 2014 SALES TRANSACTIONS
Pelham Parkway Portfolio
165-167 William Street
$53,025,000
$20,500,000
In Q1, Besen & Associates closed the sale of a
four-building portfolio including 2160 Matthews
Avenue, 1135 Pelham Parkway North, 1130
Pelham Parkway South, and 1540 Pelham
Parkway South, all located in the Pelham Parkway
section of The Bronx. The 336,427 SF portfolio
consists of four elevator apartment buildings
containing 305 apartments plus parking. The
transaction was completed for $53 million by Amit
Doshi and Lynda Blumberg of Besen & Associates
who represented both parties.
In December, Besen & Associates sold 165-157
William Street in the Financial District section of
Manhattan between Beekman and Ann Street. The
property was sold for $20,500,000 to a partnership
between Princeton Holdings and Bluestone Group.
Amit Doshi and Dan Shapiro of Besen & Associates
brokered both sides of the transaction. The building
was previously acquired by the seller in December
2010 for $6.1 million.
The Pelham Parkway community is an exclusive
residential enclave surrounded by parks and many
other landmarks, located in the northeast area of
New York City. The properties are located along
Pelham Parkway, which is a park-like boulevard
that does not permit any commercial traffic.
The sale price equated to a gross rent multiplier
(GRM) of 9.8, $158 per SF, and a 3.26%
capitalization rate.
Spring 2014 | Volume 4 | Issue 8
The property is a 10-story elevator building with 11
large loft apartments and ground floor retail occupied by a pharmacy. Constructed in 1908,
it has approximately 31,073 SF gross and is built 51’ x 78’ on a 52.75’ x 83.25’ lot.
Average rent per unit per month is $4,026 with an average unit size of 2,600 SF. The sale
price equates to a gross rent multiplier (GRM) of 28, $691 per SF, and a 2.4% capitalization
rate.
419 Lafayette Street
$65,000,000 (Net Lease)
Besen & Associates is pleased to announce the net
lease of 419 Lafayette Street, a 60,000 SF, 8-story
loft office building on a 52’ x 150’ lot. The property
is located between East 4th Street and Astor Place,
in the NoHo neighborhood of Manhattan. The
complex transaction was completed solely by Amit
Doshi of Besen & Associates. The 6,000 SF ground
floor retail space was recently leased to Barry’s Boot
Camp. The net lease runs for 49 years and has an aggregate value of $65,000.000.
BROOKLYN | QUEENS
2014 SELECTED SALES TRANSACTIONS
530 Parkside Avenue, 179 Linden Boulevard
42-54 Judge Street
Two 6-story elevator buildings with 159 apartments
Price:
$28,600,000
GRM: 15.0
Price/SF: $198
Price/Unit:
$179,874
Cap Rate:
3.76%
Brokers:
Joseph Friedman, Amit Doshi
6-story elevator building with 41 apartments
Price:
$7,850,000
GRM: 12.9
Price/SF: $241
Price/Unit:
$191,463
Cap Rate:
4.35%
Broker:
Shoy McKen
1097 Prospect Place
Three 2-story walkup buildings with 74 apartments
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Broker:
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
$3,050,000
14.0
$200
$230,769
3.34%
Amit Doshi
306-308 5th Avenue
6-story elevator building with 9 apartments and
a store
Price:
Price/SF: Cap Rate:
$8,300,000
$502
4.62%
2380 Grand Concourse, 2679 Decatur,
3053 Hull Avenue, 375 East 209th Street
Four 5-story walkup buildings with 84 apartments
Price:
$10,175,000
GRM: 7.9
Price/SF: $119
Price/Unit:
$121,131
Cap Rate:
7.04%
Brokers:
Jackie Himmelstein, Amit Doshi
1197 Grand Concourse
5-story elevator building with 56 apartments
BRONX
102-04, 102-31,102-34 184th Street
4-story walkup building with 13 apartments
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Brokers:
$8,100,000
10.8
$137
$144,643
5.80%
Shallini Mehra, Amit Doshi
1026 Woodycrest Avenue
$7,200,000
7.8
$123
$97,297
6.72%
1320-1322 Sage Street
Two 3-story walkup buildings with 12 apartments
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Broker:
$1,570,000
8.4
$147
$130,833
6.68%
Richard Torres
1210-1230 Croes Avenue
20-story elevator apartment building with 160 units
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Broker:
$21,000,000
9.5
$108
$131,250
3.74%
Amit Doshi
1011 Carroll Place
6-story elevator building with 56 apartments
Price:
$6,750,000
GRM: 8.5
Price/SF: $113
Price/Unit:
$120,536
Cap Rate:
6.95%
Broker:
Amit Doshi
2160 Anthony Avenue
6-story elevator building with 36 apartments
6-story apartment building with 38 units & 5 stores
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Brokers:
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Brokers:
$4,150,000
10.1
$177
$115,278
5.90%
Amit Doshi, Shallini Mehra
$5,850,000
9.4
$129
$153,947
6.63%
Ronnie Shaban, Amit Doshi
2480 Belmont Avenue
2254 Bassford Avenue, 1195-1199 Boston Road,
2280 Bathgate Avenue
5-story apartment building with 22 units & 4 stores
Price:
GRM: Price/SF: Price/Unit:
Broker:
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Brokers:
Four walkup buildings with 69 apartments and store
Winter 2015 | Volume 4 | Issue 9
$8,500,000
7.8
$130
$123,188
Alex Frants
$3,600,000
8.7
$178
$163,636
7.16%
Amit Doshi, Shallini Mehra
2014 SELECTED SALES TRANSACTIONS
165-167 William Street
249, 251 & 253 East 50th Street
10-story loft building with 11 apartments and retail
Residential development site
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Brokers:
Price:
Price/SF: Brokers:
$20,500,000
28.3
$691
$1,576,923
2.47%
Dan Shapiro, Amit Doshi
160 South Street
6-story elevator buidling with 23 apartments
Loft building with 6 apartments and 2 stores
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Broker:
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Broker:
$13,550,000
19.9
$674
$589,130
3.3%
Amit Doshi
313 East 92nd Street
5-story walkup building with 10 apartments
Price:
Price/SF: Price/Unit:
Cap Rate:
Brokers:
$4,750,000
$703
$600,000
2.17%
Ishan Chhabra, Amit Doshi
150-152, 154, 158-160, 170 Vermilyea Avenue
$8,000,000
16.4
$541
$800,000
4.69%
David Davidson
1280 Fifth Avenue
Commercial condominium unit with 1,863 SF
Price:
$2,900,000
Price/SF: $1,178
Cap Rate:
2.5%
Broker:
Ishan Chhabra
100 Audubon Avenue
Four 4-story walkup buildings with 129 apartments
6-story elevator building with 49 apartments
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Brokers:
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Brokers:
$18,375,000
10.9
$165
$142,442
6.14%
Greg Corbin, Amit Doshi
82-84 Wadsworth Avenue
5-story walkup building with 47 apartments
$7,800,000
12.7
$203
$165,957
3.97%
Shallini Mehra, Amit Doshi
35-41 Ft. Washington Avenue
$9,725,000
12.3
$217
$198,469
3.65%
Amit Doshi, Shallini Mehra
611 West 177th Street
6-story elevator building with 44 apartments
and 3 stores
Price:
$8,800,000
GRM: 11.9
Price/SF: $213
Price/Unit:
$200,000
Cap Rate:
5.01%
Brokers:
Amit Doshi, Shallini Mehra
380-382 Wadsworth Avenue
6-story elevator building with 42 apartments
6-story elevator building with 42 apartments
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Brokers:
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Brokers:
$9,150,000
16.4
$175
$217,857
3.32%
Amit Doshi, Shallini Mehra
1001 St. Nicholas Ave, 1995-1997 & 200 2001 Amsterdam Ave
$7,800,000
12.8
$156
$185,714
4.25%
Amit Doshi, Shallini Mehra
217 West 115th Street
Three 6-story buildings with 64 apartments, 7 stores
5-story walkup building with 10 apartments
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Brokers:
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Broker:
$13,750,000
11.6
$256
$214,844
6.42%
Amit Doshi, Ishan Chhabra
Spring 2014 | Volume 4 | Issue8
www.besengroup.com
NORTH MANHATTAN
Price:
GRM: Price/SF: Price/Unit:
Cap Rate:
Brokers:
MANHATTAN
28-30 East 38th Street
$17,000,000
$500
Amit Doshi, Hilly Soleiman,
Lynda Blumberg
$2,800,000
15.9
$427
$280,000
4.63%
Shallini Mehra
Winter 2015 | Volume 4 | Issue 9
BESEN RETAIL
Looking Back . . . Moving Forward
Matthew Mager
Executive Director
Besen Retail
Last year was a busy year for Besen Retail.
33 deals from 400 SF to 7,500 SF. Bronx,
Brooklyn, Queens, Manhattan and even New
Jersey, consisting of salons, restaurants and
boutiques. Quite a year, but that’s nothing new
for the brokers (and shopping enthusiasts) at
Besen Retail. Let’s take a four-borough tour of
some of our recent transactions starting in . . .
Jamaica, Queens
Like you, we love great food. So, next time you’re in Queens, stop by the
recently built Norman Towers at 90-14 161st Street and enjoy the finest
in Italian and Mexican cuisine at Don Nico’s Pasticcio (2,184 SF). It’s the
latest fusion concept from icon Nicola Maurello in the latest development
by the Bluestone Organization. Right next door is the new home of Albee
Dental (1,952 SF), which has been providing quality dental services to the
area for more than 25 years.
The Bronx . . . still busy
The Bronx traditionally has been the busiest borough for Besen Retail, and
2014 was no different. After leasing two spaces at 560-574 West 235th
Street to Dunkin’ Donuts (1,200 SF) at the end of 2013, we added State
Farm Insurance (600 SF) to the mix. The building is now fully leased and
looks great. By far, it’s the nicest Dunkin’ Donuts around. Standing on the
corner of Johnson Avenue and 235th Street, you can see just how far The
Bronx has come. Starbucks, Bank of America, HSBC, CVS – a strong mix
of national brands along with traditional “mom and pop” retailers.
Speaking of “mom and pops”, they remain strong throughout The Bronx.
Isabel’s Pharmacy (1,035 SF) opened at 338 East Gun Hill Road, Hot Spot
Clothing (500 SF) brought the latest fashion trends to 1471B Westchester
Avenue, and “Louie Pizza” (600 SF) is tossing the best pizza around at
689 East 187th Street. We’re looking forward to that grand opening.
Several churches found new homes: Cathedral Baptist Church (3,308 SF)
relocated its growing congregation to 3423A Boston Road, while God’s
House of Praise (820 SF) opened at 3962 Bronxwood Avenue. 930 Grand
Concourse is just a hop, skip and a small jump from the courthouses, and
Yankee Stadium. Eric Levy, Esq. (811 SF) opened his new offices next door to
Barrister Court Reporting (644 SF). Pretty convenient if you’re in need of legal
services, and want to see a Yankees game.
Brooklyn – the Fourth Largest City in the US
And still growing! The Nets, the Islanders, new restaurants, shops, residential
towers and . . . Marine Park Discount (5,000 SF), which opened its newest
location at 4201 Avenue U. In Williamsburg, noodle guru Weiping Wang
opened Wei Williamsburg (1,400 SF) at 145 Borinquen Place, with what could
be perhaps the best awning. “Open Crazy Late” it reads, welcoming night owls
to sample some of its homemade cuisine. Wei joins Lighthouse BK (1,400 SF)
in the building, another Besen Retail deal from back in 2009.
Manhattan – “The Capital of The World”
The deal of the year for Besen Retail was difficult to complete, but easy to get
to. It was close by at 13 West 38th Street, where Bene Rialto (7,500 SF) has
opened a very unique, innovative shopping concept. This 5-story marketplace
houses an ecclectic selection of fashion brands, food and art. One word best
describes this amazing new concept – “Wow!”
We are big fans of pizza at Besen Retail, and pizza is one of the fastest growing
retail sectors in the city. Slice Pizza (500 SF) opened its first location at 2224
Amsterdam Avenue in Washington Heights. The Harlem Pizza Joint (850 SF)
opened its first location at 439 Lenox Avenue. In addition to all of that pizza,
Inwood gets a healthy juice bar (490 SF) at 4732 Broadway, the East Village
gets FantasticTea (500 SF) at 128 East 4th Street and, to top it all off, you
can find the finest hand-rolled cigars at Q Cigars (304 SF) at 947 Columbus
Avenue.
Looking back . . . moving forward. That has become our mantra at Besen
Retail. As we approach our ten-year anniversary, we are amazed at how the
retail landscape has changed in New York over the last ten years. We honor
the past as we set our course for the next ten years. We look forward to
working with you in 2015.
NYC MANAGEMENT | BESEN CAPITAL | DISTRESSED ASSET ADVISORY GROUP
Asset Management: Mitigating Risk in 2015
Matthew Slonim
Executive Director
New York City Management
Cyclical risks need to be watched as the current recovery is now at five years. This is getting too close
for comfort, making the mitigation of risk the primary challenge in 2015. This means stabilizing assets by
implementing cost cutting strategies in order to maximize net operating income, reviewing financing terms to
ensure they are appropriate to lease roll over risk, and to possibly deliberately stagger leases and financing
terms in order to maximize these terms.
The close scrutiny of real estate taxes, fuel costs, and water charges are crucial to controlling operating costs.
Owners should analyze and take appropriate measures to either cut or keep these costs under control as they
can comprise as much as 40% of the effective gross income in some cases.
Real estate companies using efficiencies by utilizing the power of technology as a means to manage and
market property will gain major advantage over laggards in this area. Instead of increasing payroll and other
operating expenses, the use of technology can be used to create exceptional efficiencies. We have the ability
to monitor fuel consumption, security cameras, share cloud based data for projects, and provide real-time
analysis from our desktop, tablet, or smart phone. All this has enabled us to be more proactive by giving us
the ability to quickly modify our strategy in order to maximize the return and long-term growth of our assets.
Winter
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20152015
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Refinancing in 2015 for the Long Term
Angela Ortiz
Executive Director
Besen Capital
The easing of standards by lenders is expected to be more widespread within the next year at a time when mortgage
spreads are already tight, and Treasury rates are expected to inevitably rise. The refinancing window has been open for
a while now; and with the volume of capital available, it will continue to be open to qualified borrowers. Debt issuance
(new lending plus refinancing) is running at a good pace: about $70 billion in commercial mortgages at banks, according
to Fed data through late August 2014, and just over $25 billion from American Council of Life Insurers (ACLI) reporting
insurance companies.
While the lending window will stay open, the prices available to borrowers will not remain as favorable as they are today.
The yield curve is still relatively flat, and low through the seven to ten year maturities that count most for commercial
properties. Even with the Fed’s assurances, the market fully expects rising rates and a steepening yield curve ahead
of us. We are nearing the end of an historic opportunity to lock in long-term mortgage money at historically low rates.
Therefore, a real sense of urgency to accomplish this in 2015 should prevail.
Besen Capital & Asset Management Transactions
Sanjay Gandhi
Managing Director
Distressed Asset
Advisory Group
Ari Weisfogel
Director,
Business Development
New York City
Management
Loan Amount: $2,587,000
West Farms, Bronx, NY
First Mortgage Refinancing Loan on
a 5-story building with 27 apartments.
Loan featured a 3.7% rate for a 10year term with favorable prepayment
penalties the last three years.
Loan Amount: $5,700,000
Washington Heights, New York, NY
First Mortgage Refinancing Loan on
a 6-story walkup apartment building
with 57 apartments and 4 stores. Loan
featured a 3.25% rate for 5 years.
Acquisition/Redevelopment
Midtown West, New York, NY
Acquisition and redevelopment of
5-story commercial loft building into a
boutique retail building.
Common Errors Made by Landlords Managing Their Own Assets
Common mistakes made by landlords while managing properties that can affect the bottom line more than
is imagined:
•
•
•
•
•
•
•
Tracking non-primary tenants
Timely renewals of leases
Improper DHCR filings
Proper documentation while renovating apartments to avoid rent overcharge and TPU audits
Using un-insured vendors
Delay in starting legal actions against delinquent tenants
Leases that are not updated, issued or on time, and followed up to receive tenant signature (without a
signed lease it can open up liability for a rent overcharge)
These are all significant aspects that affect the cash flow and potentially decrease value of the asset.
CALL US TODAY FOR A COMPLIMENTARY ASSET EVALUATION
Contact us to request an evaluation at [email protected]
Spring 2014 | Volume 4 | Issue8
www.besengroup.com
Winter 2015 | Volume 4 | Issue 9
EVENTS
2014 Company Awards Ceremony
Ron Cohen, Michael Besen, Shallini Mehra
- Team Player of the Year
Michael Besen, Lynda Blumberg, Amit
Doshi, Hilly Soleiman - Deal of the Year
Ron Cohen, Ishan Chhabra - Rookie of the
Year, Michael Besen
Ron Cohen, Greg Corbin - Broker of the
Year, Michael Besen
Sabrina Espinal, Carol Chen, Jennifer Rivera,
Laura Doherty, Jigna Dodhia, Avagail Malcolm,
Valentia Staykova, Preeti Mirani
Ronnie Shaban, Jim York
Matthew Mager, Ron Cohen
Saadya Notik, Greg Corbin, Robert Khoda
Richard Torres, Shallini Mehra, Alan Zucco
and Jeorge Mealha at the NYC Real Estate
Expo
Ari Weisfogel at the NYC Real Estate Expo
Bisnow State of the Market & NYC Real Estate Expo
Ron Cohen speaking at Bisnow’s State of
the Market 2014
Ron Cohen, Joanna Choinska and Jared
Rehberg at Bisnow’s event
Total NYC Commercial Sales Transactions
$35.0
1,481
$30.0
$ Volume in Billions
$25.0
1,525
$ Volume
# of Transactions
$32.8
1,626
1,600
$26.5
1,400
$23.1
1,059
1,200
$20.0
$15.0
1,800
1,000
$15.6
800
600
$10.0
400
$5.0
200
$H1’2013
H2’2013
H1’2014
H2’2014
0
The asset class with the largest dollar volume spike on a percentage basis was NYC Retail increasing by 153.0% from $2.3 billion across 546 retail transactions in 2013 to $5.9 billion
across 773 transactions in 2014. Multi-family had a 42.5% increase in dollar volume from $12.0 billion in 2013 across 1,205 transactions to $17.2 billion across 1,444 transactions in 2014.
In 2014, $22.9 billion across 318 office transactions in NYC were sold representing 41.2% of the total dollar volume up 22.3% over the prior year’s dollar volume.
Winter
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INVESTMENT SALES OVERVIEW
CRE NYC Transaction Comparison 2014 vs 2013 By Asset Class
$ Volume ($ Billions)1
# of Transactions1
Median Price/SF1
Asset Class
2014
2013
% Change
2014
2013
% Change
2014
2013
% Change
Multi-Family
$17.2
$12.0
42.5%
1,444
1,205
19.8%
$285
$257
10.8%
Retail
$5.9
$2.3
153.0%
773
546
41.6%
$433
$400
8.2%
Office
$23.0
$18.8
22.3%
318
273
16.5%
$674
$634
6.4%
Hotel
$2.4
$2.3
8.6%
31
16
93.8%
$821
$895
-8.3%
Land
$4.0
$4.4
-8.5%
231
198
16.7%
N/A
N/A
N/A
Other [3]
$3.3
$2.3
42.9%
354
302
17.2%
$224
$188
19.3%
Total
$55.9
$42.2
32.5%
3,151
2,540
24.1%
$358
$313
14.4%
The only year-over-year decrease in dollar volume was for land sales which were down by 8.5% to $4.0 billion in 2014 despite the number of land transactions increasing by 16.7%
to 231 in 2014. The Manhattan (South of 110th Street) submarket accounted for $40.0 billion (an average of $52.7 million per transaction) or 71.6% of the total dollar volume for NYC
(26.4% higher than the total in 2013). The number of prime Manhattan transactions was 760 (7.3% higher than in 2013) or 24.1% of the total number of NYC transactions reported.
CRE NYC Transaction Comparison 2014 vs 2013 By Submarket
$ Volume ($ Billions)1
# of Transactions1
Median Price/SF1
Submarket
2014
2013
% Change
2014
2013
% Change
2014
2013
% Change
Manhattan*
$40.0
$31.7
26.4%
760
708
7.3%
$909
$792
14.8%
N. Manhattan
$3.0
$2.3
34.2%
247
195
26.7%
$290
$221
31.3%
Brooklyn
$6.7
$4.4
51.8%
1,204
924
30.3%
$309
$254
21.4%
Queens
$4.1
$2.4
68.2%
620
462
34.2%
$309
$262
18.0%
Bronx
$2.0
$1.4
44.0%
320
251
27.5%
$124
$109
14.1%
Total
$55.9
$42.2
32.5%
3,151
2,540
24.1%
$356
$313
13.9%
* South of 110th Street
Brooklyn had the next largest dollar volume with $6.7 billion in sales across 1,204 transactions (an average of $5.5 million per transaction). In 2014, Queens had the largest yearover-year percentage increase in both dollar volume (68.2%) to $4.1 billion and the number of transactions (34.2%) with 620 in 2014.
Multi-Family NYC Transaction Comparison 2014 vs 2013 By Submarket
$ Volume ($ Billions)1
# of Transactions1
Median Price/SF1
Submarket
2014
2013
% Change
2014
2013
% Change
2014
2013
% Change
Manhattan*
$8.9
$6.2
43.2%
332
336
-1.2%
$881
$754
16.9%
N. Manhattan
$2.8
$2.0
39.1%
198
146
35.6%
$268
$207
29.1%
Brooklyn
$2.9
$1.7
69.0%
512
423
21.0%
$267
$230
16.2%
Queens
$1.1
$1.2
-5.8%
198
146
35.6%
$262
$213
22.9%
Bronx
$1.5
$0.9
56.1%
204
154
32.5%
$116
$101
14.7%
Total
$17.2
$12.0
42.5%
1,444
1,205
19.8%
$285
$257
10.7%
* South of 110th Street
In 2014, $17.2 billion in multi-family transactions in NYC were reported, an increase of 42.5% over $12.0 billion in 2013. Yet the number of multi-family transactions only increased
19.8% to 1,444 in 2014. The significant percent difference is reflective of a larger multi-family transactions ($10.0 million average in 2013 vs $11.9 million in 2014) fueled by strong
demand and higher prices across each submarket. The location with the highest median price per SF percentage increase from 2013 to 2014 for multi-family transactions was
Northern Manhattan where the median price increased by 29.1% to $268/SF in 2014 up from $207/SF in 2013. That is followed by Queens, where median price increased by 22.9%
year-over-year to $262/SF in 2014 up from $213/SF in 2013. Most of the Queens multi-family price increase occurred within 2013. Similarly, median prices in Manhattan (South of
110th Street) increased by 16.9% to $881/SF in 2014 from $754/SF in 2013 with most of the price increase occurring before 2H-2014.
Manhattan (South of 110th St) accounted for 51.6% of the $17.2 billion in NYC multi-family transactions with $8.9 billion in sales across 332 multi-family transactions. Brooklyn was
the submarket with the highest number multi-family transactions reported (512), accounting for $2.9 billion in sales.
Footnotes:
1
Methodology: We obtained and analyzed data reported to the Costar Group for commercial real estate transactions in NYC (excludes Staten Island) with a minimum price of $1.0 million. We excluded from our
analysis and tables non-arms length transactions, transactions with unreported prices, and mixed location and use portfolio transactions totaling approximately $2.9 billion across 90 transactions in 2014 and $2.8
billion across 65 transactions in 2013.
Spring 2014 | Volume 4 | Issue8
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