Multifamily Month In Review:
New York City | February 2015
Released April 2015 | By Ariel Property Advisors
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About The Report | Content
Ariel Property Advisors is pleased to present its Multifamily Month In Review: New York City. The report provides a monthly overview of market activity, benchmark transactions, revenue and expense
trends, and current events that affect the multifamily real estate market.
The Multifamily Month In Review is distributed to our clients on a monthly basis. Past versions of
the Multifamily Month In Review can be found at http://arielpa.com/research/reports/
Table Of Contents
Multifamily Month In Review: New York City
Multifamily Market Performance by Sub-Market
Transaction & Dollar Volume By Quarter
Trailing 6-Month Moving Average
Pricing Indicators & Distributions
About Ariel Property Advisors
3
4
5
6
7
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2
Multifamily Month In Review | New York City
Multifamily Month In Review: New York City | February 2015
Despite continuously rising prices, New York City multifamily sales saw relatively light
trading in February. However, preliminary March numbers include several 9-figure multifamily portfolio sales so we expect this decline to be short lived.
For the month, New York City saw 56 transactions comprised of 83 buildings totaling
$580.822 million in gross consideration. This represents a 19% decrease in transaction
volume, a 13% decrease in building volume and a 25% decrease in dollar volume compared to January 2015, which saw 69 transactions comprised of 95 buildings totaling
$778.596 million in gross consideration. Year-over-year, transaction volume was up
slightly but a lack of large, institutional level multifamily deals held dollar volume down
in February.
February 2015 Snapshot
Dollar
Volume
Transaction
Volume
Building
Volume
$ 581
56
83
25% decrease
compared to
January 2015
19% decrease
compared to
January 2015
13% decrease
compared to
January 2015
million
Manhattan saw light trading for the month with 9 buildings trade across 7 transactions totaling $282.8 million in gross consideration. One notable trade was a 92-unit elevatored
rental building located at 330 East 63rd Street that sold for $58 million, or $721 per square
foot. Following a common trend seen throughout Manhattan, the new ownership plans
to convert the units to condominiums.
Brooklyn saw 20 transactions comprised of 31 buildings totaling $136.258 million in gross
consideration, making it February’s most transactional borough. The largest transaction
took place in East Flatbush, where Clarendon Gardens, a 7-building complex totaling
195,000 square feet, sold for $33 million. The site also offers almost 24,000 square feet
of additional air rights. Also of note was the sale of 142-44 Decatur Street, a 22-unit,
mixed-use walk-up in Bed-Stuy, which traded for $8 million or $536 per square foot. This
is double the $4 million price paid in 2013, a testament to Brooklyn’s continued growth
and the seller’s successful repositioning strategy.
Queens had a relatively active month with 18 buildings trade across 8 transactions totaling $63.755 million in gross consideration. Two sales demonstrate the strength of the
Queens market going beyond Astoria and Long Island City. First, 71-13 60th Lane, a new
construction elevatored building located in Ridgewood, sold for $21 million, or $390 per
square foot. In Woodside, a 42-unit walk-up building located at 43-05 65th Street sold
for $8.4 million, which translates to an impressive 3.64% cap rate.
Dollar Volume Comparison
By Location Chart
49%
9%
8%
23%
11%
Northern Manhattan had a quiet month consisting solely of single transactions as 8
buildings traded across 8 transactions totaling $54.575 million in gross consideration.
A mixed-use elevatored building located on the corner of 126th Street and Lexington
Avenue sold for $12.6 million or $358 per square foot. Up in Hamilton Heights, a mixeduse walk-up building located at 1774-1776 Amsterdam Avenue sold for $9.95 million, or
$465 per square foot.
The Bronx saw 13 transactions consisting of 17 buildings totaling $43.435 million in gross
consideration. A mixed-use building located on the corner of Sedgwick Avenue and
Fordham Road sold for $10.5 million, or $153 per square foot. In Crotona Park, a walk-up
building consisting of 25 units located at 1468 Bryant Avenue sold for $3.15 million, or
$190 per square foot – demonstrating the South Bronx’s hot market.
New York City
For the six months ended February 2015 (Page 5), the average monthly transaction volume remained steady at 66 transactions per month. The average monthly dollar volume
also remained relatively steady at $1.234 billion.
Metrics
Feb 2015
% Change
vs. Jan 2015
Jan 2015
% Change
vs. Feb 2014
Feb 2014
Transaction Vol
56
-19%
69
4%
54
Building Vol
83
-13%
95
-45%
152
Dollar Vol
$580,822,510
-25%
$778,596,555
-44%
$1,040,398,333
Total Units
2,345
-2%
2,398
-59%
5,786
3 | Ariel Property Advisors | 122 East 42
nd
Manhattan
Northern Manhattan
The Bronx
Brooklyn
Queens
49+9+82311x
11+10+203722x
Building Volume Comparison
By Location Chart
11%
10%
20%
37%
22%
Street, Suite 1015 - New York NY 10168 | 212.544.9500 | arielpa.com
Manhattan
Northern Manhattan
The Bronx
Brooklyn
Queens
Legend:
Manhattan
Northern Manhattan
The Bronx
Brooklyn
Queens
*Manhattan is defined as below 96th
Street on the east side and below 110th
Street on the west side
Multifamily Market Performance By Sub-Market
Metrics
Feb 2015
% Change
vs. Jan 2015
Jan 2015
% Change
vs. Feb 2014
Legend
Feb 2014
Manhattan
Manhattan
Northern Manhattan
Transaction Vol
7
-56%
16
-22%
9
The Bronx
Building Vol
9
-61%
23
-10%
10
Brooklyn
Dollar Vol
$282,800,000
3%
$274,487,500
-3%
$291,283,000
Total Units
489
1%
488
46%
334
Transaction Vol
8
-38%
13
100%
4
Building Vol
8
-47%
15
-20%
10
$54,575,000
-53%
$115,120,000
3%
$53,075,000
Queens
Dollar Volume
Comparison Graph
N. Manhattan
$1b
Dollar Vol
Total Units
242
-41%
408
13%
215
$400m
$350m
$300m
$250m
$200m
The Bronx
$150m
Transaction Vol
13
-19%
16
-19%
16
Building Vol
17
-19%
21
-74%
65
$50m
Dollar Vol
$43,434,991
-43%
$75,874,905
-88%
$350,005,333
$0
Total Units
370
-42%
639
-88%
3,087
$100m
Feb 15
Jan 15
Feb 14
Brooklyn
Building Volume
Comparison Graph
Transaction Vol
20
18%
17
5%
19
Building Vol
31
48%
21
-45%
56
Dollar Vol
$136,257,519
-42%
$236,168,650
-59%
$329,630,000
Total Units
762
24%
615
-62%
2,023
70
50
35
30
25
Transaction Vol
20
8
14%
7
33%
6
18
20%
15
64%
11
$63,755,000
-17%
$76,945,500
289%
$16,405,000
5
127
$0
Queens
15
Building Vol
Dollar Vol
Total Units
482
94%
248
280%
10
Feb 15
Jan 15
Feb 14
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4
Multifamily Month In Review | New York City
Transaction & Dollar Volume By Quarter | Trailing 6-Month Moving Average
Multifamily Transaction Timeline
Legend: Transaction Volume
| Dollar Volume
$2.5b
130
$2b
110
$1.5b
90
$1b
70
$500mm
50
Oct
Trans Vol:
Dollar
Vol:
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015*
223
$3.62b
194
$3.13b
169
$1.90b
215
$3.66b
191
$4.06b
188
$2.03b
*Values projected for last two months of latest quarter based on first month of latest quarter
The Trailing 6-Month Moving Average
Legend: Transaction Volume
| Dollar Volume
6 Months
Ended
Feb
Avg.
Avg.
Dollar Vol. Transaction Vol.
$1,002,388,014
65
60
Jun
$838,569,876
60
$1b
55
Jul
$887,324,796
64
$950mm
50
Aug
$830,726,246
65
$900mm
45
Sep
$926,901,674
64
$850mm
40
Oct
$1,136,169,375
68
$800mm
35
Nov
$1,122,653,212
68
$750mm
30
Dec
$1,287,068,288
68
Jan
$1,254,273,173
66
Feb
$1,234,275,752
66
5 | Ariel Property Advisors | 122 East 42
nd
Feb
63
$1.1b
Jan
$982,214,410
Dec
64
May
Nov
$1,104,377,526
65
Oct
Apr
$1.2b
Sep
70
Aug
$1,125,703,000
70
Jul
Mar
$1.3b
Jun
75
May
80
$1.4b
Apr
$1.5b
Mar
85
Feb
$1.6b
2014
2015
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Pricing Indicators & Distributions
Pricing Indicators
Transaction Summary
Sep 2014 - Feb 2015 Trailing Numbers
Location
/
Criteria
Total
Buildings
Traded
Total
Transactions
Total
Dollar
Value Traded
Median
Price
Total
Units
Traded
$4,388,328,795 $13,350,000
Sep 2013 - Feb 2014 Trailing numbers
Median
Units /
Transaction
Total
Transactions
Total
Buildings
Traded
Total
Dollar
Value Traded
Median
Price
Total
Units
Traded
Median
Units /
Transaction
Manhattan
86
127
9,820
24
85
222
$2,734,537,571
$9,500,000
6,094
22
N. Manhattan
67
122
$713,814,108
$7,600,000
3,175
34
46
80
$479,417,310
$5,487,500
2,655
36
Bronx
88
151
$600,448,554
$3,625,000
5,158
34
98
191
$988,833,930
$4,025,000
8,996
45
Brooklyn
115
190
$1,132,917,828
$4,775,000
4,399
20
118
201
$1,140,943,243
$3,850,000
5,684
22
Queens
38
82
$570,145,229
$5,562,500
2,785
27
42
97
$670,596,027
$3,417,000
3,389
22
394
672
$7,405,654,514
$6,146,131
25,337
26
389
791
$6,014,328,081
$4,966,000
26,818
28
Summary
Location
/
Criteria
Avg. $/Unit
Avg. $/SF
Avg. Cap Rate
Avg. GRM
Avg. $/Unit
Manhattan
$659,254
$886
3.73%
18.55
$574,221
N. Manhattan
$247,942
$290
4.41%
13.29
$193,572
Avg. $/SF
Avg. Cap Rate
Avg. GRM
$777
3.91%
16.93
$231
4.78%
11.82
Bronx
$112,201
$129
5.59%
8.90
$108,417
$117
6.74%
8.14
Brooklyn
$273,611
$320
4.91%
14.42
$223,683
$238
5.51%
11.42
Queens
$202,799
$250
4.00%
13.25
$190,573
$238
4.84%
13.81
Trailing Six Month Performance: Deal Distribution By Transaction Count and Dollar Volume
By Dollar Volume
By Transaction Volume
Legend: $20mm+
| $5-20mm
| $1-5mm
35+59+6A 12+61+27A 633+61A 1232+56A 11+47+42A
87+13+0A 37+9+A54 3642+22A 5330+17A 66+277A
Manhattan
N. Manhattan
Bronx
Brooklyn
Queens
35%
12%
6%
12%
11%
59%
61%
33%
32%
47%
6%
27%
61%
56%
42%
Manhattan
N. Manhattan
Bronx
Brooklyn
Queens
87%
37%
36%
53%
66%
13%
54%
42%
30%
27%
0%
9%
22%
17%
7%
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Multifamily Month In Review | New York City
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Investment Sales &
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the source as “Multifamily Month In Review: New York City by Ariel Property
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Methodology:
To learn more about current market conditions or if you would like a comprehensive Asset Evaluation for your property,
please do not hesitate to contact us using the information below:
The multifamily transactions included in the analysis occurred at a minimum sales price of $1 million, with a minimum gross area of 5,000 square
feet and with a minimum of 10 units. Our estimated sales statistics reflect
all data available on public records and through other sources we deem
reliable.
Types Of Transactions Considered:
Transactions in which there was a transfer of ownership and deed document recorded on ACRIS were considered. This report does not include
partial interest in ownership transactions.
Location Definitions:
Manhattan – South of E. 96th Street and south of W. 110th Street
Northern Manhattan – North of E. 96th Street and north of W. 110th Street
The Bronx - Bronx Borough
Brooklyn – Brooklyn Borough
Queens - Queens Borough
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The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee the accuracy of any information
provided herein. As an example, all zoning information, buildable footage estimates and indicated uses must be independently verified. Vacancy factors used herein are an arbitrary percentage used only as an example, and does not necessarily relate to actual vacancy, if any. The value of this prospective investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket, and other factors which your tax advisor
and/or legal counsel should evaluate. The prospective buyer should carefully verify each item of income, and all other information contained herein. April 15, 2015 5:04 PM