“Multifamily sales in Manhattan below 96th Street more than doubled in November compared to October,” said Shimon Shkury, president of Ariel Property Advisors. “The borough resumed its role as the dominant player in the multifamily market with 50 percent of the total transactions citywide taking place below 96th Street.”
Citywide in November 2011, there were 40 transactions comprised of 51 buildings totaling just over $250 million in gross consideration, compared to the previous month, which had 28 transactions comprised of 50 buildings totaling $256.16 million in gross consideration. Figures for November 2011 compared to October 2011 reflect a two percent increase in the number of buildings sold and a two percent decline in dollar volume, but a lack of portfolio transactions led to a transaction volume increase of 43 percent.
Year-over-year, November 2011 data represent a steady three percent increase in transaction volume and a 47 percent decrease in dollar volume. November 2010 saw 39 transactions totaling $475 million in gross consideration. It should be noted, however, that the vast majority of November 2010 activity was a result of two major portfolios trading for approximately $300 million in total.
Highlights from other areas of the city include:
Brooklyn was the second most active sub-market and improved significantly from light October numbers. For the month, the borough posted 13 transactions consisting of 14 buildings totaling $57.17 million in gross consideration.
Activity in the Bronx declined from a very strong October but figures were still impressive nonetheless. The borough had four transactions consisting of four buildings totaling $28.536 million in gross consideration.
Queens and Northern Manhattan were among the least active for November. Queens had only two transactions consisting of three buildings totaling $17 million in gross consideration, and Northern Manhattan showed a steady five transactions consisting of six buildings totaling $16.625 million in gross consideration.
“While December typically yields a flurry of year end closings, if this more modest level of activity holds it could be an indication that buyers are acting more cautiously to rising asking prices by sellers,” Mr. Shkury said. “That said, owners may be justified in holding out for higher levels as the unemployment rate trends down, economic fundamentals show more consistent improvement, and rents continue to rise.”
Trailing 6-MonthSales Averages: For the six months ended in November (page 8 in the report), average transaction volume increased slightly to 35 transactions per month. It is notable that this is the highest six-month average since May 2011. The six-month average for dollar volume came in at $404.83 million, a slight $16 million increase from October’s average.
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; Northern Manhattan Sales Report; Northern Manhattan Commercial Report; and the Northern Manhattan Residential Rental Report. More information is available at www.arielpa.com.
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