Last year was another bumper year for New York City’s real estate market. Multifamily sales hit $12.6 billion, or 39% more that in 2013, according to a year-end report by Ariel Property Advisors, an investment property sales firm.
There were a total of 761 transactions last year, 8% more than in 2013. The borough of Brooklyn accounted for 222 of those transactions valued at $2.35 billion, or 88% higher than the Brooklyn transactions in 2013. In that borough, deals exceeding $20 million accounted for 47% of its transactions. For New York City as a whole, $20 million-plus deals accounted for more than half of all transactions.
Ariel estimates that 1,413 properties were sold last year, 13% more than in 2013. The properties sold had 47,885 total units, or 20% more than the buildings sold in 2013.
In Manhattan, whose real estate prices have been going through the roof in recent years, transactions may have declined by 12% to 139, but dollar volume jumped by 15% to $5.138 billion, with the Upper East Side being the liveliest neighborhood. The Real Deal, a website that reports on New York real estate news and trends, notes that one of the biggest deals last year was the Chetrit Group and Stellar Management’s purchase of two Upper East Side rental buildings at 1660 2nd Avenue and 160 East 88th Street for a combined $485 million.
In a recent interview with the New York Real Estate Journal, Ariel’s founder and president, Shimon Shkury, notes that the average price per square foot in Manhattan rose by 25% to $866, “as investors were willing to pay ever-higher premiums to own core Manhattan.”
For 2015, Shkury remains bullish about New York’s real estate prospects, with some caveats. “We’ve identified a few headwinds, including rising construction costs, the unknowns of the mayor’s housing policy, the sustainability of the luxury market, rents leveling off, interest rates, global uncertainty, and the strengthening dollar.” On the positive side, Shkury believes multifamily sales in New York will benefit from lower oil prices, increased job creation, improved consumer spending, and tight inventory.
Related Stories
Projects | Mar 22, 2022
Austin multifamily project to feature 60 micro-housing apartments
A new 34,364 sf multifamily project, Sixth and Chicon, in Austin, Texas, will feature 60 micro-housing apartments designed for “the urban minimalist.”
Projects | Mar 18, 2022
Former department store transformed into 1 million sf mixed-use complex
Sibley Square, a giant mixed-use complex project that transformed a nearly derelict former department store was recently completed in Rochester, N.Y.
Multifamily Housing | Mar 15, 2022
Multifamily rents climbed 15.4 percent in one year
Multifamily asking rents picked up another $10 in February to reach a national average $1,628, and year-over-year growth recorded a 15.4 percent bump, according to the new Yardi Matrix Multifamily National Report.
Multifamily Housing | Mar 15, 2022
A 42-story tower envelops residents in Vancouver’s natural beauty
The city of Vancouver is world-renowned for the stunning nature that surrounds it: water, beaches, mountains. A 42-story tower, Fifteen Fifteen, will envelop residents in that natural beauty.
Multifamily Housing | Mar 15, 2022
Hermosa Village earns 2021 NAHB Best in American Living Award
Cadence McShane Construction Company received first place in this year's NAHB Best in American Living Award for its Hermosa Village project.
Projects | Mar 11, 2022
Suffolk completes construction of luxury condominium 2000 Ocean
The 38-story glass-encased tower along the beach on 1.3 acres is owned by KAR Properties and designed by TEN Arquitectos.
Projects | Mar 9, 2022
New 243-unit luxury apartment community opens in St. Paul, Minn.
Waterford Bay, a four-story, 243-unit luxury multifamily development recently opened in St. Paul, Minn.
Mass Timber | Mar 8, 2022
Heavy timber office and boutique residential building breaks ground in Austin
T3 Eastside, a heavy timber office and boutique residential building, recently broke ground in Austin, Texas.
Multifamily Housing | Mar 4, 2022
221,000 renters identify what they want in multifamily housing, post-Covid-19
Fresh data from the 2022 NMHC/Grace Hill Renter Preferences Survey shows how remote work is impacting renters' wants and needs in apartment developments.
Projects | Mar 2, 2022
Manufacturing plant gets second life as a mixed-use development
Wire Park, a mixed-use development being built near Athens, Ga., will feature 130 residential units plus 225,000 square feet of commercial, office, and retail space. About an hour east of downtown Atlanta, the 66-acre development also will boast expansive public greenspace.
