Multifamily Month In Review: New York City January 2016 Released March 2016 By Ariel Property Advisors

Transcription

1 Multifamily Month In Review: New York City January 2016 Released March 2016 By Ariel Property Advisors Join Our Network: or visit arielpa.nyc I arielpa.nyc 122 East 42 nd Street, Suite 1015, New York NY 10168

2 Compiled by: Sales Team: Shimon Shkury ext. 11 Victor Sozio ext. 12 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 arielpa.nyc/investor-relations/researchreports Michael A. Tortorici ext. 13 mtortorici@arielpa.com Analyst Team: Daniel Novick ext. 29 dnovick@arielpa.com Samuel Stuart ext. 40 sstuart@arielpa.com 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 Ariel Property Advisors 122 East 42nd Street, Suite New York NY arielpa.nyc 2

3 x x Multifamily Month In Review New York City Multifamily Month In Review: New York City january 2016 New York City multifamily figures experienced a strong start to 2016 as January saw yearover-year gains in dollar volume and in most pricing metrics. For the month, New York City saw 59 transactions comprised of 76 buildings totaling $1.371 billion in gross consideration. This represents a 68% increase in dollar volume, a 14% decrease in transaction volume and a 22% decrease in building volume compared to January 2015, which saw 69 transactions comprised of 98 buildings totaling $ million in gross consideration. led all submarkets in January with 13 buildings trading across 12 transactions totaling $ million in gross consideration, which represents a 77% increase in dollar volume compared to January of last year. The Maidman family sold 326 East 82nd Street, a 71-unit walk-up building, for $27 million, or $670 per square foot. The family had owned the property for 40 years and new management, a French 1031 exchange buyer, plans to renovate and update the property. Stone Street Properties continued their buying streak, closing two deals including a Kips Bay walk-up building located at East 24th Street they purchased for $15 million, or $870 per square foot. Farther uptown in Northern, the submarket witnessed a tremendous month as 14 buildings traded across 10 transactions totaling $290.7 million in gross consideration. Most of this activity came from the $ million sale of Riverton Houses, a massive 1,229-unit complex in Central Harlem which was the city s largest transaction in January. A&E Real Estate, the buyer, struck a deal with the city to maintain 975 of the units as affordable for the next 30 years. In ville, Thor Equities purchased a package of three walk-up rental buildings along the 500 block of West 126th Street in the vicinity of Columbia University s expansion for $34.4 million, or $664 per square foot. Two of the three buildings sold for $461 per square foot in November of saw mostly single assets trade as 15 buildings traded across 13 transactions totaling $ million in gross consideration a 132% spike from December s dollar volume. World Wide Group purchased 110 Green Street in Greenpoint, a new-construction elevatored building, for $103 million, which equates to $559 per square foot. The deal marks the most expensive multifamily deal ever for the neighborhood and the first north of $100 million. kicked off the year with 8 transactions comprised of 8 buildings totaling $192.3 million in gross consideration. The borough s largest transaction took place in Long Island City, where Crescent Street, a 140,000 square foot mixed-use building, sold for $97 million, or $693 per square foot. The sale marks the third time in four years the building has traded hands since its completion in Before this month, the property last sold for $85 million in In Flushing, Pinnacle Group purchased a 145-unit elevatored building located at Franklin Avenue for $43 million, which equates to $333 per square foot. recorded the most transactions of any submarket in January as a number of small to mid-size buildings traded. The borough s top two sales both occurred in the North Bronx as 3873 Orloff Avenue, a 93,767 square foot elevatored building located in Kingsbridge, traded hands for $19 million, or just north of $200 per square foot. In Kingsbridge Heights, a portfolio of 4 buildings on Grand Avenue spanning 101,380 square feet sold for $17 million and 10.8 times the gross rent. For the six months ended January 2016 (Page 5), the average monthly transaction volume dropped slightly to 56 transactions per month. The average monthly dollar volume remained steady at $1.981 billion. 40% 21% 9% 16% 14% 17% 18% 34% 20% 11% Dollar Volume $1.37 billion 68% increase compared to January 2015 Northern Northern january 2016 Snapshot Transaction Volume Building Volume % decrease compared to January % decrease compared to January 2015 Dollar Volume Comparison By Location Chart 40+ Building Volume Comparison By Location Chart 17+ New York City Metrics jan 2016 % Change vs. dec 2015 dec 2015 % Change vs. ja n 2015 jan 2015 Transaction Vol 59-3% 61-14% 69 Building Vol 76-32% % 98 Dollar Vol $1,371,309,190-79% $6,572,048,407 68% $815,732,055 Units 3,905-74% 14,887 62% 2,406 Legend: Northern is defined as below 96 th Street on the east side and below 110 th Street on the west side 3 Ariel Property Advisors 122 East 42 nd Street, Suite New York NY arielpa.nyc

4 Multifamily Market Performance By Sub-Market Metrics jan 2016 % Change vs. dec 2015 dec 2015 % Change vs. jan 2015 jan 2015 Legend Transaction Vol 12-25% 16-29% 17 Northern Building Vol 13-38% 21-46% 24 Dollar Vol $541,816,690-91% $5,926,176,785 77% $305,987,500 Units % 11,808 41% 523 Dollar Volume Comparison Graph $6b N. Transaction Vol 10 0% 10-23% 13 Building Vol 14-39% 23-7% 15 Dollar Vol $290,700, % $136,995, % $115,120,000 Units 1, % % 408 $1b $450m $400m $350m $300m $250m $200m Transaction Vol 16 14% 14 0% 16 $150m $100m Building Vol 26-28% 36 30% 20 Dollar Vol $121,112,500-32% $178,540,498 60% $75,874,905 $50m $0 Jan 16 Dec 15 Jan 15 Units % 1,170 42% 579 Building Volume Comparison Graph Transaction Vol 13 8% 12-19% 16 Building Vol 15 0% 15-38% 24 Dollar Vol $225,380, % $97,300,000-7% $241,804, Units % % Transaction Vol 8-11% 9 14% 7 Building Vol 8-53% 17-47% 15 Dollar Vol $192,300,000-17% $233,036, % $76,945, Units % % Jan 16 Dec 15 Jan 15 Ariel Property Advisors 122 East 42 nd Street, Suite New York NY arielpa.nyc 4

5 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 $6.5b 110 $2b 90 $1.5b 70 $1b 50 $500mm 30 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Q Q Q Q Q Q Trans Vol: Dollar Vol: $4.06b $3.94b $3.14b $3.69b $8.00b $4.11b The Trailing 6-Month Moving Average Legend: Transaction Volume Dollar Volume $2b 85 $1.5b 80 $1.4b 75 $1.3b 70 $1.2b 65 $1.1b 60 $1b 55 $950mm 50 $900mm 45 $850mm 40 $800mm 35 $750mm 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 6 Months Ended Avg. Dollar Vol. Avg. Transaction Vol Jan $1,260,462, Feb $1,357,954, Mar $1,333,980, Apr $1,200,676, May $1,290,527, Jun $1,181,037, Jul $1,242,256, Aug $1,169,263, Sep $1,139,226, Oct $1,116,979, Nov $1,010,023, Dec $1,949,547, Jan $1,980,924, Ariel Property Advisors 122 East 42 nd Street, Suite New York NY arielpa.nyc

6 A+0+7 A+6+62 A A Pricing Indicators & Distributions aug jan 2016 Trailing Numbers aug jan 2015 Trailing numbers Transaction Summary Location / Criteria Transactions Buildings Traded Dollar Value Traded Median Price Units Traded Median Units / Transaction Transactions Buildings Traded Dollar Value Traded Median Price Units Traded Median Units / Transaction $8,395,908,280 $14,900,000 15, $3,326,379,795 $13,325,000 5, N $1,024,549,921 $7,900,000 4, $1,887,170,143 $8,500,000 7, Bronx $679,038,285 $4,600,000 4, $626,728,563 $3,987,500 5, $1,204,306,077 $6,143,495 3, $1,207,105,809 $4,800,000 4, $581,746,375 $7,300,000 2, $515,390,229 $4,300,000 2, Summary $11,885,548,938 $7,500,000 29, $7,562,774,539 $6,637,500 25, Pricing Indicators Location / Criteria Avg. $/Unit Avg. $/SF Avg. Cap Rate Avg. GRM Avg. $/Unit Avg. $/SF Avg. Cap Rate Avg. GRM $852,577 $ % $657,595 $ % N. $284,734 $ % $249,361 $ % Bronx $143,535 $ % $116,081 $ % 8.76 $322,825 $ % $291,143 $ % $258,897 $ % $212,566 $ % Trailing Six Month Performance: Deal Distribution By Transaction Count and Dollar Volume Legend: $20mm+ $5-20mm $1-5mm By Transaction Volume By Dollar Volume N A7+ Bronx A % 25% 7% 15% 23% 62% 48% 42% 49% 37% 6% 27% 51% 36% 40% N. +5A47+ Bronx A A A 93% 71% 47% 52% 69% 7% 24% 39% 39% 23% 0% 5% 14% 9% 8% Ariel Property Advisors 122 East 42 nd Street, Suite New York NY arielpa.nyc 6

7 Multifamily Month In Review New York City About Ariel Property Advisors Investment Sales, Investment Research & CAPITAL SERVICES Quality Brokerage Services Exclusive Market Reports Asset Evaluations Ariel Property Advisors is a commercial real estate services and advisory company located in New York City. Our company is unique to the industry in that it is structured like an investment bank, with separate divisions for investment sales, capital services and research. This strategic approach to commercial brokerage services allows our professionals to deploy greater resources and provide consistent, seamless execution to every transaction. We cover all major commercial asset types throughout the New York metropolitan area, but maintain a very sharp focus on multifamily, mixed-use, development, commercial and industrial properties. From consultation through closing, our professionals are dedicated to achieving optimal results for our clients. Combining the insights of veteran brokers with the latest real estate market intelligence, we find solutions that meet the specific needs of both the client and the asset. Cultivating long-lasting relationships with the real estate community is essential to the success of both our firm and our clients, so we encourage all market participants to use our company as a resource. Contact us today for Asset Evaluations, listing information, financing opportunities or our latest market reports. 7 Ariel Property Advisors 122 East 42 nd Street, Suite New York NY arielpa.nyc

8 Compiled by: Invesment Sales Shimon Shkury ext. 11 Victor Sozio ext. 12 Michael A. Tortorici ext. 13 Randy Modell ext. 17 Jonathan Berman ext. 20 Scot Hirschfield ext. 16 Howard Raber ext. 23 Daniel Wechsler ext. 44 Mark Spinelli ext. 35 Daniel Tropp ext. 26 Jesse Deutch ext. 18 Jason Gold ext. 22 Matthew Gillis ext. 42 Marko Agbaba ext. 32 Joshua Berkowitz ext. 41 Nathan Singer ext. 48 Jesse Greshin ext Joshua Kwilecki ext. 51 Invesment Research Ivan Petrovic Aryeh Orlofsky Daniel Novick David Baruch Brett Campbell Dusan Panic Sam Stuart Spencer Kiely OUR METHODOLOGY 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. Data is collected form public sources and other sources we deem reliable. If you would like to use or quote this report on the web, we ask that you quote the source as Multifamily Month In Review: New York City by Ariel Property Advisors and link report from our website page ( Location Definitions: - South of East 96 th Street, South of West 110 th Street Northern - North of East 96 th Street, North of West 110 th Street - Bronx Borough - Borough - Borough COMPLIMENTARY ASSET EVALUATION Please call us at to request an Asset Evaluation Whether you are considering selling your building or you just want to know the current market value of your property, we are available to provide you with a complimentary asset evaluation. Produced by the joint efforts of our investment sales and investment research teams, an Asset Evaluation will provide you with a thorough analysis of your investment property, and will detail our future marketing efforts on your behalf. 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. March 15, :08 PM