Q1 2020 New York City Multifamily Market Overview
Total Page:16
File Type:pdf, Size:1020Kb
Q1 2020 MARKET OVERVIEW NEW YORK CITY Q1 2020 New York City Multifamily Market Overview DeSophy, LLC New York, NY + 1.917.250.8713 [email protected] NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 MARKET OVERVIEW NEW YORK CITY THE STAGNATION OF ACTIVITIES ON THE MULTIFAMILY MARKET CONTINUES IN Q1 2020 The dollar volume decrease of 10% is noticeable between Q1 2020 and Q4 2019, with 241 sales for a combined $2 billion. These numbers are in line with the long-term tendency of decline. Pricing remains relatively strong, ranging from $230 per square foot in the Bronx up to $1,102 per square foot in Manhattan, while the cap rates have relatively risen, ranging from 4.02 % in Manhattan up to 5.68 % in the Bronx, respectively. The number of sales also have increased in this quarter over last, by 39%. NYC Q1 2020 / DOLLAR VOLUME NYC Q1 2020 / SALES VOLUME 43% | Manhattan 15% | Manhattan THE MOST ACTIVE 10% | N. Manhattan NEIGHBORHOOD IN Q1 2020 10% | N. Manhattan WAS NOMAD, WITH $380 30% | Brooklyn $ 46% | Brooklyn 241 MILLION IN DOLLAR VOLUME 10% | Queens 2B AND THE AVERAGE PRICE 19% | Queens PER SQUARE FOOT AT $934. 7% | The Bronx 43+10307 10% | The Bronx 15+104619 Here presented are the results of the data analysis regarding multifamily market transactions in all of the NYC boroughs. The sample is based on transactions that were recorded in ACRIS, and it covers the period between January and April of 2020. Collected data were then subjected to detailed analysis and verification to obtain credible results with the use of the comparative method. Only transactions valued at over $2 million were included. Q1 2020 MARKET OVERVIEW NEW YORK CITY Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE Dollar Volume $2,272,928,262 $2,045,678,413 -10% $391,665,179 $717,768,943 83% Sales Volume 174 241 39% 87 110 26% Property Volume 284 293 3% 131 136 4% Units Volume 5,796 5,515 -5% 1,084 1,590 47% New York City New York Brooklyn Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE Dollar Volume $501,135,217 $962,705,704 92% $298,363,250 $198,694,113 -33% Sales Volume 42 37 -12% 24 45 88% Property Volume 49 43 -12% 33 53 61% Units Volume 856 1,473 72% 1,059 452 -57% Manhattan Queens Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE Dollar Volume $1,023,297,235 $197,048,964 -81% $58,467,381 $141,160,690 141% Sales Volume 12 25 108% 9 24 167% Property Volume 54 31 -43% 17 30 76% Units Volume 2,462 658 -73% 335 825 146% N. Manhattan The Bronx NYC Multifamily Report Q1 2020 / by Desophy SUB-MARKET OVERVIEW Q1 2020 Notable MANHATTAN Transactions $380,600,000 10 East 29th Street $934/SQ FT | $937,438/Unit $67,000,000 30 East End Avenue $611/SQ FT | $650,485/Unit 154% 3% $ 17% 1,357,399 4.02% 1,102 $66,248,000 VS Q4 ‘19 VS Q4 ‘19 VS Q4 ‘19 st TOTAL SQ FT SOLD AVERAGE CAP RATE AVERAGE $/SQ FT 340 East 51 Street $747/SQ FT | $571,103/Unit $33,667,653 159 Bleecker Street Manhattan’s market saw an increase in all of its indicators. This quarter, the average pricing was at $1,102 $1,275/SQ FT | $1,198,460/Unit per square foot, which is 17% higher than in Q4 2019, and with a slightly increased average cap rate of 4.02%. $27,250,000 118 East 93rd Street Multifamily dollar volume and unit volume both saw an increase of 48% and 42%, respectively. $636/SQ FT | $717,105/Unit There were 37 closed sales, which comprised approx. $963 million. BY PROPERTY TYPE Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE Dollar Volume $198,002,000 $717,180,628 262% $303,133,217 $245,525,076 -19% Sales Volume 36 27 -25% 6 10 67% THE MOST ACTIVE NEIGHBORHOOD IN Property Volume 7 11 57% 42 32 -24% Q1 2020 WAS NOMAD, Units Volume 359 1,173 227% 497 300 -40% WITH $380 MILLION IN Walk-up Elevator Elevator DOLLAR VOLUME AND THE AVERAGE PRICE PER SQUARE FOOT AT $934. NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 SUB-MARKET OVERVIEW MANHATTAN NEIGHBORHOOD SALES VOLUME PROPERTY VOLUME DOLLAR VOLUME AVERAGE $/SQ FT AVERAGE $/UNIT TOTAL SQ FT SOLD THE HIGHEST Carnegie Hill 1 1 $12,250,000 $1,294 $1,061,111 9,468 NUMBER OF SALES IN MANHATTAN Chelsea 2 2 $14,030,000 $1,192 $803,750 11,853 IN Q1 2020 WAS Chinatown 1 1 $3,820,000 $360 $318,333 10,600 IN LENOX HILL, Clinton - Hell's Kitchen 1 1 $8,400,000 $1,041 $933,333 8,070 TOTALING 6 SALES. East Village 4 4 $25,875,000 $1,028 $866,652 28,430 Greenwich Village 2 2 $42,917,653 $1,625 $1,105,480 32,016 Lenox Hill 6 11 $84,040,000 $1,248 $928,733 81,240 Lower East Side 2 2 $24,380,000 $1,248 $666,250 19,527 NoLIta 2 2 $39,816,975 $1,073 $800,000 192,356 Nomad 1 1 $380,600,000 $934 $937,438 407,555 Continued on the next page NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 SUB-MARKET OVERVIEW MANHATTAN NEIGHBORHOOD SALES VOLUME PROPERTY VOLUME DOLLAR VOLUME AVERAGE $/SQ FT AVERAGE $/UNIT TOTAL SQ FT SOLD THE HIGHEST Soho 1 1 $13,450,000 $2,470 $538,000 5,446 PRICE PER UNIT IN Q1 2020 IN Sutton Place 1 1 $7,100,000 $1,255 $1,014,286 5,656 MANHATTAN TriBeCa 2 2 $19,075,000 $1,172 $882,500 16,399 WAS RECORDED Turtle Bay 2 2 $132,496,000 $747 $571,103 177,316 IN GREENWICH Two Bridges 1 2 $14,000,000 $659 $424,242 21,258 VILLAGE, AT $1.1 MILLION. Upper East Side 3 3 $44,225,000 $816 $630,144 186,485 Upper West Side 1 1 $5,595,000 $1,013 $799,286 5,524 West Village 1 1 $9,900,000 $725 $430,435 13,662 Yorkville 3 3 $80,735,076 $843 $649,070 124,538 Grand Total 37 43 $962,705,704 $1,102 $787,461 1,357,399 NYC Multifamily Report Q1 2020 / by Desophy SUB-MARKET OVERVIEW Q1 2020 Notable NORTHERN MANHATTAN Transactions $40,000,000 Neighborhood Renewal Housing Development NM Portfolio $431/SQ FT | $488,968/Unit $10,150,000 1314 Riverside Drive $ $246/SQ FT | $158,594/Unit 450,913 -82% 4.78% -3% 437 -18% VS Q4 ‘19 VS Q4 ‘19 VS Q4’19 TOTAL SQ FT SOLD AVERAGE CAP RATE AVERAGE $/SQ FT $7,850,000 20 Sherman Avenue $191/SQ FT | $186,905/Unit $6,300,000 The Northern Manhattan kept the interest of the investors looking for an attractive emerging market, which 125 West 138th Street mirrored in a high number of sales (25), but they comprised only $197 million, which is 81% less than in Q4 $643/SQ FT | $630,000/Unit $5,765,546 2019. The unit volume and property volume also decreased compared to the previous quarter by 73% and 43%, 509 & 524 W 134th St & respectively. The average price per square foot at $437 also decreased by 8%, and the average cap rate was 523 W 138th St Portfolio $125/SQ FT | $91,516/Unit 4.78%. The most active neighborhood was East Harlem, with 9 transactions which comprised $68.3 million. BY PROPERTY TYPE Q4 2019 Q1 2020 DIFFERENCE Q4 2019 Q1 2020 DIFFERENCE EAST HARLEM WAS THE Dollar Volume $852,600,000 $18,541,865 -98% $170,697,235 $178,507,099 5% NEIGHBORHOOD WITH THE MOST SALES IN NORTHERN Sales Volume 3 5 67% 9 20 122% MANHATTAN IN Q1 2020, TOTALING 9 SALES. Property Volume 7 6 -14% 47 25 -47% Units Volume 1,769 109 -94% 693 549 -21% Walk-up Elevator NYC Multifamily Report Q1 2020 / by Desophy Q1 2020 SUB-MARKET OVERVIEW THE HIGHEST NORTHERN MANHATTAN DOLLAR VOLUME IN NORTHERN MANHATTAN IN Q1 NEIGHBORHOOD SALES VOLUME PROPERTY VOLUME DOLLAR VOLUME AVERAGE $/SQ FT AVERAGE $/UNIT TOTAL SQ FT SOLD 2020 WAS ALSO East Harlem 9 12 $68,249,055 $545 $373,151 125,337 SEEN IN EAST Central Harlem 8 9 $47,884,363 $562 $384,916 85,250 HARLEM, TOTALING West Harlem 4 6 $22,765,546 $266 $182,041 85,699 $68 MILLION. Washington Heights 4 4 $58,150,000 $376 $257,710 154,627 Grand Total 25 31 197,048,964 $437 $299,454 450,913 NYC Multifamily Report Q1 2020 / by Desophy SUB-MARKET OVERVIEW Q1 2020 Notable BROOKLYN Transactions $137,750,000 250 North Tenth Street $570/SQ FT | $581,224/Unit $83,764,000 432 Rodney Street $ 95% 5% -10% $740/SQ FT | $615,911/Unit 1,955,161 VS Q4 ‘19 4.68% VS Q4 ‘19 470 VS Q4 ‘19 TOTAL SQ FT SOLD AVERAGE CAP RATE AVERAGE $/SQ FT $55,890,888 100 Steuben St & 531 Myrtle Avenue Portfolio $1,055/SQ FT | $776,262/Unit Brooklyn continues to be the most transactional multifamily submarket, with 110 sales volume, $26,925,000 925 Prospect Pl, which is an increase of 26% in comparison to the previous quarter. Dollar volume also increased 255 E 18th St & 2815 Beverley Rd Portfolio significantly (by 83%), so did the unit volume (by 94%). The average trades were $470 per square foot $772/SQ FT | $700,000/Unit $22,900,000 with an average cap rate of 4.68%.