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
| Oct 13, 2010
Residences bring students, faculty together in the Middle East
A new residence complex is in design for United Arab Emirates University in Al Ain, UAE, near Abu Dhabi. Plans for the 120-acre mixed-use development include 710 clustered townhomes and apartments for students and faculty and common areas for community activities.
| Oct 13, 2010
Community center under way in NYC seeks LEED Platinum
A curving, 550-foot-long glass arcade dubbed the “Wall of Light” is the standout architectural and sustainable feature of the Battery Park City Community Center, a 60,000-sf complex located in a two-tower residential Lower Manhattan complex. Hanrahan Meyers Architects designed the glass arcade to act as a passive energy system, bringing natural light into all interior spaces.
| Oct 12, 2010
The Watch Factory, Waltham, Mass.
27th Annual Reconstruction Awards — Gold Award. When the Boston Watch Company opened its factory in 1854 on the banks of the Charles River in Waltham, Mass., the area was far enough away from the dust, dirt, and grime of Boston to safely assemble delicate watch parts.
| Sep 13, 2010
Richmond living/learning complex targets LEED Silver
The 162,000-sf living/learning complex includes a residence hall with 122 units for 459 students with a study center on the ground level and communal and study spaces on each of the residential levels. The project is targeting LEED Silver.
| Sep 13, 2010
Committed to the Core
How a forward-looking city government, a growth-minded university, a developer with vision, and a determined Building Team are breathing life into downtown Phoenix.
| Aug 11, 2010
Brown Craig Turner opens senior living studio
Baltimore-based architecture and design firm Brown Craig Turner has significantly expanded its housing design capabilities and expertise with the launch of its new senior living studio.
| Aug 11, 2010
CTBUH changes height criteria; Burj Dubai height increases, others decrease
The Council on Tall Buildings and Urban Habitat (CTBUH)—the international body that arbitrates on tall building height and determines the title of “The World’s Tallest Building”—has announced a change to its height criteria, as a reflection of recent developments with several super-tall buildings.
| Aug 11, 2010
Morphosis builds 'floating' house for Brad Pitt's Make It Right New Orleans foundation
Morphosis Architects, under the direction of renowned architect and UCLA professor Thom Mayne, has completed the first floating house permitted in the U.S. for Brad Pitt’s Make It Right Foundation in New Orleans.The FLOAT House is a new model for flood-safe, affordable, and sustainable housing that is designed to float securely with rising water levels.
| Aug 11, 2010
Bovis Lend Lease, Webcor among nation's largest multifamily contractors, according to BD+C's Giants 300 report
A ranking of the Top 50 Multifamily Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants