Robert Knakal, along with his personal brokerage team at Massey Knakal Realty Services, is pleased to announce the release of their exclusive 2012 Multifamily Market Report. This unique report provides the most comprehensive historical overview of the New York City multifamily property sales market. The report differentiates between walk-up buildings and elevator buildings, as they are considered two separate asset classes in New York City. For the Manhattan market (south of 96th Street on the Eastside and south of 110th Street on the Westside), the statistics date back over the last 29 years, back to 1984. For the other submarkets, including Northern Manhattan, Brooklyn, Queens, and the Bronx, the statistics go back 12 years to 2001.
“We have assembled an insightful overview of the apartment building market in New York City which includes historical volume metrics illustrating how many properties have sold, the aggregate sales prices of all sales as well as how many apartment units were in the properties that traded. Additionally, we also look at the four value metrics including cap rate, gross rent multiple, price per square foot and price per unit,” stated Mr. Knakal, Massey Knakal’s Chairman.
Unsurprisingly, the report shows that the Manhattan submarket leads the city in all valuation categories, as well as many of the volume categories in 2012. The Northern Manhattan submarket has seen the largest increase in the number of multifamily properties sold over 2011 levels, and has been outperforming almost all other submarkets thus far. It is on pace for 131 trades, which would result in an 81% increase over the 72 that were sold last year. Northern Manhattan’s total multifamily property sales dollar volume is on pace for a 101% increase over last year, and is second only to Brooklyn in terms of year over year increase.
The Bronx submarket has been the weakest performing submarket in the city. While the number of buildings sold is on pace for 157 properties, a healthy 56% increase from last year’s 101 sold, the dollar volume is on pace for just $255 million in sales, less than the $376 million in 2011. This is the only submarket where dollar volume of sales is on pace to decline this year. In Brooklyn, the multifamily building sales market is the second best in terms of numbers of apartment buildings sold, and has a market leading increase in the dollar volume of sales in 2012 versus 2011.
The Queens submarket has seen the number of buildings sold increase, however, the dollar volume of sales has remained flat, indicating that smaller properties are selling and the market continues to remain supply constrained. Annualizing this year’s activity, it is anticipated that 117 apartment buildings will be sold, reflecting a 49% increase over last year’s 79 properties sold. Dollar volume of sales is on pace for $303 million in sales, up just 1% from 2011’s $301 million.
“The information contained in the report gets very granular and provides multifamily property investors with the most comprehensive insight into the market over time that exists in the industry,” stated Jonathan Hageman, sales team manager for Mr. Knakal’s brokerage team. For a copy of the report, you can email Mr. Hageman at email@example.com or call him at 212-660-7773.
During Mr. Knakal’s career he has sold multifamily buildings containing over 30,000 apartment units.
Agents: Robert Knakal