Following a big month of sales in August, the sales of multifamily buildings citywide took a modest dip in September, according to Ariel Property Advisors in its recent “Multifamily Month in Review Report.”
The city saw 45 transactions in September comprised of 60 buildings totaling $308.9 million.
This represents a 27 percent decrease in transaction volume, a 33 percent decrease in building volume, and a 48 percent decrease in dollar volume compared to August, according to Shimon Shkury, Ariel Property Advisors presi- dent.
Shkury noted that in August there were 62 transactions comprised of 89 buildings totaling $595.290 million in gross consideration.
Compared to the same month the previous year, which saw 50 transactions comprised of 66 buildings valued at $467 million, September 2012 was relatively stable as transaction volume dropped only 10 percent and building volume dropped 9 percent; however, dollar volume declined 34 percent.
In Brooklyn, multifamily sales continued to occur at roughly the same pace as recent months as 10 transactions took place comprised of 17 buildings totaling $51.02 million, according to the report.
September’s activity represents a moderate 29 percent decline in transaction volume, a 13 percent increase in building volume, and a 12 percent decline in dollar volume compared to September 2011, which saw 14 transactions comprised of 15 buildings totaling $57.773 million.
“Despite the decline in September, we continue to expect that potential capital gains increases in 2013 will result in a big fourth quarter,” said Shimon Shkury, Ariel president. “Low interest rates and lack of product continue to drive multifamily prices higher.”
Ariel Property Advisors’ monthly review tracks sales of multifamily buildings with a minimum sales price of $1 million, a minimum gross area of 5,000 square feet and a minimum of 10 units, according to Shkury.