The Crown Heights multifamily market matures
Contrary to speculation of a market peak in 2015, Crown Heights multifamily property prices continued to ascent in 2016. Such sales activity and pricing reflect the neighborhood’s recent establishment as a prime live/work destination in NYC.
The area saw volume for the 1H2016 at $242.9 million, worthy of multifamily sales across 35 transactions, consisting of 50 properties. Annualizing this figure, the area is poised to see more than $485 million in multifamily sales for 2016. While this reflects a modest decline in total sales from 2015—which experienced a record high—rising prices suggest a lack of multifamily supply versus demand.
First half figures show the average price per square foot rose to $353 in 2016, which is a 21% increase from 2015 levels. Likewise, the area’s 1H16 average price per unit jumped 20%, hitting $261,000. These figures reflect a premium compared to other up and coming areas of the borough like Bushwick, which saw an average price per square foot of $334 during the 1H16. Noteworthy transactions include the February 2016 sale of 15 Crown St, a 58-unit multifamily elevatored building that traded for $20,750,000, which translates to $406 per square foot. Another is 1378-1386 Bedford Ave, a 40-unit multifamily elevatored building selling for $25,150,000, which translates to $654 per square foot. In January 2016, 991-993 President Street, a multifamily 63-unit walk-up building sold for $17,000,000, which translates to $368 per square foot.