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www.newyorkmultifamily.com SALES REPORT | Q1 2017 BROOKLYN MULTIFAMILY
www.newyorkmultifamily.com
S A L E S R E P O R T | Q 1 2 0 1 7
BROOKLYN MULTIFAMILY
I N T R O D U C T I O N
M U L T I F A M I L Y S A L E S R E P O R T
Dear Friends and Investors,
In the first quarter of 2017, we have experienced a significant increase in contractsignings and the past 90 days has been the best quarter of contract signings inour team history in Brooklyn. Sellers have adjusted to market pricing and buyersare comfortable with taking a ‘long’ approach when selecting properties topurchase. We have seen a minor increase of around 25 basis points in cap ratesfor stabilized income producing product. Another notable trend is the availabilityof exchange properties, which is a unique competitive advantage of our teamnetwork, that is allowing for more transactions to occur within NYC and differentmultifamily submarkets.
With ground-up construction mostly sidelined due to the lapsing of the 421a taxabatement, value-add developers are targeting conversions of loft buildings in ‘R’districts with a focus on Gowanus, Sunset Park, Bushwick, Clinton Hill, and theNavy Yards where much of this product exists at reasonable pricing on a per footbasis. Mixed-use on maturing retail corridors, particularly in the brownstoneBrooklyn neighborhoods, is the most in-demand asset-class, as buyers anticipateincreased population density in Brooklyn will drive retail pricing higher thanwhere it is presently valued. In the larger building multifamily markets,Kensington, the Parade Grounds, and Midwood are three areas to watch for asrents are rising and neighborhood amenities are increasing further acceleratingrental growth. Capitalization rates remain in the mid 3% range for the typical rentstabilized building with $1,000 +/- average rents, despite increased interest ratesand higher cash requirements from banks. And despite the increasing regulatoryenvironment, we are working with many NYC based exchange buyers that havesold out of Florida and Atlantic Coast states and come back to Brooklyn seekingcapital preservation.
One of our most enjoyable successful assignments in Q1 – the sale of 35 ClaverPlace – was a partially occupied 35,000 square foot loft building in Clinton Hill thatclosed for $14,200,000, or over $1,000,000 per unit. This asset had manycomplicated moving parts involving historical easements, zoning challenges, andpending loft law applications that our team was able to navigate through withseller’s legal team to produce a sale. The seller raised her family in the propertysince 1985, and will transition into NNN retail properties which will almost tripleher net income.
The four largest, single-asset Brooklyn multifamily closings of the quarter, 475Kent Avenue, 1245 Avenue X, 67 Livingston Street, and 427-433 Dean Street, alltraded for an aggregate value of $137,300,000. Please refer to the key on thefollowing page for additional details on these transactions.
Best,
Joe KoicimMarcus & [email protected]
Peter Von Der AheMarcus & [email protected]
Shaun RineyMarcus & [email protected]
With a commitment to integrity, we operate with our ears to the ground.
L A R G E S T M U LT I FA M I LY S A L E S
475 Kent AvenueFebruary 2017 | $55,675,000104 Units$370 Price/SF
1245 Avenue XJanuary 2017 | $37,000,000134 Units$272 Price/SF
67 Livingston StreetJanuary 2017 | $28,625,000
29 Units$635 Price/SF
427-433 Dean StreetJanuary 2017 | $16,000,00034 Units$571 Price/SF
*Includes only single asset transactions
N E W Y O R K M U L T I F A M I L Y . C O M
B R O O K L Y N
M A R K E T I N D I C AT O R S
N E W Y O R K M U L T I F A M I L Y . C O M
M U L T I F A M I L Y S A L E S R E P O R T
$410NORTHERN
$88,175,000 3 Sales
$1,131 WESTERN
$125,405,625 8 Sales
$356CENTRAL
$65,999,7057 Sales
$145 EASTERN
$11,050,000 1 Sales
$339SOUTHERN
$143,500,0008 Sales
Average Price Per Square FootBY MARKET
Total Sales VolumeTotal Number of Sales
N E W Y O R K M U L T I F A M I L Y . C O M
B R O O K L Y N
BrooklynN E W Y O R K C IT Y
OUR REPORT Our report represents six markets, as displayed to the right, featuringBrooklyn multifamily sales from Q1 of 2017 valued over $5,000,000.
PROPERTY DATE PRICE UNITS CAP RATE GRM SF $/SF
1115 -1133 Banner Avenue 16-Mar $46,900,000 102 5.50% 13.21 100,680 $466
1130 Nostrand Avenue 16-Mar $10,460,000 46 Value Add 35,816 $292
446 Senator Street 1-Mar $5,300,000 20 5.10% 13.50 15,016 $353
2342 Atlantic Avenue 1-Mar $5,400,000 24 5.80% 12.60 16,495 $327
35 Claver Place 28-Feb $14,200,000 14 6.76% 12.74 35,714 $398
677 Vanderbilt Avenue 23-Feb $6,300,000 16 Value Add 8,952 $704
570-582 Lefferts Avenue 23-Feb $11,764,705 48 2.90% 19.09 50,100 $235
Meeker Sutton Portfolio 21-Feb $27,000,000 58 Distressed 64,438 $419
21 Saint Pauls Court 21-Feb $9,000,000 36 3.84% 17.82 43,338 $208
5217 13th Avenue 16-Feb $7,500,000 29 Value Add 19,184 $391
2686 Ocean Avenue 8-Feb $13,000,000 48 4.21% 15.15 50,580 $257
1650 West 10th Street 8-Feb $14,000,000 48 4.13% 15.63 54,846 $255
242-248 Bainbridge Street 2-Feb $10,200,000 32 5.03% 14.91 29,200 $349
475 Kent Avenue 1-Feb $55,675,000 104 Value Add 150,595 $370
20 Monroe Place 31-Jan $5,400,000 7 2.76% 22.00 7,842 $689
67 Livingston Street 30-Jan $28,625,000 29 Delivered Vacant 45,100 $635
312 Atlantic Avenue 24-Jan $10,000,000 1 Delivered Vacant 14,250 $702
1245 Avenue X 24-Jan $37,000,000 134 4.20% 15.12 136,154 $272
427-433 Dean Street 24-Jan $16,000,000 34 3.80% 19.50 28,000 $571
2840 Atlantic Avenue 20-Jan $11,050,000 1 Delivered Vacant 76,400 $145
296-298 North 8th Street 19-Jan $7,000,000 30 Value Add 22,332 $313
50 1st Place 13-Jan $6,000,000 5 Delivered Vacant 6,750 $889
1449-1457 Fulton Street 10-Jan $7,900,000 21 3.68% 19.08 18,000 $439
BrooklynN E W Y O R K C IT Y
N E W Y O R K M U L T I F A M I L Y . C O M
B R O O K L Y N
1115 -1133 Banner Ave 1130 Nostrand Avenue 446 Senator Street 2342 Atlantic Avenue 35 Claver Place
677 Vanderbilt Avenue 570-582 Lefferts Avenue Meeker Sutton Portfolio 21 Saint Pauls Court 5217 13th Avenue
2686 Ocean Avenue 1650 West 10th Street 242-248 Bainbridge St 475 Kent Avenue 20 Monroe Place
67 Livingston Street 312 Atlantic Avenue 1245 Avenue X 427-433 Dean Street 2840 Atlantic Avenue
296-298 North 8th Street 50 1st Place 1449-1457 Fulton Street
Strong existing relationships with both national and regional lenders.
With more than ten years in the real estate industry, Andrew leads our capital team in securing commercial debt financing for an array of property types.
R E C E N T F I N A N C I N G
Piazza Edgecombe PortfolioRefinance Loan92-Unit Mixed-UseManhattan, Hamilton Heights
25 Dongan PlaceRefinance Loan50-Unit Multi-FamilyManhattan, Hudson Heights
211 Henry StreetRefinance Loan11-Unit Mixed-UseManhattan, Lower East Side
244 West 56th StreetRefinance Loan25-Room HotelManhattan, Midtown West
Andrew DanskerMarcus & Millichap212.430.5168
N E W Y O R K M U L T I F A M I L Y . C O M
NICHE EXPERTISE
We specialize only in multifamily properties, only in New York City, customizing our strategy around you.
CREATING OPPORTUNITIES
We are positioned to source exclusive opportunities for our clients–sellers frequently become buyers with NYM.
MIDDLE MARKET
Backed by the nation’s largest private client brokerage, we bridge the gap between private and institutional capital.
BROKERAGE AS A VERB
We don’t simply market properties–we aggressively sell them in pursuit of the best outcomes for clients.
WHY NYM?
Our specialized focus in NYC mid-market multifamily real estate, backed by the power and resources of Marcus & Millichap uniquely positions us to create
optimal opportunities for both private capital and institutional investments.
N E W Y O R K M U L T I F A M I L Y . C O M
Peter Von Der [email protected]
Scott [email protected]
Seth [email protected]
David [email protected]
L E A D E R S H I P | N Y M
The number one multifamily investment sales team in New York City.
M U L T I F A M I L Y S A L E S R E P O R T
N E W Y O R K M U L T I F A M I L Y . C O M
Shaun [email protected]
Michael [email protected]
Thomas [email protected]
UNDISTRACTED BY OTHER PROPERTY TYPES OR
PRODUCTS, OUR MARKET INFORMATION AND
ACCESS TO INVENTORY IS UNPARALLELED.
Our goal is to utilize our niche expertise and
experience to fulfill the needs of the buying and
selling clients we represent.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to squarefootage or unit count are approximate. Recipient must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposesonly and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.©2016Marcus & Millichap
M U L T I F A M I L Y S A L E S R E P O R T
N E W Y O R K M U L T I F A M I L Y . C O M
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