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Market Insights

NYC Multifamily Owners: What are the 3 R's of 2017?

Welcome to 2017! This year we look forward to the growth that (hopefully) comes from a more favorable business environment. The past 12 months have been marked by uncertainty as prices, rents, financing, equity, and government regulations all changed. We hope the year ahead will bring resolution where needed--and looking forward--we focus on three categories: Rates, Rents, and Regulation. These are the "Three R's of 2017." Rates: Interest rates have started to rise and indications are such that we should anticipate moderate future increases. To hold its value, a property's…
NYM Group
January 4, 2017
Market Insights

Who is Joey 1 Cap? (And Why do NYC Properties Sell at 2% Cap Rates?)

When I first started in the real estate business, I remember a distinct conversation I had with one of the titans of the NYC real estate industry. This owner currently controls over 10,000 units, and he shared a piece of his investment philosophy with me. He did so by telling a story about the appropriate time to harvest fruit from a newly planted tree, which he said should not be done in the first seven years. I have thought about this conversation many times when new-to-market buyers ask me, “Why…
NYM Group
December 19, 2016
Market Insights

The 4 Mindsets of NYC Multifamily Investors

2016 was a transitional year in many ways for the New York City multifamily business. Financing, buyers' mindsets, pricing, rents, and other aspects of the business changed. To gain a better understanding of our clients, we surveyed several thousand owners and investors about various market topics. I think you'll be surprised at some of the answers I'll share with you below. Are you Buying Next Year? Many investors pointed out that we are in the late stages of a market cycle, and are therefore more selective about what they purchase.…
NYM Group
December 6, 2016
Market Insights

5 Election Takeaways for NYC Multifamily Investors

What does the election mean for New York City Multifamily owners? Will it impact values? Will rents go up or down? Our research team at Marcus & Millichap released a special report highlighting the impact that Trump’s presidency will have on multifamily owners.  The election results may redefine the playing field and it is important to understand the implications involved in this governmental change.
NYM Group
November 15, 2016
Market Insights

DUE DILIGENCE: How has it Changed for New York City Multifamily Owners?

The political and regulatory environment for New York City Multifamily owners is becoming increasingly complex. The real question is, how has it affected values and transactions? One direct impact is the process required to sell a building has changed. Instead of due diligence being a formality, it has become a major part of the process and critical for the seller to maintain pricing.
NYM Group
October 5, 2016
Market Insights

Want to Increase Cash Flow? Let's Talk (ROE) and (NNN)

Recently I was asked by a New York City property owner why so many of our clients sell their New York apartment buildings and buy triple net (NNN) properties? While I encounter individuals who would never make this transition, for those that do, there are consistent patterns in their thinking. They want the same things: less complexity, more free time, and increased cash flow. What we are really looking at here is something called the "return on equity" (ROE). Simply defined, your return on equity can be found by dividing…
NYM Group
September 26, 2016
Market Insights

2015 Breaks All Records

As expected, 2015 was a record-breaking year for the investment sales market. The dollar volume traded was the highest in the city’s history and many transactions (like Stuy Town)
NYM Group
January 1, 2016