NYM Monthly Metrics – February 2020
NYM had an active month in February with a total of $275,040,000 in activity! This month we listed 12 properties totaling $134,965,000.
Some quick closing updates:
Last month we closed on 1388 Second Avenue for $5,975,000. The building contains 9 residential units and 2 commercial units. At the sale price, this equates to $995/SF. We also closed on 1901 84th Street in Brooklyn. The 79-unit Brooklyn asset closed for $9,600,000 at a 4.59% cap rate.
Some quick listing updates:
We recently listed 509 East 87th Street on the Upper East Side – this 10-unit,100% free market asset is being offered for $10,000,000 and is tax class 2B.
In Brooklyn, we brought to market 240 Flatbush Avenue which is asking $4,600,000. This Park Slope asset contains 3 residential units which are all 100% free market and 1 strong retail lease with 4+ years left.
For other on-market opportunities you might be interested in, head over to the NYM website.
Last month, we published Will Less Supply Bring Rent Growth in 2020 for NYC? In this post we covered the changing rental market in NYC. This year, we will witness a 59% reduction in the amount of new rental supply delivered into the market compared with 2019. This is a 69% reduction compared to 2018!
We also released our 40th podcast episode of Behind The Bricks. We sat down with Jeremy Salzberg of Sugar Hill Capital Partners which has acquired over 100 properties over the last 10 years. In our conversation we talk about how the real estate market has changed since Jeremy joined Sugar Hill in 2010 and where the current opportunities are. Listen to the episode by clicking here
For information about other opportunities in the market or the potential value of your asset, call me at 212.430.5114.
Peter Von Der Ahe
Many in the New York City multifamily world are confused about where they should be going with their business plans at this point in time. In our conversation we, hopefully, clarify some of those items as we talk about how the real estate market has changed since Jeremy joined Sugar Hill in 2010 and where the current opportunities are. Listen to the episode by clicking here.
After the disruption that 2019 rent reform caused, multifamily owners will be pleased to know that 2020 might bring some positive changes. From 2015-2019, rents were flat or decreasing in New York City. However, one of the biggest implications of the 2019 rent laws is owners can no longer convert rent-stabilized units into free-market units. This will continue to reduce housing supply across the city.