In New York City, it’s always challenging to close the sale of a multifamily portfolio. It’s especially challenging in 2019 when the properties are spread across 2 boroughs. The New York Multifamily team of M&M closed such a portfolio of assets in Brooklyn and Queens — a $112,000,000 portfolio of 6 properties representing 423 units and 426,749 square feet. The portfolio ultimately sold to a single buyer. Here’s a look at how this deal came together, and the challenges faced on the path to closing.

Every NYC multifamily portfolio transaction comes with its own unique set of challenges. In some cases, multiple partners own a portfolio, which can make it difficult to gain alignment among the various interests. In others, the buildings are located in separate neighborhoods, making it difficult to find a single buyer. And further, properties within a long-term portfolio often have deferred maintenance, violations or other non-conforming uses, that can impede a sale.

While transaction numbers have generally been in NYC, the New York Multifamily team at Marcus & Millichap closed more than $100 million in sales in the back half of summer 2018. With 18 closed sales this summer across Manhattan and the boroughs and another 22 in contract, it was an active summer.

New York’s real estate market beats to an entirely different rhythm to any other in the world. Here, we have everything; fast-paced transactions with property which changes hands rapidly sitting next to ancient buildings which have been held by the same families for generations. The recent sale of the a family’s Greenwich Village portfolio perfectly represents the antique side of New York – the low-velocity, long cycle of property which rarely changes hands and are often the architectural and cultural heritage of the city.