In the second half of 2015, New York City’s investment property sales rose 31 percent to reach $34.3 billion, while activity grew 23 percent in 2,901 transactions total, as compared to the second half of 2014.
- Every borough but Staten Island had a year-over-year increase in consideration, with Manhattan leading the pack.
- While Staten Island sales declined by 11 percent in the second half of 2015 compared to the year prior, the borough saw the highest escalation in transactions at 56 percent.
- The other four boroughs had less than half the percentage increase in transactions that Staten Island saw, but still featured growth.
In the second half of 2015, New York City’s investment property sales rose 31 percent to reach $34.3 billion, while activity grew 23 percent to 2,901 transactions total, as compared to the second half of 2014.
These figures are part of the launch of the the Real Estate Board New York’s Investment Sales Report, a summary exploring data on commercial, manufacturing and multifamily rental deals throughout NYC.
“The second half of 2015 resonated with groundbreaking, large-scale transactions and heightened activity citywide,” said President of REBNY, John H. Banks III. “Our report demonstrates the fact that investors continue to see the appeal of investing in all property types throughout all the boroughs.”
Every borough but Staten Island had a year-over-year increase in consideration, with Manhattan leading the pack. In the second half of 2015, Manhattan investment sales rose 22 percent to reach $23.8 billion, according to the report.
Brooklyn, at number two, rose 35 percent in sales at the latter half of last year, with a total consideration of $5 billion.
Queens saw 93 percent growth to reach $3.5 billion in investment property sales. Consideration in the Bronx rose 76 percent and brought in $1.8 billion in sales.
Staten Island sales dip, but transactions drive forward
While Staten Island sales declined by 11 percent in the second half of 2015 compared to the year prior, the borough saw the highest escalation in transactions at 56 percent. In the second half of 2014, Staten Island had 133 transactions, compared with 208 at the end of last year.
The largest sale in Staten Island in the second half of 2015 was a multifamily rental elevator building at 165 St. Mark’s Place, which sold for $27 million.
Number of sales amplified throughout NYC
The other four boroughs had less than half the percentage increase in transactions that Staten Island saw, but still featured growth. Manhattan transactions increased 25 percent year-over-year, slightly higher than the citywide increase of 23 percent.
The Bronx had a 23 percent increase in transactions to reach 404 total, with Queens following closely behind with a 22 percent increase and 612 total transactions.
Brooklyn’s transaction volume increased 16 percent year-over-year, reaching 1,060 in the second half of 2015.
Where were the biggest sales?
The Stuyvesant Town — Peter Cooper Village apartment complex in Manhattan sold for $5.5 billion, which considerably drove total multifamily elevator rental buildings sales from $3 billion to almost $10 billion year-over-year.
Eleven Madison Avenue, located in the Flatiron neighborhood of Manhattan, is an office building that sold for $2.4 billion last year. In total, office buildings held the biggest share of citywide sales, totaling $8.7 billion and 25 percent of total consideration. However, this represents a decline of 17 percent year-over-year, which is mostly due to Manhattan office building consideration, since sales in Brooklyn, Queens and Staten Island increased by more than $900 million since the second half of 2014.
The DoubleTree Hotel Suites at 1568 Broadway in Manhattan sold for $540 million, although hotel consideration dipped 17 percent to $1.3 billion year-over-year. Hotel transaction volume also declined 34 percent to 19 total sales. A whopping 98 percent of hotel sales were attributed to Manhattan in the second half of 2015.
The top twelve floors of 229 W. 43 St., the former headquarters of the New York Times, sold for $516 million — the fourth largest deal in the city.
The 35-story office tower at 575 Lexington Ave. sold for $510 million, far beyond the $400 million price tag it was purchased for back in 2006, according to a Crain’s report from Feb. 2015.
REBNY will continue to publish its Investment Sales Report on a bi-annual basis as well as more information on market prices in both residential and commercial sectors.