The Surprise Reason Prices Are Rising
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Eastern Consolidateds Alan Miller (whom we snapped with firm president Daun Paris) tells us the run-up in deals in December (prompted by sellers who wanted to avoid the capital gains tax starting Jan. 1) removed properties from an already lean inventory of mutifamily buildings for sale. That meant a boost in prices in January, and they'll stick around, too. The deals that didnt get done by the end of the year, Alan says, were overpriced. Most of those are still on the market, though some with more realistic pricing.
Eastern Consolidated closed two deals at the buzzer on New Years Eve: Fourteen people sold a 46-unit apartment building at Broadway and 89th after 70 years for almost $50M. And HFZ paid $150M to a family partnership for The Chatsworth at 72nd Street and Riverside Drive. After 65 years under the same ownership, itll be converted to a co-op. Clearly multifamily is the hottest asset class around, and as we hear all the time, "Everyone wants to be in New York." Thus we've put together the Bisnow New York Multifamily Summit for March 12. Sign up now to hear from Ariel, Alan, and 11 other New Yorkers in the know.