WHAT’S UP, UPPER MANHATTAN?
|Multifamily opportunities in Upper Manhattan are tight, but we should see transactions increase soon, says Massey Knakal’s market guru Shimon Shkury, top right, whose team recently assisted affiliates of Security Properties in selling a nine-building East Harlem housing portfolio for $26.9M, and helped Metrovest Equities sell a 120-unit building and adjacent development at 1428 Fifth Ave to L&M Equities for $22M. Shimon, here with colleagues (clockwise)Mike Tortorici, Christopher Lefferts, and Victor Sozio, tells us that rent-stabilized apartment buildings, in particular, are seeing rental upsides and are therefore more attractive.|
|The low volume of trading has made it difficult to price assets, Shimon says, but we should see a rise in transactions as local operators and newcomers with foreign money want to buy buildings with expected significant upsides. Assets that are moving see plenty of aggressive bidders—one deal they recently closed had 16—as investors are hungry from product above 96th Street. They expect a stabilization of cap rates and condo markets, both of which will lead to clearer pricing. However, they expect townhouse shells to continue softening because of a lack of construction financing, Shimon says.|