Transactions Movin' On Up

Good news from NYC's $500k-plus investment sales market: activity is up 170% year-over-year, and the $6.5B in transactions YTD has surpassed the entirety of '09's $6.3B of deals, reported Massey Knakal CEO Paul Massey and chairman Bob Knakal yesterday morning at the firm's Madison Avenue offices. We're now past the trough in transactional volume, which is up by 87%—the sixth straight quarter of increases. The supply/demand disparity is helping, especially the interest from cash on the sidelines, they say. Also increasing: special asset activity. Massey Knakal's been involved in 43 dispositions of non-performing loans, 18 REO deals, and one short sale, achieving 82% of the estimated value of collateral. On the apartment side, partner James Nelson notes that walk-ups are selling better than elevatored buildings because of tenancy turnover and smaller sizes, while foreign buyers are growing.
Managing director Ken Krasnow, partner Shimon Shkury, James Nelson, and first VP of sales David Simone. In Northern Manhattan, dollar volume is up 180% from last year, with 94% coming from apartment buildings, Shimon and David report. Price PSF is going up, as are cap rates—balance sheet lenders are still going after this product. Although both transactional and dollar volumes were down in the Bronx, 2105 Walton Ave. recently sold for $250k over the asking price (there were 20 bidders for the asset). Ken says Brooklyn has turned the corner, with a flight to quality, although pricing is still choppy, while Queens is benefiting from increased business confidence and industrial sales. Recently sold Long Island City walk-up 36-52 35th St. saw price PSF fall 8%, but the price-per-unit actually increased 10%.

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Related Topics: David Simone , James Nelson , Ken Krasnow
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