Spotlight: Massey Knakal's Brooklyn Rising

Brooklyn really is the new Manhattan. According to Massey Knakal sales director Stephen Palmese, the borough is experiencing some big-city growing pains. In Q1 '12, there was $683M in dollar volume in all of Brooklyn, and $185M in greater downtown Brooklyn alone.Multifamily sales comprised $88.6M, or 47.7% of the total value of real estate sales. The average cap rate for multifamily was 5.7% and the average price per buildable SF equaled $144.50. Stephen says that institutions are driving sales, with 1M SF of development available in contract or for sale. Retail is slow to come back but is starting to take shape, and investors are fleeing to the security of multifamily. That’s because interest rates have investors foregoing five-year money at 5.5% and taking 10-year money at 4.5%. And the impending 2013 capital gains rates are speculated to be at substantially higher values, forcing people to sell now. For more info on our sponsor, click here.

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