According to Bisnow partner Ariel Property Advisors’ recently released “Brooklyn 2015 Year-End Sales Report,” Brooklyn’s investment property sales market continued to break records in 2015.
Dollar volume in the borough was up an impressive 52% year-over-year, hitting $9.7B across 1,409 transactions consisting of 1,980 properties. Values also saw strong appreciation across asset types.
With $4.7B in gross consideration, Brooklyn multifamily properties grew in terms of both sales volume and pricing throughout 2015. Year-over-year, the average price per SF jumped 13%, reaching $328, while the gross rent multiple (the ratio of a real estate investment's price to its pre-expense monthly rental income) swelled to 14.63, a 10% increase.
Brooklyn development also continued to boom, as several large-scale transactions drove development dollar volume to $3.75B, a 60% increase year-over-year. In addition, the average price per buildable SF for the entire borough climbed to $247, a 17% gain compared to 2014, but prime areas saw sites achieve prices well above $400/buildable SF.
Ariel Property Advisors’ Brooklyn team, Nathan Singer, Mark Spinelli, Jonathan Berman and Daniel Tropp above, has had a front seat to the market’s insatiable demand for multifamily and development opportunities.
Mark led the team’s sale of 286 Clinton St, a 19k SF, 35-unit multifamily property located in the Clinton Hill Historic District. After attracting interest from multifamily investors from all over the City, the property was purchased by a 1031 buyer for $8.2M.
Over in Bedford-Stuyvesant, Jonathan recently put 497 Greene Ave—a four-story, mixed use building—and a 13k buildable SF lot at 399-401 Gates Ave into contract.
The company’s also seeing interest in Bushwick, where Daniel recently put three buildings in contract. He’ s also marketing a renovated, seven-unit mixed-use building at 153 Wilson Avenue for $3.75M.
At Ariel Property Advisors’ most recent Coffee & Cap Rates Event on Feb. 4, panelist and Slate Property Group principal Martin Nussbaum of summed it up best, saying: “Brooklyn is established. It’s not the little brother of Manhattan anymore, it’s a standalone culture, it’s a standalone brand, it’s a standalone tourist destination."
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