REBNY Introduces Inaugural NYC Investment Sales Report

-- Large-scale transactions boost citywide total consideration to $34.3 billion with 2,901 transactions in the second half of 2015 --

The Real Estate Board of New York (REBNY) today announced the launch of its inaugural Investment Sales Report, which compiles and provides insight on investment sales, including commercial, manufacturing and multifamily rental property, throughout the five boroughs. New York City’s investment property sales market drove headlines in the second half of 2015 with citywide consideration swelling 31 percent to $34.3 billion and activity rising 23 percent to 2,901 transactions compared to the second half of 2014, according to REBNY’s findings which will be published bi-annually. 

“The second half of 2015 resonated with ground-breaking, large-scale transactions and heightened activity citywide,” said John H. Banks, III, REBNY President. “Our report demonstrates the fact that investors continue to see the appeal of investing in all property types throughout all the boroughs.”

All the boroughs, except for Staten Island, saw a year-over-year increase in total consideration in the second half of 2015. Manhattan had the largest total consideration, rising 22 percent to $23.8 billion; followed by Brooklyn, whose consideration rose 35 percent to $5 billion. Queens and the Bronx had the largest percentage increases in total consideration, increasing 93 percent to $3.5 billion and 76 percent to $1.8 billion, respectively, compared to the same period in 2014.

Multifamily rental elevator properties accounted for 29 percent, the greatest share, of total citywide consideration in the second half of 2015, increasing to $10 billion from $3 billion in the second half of 2014. The $5.5 billion Stuyvesant Town – Peter Cooper Village sale played a major role in this increase. While office properties accounted for 25 percent, the second largest share of the city’s total consideration, this was a 17 percentage point decrease for the property type, which declined from $10.5 million to $8.7 million year-over-year.

In addition to the $5.5 billion Stuyvesant Town – Peter Cooper Village sale, the other largest-priced investment property sales completed in the second half of 2015 were: the $2.4 billion sale of the office building at 11 Madison Avenue; the $540 million sale of DoubleTree Hotel Suites at 1568 Broadway; the $516 million sale of the top 12 floors of 229 West 43rd Street, the New York Times former headquarters; and the $510 million sale of the office building at 575 Lexington Avenue.

Additional highlights from REBNY’s Second Half 2015 New York City Investment Sales Report:

  • While Manhattan office building consideration declined in the second half of 2015, consideration of office building sales in the other boroughs increased. Total consideration in the sales of office buildings in Brooklyn, Queens and Staten Island collectively rose by more than $900 million, a threefold increase since the second half of 2014. The $490 million sale of the Long Island City office building at 25-01 Jackson Avenue played a major role in spurring this increase.
  • Though total consideration declined by 11 percent in Staten Island year-over-year, the 56 percent increase in the borough’s total number of transactions, rising from 133 to 208, was the largest among the five boroughs.
  • The combined total consideration of garages, gas stations and vacant land – which are generally potential development sites – increased by 37 percent to $2.6 billion from the second half of 2014. These properties comprised eight percent of total citywide consideration and 19 percent of citywide transactions. 
  • Hotel consideration in the second half of 2015 decreased 17 percent to $1.3 billion from the second half of 2014. The number of transactions also decreased, dropping 34 percent to 19 sales. Out of New York City’s total hotel consideration, 98 percent was attributable to sales in Manhattan.

 

View the full report.