fbpx

In our Q3 Investment Property Report, we see that in New York City, the number of closed transactions and the median sale price hit two year lows, yet some boroughs did better than others. Manhattan experienced a substantial quarterly increase in the dollar volume, passing $1.1 billion, even with the number of closed deals dropping. The Bronx had its largest multifamily sale ($67.7 million) in at least 5 years, despite two-year lows in both the number of sales and in the price indicators, while Staten Island had more sales
than in the previous two quarters despite a major drop in median prices. Queens and Brooklyn both had a significant decrease in the number of sales, while median prices in Brooklyn declined by 2% and median prices in Queens fell 12% compared to Q3 2007.

Multi-Unit Property Sales in Queens and Brooklyn
Multi-Unit Property Sales in Queens and Brooklyn

Transactions surge in Los Angeles as distressed properties flood the market: Los Angeles was the only city among the three in the report that had an increase in the number of sales compared to both Q3 2007 and Q2 2008. However, the increase in transactions was driven by the large number of distressed properties (trustee sales, notices of default or REO’s) in the market, predominantly in the 2-4 family building classes. Fifty four percent of all properties that sold in the third quarter of 2008 were in distress this year.

Los Angeles Multifamily Property Transactions
Los Angeles Multifamily Property Transactions

However, the median price per unit for Multifamily properties has been in free fall since Q4 2006.

Los Angeled Multifamily Property Price Per Unit
Los Angeled Multifamily Property Price Per Unit
Roxana Baiceanu

Roxana Baiceanu

Roxana is an associate editor with Multi-Housing News and Commercial Property Executive. In the past, she also created content for PropertyShark and Point2Homes’ blog pages. She also has 5 years of experience as a marketing copywriter.