Nov. 10, 2015 | New York Real Estate Journal
Halfway through the fourth quarter, it is clear that 2015 was among the strongest years in memory for N.Y.C. real estate, with developments continuing to rise and buildings trading at a rapid pace.
In the multifamily space, we saw record prices in numerous neighborhoods in Manhattan and Brooklyn, as investor interest in N.Y.C. continues to flourish among established local players and prominent foreign investors.
The activity of our talented brokers illustrates the overall health of the entire city. While prime areas continue to attract investors, we are also seeing the emergence of other areas farther from Lower Manhattan, including neighborhoods in South Brooklyn and Upper Manhattan. One portfolio sale we recently arranged in Hamilton Heights – in which two apartment buildings sold for $35.5 million – demonstrated the significant value that investors now see in city neighborhoods that were recently undesirable.
Beyond investment sales, the city’s health can also be seen in the financing that lenders are willing to provide, with their confidence that the property will retain its value. In Q3, we closed $150 million in refinancing for 330 West 42nd St., a landmark building abutting Port Authority. Despite being a rather complex transaction, we were able to secure favorable financing, yet another sign that lenders retain their interest in investing in New York City real estate.
As we approach 2016, the future looks brighter than ever, and local and foreign buyers will continue to vie for real estate in this sought-after market. Reflecting this strong investor interest, our firm has several significant deals currently in contract, including two separate Upper Manhattan portfolios, one of which is priced at approximately $100 million, translating to 16 times the rent roll, and the other which will trade for $34 million. With this intense demand, the outer boroughs will continue to ascend in 2016, providing eager investors with properties in increasingly attractive neighborhoods in Brooklyn, Queens and the Bronx.
Michael Weiser is the president of GFI Realty Services, Inc., an affiliate of GFI Capital Resources Group, LLC, New York, N.Y.
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