According to Ariel Property Values, Manhattan’s multifamily market experienced $6.9 billion in dollar volume for the year last year, down 45% year over year (YOY) from 2015’s dollar volume and up 8% from 2014. This figure accounts for 245 multifamily deals involving 323 properties, down 16% and 32%, respectively, from 2015.
Much of the difference in dollar volume between 2015 and 2016 can be attributed to the $5.3 billion Stuyvesant Town-Peter Cooper Village transaction, which alone made up 45% of 2015’s multifamily dollar volume. Excluding this statistical outlier, 2016’s dollar volume dropped by only 3% YOY compared with 2015. The largest multifamily transaction in 2016 was Blackstone Group’s purchase of Kips Bay Court, for $620 million.
While the multifamily market experienced a slowdown, it performed better than other asset classes in Manhattan. Activity declined for both development sites and office properties compared to the last two years, registering a 35 to 45 percent drop across all metrics … The steep slowdown in the development market can be partially explained by the expiration of 421a, combined with a softening condo market and tighter lending community.