In this podcast, Shimon Shkury, President and Founder of Ariel Property Advisors, discusses Ariel’s Brooklyn 2024 Mid-Year Commercial Real Estate Trends report with Brooklyn experts Partner Sean R. Kelly, Esq., and Director Stephen Vorvolakos.
 
Overall, investment sales in Brooklyn rose to $3.36 billion in 1H 2024, a 43% increase compared to 2H 2023 and 18% increase compared to 1H 2023. In the multifamily market, Mr. Vorvolakos said owners are adjusting their pricing, which is creating opportunities for investors. The average cap rate rose to 6.48% in 1H 2024, the highest level since 2012, which can be attributed to elevated interest rates and uncertainty about new regulations. In the development market, Mr. Kelly said the new 485x tax incentive, the successor to 421a, is breathing new life back into the development market. Also, local developers are partnering with institutional capital and building farther into the borough.

More details about the Brooklyn market are available in the Brooklyn 2024 Mid-Year Commercial Real Estate Trends report.

This podcast is a recording of the overview of the New York City investment sales market and key findings from Ariel Property Advisor’s mid-year research reports that Shimon Shkury, Ariel’s President and Founder, presented at the firm’s July 31st Coffee & Cap Rates event hosted by TD Bank. Over 200 NYC real estate professionals attended the networking breakfast held at TD Bank’s conference center at One Vanderbilt. 

More information about the event is available here.

In this podcast, Shimon Shkury, President and Founder of Ariel Property Advisors, discusses the findings in Ariel’s Mid-Year Bronx report with Jason Gold, Senior Director, and Daniel Mahfar, Director.

Overall, the dollar volume of investment sales in the Bronx rose 13% to $445 million in 1H 2024 compared to 2H 2023, according to Ariel’s Bronx 2024 Mid-Year Commercial Real Estate Trends report. Transactions fell 10% to 90 for this period. Compared to 2H 2023, multifamily dollar volume increased by 38% in 1H 2024 from 2H 2023 for a total of $208.5 million. Transaction volume declined by three transactions to 36 over the same period. A total of 33 development site transactions were recorded in the first six months of 2024 totaling $166.4 million, which marked a 50% and 86% increase, respectively, compared to H2 2023.

The podcast participants noted that development is expected to increase in the Bronx because of the 485x tax abatement, which was part of the new housing policy, and a major rezoning in the Bronx, which is expected to produce new housing along 46 blocks surrounding the new Metro North stations in the Parkchester, Van Nest, and Morris Park neighborhoods. More information is available in the Bronx 2024 Mid-Year Commercial Real Estate Trends report.

Shimon Shkury, President and Founder of Ariel Property Advisors, discusses Ariel’s latest multifamily research report with Victor Sozio, Founding Partner, and Matt Swerdlow, Senior Director in Capital Markets. Mortgage maturities were one of the drivers in the multifamily market in the second quarter with dollar volume jumping 108% quarter-over-quarter to $2.83 billion and transactions rising 4% to 265. The future looks even better for the multifamily market as Treasuries have fallen below 4% and the market expects the Fed to cut rates at its next meeting in September. More information is available in Ariel’s research Q2 2024 Multifamily Quarter in Review: New York City.

On this podcast, Shimon Shkury, President and Founder of Ariel Property Advisors, and Ben Schlegel, Director of Capital Services at Ariel, discuss financing options in today’s commercial real estate market. Schlegel notes that despite higher for longer interest rates, capital is available for deals that make sense financially including private money, CMBS loans and preferred equity and mezzanine debt.

On this podcast, Shimon Shkury, President and Founder of Ariel Property Advisors, discusses the overall financial health of rent stabilized buildings in New York City with Jay Martin, Executive Director of the Community Housing Improvement Program (CHIP), a landlord advocacy group, and Matt Engel, President of Langsam Property Services Corp., an owner/operator, and Chairman of CHIP.

The topics include rising interest rates, post-Covid collections, property taxes, the Housing Stability and Tenant Protection Act (HSTPA) of 2019 and the state’s new housing policy, which tweaked HSTPA by slightly increasing Individual Apartment Improvement caps for rent stabilized apartments. A summary of the state’s new housing policy is available here.

In this roundtable discussion, Shimon Shkury, President and Founder of Ariel Property Advisors, and his Partners Victor Sozio, Michael A. Tortorici and Sean R. Kelly unpack the new housing policy included in the New York State FY 2025 Budget.

Overall, the Ariel team sees the new initiatives as positive, especially for housing creation, but challenging for existing multifamily owners because some free market units will now be regulated and increased apartment improvement allowances for rent regulated units won’t be high enough to make a meaningful difference except possibly in the outer boroughs.

To read a summary of the state’s new housing policy, please click here.

Manhattan saw $11.1 billion in investment property sales in 2023, a 45% drop from 2022, and 280 transactions, a 33% year-over-year decline, according to Ariel Property Advisors’ Manhattan 2023 Year-End Commercial Real Estate Trends report.

In this podcast, Shimon Shkury, President and Founder of Ariel Property Advisors, and his guests Founding Partner Mike Tortorici and Director Howard, discuss the report’s findings and dig deeper into Manhattan’s multifamily, development and office markets. Average multifamily cap rates, for example, rose to 5.24% in 2023, while the average price per buildable square foot for development sites declined to $390. They also shared their optimism going into 2024 because of the strong fundamentals in the Manhattan market as indicated by the 50,000 BSF development site sale that Ariel recently arranged at 250 West 30th Street in Chelsea for $15,875,000.

Brooklyn finished 2023 with investment sales totaling $5.15 billion, a 46% decline from the record-breaking 2022, which saw dollar volume top $9.5 billion, according to Ariel Property Advisors’ Brooklyn 2023 Year-End Commercial Real Estate Trends report.
Transactions also fell 30% to 839 compared to 1,206 the year before. 

In this podcast, Shimon Shkury, President and Founder of Ariel Property Advisors, and his guests Sean R. Kelly, Esq., Partner, and Stephen Vorvolakos, Director in Investment Sales, who specialize in investment property sales in Brooklyn, discuss the findings in the year-end report, the role interest rates played in the market last year and the need for lawmakers to pass legislation to encourage new development.

In 2023, the Bronx investment sales market saw $1.82 billion trade across 216 transactions, down 22% and 29% respectively, compared to 2022, according to Ariel Property Advisors’ Bronx 2023 Year-End Commercial Real Estate Trends report. In this podcast, Shimon Shkury, President and Founder of Ariel Property Advisors, and his guests Jason M. Gold, Senior Director, and Daniel Mahfar, Director, who specialize in investment property sales in the Bronx, review the latest Bronx report. They also discuss what to expect in this submarket in 2024 and two recent Bronx transactions arranged by Ariel—the $26 million sale of a 237-unit high-rise multifamily building at 1500 Noble Avenue and the $14.7 million sale of a portfolio of six multifamily buildings with 203 units in Morris Heights.