Developers Buy More Sites: News from Ariel’s “Coffee and Cap Rates” Presentation

The renewal of New York’s biggest tax break for development encouraged developers to buy more land in 2017. The number of deals went up in the neighborhoods where rental development still makes sense.

“In 2017 we got back Affordable New York. That helped areas where land prices are conducive to rental — areas like Flatbush and Crown Heights, as opposed to areas like Williamsburg and Downtown Brooklyn,” said Shimon Shkury, president of Ariel Property Advisors, speaking at “Coffee and Cap Rates,” held Feb. 8, 2018 at Club 101 in New York City.

However, the prices for these development sites fell in many part New York City, as apartment rents and condominium prices stalled. Land prices fell 2% in the Bronx, 5% in Brooklyn and 8% in Northern Manhattan. Land prices rose 7% in Manhattan below 96th St., but that those prices were skewed by a few transactions by developers completing large collections of land.

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