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Q4 Brings Strong Finish to Slower Year for Manhattan Investment Sales
Notwithstanding a strong fourth quarter, Manhattan investment failed to keep the momentum going from 2018 to 2019, Avison Young reported. The firm’s Q4 Manhattan report noted that much of the quarter’s strength derived from a single investor: Safehold, which executed a number of nine-figure ground leases.
The 2019 total for transaction count was 27% off on a year-over-year basis, while dollar volume was similarly down by 28%. For the 10-year average, these numbers were off by 37% and 49%, respectively.
AY’s report notes that “the restrictive rent regulations passed in June stalled the multifamily market, while slumping luxury condominium sales brought pause to the development segment.”
Safehold’s acquisitions, such as the $620-million ground lease on 425 Park Ave., helped push Q4 dollar volume to $5.2 billion, the highest of any quarter in 2019. Excluding the Safehold deals, Q4 dollar volume decreased by 12% based on the four-quarter average, AY reported.
Pictured: 425 Park Ave.
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