New York City saw robust activity in the multifamily market in the second quarter of 2024 with dollar volume exceeding $2.8 billion, 108% higher than the previous quarter and the best quarter since Q2 2023. That’s according to Ariel Property Advisors’ Q2 2024 Multifamily Quarter in Review New York City. Transaction activity rose 4% to 265 deals.

“Mortgage maturities were one of the main drivers for multifamily sales in the second quarter and we expect this trend to continue, especially for rent-stabilized assets, which accounted for over 50% of the Q2 transaction volume,” said Shimon Shkury, president and founder of Ariel.

Maturing mortgages played a role in two prominent free market sales in Q2:

• Carlyle Group and Gotham Organization bought 200 W. 67th St. on Manhattan’s Upper West Side for $265 million. A&R Kalimian Realty sold the building due to a mortgage maturity and expiration of a 421a tax exemption.

• The bulk condominium sale of 503 residential and retail units at 9 Dekalb Ave. in Downtown Brooklyn (pictured) for $672 million through a deed in lieu of foreclosure. The mezzanine lender, Silverstein Capital Partners, took over for JDS Development after purchasing the senior loan from Otéra Capital.

Shkury added, “There is an abundance of capital available for all multifamily assets today: institutional, private and international capital for free market; private family offices for rent stabilized; and mission driven for affordable housing. Our report shows that pricing has drastically adjusted in all categories of the multifamily market with investments in rent stabilized buildings driven by values dropping by roughly 30 to 60%.”