After Strong Q1 for NYC Multifamily, Ariel Sees “Minimal Activity” Ahead
New York City’s multifamily investment sales market wasn’t affected by COVID-19 in the first quarter, Ariel Property Advisors says in its new report. Although Q1’s dollar volume of $1.71 billion across 74 transactions represents a 30% drop from Q4 2019, the quarterly loss becomes a 34% gain if Q4’s $1.16-billion East Harlem transaction by Brookfield is taken out of the equation.
Near-term, though, Ariel expects Q2 transaction volume to be “significantly affected” by COVID-19. “As of now, we have tracked minimal activity for this asset class during April and we project that the same will be the case in May and June,” the report states.
However, Ariel did see better rent collections for multifamily than other asset classes during the month of April. Free-market multifamily units across the board reported high collection levels of 80 to 90%, while rent-stabilized units ranged anywhere from 50% to 75%.
For comments, questions or concerns, please contact Paul Bubny