Apartment Investors Rush the Bronx

The Bronx continued to lure apartment investors in the third quarter of 2017. Prices for apartment properties rose faster there than any other New York City sub-market, according to the “Multifamily Quarter in Review” from Ariel Property Advisors.

Investors paid $178,181 per unit, on average over the six months ending in the third quarter, up 12.5% compared to the year before. At the same time, capitalization rates dropped to 4.93% compared with the year before. Investors are attracted by the relatively high cap rate in the Bronx compared with other sub-markets.

Prices are poised to move even higher, particularly in the Morrisania neighborhood, where apartment buildings offer high returns and steady cash flow.

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