Saturday, November 24, 2018

Queens owners hold on to their multifamily buildings

From The Real Deal:

Queens has been at the forefront of New York City’s development boom, with major new megaprojects rising from Astoria to Flushing. And with Amazon’s official selection of Long Island City for half of its so-called HQ2, the appetite for large scale developments in Queens is likely to accelerate even further.

But one segment of the local market that has remained consistently slow is deals for multifamily buildings, where activity almost always lags behind the other boroughs. During the third quarter of the year, Queens saw just 11 deals across 14 buildings for $93.33 million, according to data from Ariel Property Advisors.

During the second quarter, the borough saw 18 deals across 25 buildings for about $283 million, and just 13 deals across 18 buildings for about $178 million during the first quarter. Throughout 2017, Queens saw 43 deals across 115 buildings worth $849 million, making it the only borough not to break the $1 billion mark in annual sales. These were the lowest number by borough in every instance and every category, with the sole exception of dollar volume during 2018’s second quarter (the Ariel reports examine every part of the city except Staten Island).

Michael Tortorici, executive vice president at Ariel, said Queens has had a slow multifamily market for as long as he has been analyzing the borough. He generally sees somewhere around 60 trades per year.

“The demand is there. The supply often isn’t,” he said, “and I think that fact is seen in the pricing, which is consistent and has been, compared to other parts of the city, also very competitive.”

Part of the reason for Queens’ slow multifamily market could be the relatively small amount of multifamily buildings it has compared to the other boroughs. Ariel identified just 3,371 tax lots in the borough that have one or more multifamily or mixed-use building on them with 10 or more units. This number was 6,057 in the Bronx, 7,361 in Brooklyn and 12,726 in Manhattan.

There is also more of a general reluctance among multifamily owners in Queens to sell their properties, given that they tend to be very secure investments, Tortorici said.

“Queens multifamily owners are very loyal to Queens and to their holdings, and many of them are very stable in value with appreciation,” he said. “They’re stable in terms of collections. The income growth is steady and consistent.”

Because of the stability, owners are more likely to commit to longterm holds and pass it on generationally, he said.

What a shame that the multifamily buildings aren't being traded back and forth! In the meantime, one- and two-family homes are torn down and replaced with crap on a regular basis.


Anonymous said...

What an ugly piece of shit! That looks like the typical shit being put up in North Flushing. Beautiful old ranch homes are destroyed so that 6 shithole apartments can go in to house low-class trash!

JQ LLC said...

Oh how selfish of people in Queens, laying down roots and remaining here and contributing to borough's economy.

A very eye-opening article exposing the craven crass minds of speculators. Especially with the dark Amazon cloud hovering over the world's borough. (Ttalk about the extreme and devastating effects of climate change!)

Joe said...

>>typical shit being put up in North Flushing<<

As far out as Manhasset now.
4 nice 1920s Tudor single family homes with garages, manicured landscaping, fig trees, red maples bought on Hillside ave by Asians. Permits, demo fence and all plowed down over one weekend.
4 of the same as above pre-fab shitboxes are now going up.

Democrats busted up all the architectural approval hearings & zoning to get more tax revenue, the towns being destroyed as the Supervisor and town counsel bastards vote themselves raises, create more phony baloney job positions to hire more of their relatives and special friends. --$30K school, property, police, town & county taxes

Also the 2 Movie theaters in Great Neck and Manhasset to a housing developer from Manhattan.
I'm glad I got the F_ out and moved to City Island--taxes $3600, no alternate side the street parking on this dead end block. No corporate storefronts in sight neither

kapimap said...

Slow sales due to the $1m+ price tag of 3 family homes.

Anonymous said...

Ficcalora's NYCB makes its money on multifamily lending.