November Multifamily Sales Significantly Down As Brooklyn Shows Only Positive Signs Per PropertyShark

PropertyShark is continuing to analyze the multifamily sector in New York City and what they have seen is that multifamily sales volume is significantly down in what they deem an ongoing slowdown. The report analyzed sales in Manhattan, Brooklyn, the Bronx and Queens in order to prepare their report with only the borough of Brooklyn showing sales volume activity up during November. Sales volume for the year is down significantly as well. Most believe that the downturn in sales being attributed to the Housing Stability and Tenant Protection Act of 2019.

The overall volume of sales in New York City was down 60% from same time period of a year ago to $412 million. Sales activity only saw 71 transactions close during the month. Transaction were down 35% from a year ago with the amount of units being transferred down 65%. For the year, the city so far has recorded a sales volume of $7.34 billion. This is down $3.83 billion from the period of January 1, 2018-November 30, 2018. Transaction activity in multifamily is down by 316 properties during the same period as only 893 sales have been recorded in the first 11 months of 2019. 2018 saw 1,209 deals close from January to the end of November. Units being transferred via the 893 sales was 20,124 between January 1 and November 30, 2019. This is significantly down from the units transferred in 2018 where 44,308 units were moved.

Here is a breakdown per borough of multifamily sales for November 2019:

Brooklyn: Brooklyn was the only borough that saw positive sign with respect to sales volume. Sales volume was up 26% totaling $146 million for the period and bolstered significantly by the sale of 39 Waverly Place at $67,250,000. Transactions were down in the borough with only 28 recorded which was 20% lower than the same period in 2018. Units transferred was down 29% from 2018 with only 264 units moved. For the overall year 5,617 units have been moved for the year. This is a tremendous 63% drop year over year. Volume has also been down 41% compared to 2018.

Manhattan: Sales volume was down 55% to $156 million for November. Sales transactions were also down 35% with only 22 closings recording during the period. Only 335 units were transferred during the period which is down 64% year over year. With respect to the year of 2019 there were 6,589 units sold during January and November. This was a 54% drop from the same period last year. Sales volume recorded at $3.73 billion, which is $1.64 billion less from the same period last year.

Queens: Queens saw their sales volume drop 83% year over year. The volume totaled $83,862,500 for the month. It should be noted that November of 2018 saw unusual high sales activity with over $500 million. Transactions were only down 7% from a year ago as 14 transactions were recorded for the month. The amount of units transferred equaled 2,797 which is a decreased of 65% from 2018 for the January 2018 through November 2018 period. That number of units transferred for November 2019 was 306 which is a 79% year-over-year drop.

Bronx: Sales volume was down 61% from November 2018 coming in at a little over $23 million. Only 7 multifamily dears were closed in November. Between January 1 and November 30 in 2019 the Bronx saw volume down 21% totaling $867 million. Unit volume transferred during the period was also down 28%.

BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

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Evictions Are Down In NYC Due To New Rent Law

The Wall Street Journal is reporting that evictions are down significantly since the state enacted the new rent laws. The Housing Stability and Tenant Protection act of 2019 was enacted in June of 2019 and has already seen a tremendous effect in filings.

The Wall Street Journal analyzed data from the period after June 14, 2019 which is the date that the law was enacted. What it found was that in non-payment proceedings filings were down forty six percent (46%) from the same period in 2018. Evictions in non-payments were down sixty one percent (61%) in July and sixty eight percent (68%) in August. The analysis also showed that filings in proceedings other than non-payment filings were down twelve percent (12%). The majority of these filings are considered “holdover” proceedings or when the tenant does not have an existing lease but remains at the premises as month to month tenants.

Judge Jean T. Schneider who is New York City’s supervising judge for housing courts believes that the decline in nonpayment cases to new rules that give tenants more time to respond to notices of lateness before a lawsuit is filed. The period for non-payment proceedings to be initiated in Court has now been extended to 14 days from either normal 3 or 5 days as was prescribed in leases. The ability of tenants to now obtain counsel and being able to look back six years on rent disputes are now deterrents as well. Prior to the enactment of the law tenant eviction were also going down. Evictions overall fell thirty seven percent (37%) since 2013.

Many landlords are considering it to much of a hassle to begin legal action unless there is an urgent need to do so. Landlords and developers criticized the new rent laws stating that it would discourage capital investment and cause the city’s housing stock to crumble. Appeals of the laws have been filed as we have previously reported.

BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://bjdpropertymanagement.com/evictions-are-down-in-nyc-due-to-new-rent-law/

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Second Lawsuit Filed Contesting The Constitutionality Of The Rent Reform Law

A second lawsuit has been filed by a small group of landlords contesting the Constitutionality of the rent reform laws called the Housing Stability and Tenant Protection Act of 2019. The Real Deal is reporting that the landlords filed a complaint led by a group of landlords including Dino, Dimos and Vasiliki Panagoulias who own a building at 38-06 29th Street in Manhattan. The named Defendants are the state of New York, the New York Division of Homes and Community Renewal, HCR’s Commissioner RuthAnne Visnauskas, the city, the city’s Rent Guidelines Board and their board members. The Complaint unlike the first one filed seeks monetary damage for individual landlords.

The Complaint alleges that the Housing Stability and Tenant Protection Act of 2019 is a “regulatory scheme” and a “regime in which tenants, not property owners, control who occupies the property, how it is used, and who may be excluded from it.” The Complaint further alleges that the law is in contrast to the Constitution’s “Contracts Clause,”. The clause bars governments from passing legislation in order to interfere with private contracts. The basis for this is because landlords are required to continue to charge preferential rent which would be lower than the legal rent until the apartment is vacated.

The first lawsuit was filed by the Rent Stabilization Association, the Community Housing Improvement Program as well as individual property owners. The Complaints legal theory for the stripping of the law was that rent law violates the Fifth Amendment’s “Takings Clause” and the Fourteenth Amendment’s “Due Process Clause.” The allegations is that the law amounts to an unjust taking because it severely limits when and how a landlord can increase rents on stabilized apartments. It would eliminate the ability of landlords to use the property and than for stabilized housing. Michael Vinocor, who is one of the named plaintiffs, states that the complaint will lead to a deterioration of the city’s housing inventory. Vincor states “My feeling is if they needed to make reforms, they could’ve done some rational reform.

HCR’s Brian Butry who is a spokesperson for the agency said in a statement “HCR has and will continue to both enforce the rent laws and investigate those who violate the law to protect tenants and the housing stock. The agency does not comment on pending litigation.”

BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://bjdpropertymanagement.com/second-lawsuit-filed-contesting-the-constitutionality-of-the-rent-reform-law/

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