Housing Reform Sends NYC Multifamily Sales Tumbling Per PropertyShark Report

A new report from PropertyShark indicates that the Housing Stability and Tenant Protection Act of 2019 (TPA) has adversely affected Multifamily sales in NYC. Per the report, multifamily sales are down 76% in volume year over year totaling only $284 million across Manhattan, Bronx, Brooklyn and Queens. At the same time last year, sales numbers were at $837 million for the time period.

PropertyShark analyzed multifamily sales in Manhattan, Brooklyn, Queens and the Bronx for the month of September to get as they say get “an accurate snapshot of the situation on the ground”. Besides finding that sales were down 76%, they also found that sales activity was down 34% against 2018 and there were only 55 deals during this period. That amount to the slowest period in the last 33 months. The volume of multifamily units also are down significant. The report states that sales of units transferred was halved. They state “only 1,146 multifamily units traded hands last month across the four boroughs, while September 2018 saw 916 units traded in the Bronx alone.” Across the four boroughs being reports units transferred was down 51% during the period. 14,509 multifamily units were sold wherein 25,368 was sold during the same period last year.

Across the 4 boroughs here is what the breakdown is:

Manhattan- The majority of the multifamily loss starts in Manhattan as it makes up more than half of sales for NYC and is the influential borough that affects the others. The report indicates that sales dropped significantly by 81% year over year. Sales amounted to $163 million for the month which is a significant dropoff from the $837 million the year before. Sales activity dropped 71% with only 5 deals closed.

Brooklyn- Brooklyn sales volume was down 68% from the same period last year. There were 21 deals that closed with the volume coming in at $57 million. The units traded were also down substantially. For the first 9 months of the year 3,639 units were transferred. In comparison 14,006 were traded during the same period last year.

Bronx- Bronx sales activity was down 64% with only 8 deals closing in the period. Sales volume came in at $28 million which is down a whopping 82% from 2018. Year to date sales are down 15% at $777 million. The report also indicates that prices were down 27% to $128,041 from 2018.

Queens- Queens was the only borough that showed positive figures. In the borough, there was a 100% increase in sales at $29 million which is up from $14.5 million from 2018. There was an 86% of sales activity as 147 units were transferred in 13 deals.

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/housing-reform-sends-nyc-multifamily-sales-tumbling-per-propertyshark-report/

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Commercial Real Estate Leaders Believe It Is Time To Take A Stand On Government Overreach

A recent article on Bisnow has an interesting article where commercial real estate executives addressed the challenges facing the industry as government continues to enact legislation that adversely affects the industry as a whole. The general consensus of the executives spoken to is that it is now time that the industry acts or there may be negative consequences that may be substantial and permanent.

According to the Real Estate Board of New York (REBNY) there was total of $22.4B worth of commercial properties sold in the first half of the year. It was a 17% drop in the number of transactions. In the multifamily sector the total dollar volume fell 37% between the first half of 2018 and 2019. Transaction also dropped by 31%. According to a Commercial Observer, Robert Knackal of JLL states “Manhattan are on pace for $2.6 billion dollar volume in sales this year, a 42 percent drop from the $4.5 billion which occurred in 2018. This total would be 78 percent below the record $12 billion of sales that occurred in 2015. Taking the $5.46 billion Stuyvesant Town / Peter Cooper Village transaction out of the 2015 statistics is appropriate given the massive size of that transaction. Removing that sale from the data, the present pace is still 61 percent below the activity seen in 2015.” He believes that sales have been disappointing and we do not know the true impact on property values until we see the numbers coming in the next quarters.

REBNY President states “The results were unsettling, REBNY’s analysis indicates the drop has already resulted in a $66M loss in tax revenue for the city. I would like to represent to you that the decline in investment sales was an aberration and won’t be repeated. Our fear, though, is that it’s the start of a trend. There’s been a series of policy decisions at a federal, state and city level, the elimination of [the state and local tax deduction], rent regulation changes and the city’s approach to reducing greenhouse gas emissions that we believe will lead to a significant disinvestment in New York City over time.” Besides the rent reform regulations which has had a chilling effect on the industry, there are also factors that are political in nature at all levels that are affecting investment in multi-family properties. L&L Holding Co. President Robert Lapidus indicated this. He stated “The political environment is the worst I’ve ever seen. I always used to think that the mayor of New York City had a much bigger impact on my business life than the president. And now there’s a situation where they’re both having severe adverse impact. He continued by stating that the impact of legislation and the political climate is a “disaster”. “Whether you look at the regulations up in Albany, you look at chasing Amazon out, there’s a lot of fingers to point. Those are both disasters. They are disasters. And it’s hard to come back from that.”

We are also beginning to see large developers default of their loans. A recent article by the Wall Street Journal indicated that two landlord with large portfolios of rent-regulated apartments have defaulted on $200 million dollars in loans. Besides developers defaulting on loans which will affect NYC’s tax base, the city will also have challenges as to the crumbling infrastructure, homelessness and “crazy” taxes according to Vornado Executive Vice President Glen Weiss. He also believes that the industry has to act in order to save it. “Certainly, we’re not feeling great about the world and the atmosphere by which we’re trying to do business in,” he said. “We’ve really got to take a stance on this for our industry … It has to get fixed. If it doesn’t get fixed, all this talk about all these companies wanting to be New York, the war on talent and building buildings, it’s going to end.”

We are also in agreement with the real estate heavyweight in believing that there needs to be a fight for the industry. Clearly the actions of the political majority here in New York City and in Albany appear to be short-sighted and will have adverse affects leading into the next decade. Hopefully common sense will prevail.

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/commercial-real-estate-leaders-believe-it-is-time-to-take-a-stand-on-government-overreach/

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What Property Management Companies Should Prepare For As The Fall Season Arrives

Fall has finally hit us in New York City. The temperature has finally turned and we are seeing leaves turn colors and fall from their tree’s branches. As Halloween is around the corner property management professionals should start looking at preventing issues to their properties as the temperature continues to drop. So what should property management companies prepare for? Here are BJD Property Management we start preparing and here are some of the issues that we like to address in the fall season.

Cleaning gutters and drains throughout the property

As you may be aware the leaves begin to pile up in both the gutters and the drainage system throughout your properties. It is important to inspect and if need be clean all the gutters around the house. By doing so, you will be preventing possible roof, ceiling and water leaks. Clearing drains around the perimeter of the premises as well. If you do have a basement, not clearing the drainage can cause problems in the foundation that you may not be able to ascertain should there be an issue immediately. It can potentially be too late when you do and at that point you may have problems with water in your basement and mold which is costly to remediate. Estimates in New York City for clearing mold and water in the basement starts at roughly $1,500.00. While clearing the drainage, it is also important to clear the yard of leaves and broken branches. This can cause potential injury to your tenants or visitors if they are not paying attention. You should also check if all safety railings are sturdy as more rainy /snowy weather makes the walk more treacherous.

Inspecting Your Boiler and HVAC Systems

The probability is the boiler has not been turned on since late Spring. Various issues that occur with a dormant boiler and that is why it is important to have a professional check it. Hire a professional plumber to inspect the chimney and the vent pipe, or flue, between the equipment and the chimney. Any leaks or blockage in this pipe or in the chimney could fill the house with carbon monoxide gas which are harmful and poisonous for humans.

The biggest reason for inefficient HVAC are leaks. It is important to inspect windows and doors for any air that might be coming through. Apply weather stripping to windows and doors to seal them from air leaks. You should also check the ventilation ducts for inefficiencies.

Inspection of Interior of Premises for Safety Concerns

The fall season is a period that we see the most fires occur in houses. One of the ways to be on top of this as to save lives is to make sure all of the preventative systems are in place. Make sure that the CO2 and Smoke detector is in working condition. All fire extinguishers should be inspected to make sure they are in working condition as well as the sprinkler systems. Having an inspection take place takes as little as 30 minutes and could be a key factor in saving lives.

At BJD Property Management we are committed to ensuring the safety and welfare of our residents and properties. We maintain high standards and follow all procedures promulgated by the City and State. If you are looking for a professional New York City property management company then we should be your first choice. 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/what-property-management-companies-should-prepare-for-as-the-fall-season-arrives/

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StreetEasy Report Shows Record High Numbers Of Inventory For Sale In Brooklyn And Queens

StreetEasy released their 3rd Quarter 2019 Market Report recently. The report indicates that the number of homes for sale in Brooklyn and Queens. The number of homes for sale in Manhattan has also hit near all-time highs. The StreetEasy Market Reports are a monthly overview of the Manhattan, Brooklyn and Queens sales and rental markets. The reported are thereafter aggregated per quarter. It is derived from from public recorded sales and listings data from real estate brokerages that provide comprehensive coverage of Manhattan, Brooklyn and Queens.

The report indicates that although there is more competition as there is more inventory, sellers have been reluctant to give discounts as the concessions have remained pretty much unchanged from last year. The median size of the cuts were pretty much the same as last year as well. Brooklyn discounts rose just one percentage point to 22.3% and the median size of price cuts was 5.1%. Queens remained the same with a stagnant figure of just 19.3% giving price cuts with the median size of the cuts coming in at 4.3%. In Manhattan only 23.7% of sellers gave a discount, which is the lowest amount of 2019. The median size of price cuts in the borough was 5.3%.

Grant Long, Senior Economist for Streeteasy says the reluctance of sellers to reduce prices had made the rental market stronger. He states “Most sellers are still refusing to bow to the buckling market, causing would-be buyers to turn to the rental market, where they are finding a lot to like. Until sellers recognize that prices are not what they once were, those with the means to buy will continue to play the waiting game from the comfort of their rental. With job growth in the city continuing to support demand for homes, we expect to see an unusually competitive winter in the rental market, including likely record rates of rent growth.” Rents in Manhattan increased at the fastest rate since 2015 to $3,318 up 3% from last year. Brooklyn rents rose at the fastest rate in the city, up 3.9% to $2,712. Queens rents rose 3.3% to $2,200 which was its biggest jump since 2016.

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/streeteasy-report-shows-record-high-numbers-of-inventory-for-sale-in-brooklyn-and-queens/

Visit us at www.bjdpropertymanagement.com

Existing-Home Sales Tumble In September After Two Months Of Positive Signs

The National Association of Realtors (NAR) are reporting that existing-home sales fell in September after two consecutive months of increases. All regions showed declines with the Northeast region having the second worse showing of a decrease of 2.8% year over year.

Overall, existing-home sales fell 2.2% from August to a seasonally adjusted annual rate of 5.38 million in September. Existing home sales are considered completed transactions which includes single-family homes, townhomes, condominiums and co-ops. Lawrence Yun, chief economist for the NAR stated the the lack of housing inventory is to play for the sales numbers.  “We must continue to beat the drum for more inventory. Home prices are rising too rapidly because of the housing shortage, and this lack of inventory is preventing home sales growth potential.” With respect to inventory, there were 1.83 units available at the end of September. The inventory amount is 2.7% below what was available a year ago which was 1.88 million.

First-time buyers were responsible for 33% which is in line with the figures from a year ago. Mortgage rates are making it attractive for first-time home buyers as well. 30 year conventional fixed-rate mortgages decreased to 3.61%. Last year the overall average commitment rate was 4.54%. Yun stated “Mortgage rates under 4% are amazingly attractive for homebuyers. The rise in foot traffic as evidenced by the open rates of SentriLock key boxes shows growing buyer interest.”

Below is the regional breakdown of sales by region:

Northeast: Northeast sales were down 2.8% to an annual rate of 690,000. The median price was $301,100 which is up 5.2% year over year.

Midwest: The Midwest saw the biggest drop of 3.1% to an annual rate of 1.27 million. The median price was $213,500, which is an increase of 7.2% jump from last year at the same time.

South: The South saw a drop of 2.1% to an annual rate of 2.28 million. The median price was $237,300 which is an increase of 6.3% from one year ago.

West: The West had a decline of 0.9% to an annual rate of 1.14 million. The median price was $403,600 which is an of 4.5% from the previous year.

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/existing-home-sales-tumble-in-september-after-two-months-of-positive-signs/

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City Council Approves Portions Of Bay Ridge And Sunset Park As Historic Districts

The City Council has finally approved portions of Bay Ridge known as ‘Doctors’ Row’ and four sections of Sunset Park as historic districts. This comes as the Landmarks Preservation Commission (LPC) voted to designation the areas as historic districts in June.  Historic district designation makes it much harder for developers to demolish the houses and replace them with taller multifamily properties. 

Doctors’ Row is located in the Bay Ridge section of Brooklyn located on the Bay Ridge Parkway between Fourth and Fifth Avenues. It consists of 54 row houses that were constructed between 1906 and 1913. It’s nickname was derived as a result of physicians having their offices there. It will be designated as Bay Ridge Parkway-Doctors’ Row Historic District. The buildings are all limestone row houses that are two stories tall with a basement and lined with trees. The block has not changed much since constructed in the early part of the 20th Century. Council Justin Brannan was an advocate on the getting the designation pushed through and praised the work of the block’s residents that formed a block association called the Bay Ridge Parkway 400 Block Association that assisted in persuading the city to turn the street into a historic district.

Four portions of Sunset Park will also be designated as historic districts. The sections that the Landmarks Preservation Commission voted unanimously to designate are Sunset Park North, Central Sunset Park, Sunset Park 50th Street, and Sunset Park South. The portions comprise of the following:

Sunset Park South: is made up of some 285 buildings and is located between 54th to 59th streets between Fourth and Fifth avenues.

Sunset Park 50th Street: comprised of 25 houses located between Fourth and Fifth avenues

The Central Sunset Park: comprised of 148 buildings located between 47th and 48th streets between Fifth and Sixth avenues, and Sixth Avenue between 47h and 49th streets.

Sunset Park North: has 56 buildings on 44th Street between Fifth and Seventh avenues.

The Brooklyn Eagle interviewed activist Joseph Svehlak during the unanimous vote for the designation. He shouted “After 30 years of advocacy, finally!” Mr. Svehlak also hopes that the Landmarks Preservation Commission consider creating a fifth Sunset Park historic district for blocks from 40th to 43rd streets between Fourth and Fifth avenues. More than 3,000 Sunset Park residents signed a petition calling for historic district designation and an estimated 400 property owners sent the commission’s letters of support for the measure.

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/city-council-approves-portions-of-bay-ridge-and-sunset-park-as-historic-districts/

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Hudson Yards Becomes Most Expensive Neighborhood In New York City

Property Shark has recently released their market study of the top 50 neighborhoods in New York City for the third quarter of 2019. Their study indicates that Hudson Yards has surpassed Tribeca as the most expensive neighborhood in the City with sales in the neighborhood coming in at a median price of close to $5 million dollars per property.

The methodology of median sales price was determined based on residential property sales closed between April 1, 2019 and June 30, 2019. The statistics were based on residential properties that are single-family homes, condos and co-ops. Package deals were exclude and a neighborhood had to have more than 5 residential sales. Of significance is that Manhattan, Queens and the Bronx all saw decreases in the amount of transactions year to year. A big reason theorized for the fall of transactions is the Mansion tax which went into effect on July 1st.

Manhattan’s median sale price fell below $1 million for the first time since the 4th quarter of 2016.  Also Brooklyn and Manhattan were the only two boroughs to have transactions over $3 million. The study states “Manhattan and Brooklyn were the only boroughs that saw units trade for more than $3 million. However, both saw significant drops in median home sale prices and transaction volumes. In Brooklyn, the percentage of sales greater than the $3 million threshold fell 44% Y-o-Y to just 24 sales. The median sale price over the threshold fell to $4,075,500—decreasing 3% Y-o-Y. Manhattan’s transaction volume in the high-end market fell more than 37% to 266 total transactions year-over-year. The median sale price for this market also dropped more than 10% Y-o-Y to $4,477,500—a decline of $515,000.”

Below are some highlights for the boroughs of Manhattan, Queens and Brooklyn:

Manhattan: Lower East Side’s median sale price grew 87% to almost $1.5 million. The Lower East Side moved the neighborhood 8 positions to #8. TriBeCa registered a 30% decline from 2018 to around $2.4 million. The Upper East Side had the most transactions in the quarter coming in with 539 sales at a median sales amount of $1.175 million.

Brooklyn: 2 of the top 10 neighborhoods came in from Broooklyn. Carroll Gardens’ median sale price of $1.43 million had them moved 3 spots on the list from #13 to the 10th spot. Cobble Hill saw a 102% increase with a median sales amount of $1.8 million. Cobble Hill came in at #7 on the list.

Queens: Queens had 10 of the most priciest neighborhoods on the list with Ditmars-Steinway coming in as the borough’s most expensive with a median sales of $1,075 million and #21 in the City. Old Howard Beach entered the list at #45 which was up 50% from 2018 and coming in at the 45th position.

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/hudson-yards-becomes-most-expensive-neighborhood-in-new-york-city/

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