MNS Real Impact Real Estate

Introduction

MNS IS PROUD TO PRESENT THE SECOND QUARTER 2018 EDITION OF OUR NEW DEVELOPMENT MARKET REPORT.

NEW DEVELOPMENT SALES DATA, DEFINED AS “ARMS-LENGTH” FIRST OFFERING TRANSACTIONS WHERE THE SELLER IS CONSIDERED A “SPONSOR”, WAS COMPILED FROM THE AUTOMATED CITY REGISTER INFORMATION SYSTEM (ACRIS) FOR SPONSOR SALES THAT TRADED DURING THE SECOND QUARTER OF 2018 (4/01/18 – 6/30/18). ALL DATA IS SUMMARIZED ON A MEDIAN BASIS.

Market Snapshot

Market summary:

FOR THE THIRD QUARTER IN A ROW, TOTAL SALES VOLUME OF BROOKLYN SPONSOR SALES HAS INCREASED, FROM $286,528,419 DURING 1Q18 TO $382,315,602 DURING 2Q18, A 33.4% QUARTER-OVER-QUARTER INCREASE. THE TOTAL NUMBER OF BROOKLYN SPONSOR SALES EXPERIENCED A 37.4% QUARTER-OVER-QUARTER INCREASE, FROM 206 INDIVIDUAL SALES DURING 1Q18 TO 282 INDIVIDUAL SALES DURING 2Q18. QUARTER-OVER-QUARTER, THE MEDIAN PRICE PER SQUARE FOOT DECREASED BY 7.2%, WHILE THE MEDIAN SALES PRICE DECREASED BY 11.6%. WHEN COMPARED TO THIS QUARTER LAST YEAR, THE MEDIAN PRICE PER SQUARE FOOT HAS INCREASED BY 2.1%, WHILE THE MEDIAN SALES PRICE INCREASED BY 0.5% IN THAT SAME SPAN.

THIS QUARTER, THE MOST EXPENSIVE SPONSOR UNIT SALE OCCURRED AT 171 COLUMBIA HEIGHTS IN BROOKLYN HEIGHTS. UNIT 8AB, A COMBINATION OF TWO UNITS, SOLD FOR $11,000,350 OR $2,262.05 PER SQUARE FOOT. UNIT 8AB WAS ALSO THE HIGHEST PRICE PAID PER SQUARE FOOT THIS PAST QUARTER.

THIS QUARTER, THE LARGEST PERCENTAGE OF SPONSOR SALES BY NEIGHBORHOOD OCCURRED IN BOERUM/COBBLE HILL, WHERE 15.9% OF ALL BROOKLYN 2Q18 SPONSOR SALES TOOK PLACE. THIS TRANSLATES TO 45 OUT OF THE TOTAL 282 SPONSOR UNIT SALES IN BROOKLYN DURING 2Q18. A LARGE PERCENTAGE OF SPONSOR UNIT SALES IN BOERUM/COBBLE HILL OCCURRED AT THE NEVINS, WHICH IS LOCATED AT 319 SCHERMERHORN STREET. AN IMPRESSIVE 19 OUT OF THE TOTAL 45 NEIGHBORHOOD SPONSOR SALES TOOK PLACE THERE.

Market up-swings:

THE LARGEST QUARTERLY UP-SWING OCCURRED IN DUMBO, WHERE THE MEDIAN PRICE PER SQUARE FOOT INCREASED BY 15.5%, FROM $1,480 TO $1,709. ADDITIONALLY, THE MEDIAN SALES PRICE IN DUMBO INCREASED BY 13.3%, FROM $2,695,000 TO $3,053,000.

Market down-swings:

THE LARGEST DOWN-SWING THIS QUARTER OCCURRED IN FORT GREENE, WHERE THE MEDIAN PRICE PER SQUARE FOOT DECREASED BY 26.3%, FROM $1,347 TO $993. ADDITIONALLY, THE MEDIAN SALES PRICE QUARTER-OVER-QUARTER IN FORT GREENE INCREASED BY 16.3%, FROM $1,718,806 TO $1,999,000. THIS PRICE SWING CAN BE EXPLAINED BY THE LOW QUANTITY OF SPONSOR SALES IN THE AREA, WHICH OFTEN LEADS TO DRAMATIC PRICE SWINGS.

Market Trends:

DURING THE SECOND QUARTER OF 2018, FIFTEEN STUDIO SPONSOR UNITS WERE SOLD, REPRESENTING 5% OF ALL SPONSOR UNIT SALES IN BROOKLYN. ONE-BEDROOM SPONSOR UNITS REPRESENTED 33% OF ALL SPONSOR SALES, OR 93 OUT OF 282 TOTAL SALES. TWO-BEDROOM SPONSOR UNITS REPRESENTED 35% OF ALL SPONSOR SALES DURING 2Q18, OR 100 OUT OF 282 TOTAL SALES. THREE-BEDROOM OR LARGER SPONSOR UNITS COMPRISED THE REMAINING 26% OF SPONSOR SALES THAT OCCURRED DURING 2Q18, OR 74 OUT OF 282 TOTAL SPONSOR SALES.

Neighborhoods where the majority of each unit type was sold in 2Q18:

Studios - BUSHWICK (40%)
One-Bedrooms - Williamsburg (25%)
Two-Bedrooms - Bedford-Stuyvesant (17%)
Three Bedroom+ - BOERUM/COBBLE HILL (18%)