MNS Real Impact Real Estate

Introduction

MNS is proud to present the First Quarter 2019 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 First Quarter of 2019 (1/01/19 – 3/31/19). All data is summarized on a median basis.

Market Snapshot

Market summary:

Quarter-over-quarter, the total sales volume of Brooklyn sponsor units decreased by 24.0%, from $241,142,324 during 4Q18 to $183,154,467 this past quarter. The total number of Brooklyn sponsor sales decreased by 8.6%, from 175 sales during 4Q18 to 160 total sales during 1Q19. Quarter-over-quarter, the median price per square foot decreased by 5.9%, from $1,151.15 during 4Q18 to $1,083.65 during this past quarter. Median sales price also experienced a quarter-overquarter drop, falling by 17.5%, from $1,100,000 during 4Q18 to $907,000 during 1Q19. Year-over-year, the median price per square foot is down 18.6%, while the median sales price is down 19.6%.

This past quarter, the highest price paid per for a Brooklyn sponsor unit was as 200 Water Street, where unit PHA sold for $5,088,559. At 2,835 square feet, the buyer ended up paying $1,794.91 per square foot, making this purchase simultaneously the highest price paid for a sponsor unit and the highest price paid per square foot for a sponsor unit in Brooklyn during 1Q19.

This past quarter, the largest percentage of Brooklyn sponsor sales was in Bedford-Stuyvesant, where 27.5% of all sponsor sales occurred. This translates to 44 out of the 160 total sponsor unit sales that took place in Brooklyn during 1Q19.

Market up-swings:

The largest quarterly up-swing occurred in Fort Greene, where the median price per square foot increased by 50.4%, from $882 to $1327. Additionally, the median sales price in Fort Greene increased by 37.9%, from $1,123,842. This price swing is the direct result of a low number of sponsor sale closings quarter-over-quarter in this area, which can lead to large price swings.

Market down-swings:

The largest down-swing this quarter occurred in Bushwick, where the median price per square foot decreased by 19.1%, from $966 to $781. Additionally, the median sales price in Bushwick decreased by 16.2%, from $716,479 to $600,259.

Market Trends:

During the first quarter of 2019, one studio sponsor unit was sold, representing 0.63% of all sponsor unit sales in Brooklyn. One-bedroom sponsor units represented 41.88% of all sponsor unit sales during in Brooklyn during 1Q19, or 67 out of 160 total sales. Two-bedroom sponsor units represented 43.13% of all Brooklyn sponsor unit sales, or 69 out of 160 total sales. Three-bedroom or larger sponsor units comprised the remaining 14.38% of Brooklyn sponsor sales that occurred during 1Q19, or 23 out 160 total sales.

Neighborhoods where the majority of each unit type was sold in 1Q19:

Studios - Greenpoint (100%)
One-Bedrooms - Bed-Stuy (45%)
Two-Bedrooms - Bed-Stuy (20%)
Three Bedroom+ - Williamsburg (22%)