MNS Real Impact Real Estate

Introduction

MNS is proud to present the Fourth Quarter 2014 edition of our New Development Market

New Development Sales data, defined as such “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 Fourth Quarter of 2014 (10/01/14 – 12/31/14). All data summarized is on a median basis.

Market Snapshot

Year-Over-Year Median PPSF - down 12.3%
Quarter-Over-Quarter Median PPSF - down 26.6%

Year-Over-Year Median Sales Price - up 32.0%
Quarter-Over-Quarter Median Sales Price - down 26.6%

Brooklyn New Development Sales Inventory - down 22.9% from 3q14
Neighborhood with the Most New Dev Sales - Boerum Hill & Cobble Hill (27% of all Brooklyn)

Total New Development Sales Volume - 14.4% to $40.2 Million from $46.9 Million in 3Q14

Highest New Development Sale:
255 Columbia St. Apt.PH, Cobble Hill – $ 2,545,625

Highest New Development Sale PPSF:
360 Furman St Apt.1114, Brooklyn Heights – $1,349/SF

Market summary:

The total number of New Development Sponsor sales in Brooklyn fell down 14.44% from 3Q14. The following neighborhoods did not account for any New Development sales during this time: Bay Ridge, Downtown Brooklyn, DUMBO, Gowanus, Kensington, Prospect-Lefferts Gardens, Park Slope and Williamsburg. The decrease in volume is due to the minimal amount of new condominium construction. However, pricing levels continue to increase with median sales pricing and price per square foot both increasing just over 26% since the last quarter.

Market up-swings:

As various sales at 255 Columbia st closed, Boerum-Cobble Hill saw the most new development sponsor sales in all of Brooklyn at 27.03%. The neighborhood also saw a 10.7% and 20.4% increase in price per square foot and sales price, respectively, largely driven by the Columbia street closings. Brooklyn Heights too saw great movement in pricing levels with Apartment #1114 at 360 Furman St aka One Brooklyn Bridge Park closing at $2.138 million. However, the Penthouse at 255 Columbia st led the highest price sale this quarter at $2.546 million.

Market down-swings:

A 4-unit, 4-floor pre-war building at 256 Cumberland Street was converted to condominiums in 2014, making up the entire inventory sample for Fort Greene. These sales led to the largest Brooklyn down-swing where price per square foot fell 25.3% from $1,085 to $810 and Median Price fell 44.6% from $1,639,382 to $855,000. We expect to see this number increase in the coming year as Fort Greene is on track to get a new batch of high end new development, beginning a new cycle of market up-swings.

Sales Volume:

Two-Bedroom units and Three-Bedroom units represented 43.2% and 37.8% of all sales in Brooklyn during 4Q14 respectively. The neighborhood that accounted for the highest number of New Development Sponsor unit sales was Boerum-Cobble Hill with 10 transactions, 27.03% of total borough sales. This was due to an influx of units that closed at 255 Columbia Street.

*The neighborhoods that sold the most amount of 4Q14 new development inventory per unit size:

Studios - Fort Greene/Boerum Hill-Cobble Hill (1 unit sold each neighborhood) (100%)
One-Bedrooms - Bushwick, Carroll Garden, Clinton Hill, Crown Heights, and Greenpoint (1 unit sold each neighborhood) (100%)
Two-Bedrooms - Bed-Stuy, Clinton Hill, Boerum-Cobble Hill and Prospect Heights (3 units sold each neighborhood) (75%)
1200+SF - Boerum-Cobble Hill (43%)