News:
Spotlight Content
Posted: December 31, 2024
2024 Year in Review: Lev Mavashev, Alpha Realty
Principal
Alpha Realty
What emerging trends will drive investment and development in 2025?
New York City’s multifamily market is seeing momentum, with transaction volume rising for two consecutive quarters. The third quarter saw a 12.8% increase over Q2, driven by optimism about potential interest rate cuts and renewed confidence following a Trump win. Furthermore, NYC’s resilient rental market, where rents continue to grow despite national declines, is increasing investor interest in NYC multifamily. Recent policy updates, like the revamped 485x tax abatement and City-of-Yes, add to the appeal as well. As 2024 comes to a close, transaction velocity seems to be gaining momentum and will continue into 2025. I think we will definitely see more transactions in the coming new year as the bid-ask spread between buyers and sellers starts shrinking.
What noteworthy transactions or deals from this year best exemplified key market trends or shifts?
This year, we’re seeing long-term owners who were holding out finally selling. A recent sale of 421 W 21st St. in Chelsea highlights this shift: the seller, after 10 years of ownership, doubled the rent roll and made significant building improvements. Despite these efforts, they sold the property for much less than they paid due to frustration with NYC’s regulatory environment and current interest rates. They essentially “threw in the towel.” This reflects a growing trend of owners choosing to exit rather than continue navigating the challenging market conditions, signaling a notable shift in the multifamily market.
Tags:
Spotlight Content
MORE FROM Spotlight Content
Over half of Long Island towns vote to exceed the tax cap - Here’s how owners can respond - by Brad and Sean Cronin
When New York permanently adopted the 2% property tax cap more than a decade ago, many owners hoped it would finally end the relentless climb in tax bills. But in the last couple of years, that “cap” has started to look more like a speed bump. Property owners are seeing taxes increase even when an
.png)
Quick Hits
.gif)
.jpg)
Columns and Thought Leadership
The strategy of co-op busting in commercial real estate - by Robert Khodadadian
In New York City’s competitive real estate market, particularly in prime neighborhoods like Midtown Manhattan, investors are constantly seeking new ways to unlock property value. One such strategy — often overlooked but
How much power does the NYC mayor really have over real estate policy? - by Ron Cohen
The mayor of New York City holds significant influence over real estate policy — but not absolute legislative power. Here’s how it breaks down:
Formal Legislative Role
• Limited direct lawmaking power: The NYC Council is the primary
Properly serving a lien law Section 59 Demand - by Bret McCabe
Many attorneys operating within the construction space are familiar with the provisions of New York Lien Law, which allow for the discharge of a Mechanic’s Lien in the event the lienor does not commence an action to enforce following the service of a “Section 59 Demand”.
Oldies but goodies: The value of long-term ownership in rent-stabilized assets - by Shallini Mehra
Active investors seeking rent-stabilized properties often gravitate toward buildings that have been held under long-term ownership — and for good reasons. These properties tend to be well-maintained, both physically and operationally, offering a level of stability
.gif)