Portfolios Punch Drunk
The New York Observer reports: Remember the portfolio deal? That’s right, the practice of grouping a bunch of buildings together and selling them all at once? Yep, it’s hard to remember, because the last time a big portfolio deal happened in New York City was …
“Wow,” laughed Pete Culliney, director of Global Research for Real Capital Analytics, when The Observer posed him that question. “Let me dust off the books. Who would imagine that would be the question of the day! In general, portfolios of more than three or four properties are almost nonexistent.”
Mr. Culliney was able to find one—that’s right, one—portfolio transaction in Manhattan this year—a small sale of three apartment buildings in January, for $14.5 million.
In contrast, January of 2008 saw a six-unit Manhattan portfolio sell for $44 million; a nine-property Manhattan portfolio sell for $311 million; a two-unit Manhattan portfolio sell for $20 million; and another two-unit trade for $10 million.
You hear that dolorous sound? It’s the death knell of yet another boom-time practice.
View the full article on The New York Observer: Portfolios Punch Drunk
Posted by: Matt Stone