Bloomberg / May 6th, 2015
Bloomberg reports: The next area of New York’s housing boom is not in Manhattan — it’s in southeast Brooklyn. Figures from global commercial real estate data and analytics firm Real Capital Analytics (RCA) indicate that sales of development sites east and south of Prospect Park skyrocketed in 2014. A record cap rate drop to 3.2 percent in Q1’15 for Manhattan properties will likely contribute to additional investment.
One project of note is a 200-unit apartment tower in Sheepshead Bay, care of AvalonBay Communities, on the second to last stop on the B line. Other players in the outer boroughs include a 544-unit tower by Cammeby’s International in Coney Island, Vornado Realty Trust’s apartments above the Rego Park shopping mall, and Onex Corporation’s three condo tower project the Grand at Sky View Parc.
RCA data also showed some volume shifts in development sites in the outer boroughs. Excluding Long Island City and Astoria, sales jumped 54 percent last year, with 20 deals valued at $150.1 million, an increase of 14 percent. Brooklyn’s dollar volume outside the coastal areas raised more than five-fold to $355.2 million. The average price per square foot was of $290, compared with $652 a square foot in northwest Brooklyn.