According to Massey Knakal Research, the Bronx experienced a very strong start to the year with 341 properties sold in 1H14, an increase of 27% from the second half of 2013 and the strongest bi-annual result since 1H07. During the first half of 2014, 44 multi-property transactions were closed, which is just below 2013’s annual total of 56. Portfolios played a major role in the Bronx’s investment activity in 1H14.
In pricing terms, the Bronx has not experienced dramatic changes compared to 2013. The average price per square foot was up slightly, by $2, or 1.6%, to $161. Mixed-use and elevator buildings were largely responsible for the uptick. Cap rates have fallen by about 10 bps compared to last year’s average. At 7.2%, the Bronx still has the highest average cap rate of the outer markets.