NEW YORK CITY—Multifamily sales transactions in New York City rose 33% in the second quarter and dollar volume based on those deals soared 74% in the second quarter of 2015 as compared to a year earlier.

Ariel Property Advisors reports that the multifamily market in New York City is building on the momentum it established in the first quarter of this year and is showing significant year-over-year gains as compared to activity posted in 2014.

New York City saw 225 transactions comprised of 364 buildings totaling $3.30 billion in gross consideration in the second quarter of 2015. In the second quarter of 2014, 325 properties traded across 169 transactions totaling $1.901 billion in gross consideration.

“New York City multifamily sales have had an incredible first half and we expect this momentum will carry through to the end of the year, from both a transactional and pricing perspective,” says Shimon Shkury, president of Ariel Property Advisors. “As owners and buyers anticipate rising interest rates later this year, many are eager to do deals now to lock in current rates.”

The brokerage firm reports that pricing throughout the city continues to escalate by most measures. The average price per square foot in Manhattan for multifamily properties has eclipsed $900 per square foot. Compared to last year, average capitalization rates were down 60 basis points in the Bronx and were down marginally in Manhattan, Brooklyn and Northern Manhattan.

In its report, Ariel Property Advisors chronicled market conditions in Brooklyn, Manhattan, Northern Manhattan, the Bronx and Queens.

In Brooklyn, institutional caliber multifamily deals paced the market in the second quarter as the borough saw six transactions trade for more than $35 million—two of which surpassed $150 million each. Leading the way were Kushner Companies and LIVWRK, which purchased 184 Kent Ave., a 374,274 square foot luxury rental building, for $275 million, or $792 per square foot. The partnership plans to convert the building to condominiums.

Manhattan continues to attract investors from all over the world, as both institutional funds and small investors look to take advantage of the sub-market's safe-haven, Ariel Property Advisors states. Akelius Real Estate Management, the U.S. branch of a Swedish investment firm, paid $167.5 million for 362-372 Second Ave., a 211-unit elevatored building in Gramercy. The property last traded hands in the 1940s and sold for just north of $900 per square foot.

Although transaction, building and unit volume were down year-over-year, Northern Manhattan's dollar volume jumped 24% compared to the second quarter last year as pricing in the sub-market heated up and more single-asset trades occurred.

The Bronx had a very strong quarter, experiencing gains in both quarter-to-quarter and year-over-year figures, the brokerage firm's report states. The borough saw 79 buildings trade across 52 transactions totaling $420.86 million in gross consideration, which equates to a 73% increase in dollar volume, a 30% increase in building volume and a 24% increase in transaction volume compared to the second quarter of last year.

Two large multifamily transactions pushed Queens dollar volume up on a quarter-to-quarter and year-over-year basis. The borough's largest transaction took place in southern Astoria, where a pair of elevatored buildings located at 11-15 Broadway and 30-50 21st St. sold for $72 million, which was 20% above the price paid for the same assets in 2013.