New York, NY—New York's multifamily market has seen an overall lag in investment sales since the passage of the Housing Stability and Tenant Protection Act of 2019. However, a recent uptick in activity in the Northern Manhattan area suggests that investors are becoming active again, according to Ariel Property Advisors.

"The Housing Stability and Tenant Protection Act of 2019 eliminated or altered many different legal mechanisms to increase rents. We're still seeing how the market will adjust, but it is clear that investors are basing values much more off of in-place cash-flow versus future upside," says Victor Sozio, executive vice president and founding member of Ariel Property Advisors, tells GlobeSt.com. "While this new legislation has presented its challenges, investors have begun to reassess pricing and strategies. We anticipate higher transaction volume in the upcoming months to end the year."

The Bright Lights of Northern Manhattan

Northern Manhattan has been a particularly bright spot lately with two large transactions skewing the overall dollar volume figure. In East Harlem, for example, L + M Development Partners purchased a portfolio of buildings from Brookfield Properties for $1.16 billion. The six properties consist of 2,654 residential units and 40 non-residential units. Two-thirds of the units will be converted into affordable apartments, with L+M purchasing the properties through its Workforce Housing Fund.