Investment sales volumes have dropped to a 10-year low in Manhattan. A new report from Avison Young shows that investment sales activity totaled $1.1 billion across 21 transactions in the third quarter, the lowest in a decade in the market and a 74% decrease from the third quarter in 2019.

Multifamily transactions led the investment activity with nine total transactions, by far the most transactions of any other asset class. These deals totaled $121 million. Despite serving as the market leader, multifamily sales activity was down 55% and dollar volume was down 82% year-over-year. Cap rates increased slightly to 5.01% and the price per square foot fell to $553, a 40% decline. This shows that there has been a pricing adjustment for multifamily assets in the market—for those still transacting. SL Green's sale of 400 East 58th Street to A&E Real Estate Holdings was the top multifamily deal. The property traded for $62 million, equating to $443 per square foot and a 5% cap rate.

Development properties accounted for six of the transactions from the quarter, totaling $141 million. Interestingly, the sales transactions were actually a 50% increase year-over-year, but pricing was down 56% compared to the third quarter 2019. Real Estate Equities Corp. purchased a 99-year ground lease of an assemblage at 156-166 Bowery for $50 million, the leading transaction in the sector. The site totals of 90,000 base square feet, which is $556 per buildable square foot.