Investment sales transactions are picking up in Manhattan. A new report from Avison Young shows investment sales volume totaled 51 transactions with a total value of $1.87 billion in the second quarter. This represents a 59% increase in sales volume and a 49% increase in dollar volume compared to the four quarters during the pandemic.

Multifamily led the deal volume in the second quarter, accounting for 28 of the 51 transactions and representing a total value of $438 million, representing a 100% increase in deal volume and a 19% increase in dollar volume off of the trailing four quarter average. The largest transaction was Stonehenge Partner's purchase of 920 Park Avenue for $134.5 million or $865 per square foot at a 3% cap rate. During the quarter, the price per square foot increased 4% to $742, and the average cap rate decreased 28 basis points to 4.67%.

While multifamily led in terms of transaction volume, office led in terms of dollar volume. There were five total transactions valued at $854 million. The dollar volume was up 61%, while deal volume increased 33% from the trailing four-quarter average. The price per square foot increased 10% to $1,039.