Multifamily property sales in Brooklyn hit $1.96 billion in the first half of 2015, up 49 percent year-over-year and accounting for more than 38 percent of total dollar volume in the borough, according to TerraCRG. The average price per square foot of multifamily buildings in Brooklyn in 2014 was $264, up by 26 percent from $209 in 2013.
Hess expects long-term multifamily owners to test the market in 2016 and “take advantage of what they see as the market maybe at the top.” “They don’t know how much longer that might last,” Hess said. “Interest rates are going up, and there has to be an adjustment on cap rates.”
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