2013 was a groundbreaking market for the Long Island City multi-family market. New developments attracted much of the press, but behind the scenes, private transactions volume grew while prices increased significantly.
Long Island City Development
2013 saw multiple deliveries of new multi-family properties and 2014 looks to be similar.
Two thousand new units are projected to hit the market this year with over 25 percent of them coming in just one building – the 585-unit 4610 Center Boulevard, located on the waterfront near the Pepsi sign. Buildings like Center, Linc and others are spurring so much demand that the community is experiencing a shortage of doormen. At the same time, recent land sales on the waterfront indicate that more development is coming in beyond 2014, further building demand for Long Island City.
Long Island City also saw growing multi-family sales velocity in smaller walk-up buildings.
The last two quarters of 2013 represented a 40 percent increase in sales from the same period in 2012 – seven transactions against the previous year’s five. Prices trended up as well, with the average cost per square foot going up 62 percent from $173 to $280.
With the new development, occupancies are remaining high through all classes of building in Long Island City. Furthermore, since only 10 percent of the units currently being built are available for sale, condo conversion remains a highly viable long-term exit strategy in the Long Island City market. If you’d like to learn more about owning for the near- and long-term or would like to take advantage of the strong market for sellers, please contact us.