Alpha Realty founder and principal Lev Mavashev joined Michael Stoler on The Stoler Report to talk through the current conditions in New York City’s multifamily market. This conversation offers a clear look at trends shaping investment activity across Manhattan and Brooklyn and how they are influencing owners, buyers, and operators throughout the city. The discussion covered rising deal activity, the return of foreign capital, and the growing divide between free market and rent stabilized pricing.
NYC Multifamily Market Momentum and Transaction Activity
Mavashev described a market that feels more active than it did a year and a half ago. Manhattan’s transaction volume is up about sixty percent compared to last year. Buyers who had paused are now pursuing deals again, and lenders of all types are quoting loans. He noted that financing costs and regulatory hurdles still create challenges, but he considers the environment healthy for assets that are priced correctly.
Foreign Investors Targeting NYC Multifamily Buildings
Foreign capital has become more active, especially groups from Japan. Many of these buyers prefer clean, renovated free market buildings and often purchase directly rather than through local partners. When a building has a small rent stabilized portion, usually around fifteen to twenty percent, foreign buyers are more open to it if they can work with an experienced local operator.
Cap Rate Separation Between NYC Asset Types
Mavashev pointed to a widening gap between free market and rent stabilized buildings. Prime free market assets are trading at five to six percent cap rates. Pre war rent stabilized buildings are trading closer to eight to ten percent. He explained that institutional buyers struggle to underwrite rent stabilized assets because rents are capped while expenses continue to rise, which makes the diligence process harder to justify.
NYC Rent Freeze and Its Impact on Multifamily Owners
Regarding the recent rent freeze, Mavashev said most experienced buyers had already assumed it was likely after the 2025 mayoral election. He views the freeze as more of a sentiment issue than a deal breaker. The larger concern is that owners cannot pass through rising costs, which leads to deferred maintenance and ultimately affects tenants and the city’s affordable housing stock. He believes the city should encourage owners to maintain their buildings rather than restrict cost recovery without offering any relief.
Guidance for Owners Considering a Sale
Mavashev’s advice depends on the type of building. Owners of fully free market assets in Manhattan or prime Brooklyn are in a strong position to sell because there is deep demand for that product. He mentioned a recent sale of a large elevator building in Williamsburg that traded at a sub five cap rate. For rent stabilized buildings, he advises owners not to sell right now. He considers that segment depressed and hopes it will improve if regulations shift. The current buyer pool consists mostly of local operators who already have management systems in place and are adding units through dollar cost averaging.
Where Each Segment Sits in the Market Cycle
Mavashev sees free market buildings in the upper middle part of the cycle with room to grow as Manhattan rents continue to reach new highs. Rent stabilized buildings appear to be at the bottom of their cycle. He noted early signs of stabilization, including softening insurance premiums and more underwriters willing to insure the asset class. He views rent stabilized buildings as a long term opportunity for buyers who are willing to partner with experienced local operators.