Monday, December 20, 2010

Another Nice 2-Family: 107 Gates Avenue

In the heart of residential Clinton Hill, at the corner of St. James and Gates Avenue comes 107 Gates. According to Zillow, this place was picked up on 4/20/05 for $1.1M, listed with Corcoran on 9/11/09 for $1.499M after a great renovation, quickly dropped price by $100K, and now listed with Prudential for the same $1.399M. Property Shark has the original list price in 2009 at $1.575M.

While being on a corner is great, the exterior is not what it could be. We appreciate the renovation being clean & shiny, even if it's kind of dinky. We're not sure how much was spent here, but the flip certainly hasn't panned out.

We think the Zillow listing reveals what the problem over here has been all along, "Once lived in as a four unit but now gut renovated to house two units." Two units is obviously not the ideal use for this space. Nobody needs a five-bedroom triplex and one bedroom rental. And who wants to compete against these gorgeous 2-Family's? If they had simply converted this to a 3-Family and done essentially the same renvation, someone could have bought this for $1.3M-$1.4M a long time ago. Instead, this barely competes with 64 Lefferts at this rate. The 3-Family loan limit approaching $1.2M could have kept this sale in the game. This place just shoots itself in the foot. Sure, the backyard is great; but who's gonna pay this much for an owner's triplex, and not even get access to their own backyard??

And the listing doesn't do the house its full justice either. For example, if the place has parking, we'd love it if the agent would come out and describe it. Instead, we get the uselessly playful, "PARKING anyone?" Even poor old 204 Clermont might get sold before this place does.

Pro's: corner lot, decent renovation, great neighborhood-y block, close to the train, backyard

Con's: layout, price, 2-Family status, backyard goes to the 1BR rental?

Ideally: they had converted to a 3-Family in the first place. If you consider how much money they paid, when they bought, and what they'll get now, it's just shame so much money was put in without adding that much value.

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