Friday, April 22, 2011

South Slope Winner: 531 11th Street

531 11th Street looks like a great 3-Family house on a great block. It's close to the park, close to the train, on a tree-lined block between 7th and 8th Avenues in south Slope. It's a healthy 20' x 50' building with a backyard and sparkling interior that shows the owner's nifty touches:

The listing is great, complete with pictures, a layout, the rental income of $4,600 from the non-owner occupied units, and the lease dates. We want this house. Conspicuous in its absence, however, is the property's address. Maybe the sordid listing history for this house is something they'd rather not drag up. StreetEasy shows this property first hitting the market in August 2008 for $1.895M, just a month before Lehman Brothers went under & the financial crisis kicked into full gear. The rest is a familiar sight in the post-crash world of real estate:

08/07/2008 - Listed by Corcoran at $1,895,000.
12/05/2008 - Delisted temporarily.
03/23/2009 - Re-listed by Corcoran.
03/23/2009 - Price decreased by 5% to $1,795,000.
06/25/2009 - Price decreased by 5% to $1,700,000.
09/30/2009 - Price decreased by 3% to $1,650,000.
10/01/2009 - Listing is no longer available.

A few years later, is $1.575M the price? There are opportunities in South Slope here and there, but no 3-Family's as turn-key as this one. 443 11th Street had a nice price point and the same broker Brown Harris Stevens got that into contract pretty quickly. The newly-relisted 345 13th Street has a nice price point too, but needs extensive renovation. It's also worth comparing to 706 Degraw. The owner has a quality house here at 531 11th Street, we're pulling for her, but the equity situation is looking tough. We love the house, but can't really get behind the price for our purposes.

Pro's: location, curb appeal, rental income potential ($2,300/month 1.5BR's?), stylishly renovated

Con's: basically 1BR per floor, renovation may not be your style, pricing pressure

Ideally: it's a shame to see owners getting hung out to dry from the financial crisis, but this is probably $1.5M in somebody's book, right?

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