Tuesday, July 26, 2011

Is Washington the New Vanderbilt?: 704 Washington Avenue.

You know we love Prospect Heights. And last month we took a look at all kinds of mixed-use activity on the main commercial drag over there, Vanderbilt Avenue. Two avenues away another commercial stretch is budding, Washington Avenue. Readers of ours just rented a railroad 1BR apt renovated with decent finishes for $1,800/month on this stretch of Washington. A handful of standard 20' x 40' commercial spaces are listed over here for $4,000/month or more. These sound like Vanderbilt prices. Accordingly, Corcoran has come out with 704 Washington Avenue for $1.365M. This 16' x 66' mixed-use building has a storefront on the first floor and two apartments above that. The storefront appears to be vacant when we walked by, even though the listing adds, "Commercial storefront is currently set up as a coffee bar." They're obviously flossing the new stadium as a selling point too. To hear the market tell it, you might assume you could get $1,800 for each apartment and $4,000 for the commercial space, for a decent monthly gross. But if places in much better locations like 637a Vanderbilt or this one between Vanderbilt and Flatbush can't get over $1.35M yet, who's going to spend it all the way on Washington down the hill?

Interestingly, two other listings for the same property can be found for $1.3M here and here. Perhaps Corcoran doesn't have the exlusive listing.

From what we can tell, the owner is sitting on all equity. So if they are at all motivated, perhaps there's room to make a deal at a more reasonable number.

Pro's: budding commercial area, pretty raw canvas, curb appeal

Con's: narrow at 16' wide, no sense of tenant situation or interior condition/layout, down the hill from the train, Washington Ave at Vanderbilt prices

Ideally: not sure if the area needs another coffee shop, or if this is the price for this avenue yet. We'd make at stab closer to $999K.

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