Tuesday, August 16, 2011

Fort Greene Mixed-Use: 258 Dekalb Avenue

Myrtle Avenue in Clinton Hill has seen lots of activity recently with small, mixed-use buildings. And we've covered all kinds of listings on commercial avenues like Washington and Vanderbilt, but here's a rare mixed-use listing in Fort Greene on Dekalb. At one of the most lovable intersections in the neighborhood, surrounded by Fort Greene park, schools, restaurants, coffee shops, and bars it's 258 Dekalb. This 17' x 50' 2-Family + store is listed at $1.399M. Valuation is tricky over here because we don't have a sense of the rent roll, and the apartments look like they're in okay condition.

Since very few of these buildings trade around here, as far as we know of, it's difficult to evaluate what the market is. This price seems steep to us based on a purely cashflow basis, but someone may pay-up to be in this prime of a location or since the opportunity is so rare. This listing is reminiscent of a few other small mixed-use properties that Fillmore has had on Bond Street and also on Smith Street. From our perspective, though, the upside is pretty much all cooked into this price. We're not sure who's in a hurry to purchase this as an investor or as a user, without much return on the $400K+ it would take to acquire.

Pro's: location, curb appeal, rare opportunity, seems turnkey

Con's: no sense of rent roll or layout of apts, commercial loan needed, upside's cooked into the list price, nothing compelling as a buy

Ideally: feels like a $1.2M