It's not everyday we cover a property as high as $2.5M, but it's also not everyday you see a great-looking, turnkey place with decent income and lots of upside potential for $333/sqft in Carroll Gardens. 364 Union Street hit the market in August, was barely marketed from what we can tell, and quickly went into contract with multiple back-up offers in about a month. It's not everyday you can get a gorgeous brick building that's almost 7,500 sqft in this prime of an area. In a neighborhood where decent end-user 2-4 Family properties can command $2.5M and up, and where 3BR apartments can rent for much more than the average rent here of $2,750/month, and the median condo price is $700/sqft, and nice condos can command much more than that, this place has huge potential as a buy & hold or a condo conversion. It's no surprise it didn't last long and that so many people put in back-ups. The cell phone tower on top may actually bring in additional income.
The space inside looks totally turnkey, and nothing special either...
But the HUGE 22' x 67' floorplate gives anybody who knows what they're doing lots to work with. We think without even lifting a finger, there's plenty of upside in these rents anyways.
Pro's: location, curb appeal, size, 3BR's plus den on each apt, rental income potential, rental upside, condo conversion candidate
Con's: lots of money needed to acquire, went quickly, cell phone tower on top might give some the willies
Ideally: this was on our radar early for Platinum Members. The best properties go fast, gotta be ready to strike.
I don't think this is such a great investment. If you put 500k down, you will have a mortgage of around 10k. I have a building in park slope that around the same dimensions and rent roll. I agree that the monthly maint. would be around 2k. Renting a 3 bedroom is not as easy as a nice sized 1 bedroom. Additionally, if one apartment is off the market, you will feel it.
ReplyDeleteIf all is perfect and the expenses remain low and all the apartments are rented at market rate, you will see a positive cash flow of around 21k per year. That's around a 4% return on your 500k. Better then the bank...but you will have to work for it.
To Park Slope Landlord:
DeleteYou are probably right that 364 Union is a bad investment. I happen to know the buyers and I think I could probably get them to buy your building in Park Slope, too.
Remind me again why a totally-rentable $333/sqft is a "bad investment" in a flourishing neighborhood where even shells can go for above asking price at $500-$550/sqft, the median psf for in-contract condos is $691/sqft, and there is pent-up demand for condos that aren't in sterile new buildings?
ReplyDeleteclosed for $2.5M on 3/9/2012
DeleteThis was purchased by our company, East River Partners. If you come across any properties that seem similar please contact us through our website www.eastriverpartners.com. Thank you,
ReplyDeleteJody Kriss