Wednesday, January 4, 2012

More Mixed-Use on Court: 359 Court Street

Pricing's a funny thing. Walk a few blocks up Court Street from yesterday's pick on the edge of Carroll Gardens for $1.25M, and the price more than doubles. 359 Court Street, billed simply as "Great Location! Perfect for Investor!" (this agent obviously charges by the word), is a 3-Family plus store at President Street listed for $2.65M. Where's this pricing coming from? Are you paying for cashflow now? Some great potential down the road? At this price, neither.

If Sweet Melissa asked for over $2M and fetched $1.6M all cash instead, what hope does this have of going for $2.65M? We covered the pricing disparities between neighborhoods for the same cashflow on those buildings.

Wouldn't you much rather be at 603 Vanderbilt Avenue, with a NOI over $150K, a list price now dropped to $2.4M, and really get something like some lovely apartments?

Pardon us if the fish spot pics, no interior of the apartments, and no rent roll provided didn't get us itching to drop over $2M in Carroll Gardens...

They're not really making much of a case for the place as perfect for an investor. A real investor over here would want 364 Union Street for this same price or less.

Pro's: prime location, lots of rental income potential, not lots of inventory like this

Con's: where's the cashflow?, what are the apartments like?, where's this pricing coming from?

Ideally: we'd much rather be in Vanderbilt, or a prime multi-family right by the park in Park Slope for this same price.

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