Friday, March 16, 2012

How the East Was Won: 564-566 Sterling Place

You already know that Brooklyn real estate is the Wild West. And we know how the west was won in Brooklyn. But now the value hunt is moving east. Savvy buyers looking ahead of the curve know that they can get 20% more space for 30% less money just a few blocks east of where people are still whining about the new price points.

Literally just a few doors east of Classon, surrounded by hipsters pouring out of the trains at the Brooklyn Museum and at Franklin Avenue who are looking for decent rentals, came 564-566 Sterling Place for $2.05M. This is technically "Crown Heights", but it does everything "Prospect Heights" can do too. Can you say "upside"? These buildings quickly closed at a significant discount off of even that price, and a quick, effective project was underway. That price point for two hefty, vacant, adjacent, free market buildings with plans to expand is a huge upgrade from the ratty places with rent control suffocating the rent roll that pawn themselves off as $2M+ properties in Park Slope.

Now 564-566 Sterling already has their My Space NYC banner up for "luxury" 2BR rentals that will probably make great condo conversions some day (whenever the owner pleases) too.

But don't take our word for it. Grab a coffee at Glass Shop one afternoon, or a creative slice at Pete Zaaz and see who your tenants are.

The march east is on, and if you're still figuring out how the west was won, at least have a little fun while you're at it:

Pro's: vacant, curb appeal, huge, expandable, adjacent buildings, great price, budding location, ahead of the curve, rent now/sell later

Con's: big project to take on, if it doesn't say "Park Slope" on it some people aren't ready

Ideally: a great project from what we can tell, and there's more opportunity over here for those who know where to look.

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