Friday, June 1, 2012

Sold in Brooklyn Heights: Joralemon Street

We rarely cover Brooklyn Heights, but this deal has been asking to be swooped since the end of last summer. Listed for $2.85M - $3M for a while, this multi-family house on Joralemon recently closed "at full ask". We wish the agent would indicate that on their website, and in the other various places they're still promoting this listing as "Available!", but we all know how that goes.

While at prices certainly well above our paygrade, we'd been telling Platinum Members since August that this place was a good buy & hold in a prime location pushing a 6 cap, with further upside the market could still bear. While it requires deep pockets, the building also works as a condo conversion, whether now or down the road. With over 8 units, and only 2 of them rent stabilized, it's not the worst way to get into a 25' wide Brooklyn Heights property. Acquisition at $430/sqft ain't bad at all in a neighborhood where over 30+ condos traded in the past 6 months with a median price of $818/sqft. $870K was the median sales price of those condos. No wonder the $700K condo game is so tough in Boerum Hill and beyond.

Granted, the few looks we get of the interior are lame, but the apartments still command top dollar - as much as $2,100/month for a 1BR...

Imagine what they'd rent for if you made them really boutique-y and nice. It's not hard to imagine what they'd sell for either.

Pro's: location, size, mostly free-market, ripe for further repositioning

Con's: 2 of the apartments are rent stabilized, chopped into too many units for now, hefty renovation

Ideally: if you've got the funds to swing it, there's opportunity on blocks where some single-family fixer-uppers can command close to $1,000/sqft.

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