Thursday, July 19, 2012

Crown Heights Mixed-Use Showing on Sunday: 35 Rogers Avenue

In case you hadn't heard, Crown Heights is booming along with the rest of Brooklyn.  Franklin Avenue & Eastern Parkway may be the epicenter, but don't sleep on the bustling corridors of Bed-Stuy and Crown Heights around the Nostrand Avenue express A train either.  Today's pick is a large mixed-use play in Grant Square, where Rogers Avenue and Bedford Avenue meet, just before Atlantic Avenue. 

Don't try this on your StreetEasy or your New York Times!  35 Rogers Avenue is a huge piece that's 20' x 75' on a 95' lot.  There's a commercial space on the ground floor that will be delivered vacant, and there are 6 apartments above it averaging reasonable rents.  The broker, who recently put the neighboring Indian restaurant in, says that market rent for the commercial space is $3,200/month and might be best used as a day care center or even a restaurant.  There's some untamed backyard space that could be harnessed.  How does the list price of $1.08M sound for such a giant limestone in a handsome square with great architecture all around it?  And now there are new $1M+ pricepoints for Crown Heights townhouses from 1139 Dean Street just around the corner to $1.3M for 1259 Dean Street further east.  This corridor is nice now and will only solidify as the gentrification continues to sweep east and huge investments like Brownstoner's $30M project down the street arrive.  The statue of Grant in the middle of the "Square" (which is really more of a triangle) doesn't hurt the feel:

But the vacant adjacent lot that the church uses as a parking lot isn't that sightly:

If the commercial space does fetch that projected rent, we're talking about a 7.2% cap at asking price.  This is also a price higher than what some were afraid to spend for mixed-use on Vanderbilt Avenue just a few months ago. Commercial spaces can lay vacant for a long time.  Even with more bustling on Washington Avenue, there are plenty of vacant commercial spaces.  We wouldn't be surprised to see someone get really creative with this commercial space.  The barbed wire on the fenced-in driveway next door is definitely dimming the curb appeal for now, though.  After all, the barbed wire at Muhhamad's Tire Mecca didn't stop 584 Washington Avenue right on Atlantic Ave from getting $1.255M...

By the time hipsters and young professionals are pouring out of another Brownstoner production around the corner from 35 Rogers Ave, will it be too late to say, "Hey, a millie was a pretty good price for a spot that big in this neighb'!"?

Pro's:  size, Grant Square location, cap rate potential, commercial possibilities could pay off, check what's been going on just a few blocks away

Con's:  commercial space could take time to rent, being wedged between the church and the church's parking lot might not be ideal, homeless shelter at the Bedford-Atlantic Armory is a deal-breaker for some in this area, expenses are high on buildings like these

Ideally:  it will be interesting to see how this area takes shape, and this might be an appealing entry-point for some buyers.  We're told the broker is showing by appointment on Sunday.