Thursday, August 23, 2012

Bed-Stuy Still Booming: 4-Family Full of Details

Boy, it seems like just last year we were wading into the water in Bed-Stuy, then telling you Bed-Stuy's "back" and Bed-Stuy's "bubbling".  Now prices are consistently shooting above $1M, and for good reason.  What's left under $1.5M in the top brownstone neighborhoods in Brooklyn anymore?  Buyers have to stay ahead of the curve, or get rolled over by it.  I mean, just take a look at how the "Brooklyn Now Guide" has changed in just a season.  From their Fall/Winter 2011-2012 edition to their 2012 Spring & Summer Edition, Brooklyn has suddenly jumped from 9 approved neighborhoods to 11.  Who were the lucky neighborhoods to make the cut & join the pack?  None other than Bed-Stuy and Bushwick.  And their map has expanded to include Crown Heights as part of Prospect Heights.  Nothing the signs haven't been pointing to for over a year now, but it's pretty telling to see it side-by-side in just a season:

Just yesterday Brownstoners descended on BK to the Fullest tracking the $500K-to-$1.1M+ flip at 221 Jefferson Avenue.  Comments ranged from the semi-satirical (highlighting a few points we've been on board with) to calling out BK to the Fullest for "not doing a proper due diligence" on the comparability of 106 Hancock Street and 221 Jefferson Avenue.  Today we bring you a look inside another great brownstone in Bed-Stuy, listing just above $1.1M...

This 4-Family has got you covered with original parquet floors, mantles, wood details, built-ins, wainscoting, mirrors, a backyard...

Is this worth $1.1M+?  It is what it is.  Sure, there's way more value in a 4-Family like 1379 Pacific Street under $700K from a "whole dollar" approach.  But for a true home buyer who can swing an FHA loan, wants rental income instead of maintenance charges, and loves the interiors of $3M Park Slope brownstones, what better investment could you conceivably make today with under $250K down?  Platinum Members are getting this home's nicer 2-Family cousin for a lot less.  While people with $5M in the bank still miss $3M+ Park Slope townhome bids by $50K, the cluster of flagship $900K homes on the best blocks in Bed-Stuy crossed $1M - and this is news or cause for alarm to someone?  The glass is still half-full in Bed-Stuy in our book.  But if you really wanna be a stickler for the comps, you might miss how quickly things are moving over here.  And, let's keep in mind that we're still talking about a price range that nearby condos go for all the time.

Bed-Stuy native Jay-Z says, "If a man test my 'Stuy / I promise he won't like my reply."  He claims to be such a forward thinker too, "I'm so tomorrow, the Audemars [watch] says yesterday / which means you on time delay."

It's often forgotten that real estate comps are a severely lagging indicator, and by the time these newer price points are finally closed & recorded for all to see, might we be looking at even steeper pricepoints?  Would-be buyers in South Slope once bid $1.1M - $1.2M to low-ball a property.  Now they bid $1.9M and they're still a few hundred thousand short.  We're not saying Bed-Stuy is or will become Park Slope, but we've seen this movie before.  As always, understanding the market, acting accordingly, and getting best of breed are key.  You don't need to be Home-stradmus to know that.

Pro's:  size, yard, original details galore, great block, well within FHA 4-Family loan limit

Con's:  no stoop always throws some people off, some people aren't ready for Bed-Stuy - especially at these pricepoints, (don't look now, it's a flip too!)

Ideally:  if you can get it at the right price, this is a GREAT look!

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