Monday, October 1, 2012

Genie in Crown Heights: In Contract

Yesterday's pick was a "genie in a bottle" with tons of upside on the rent roll waiting to be unlocked.  Today's pick is another genie in a bottle in Crown Heights.  This 20-Family around the corner from the train and just a few avenues from the bustling Franklin Avenue hub of the area is another great piece that didn't last long.  We found out about it a few weeks ago, brought to a few folks, some told us they were busy at the time and to tell them about it next week.  Well, it didn't last until next week.  It's in contract now with a cash offer just below its asking price of $2.985M.  We urged the listing agent to give us the heads up with more time in advance on the next one to make a move, but we knew this one was a winner as soon as we heard about it.  With a rent roll over $300K/year, 85% of the units rent stabilized instead of rent controlled, and being delivered turnkey "in impeccable condition" with multiple vacancies... there was no time to waste on this one.  Almost 20,000 square feet for under $150/sqft??  Yes, please!

We told you that places like Crown Heights and Bed-Stuy wait for no man.  We told you that you can't sleep on Brooklyn at large, or sleep on Prospect & Crown Heights.  But if you do, don't be surprised if you end up like Rip Van Winkle, wondering where the time (and all the bargains) went.

Pro's:  turnkey, good condition, better than 10 GRM, delivered with multiple vacancies, not on everyone's radar, upside in the rent, rapidly repositioning area

Con's:  gone already, cash got it done, some people still aren't ready for Crown Heights

Ideally:  gotta have your ducks in a row and be poised to move fast if you're even remotely serious about buying in this market