It was only on our radar for a few weeks before this Crown Heights 8-Family went in contract for its asking price of $1.6M. 597 Park Place is a 4-story 25' x 65' building on a 131' lot just off of the hub of Crown Heights, Franklin Avenue. Chopped into eight 1BR apartments, many well under market, it's a decent look at size & upside in an area on the rise. Especially in a climate where 8-Families like this can command more than twice this price just a few avenues over. Totally decent 1BR rentals anyone?
This play is all about location & potential. Whether you count by gross rent multiple or cap rate, neither the as-is or pro-forma numbers provided will wow you. But at even the most modest market rental numbers for these units, $1.6M is less than 10 times rent roll and a 6.5% cap rate. With only 1 apartment currently rented above $1,150/month, you'd have great tenants tripping over themselves to nab one of these 1BR's for more than that. Yet the price per square foot of $266 is competitive with anything else in a location of this caliber. We've seen budget condos even further east than this selling at $488/sqft all-cash.
It reminds us of 489 Park Place, the 4-Family Prospect Heights side version of this house, which continues to look like a steal at $1.3M. But our favorite $1.6M buy & hold in all of Brooklyn looks to be sold just a few blocks further than this on Park Place. We'll find out soon...
Pro's: size, location, upside potential, delivered with 2 vacancies
Con's: not everyone's up for below market apts with rent regulation, apts only 1BR, as-is numbers are underwhelming
Ideally: a perfectly situated buy & hold for the right buyer
"With only 1 apartment currently rented above $1,150/month" -- Where did that figure come from? I know 3 apartments in that building that have been renting over that for at least 6 years.
ReplyDeleteAccording to the rent roll provided by the listing broker, only 1 apartment is *currently* rented for more than that.
ReplyDeleteI'd love to know where my extra hundreds of dollars went over the past half-decade then. As would the other tenants on the top 2 floors. The bottom two floors, yes...they probably do still pay less.
ReplyDeleteclosed for $1.55M last month
ReplyDelete