Monday, August 12, 2013

Prime Prospect Heights Mixed-Use: 663 Vanderbilt Avenue

We heard 'em say there's "no more Moneyball in Brooklyn."  Yet while condos all around Barclay's trade at $1,000+/sqft, a building just off of Grand Army Plaza in Prospect Heights lists for just over $500/sqft.  Sure, 663 Vanderbilt Avenue a mixed-use building with a pizza spot in place 'til 2017.  Sure, it's a mere 12.5' wide.  But where else are you getting 3 stories over here asking $1.2M?  How is this not the smaller version of 784 Washington Avenue, but on an even more highly coveted block?  We doubt the cap-rate would wow an investor, and it's not the residential move for everybody... but the pricepoint alone is calling our name.

Heck, if 500 Bergen Street could ask for $1.2M before the latest boom...

... then 663 Vanderbilt certainly can.  If 655 Vanderbilt can ask $2.4M...

... then 663 Vanderbilt certainly can ask half that.  Not sure how to best utilize the 2,750 sqft in additional air rights they're claiming.  No clue of the interior or details on the rent roll, but the "apartments are currently leased on a month-to-month basis, well below market rents."  With hairy situations like 599 Vanderbilt Avenue still asking between $1.8M & $2.4M, a simpler deal at a better price looks attractive.  633 Vanderbilt isn't for everyone, but maybe it's just small enough to keep the big players away while a buyer can swoop up a nice little building in a top-notch location.  We think this goes for even more than 230 Hoyt Street with the Halal chicken spot across from the projects in Boerum Hill, currently asking $1.4M.  But what do we know?

Pro's:  prime location, price, tenants in place with flexibility, maybe not on everyone's radar

Con's:  super narrow, what's best use of the bsf?, barebones listing for those used to big residential brokers, neither cash-cow investment or owner-occupy gem

Ideally:  worth a look for the right buyer, if you ask us

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