Saturday, September 28, 2013

Listings: Bed-Stuy Mixed-Use - 348 Marcus Garvey Blvd

New to the Listings section of the blog, it's a mixed-use building in Bed-Stuy that can be delivered vacant, asking $1.1M.  Long gone are the days (last year) when you could cop one of these on Myrtle Avenue on the northern edge of Clinton Hill around the same price.  We've heard-tell from commercial brokers in Brooklyn of Bed-Stuy mixed-use pieces commanding in the mid-5 caps these days.  This building at 348 Marcus Garvey Blvd is a solid 7.6% cap at the low-end of the projected rent roll after modest renovations.  A 20' x 50' on a 95' lot, the listing broker tells us the apartments above the commercial space are 3BR floor-thru's that will command $2,300 - $2,600/month each after renovation.  She tells us the commercial space is currently configured as a restaurant, but used a church that's expanding and relocating anyways, so will be delivered vacant.

She says the ideal tenant there is a restaurant or cafe, citing nearby players like Peaches and Saraghina (as many Bed-Stuy listings are apt to do).  Comps-wise, she points out a similar property on Putnam & Garvey that just sold for $1.2M.  With new mechanicals and a new roof, the apartments should be easy to deck out the finishes on.

With showings available on evenings during the week, it's easy to see if this is the right move for any investor/user.

Pro's:  delivered vacant, 3BR apts, blank canvass with new mechanicals, easy to show

Con's:  work to be done, might be hard to finance high LTV w/o rents in place, many are still trying to cherry-pick much further west of here

Ideally:  we see an investor adding this to their collection at a price that makes sense

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