Friday, October 11, 2013

Top Block SRO: 1245 Dean Street

We told you Crown Heights won't stop.  On the same block as an off-market 4-story house that just sold for $1.7M and the SRO next door that sold for $1.15M, comes a 5-story "half-SRO" at 1245 Dean Street.  The listing broker Shaun Riney tells us it's a huge 5 story 20' x 50' (5,000+ sqft) with a ~15' wide x ~27' deep extension on the bottom two floors.  On those class A apartments, he says the ground floor is in decent shape, the parlor floor is in good shape, and the rest needs a lot of work.  The asking price is $1.5M and cash offers are already in.

What is it about this Dean Street block?  Well, it's tree-lined and full of nice houses in all different architectural styles.  It's got nice housing stock all around it too.  It's right next to Nostrand Avenue, and between the 3 trains & A/C trains.  Don't take our word for it.  Just ask the people bidding darn-near asking price on the $2M+ property across the street at 1234 Dean Street.  How many data points do we need before it's a no-brainer?  Even a terribly-marketed 8-Family at 1243 Dean Street next door went for $1.125M fully occupied with RS tenants.  1245 Dean Street isn't for everybody, but it's another great look at an enormous townhouse at a steep discount to more prime neighborhoods, that may trade at a value with not too much hair on the deal.  Hate on the price if you must, we think it lands below this number anyways, but did you miss the 5-story brownstone in Bed-Stuy at 187 Hancock Street selling for $1.52M in June?

It's not staged or anything, but 1245 Dean Street has some original wood interior details that the Corcorans of the world would be chomping at the bit to show off...

An O.G. in the game is going to buy this all-cash well below asking price (if possible) and get the permits & work started on the Class A apartments while they figure out the deal on the remaining units.  Heck, skip the C of NH drama and go straight to hipster hotel status.  The sky's the limit on the place if you play it right.  Or wait until someone sells it for the now-market ~$425/sqft (AKA... gulp, $2.125M) down the road. 

Keep in mind, folks, that over 150 condos and almost 200 co-op apartments in Manhattan sold for over $1.5M in the past 12 months.  All it takes is one of those people to decide to move to Brooklyn instead to set the numbers in our backyard all outta wack.  Even the Daily News is touting reports that Brooklyn pricing is bananas, and as close to Manhattan as it's historically ever been.  One Corcoran agent was bemoaning yesterday this very Sunset Park bidding war that took a "meh" townhouse from $775K to $999K with over 40 people at the open house.  In Sunset Park, people!!

SRO's in Harlem can sell for $1.5M cash with their eyes closed.  So copping one like 1245 Dean Street on what's rapidly becoming one of Crown Heights' hottest blocks?  We say anything under $1.2M is a steal in this market.

Pro's:  curb appeal, 5-stories with huge extension, original details, some delivered vacant, top-notch block

Con's:  hard to finance, coming with tenants, not for everyone, Crown Heights won't be stolen from for much longer

Ideally:  if you've got the cash and the know-how, it's a no-brainer

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