Wednesday, December 18, 2013

The South Slope 2-Cap is Back: 359 12th Street

If you missed this Park Slope 8-Family back when it wanted $1.6M last year, it just closed for $1.5M in August of this year.  Now it's back on the market this week with a $2.65M price tag on it.  359 12th Street is another genie in a bottle for sure, but we're not sure the right way to rub it.  It's a hefty 28' x 60' with railroad apartments.  This listing makes larger 8-Families with more vacancies in more centralized locations look like better deals even in the $3M+ range.  359 12th Street is asking over 27 times rent roll.  Even at $2,000/month per apartment, you're at 13 times rent roll.  And, we're not seeing that anytime soon, with the current rent roll hovering around $1,000/month per apartment.  This price doesn't even leave enough meat on the bone for most developers if it were ready to roll at $1,000/sqft on condo conversion sell-out.  But it's large and it's in Park Slope.  And, while we might've taken an updated photo if we were the ones listing a building over two and a half million dollars, we're sure it won't stop anyone from sniffing this deal.  And this listing is certainly in better hands this time around than last year.  359 12th Street is worth more than the sellers paid for it, but it's certainly not the first place we'd deploy $2.65M in this market if we had it.

Pro's:  south Slope 8-Family, curb appeal, under $500/sqft in a neighborhood that isn't shy to sell for $1,000/sqft

Con's:  pricing, railroad apartments, rent regulation capping upside, not really a condo conversion or a buy & hold at these levels

Ideally:  if there's a solid move to make on this thing, we'd love to hear it

1 comment:

  1. Wow. That's insane. I would gladly sell my prime park slope mixed use for a 3 cap