Tuesday, February 4, 2014

Another $3M+ Listing In Bed-Stuy: 75 MacDonough Street

Another $3M property has hit the market in Bed-Stuy.  This time, a huge corner 8-Family named "The Raleigh".  Once a Brownstoner Building of the Day, at the corner of Tompkins Avenue, 75 MacDonough Street is a 12,000+ square foot monster asking $3.2M these days.  At 35' x 90' with windows on all sides, you get big units with lots of bedrooms.  According to the listing, 4 of them are already free market.  And, according to these folks, apartment 8 is in particularly nice shape...

They're calling them 4BR/1 bath apartments, which isn't impossible with about 1,500 sqft to play with.  With the building already grossing some $182K/year (and pro forma calling for another 27% leg up on that number), it'd be a 6-cap at $2.8M, which looks downright affordable compared to the other Bed-Stuy corner property that wants $3M, 288 Decatur Street.  And 75 MacDonough's held its own over the years...

We're curious to see where valuations come in on this.  We saw a much smaller piece go for more in a more coveted location last week at 531 Bergen Street.  We've got an even larger corner piece coming up soon, delivered all vacant in an arguably better spot in Bed-Stuy than 75 MacDonough.  No wonder they expect to fetch even more than this place.

Pro's:  huge corner piece, buy & hold or condo conversion, curb appeal, huge apartments full of windows and bedrooms, half free market already, hipster hotel potential

Con's:  as-is rents are nothing special and pro forma rents aren't exactly around the corner, probably doesn't go below $2.8M

Ideally:  a pretty good look all around.  If the asking price feels lofty, what else is coming this nice at $250/sqft?

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