New to the Listings section of the blog, it's a huge 4-Family on the border of Prospect Heights and Crown Heights. As townhomes go, 466 Prospect Place is a monster at 20' x 70' on 4-stories, giving you over 5,000 sqft on an extra-deep 131' lot. Maybe this is on the Crown Heights edge of things, but houses much smaller than this go for over $3M just a block or two west of here. So what it lacks in location (which isn't much), it more than makes up for in size. The interior is totally rentable space that won't knock your socks off, but also isn't full of deferred maintenance like most of these 100 year old buildings. It's also got separate mechanicals for all the units.
You can fit a true 3BR apartment easily on a floorplate that large...
They're getting just over $1,000/BR now, leased out until 2015. But if you don't know, $1,500-$1,600/BR happens easily over here too, for the right kind of space. And maybe you missed what other extra-deep buildings around the corner have pulled off rental-wise when spruced up with stylish renovations. Developers way behind the curve marvelled at the end of 2012 when $1.1M cash wasn't enough to take down 489 Park Place, which was still a steal at $1.3M. The real buyers wasted no time turning it into 4BR/2 bath rentals for some $4,000 - $4,600/month...
That same rent on 466 Prospect Place has you easily grossing over $200K/year, well above the current ~$150K. The price tag of basically $3M might give you sticker shock at first, but $535/sqft is still half that of anything in Manhattan. 4% isn't a dream cap rate for a buy & hold investor, but an end-user may make it work for them by taking 1, 2, or 3 units for themselves over time and maximizing the rental income potential of legit 3BR apartments. For those in the know who want to buy a piece of the ever-growing Prospect Heights / Crown Heights corridor, this is certainly one large look at it.
Pro's: size, great tweener location, rental income potential, totally renovated & turnkey, extra-deep lot
Con's: not much original character, sticker shock at the whole-dollar number, not a lot of return for an investor, not quite what the average end-user wants
Ideally: when the neighbor wanted under $2M, the sharks were circling. This property won't be stolen, but it's certainly worth a look. Needs to find the right buyer to make it work near this price.
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