Wednesday, September 10, 2014

Best 8-Family in Brooklyn in Contract: 556 Dean Street

Sometimes the hands-down best 8-Family buy in all of Brooklyn is right under your nose and you don't even know it's for sale.  Then, you tell these so-called investors that it's for sale and they still don't know what to do with it.  Cue the enormous Prospect Heights gem at 556 Dean Street.  That's right - even in the hottest market ever, you can be looking at the best Brooklyn has to offer and "you ain't even know it".  With a serviceable - but uninspiring - marketing plan from the cagey broker/owner, even the best properties can flail on the market, as this did when it listed much higher than $3.5M, and even when it dropped to $3.5M.  But eventually enough sharks were circling and supposedly some additional vacancies came on the horizon, and now the best 8-Family in all of Brooklyn is in contract.  What makes this the best?  Prime Prospect Heights location between Barclays and Vanderbilt Avenue.  A huge 40' x 70' size, netting you over 10,000 square feet. Unique curb appeal, and you won't find many rent stabilized buildings with this kind of original detail intact...

Then some simple renovations really touch it up...

What makes this the best?  Well, if you weren't feeling $4.9M for a 27.5' wider in Park Slope that's basically fully rented with little immediate upside like 703 Carroll Street (closing any day now), or if you missed Prospect Heights' two neighboring 27.5' widers at 531 Bergen Street and 533 Bergen Street, or if you've seen what other prime 8-Families go for $4M plus, then you'll know what we're talking about.  Even with a rent controlled unit and the rest mostly stabilized, the 3BR apartments get amazing rent over here, as the flagship unit here demonstrates at $3,700/month.  And for you condo converters, $350/sqft in the land of $1,000+/sqft apartments ain't too shabby either.  No way this shouldn't go for $3.5M or higher.  An 8-Family in prime Bed-Stuy this size on has sight-unseen bids of $4M+.

Pro's:  location, curb appeal, upside, some free market & renovated units, supposedly has vacancies, 40' width affords true 3BR apartments instead of the 27.5' wider with railroad apartments, sick original detail inside, condo conversion potential, upgraded mechanicals

Con's:  extensive rent regulation, low cap rate as-is, hard to finance even if you've got a million in cash,  

Ideally:  a top-notch property bound to close at a great number for buyer and seller alike

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