Wednesday, October 1, 2014

Clinton Hill's Biggest Townhouse Sold: 503 Clinton Avenue

On Platinum Member radar for months, and available on since June 13th, Clinton Hill's biggest townhouse has now sold.  503 Clinton Avenue is a monster 25' x 90' building.  A legal 4-Family that's the size of an 8-Family, which is one of the niftiest configurations you could ask for.  Just aching for a condo conversion.  With four floor-thru rentals, each over 2,000 sqft, each 4BR's & 2 baths, already grossing over $1,000/BR as-is, this building had a ton of flexibility to go in any direction.  Month-to-month tenants and could be delivered vacant.  Owner's garden unit already set up as a duplex with the basement.  Small but serviceable backyard.  And did we mention it's 25' wide?

If you're keeping score at home, that's a gross square footage of 9,000 without the basement.  Even at the full asking price of $4M, that's under $500/sqft in a neighborhood where condos can go over $1,000/sqft.  But the numbers still "didn't pencil" for many investors.  Platinum Members bid $3.25M, $3.5M, and a shocking $3.75M... but the owner was holding out for their number.  That number was $4M.  And when the owner took it to their broker to list it, the broker themselves bought it.  The closing price of $3.9M last month, since it was direct to the broker themselves, implies a price much higher than $4M.  Since most of the big brokers wouldn't lift a finger on a deal like this for less than 3%, that's six figures that puts this thing well over $4M.  But a broker isn't always needed on deals like these.

So-call "investors" wanna have their cake & eat it to.  Everyone doubts the price on something until someone else buys it for that same price or more.  But by then it's already too late. 

Pro's:  huge flagship opportunity, Clinton Hill's largest townhouse, no rent stabilization, huge floorplate, subway steps away, flexibility with tenants, owner's unit already duplexed, totally turnkey, less than $500/sqft, took out some amazing financing on this one, condo time?

Con's:  big number, gone already, doubted & low-balled by many, not a huge backyard

Ideally:  it doesn't get much bigger than this.  Just when we thought $3.75M was a great offer, $3.9M won the day.  Doubt Brooklyn at your own risk.

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