Tuesday, November 25, 2014

Condo Watch: Rising Tide Lifting All Boats, Pt. II

Yesterday we looked at the condo watch in Brooklyn's favorite neighborhoods.  And we saw the high prices pushing south & east, as they do.  Just how far will people go to get their slice of Brooklyn?  And just how high will the prices go?  East of Classon, heading towards Bed-Stuy (but decidely Clinton Hill by most accounts), 146 Clifton Place, #1B sells for $989K last month to buyers from Williamsburg.  Sure, it's almost a million for a 1BR condo that's almost in Bed-Stuy.  It's also extra large as 1BR's go with 1,300+ square feet.  It's also $700/sqft, which is a value compared to what we saw yesterday, and a far cry from the $1,200/sqft this same product would command in Williamsburg.  Buyers also put some $750K down on this purchase.  Yet another reason why people with $700K looking for that $2M townhouse in Clinton Hill don't have their pick of the litter.

This same price also gets you a much smaller 1BR unit with a yard in Prospect Heights.  272 St. Marks Avenue, #2R closed for $955K (over $1,000/sqft) on Halloween.  Just over 2 years ago, this same place was $575K.  And just read the snark dealt out by the peanut gallery back in 2011 when one on the 3rd floor listed for that price.  "$579k should get you two bedrooms at that location, not one," or "I do believe that this is one of the most awful places I have ever seen."  Can't please all the people all the time.  Or in Brooklyn, hardly any of them, ever.  In this case, a buyer from Soho did the deal.

Much further north in Bed-Stuy, east of Classon, a 1BR at 689 Myrtle Ave, #2A lists for $599K and closes for full asking price last month to a buyer from the East Village.  Far from a train and feels like no man's land to some, but $630/sqft is a comparative steal.  At the right price, another loft in this building would be a good pick-up too.  There are two Chocolate Factory condo conversions already, so we're still scratching our heads as to why would-be developers can't get their heads around the most obvious third.  Can't wait to see who pulls that down.

East of Classon again, on Bedford Avenue, the resales of 315 Gates Avenue are coming in higher and higher.  #6P closed this month for $710K after asking $769K.  A smallish 2/2 for $859/sqft in Bed-Stuy is just the only place this kind of money has to go given what else is going on around Brooklyn.

$850/sqft also shattered people's expectations nearby at the 252 Gates Avenue condos.  We told you "there goes the neighborhood" back when this house was commanding almost $1.5M in "Bed-Stuy" (just east of Classon) for something that ended up getting a gut.  Unheard of! - right?  Well, if you didn't like the fixer-upper at $1.45M, you're certainly not gonna like just one of the condos in contract now with an asking price of $1.899M...

Or maybe you prefer the one in contract with an asking price of $1.49M??  Or perhaps the floor-thru in contract with an asking price of $899K?

Or, if you're not feeling these, there are plenty of 4-story townhomes in Bed-Stuy now that want $2M or more.  This is why savvy investors are picking up multi-unit buildings with suppressed incomes for $250/sqft - $400/sqft in Bed-Stuy and Crown Heights.  Because now that the townhomes are $2M+ and less attainable for the folks with $350K or less down, the condo market becomes ripe for those who want to be on these blocks but can't afford a whole house.  Just like we saw yesterday.  And while some of you are still digesting the $2M townhouse in emerging neighborhoods, tomorrow we hope to take a look at a $3M...

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