Friday, November 7, 2014

Crown Heights Gem Closes Under a Million: 1211 Dean Street

Yesterday we showed you a Crown Heights castle off of Nostrand that Platinum Members finally locked down off-market after months of stalking.  But you can't win 'em all.  Cue another beauty off of Nostrand that Platinum Members have been stalking for months, 1211 Dean Street.  This fully-occupied house on one of Crown Heights' favorite blocks was shopped to us off-market in the beginning of this year as an SRO for $1.2M.  Platinum Members immediately put in an all-cash offer, but the lead went cold.  The types of deals that don't hit the open market often have reasons behind it that the average retail buyer doesn't understand.  This one was no different.  If it was vacant and had fancy pictures and was easy to find and ready to sell ASAP, you bet the price would've soared over $1.2M anyways.  Heck, nearby, people have paid $1.3M-$1.7M cash for places in worse condition than this.  Like 843 Prospect Place, which was picked up for $800K and flipped for $1.385M within a year, without doing anything besides getting it empty...

So if we brought sight-unseen offers of $1.2M cash many months ago, no wonder local gobblers were eager to pick up 1211 Dean Street, even with estate feuding and a supposed-SRO full of tenants, for $800K a few weeks ago.  But when you see this closing price, don't get jealous, unless you really know what it takes to duplicate it.  And, word on the street is, there was some big money involved besides just the $800K recorded price.  20' x 50' on 4 stories with this kind of curb appeal, original details, on a block this nice, near the train, just off of Nostrand, regardless of condition, commands a much higher price than this.  And one of the niftiest parts of all is, it's actually not an SRO.  While the finders didn't do their homework, we're sure the buyers did.  If any work is done at all to it, the next time you see 1211 Dean Street, the house will have a 2 in front of the price tag.  And, no, peanut gallery, that's not called "touting", that's called "fair warning".  An owner on this block told us he's turned down an offer of $3M for his renovated beauty this same size.  We can't tell a ~$20B/year industry what to do, but we can tell you what it's doing.

Pro's:  full sized historic gem with tons of curb appeal on a flagship Crown Heights block, not an SRO, easily worth double what they paid for it with any significant work, a great project in the making

Con's:  no pics, no access inside, fuzzy access to the deal itself, supposed-SRO, full of potentially regulated tenants, downright impossible to finance, probably took more than the recorded price, could be dead money for years, we took 'no' for an answer

Ideally:  kind of kicking ourselves on this one.  Should've gone straight to the source.  An amazing buy for someone else though.

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