Monday, January 5, 2015

Closings of Note: New York Jumped the Shark

This "just in" - New York is a really expensive city and they're putting condos everywhere.  No longer is Manhattan a suitable place for things even SimCity novices know a city needs like hospitals, grocery stores, video stores, theaters, bookstores, art supply stores, hot dog spots, 24 hour cafes, bowling alleys, or oyster bars.  Heck, even Williamsburg's first wave of music locales are being pushed out to make room for its next wave of.... well, whatever they deem "next" over there.

This also "just in" - this phenomena is sending lots of rich people to Brooklyn.  31 Prospect Park West is a single-fam with a driveway in an uber-prime location, but only 2,800 sqft.  Didn't stop it from selling for over $1,000/sqft in November to buyers from the Upper West Side with about a million down.  $3.41M was the price.  You can't really duplicate this purchase anywhere near Central Park without paying 3-10 times the price.

Back in 2011, we told you this house was worth a look.  But in those days it was easy to moan & groan about heading as far down Court Street in Carroll Gardens as Luquer Street.  And griping about how the houses doesn't pay for itself with 20% down was borderline plausible.  The house sold for $1.7M back then.  Fast forward to 2014 with a stylish renovation and the neighborhood deep in its transformation to the baby West Village, and the $3M+ number doesn't bat an eye.  42 4th Place closed last month for $3.525M with over $1.5M down.

Not far away, even the 16' wide houses wanna get in on the act with $3M as the new normal.  48 2nd Place closed around Thanksgiving for $2.945M to a Manhattan buyer with about a million down.  Earlier that month, 324 Degraw Street got in the act too, closing for $3.3M with over a million down.

Speaking of 16' wide houses in BoCoCa for $3M, don't forget about 161A Carroll Street.  Buyers from the West Village closed on it last month for $3.09M with over $1.5M down.

Over on the Prospect Heights / Crown Heights border, another condo sells for over $1.2M.  475 Sterling Place, #1C closed for $1.23M, joining a few others in the building that have broken that mark.  When $250K down doesn't get you a house over here any more, you can go further east, or settle for a condo.  At least it's a duplex with a deeded parking spot, a decent gym, and a nice common roof deck.

In a more desirable location, far inferior condos go for basically the same price.  'Twas fodder for the peanut gallery when 112 St. Marks Place, #2 was "Condo of the Day" when it listed for $985K.  Park Slope is Park Slope, and one comment hit the nail on the head.  Closed a few months ago for $1.15M.  Again, this is what ~$300K down gets you in this part of Brooklyn these days.

Also for $1.23M, this Fort Greene condo at 264 Cumberland Street, #12 was a decent look at a 2/2.  Although, we're more partial to the duplex with the double-wide backyard that Platinum Members sold for basically the same price earlier last year.  For the millionth time, $300K down doesn't get you a house in Fort Greene anymore (unless you're in Atlantic Commons), it gets you a condo.  So act accordingly.

Back in Pro-Cro, it's another condo for what you think a house costs.  225 Eastern Parkway is not only east of Classon, it has had multiple sales over $2M.  And this unit 2A goes for $1.7M last month to buyers from the Upper West Side.

With phrases like "exclusive enclave", you know this is the new Lefferts Garden.  66 Maple Street listed this summer for $2.35M and closed last month for $1.9M.  Not for the faint of heart, or the faint of wallet, this 44' x 39' single family with a 2 car garage sold to buyers from South Slope with about a million down.  2 stories and no rental income, but unique space and parking for those who think the other side of the park is too far.  Still beats a condo in Bed-Stuy for basically the same price, in our book.

"Where's the next hot neighborhood?" is the rallying cry of readers who e-mail us, yet refuse to go as far south as 9th Street in Park Slope.  Well - like it or not - this uninspiring frame house at 443 10th Street goes for over $2M in November.  Is there meat on the bone for development at these levels?

You thought sub-$800K was good in Crown Heights in 2012?  Try pulling it off in 2014!  One-time Platinum Members got the hang of the block and pulled down an estate sale at 1385 Pacific Street, closing last month for $820K and essentially duplicating their purchase at 1379 Pacific Street 2 years previous.  Now that's how you put $300K down for a house!

Deep in Lefferts, heading to Flatbush, 266 Martense Street was on Platinum Member radar as a FSBO that wanted as little as $450K.  For a live-able frame house with a driveway, parking, and a backyard, one block from the 2/5 trains - this was a buy.  However, by the time the price got up to $515K, many buyers were out, even though the difference for many was like $100/month on the mortgage.  A savvy broker landed the listing and it closed for $550K last month to a buyer from Bayridge with less than $150K down.

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