Park Slope Shell Game: 373 Bergen Street

There were doubts, but the $2M shell game is alive & well in Park Slope.  Even on the gnarliest of little houses.  373 Bergen Street came out for $1.75M and lasted 2 days on StreetEasy before the response was so tremendous the listing wasn't necessary anymore.  Off-market finders shopped it to us when the high offer had already bubbled up to $2M, which didn't seem too far-fetched for Platinum Members to still take a peek.  And there wasn't much to see...

Basically the remnants of a shoddy reno that stalled-out midstream.  So it was no wonder the Elliman listing didn't even both with interior photos.  First popped on our radar back in 2012 when they caught a stop work order and Dixon was curious about it.  This summer's asking price is a healthy boost from the $655K the deed traded at this February, but those trades are rarely as simple as they appear.  Stumpy and only 32' deep, it seemed like the worst of breed at the time in 2012, but with the way prices have been recently and so little else left to choose from, this suddenly becomes a prime shell in the Park Slope shell game for the right developer - even at the $2M.

Or at least one of the only things left at this kind of entry point.  Earlier this year a similarly uninspiring house across the street with the Fred Flinstone front (which ain't hard to change) came out at 382 Bergen Street...

Without much inside to get too excited about either...

It lasted a month on the market with a local broker asking $2.65M before going in contract in July.

And even the SRO shells of yesteryear command $2M these days, like 268 Dean Street which closed in June for $1.95M.

And Platinum Members were happy to pick up another one of these around the corner on Bergen for $2M cash and are already anticipating a sell-out over $5M.  If these gains are realized, it makes the $2M shell make sense, as astonishing as this is, even for frame buildings architects dubbed "better as a tear-down," and still reiterated interest at the $1.7M-$1.8M levels.

This week we'll take a look at another Platinum pick-up from last year at $1.85M that's got interest in closer to $3M with barely any renovation.  Now we're eyeing some of our favorite next-best shells and better-than-shells - on and off market - in Boerum Hill, Fort Greene, and Prospect Heights asking $1.75M-$2.75M.

Pro's:  north Slope location, vacant and ready for a project, pimped out condo or 1-2 Family potential, in line with shell pricing these days, a hunk if built to full

Con's:  small frame house, needs a total gut, gone already above asking price, took cash purchase and lots of renovation budget, not the best block although well-situated, dubbed a tear-down by architects

Ideally:  a lot for a shell, but a sky's-the-limit location for high-end sell-outs.  Shows where that spec market is at.

Stylish Reno in South Slope Flies Off the Shelf: 468 11th Street

Listed for $2.95M at the beginning of the summer, South Slope's 468 11th Street had a few well-attended open houses and multiple offers right away.  This stylish little 17' wide 3-story 2-Family had lots of orginals details and cute updates that made it totally digestible for the retail market...

Little touches like the working fireplace, the small extension with two exposures, the skylights, the bountiful penny tile, the zoned heat and A/C, and inventive use of spaces made it a special house.  Goes to show that style trumps hefty budget any day.

 

One of our faves was the buddha crown molding...

Ikea, penny tile, original details and a little style go along way for this clean and sleek look that gives that warm fuzzy feeling of lived in even better than staging.  We saw your boy MNBC's Chris Hayes at one of the open houses, and he later told us at the tiki bar that he was outbid on this house.

When a dude with his own national TV show is getting outbid on tiny 2-Fam's in South Slope, you know this market isn't for the weak of heart (or wallet).  Many thought the asking price of $2.95M was asking to be underbid in the $2.6M-$2.7M range, but a contract was out in a few weeks and just a month later it closed in July for $3.2M.  That's right.  What the big 4-stories on more coveted blocks used to close for not long ago, the modest but stylish renos that get it right are now commanding.  No wonder offers over ask came in for a similar (down to the extension) pre-styled 2-Family at 155 Nelson Street in Carroll Gardens.  We were in a wider 2-Family off-market in Clinton Hill styled almost this nice on the duplex asking "only" $2.2M on the same block where Platinum Members copped an off-market deal last year for even higher.  468 11th Street sold for just over $1.3M in 2011, but when you make a product that people gotta have they'll pay up for it.  As in, over $1,200/sqft for a townhouse.  We'd much rather have a 5-story like 242 Gates Avenue for $3M, but that one's long gone.  The developers of 468 11th Street knocked it out of the park without over doing it at all and ya gotta tip your hat.  And don't expect to find a steal lurking - even when for sale by owner - when the TV folks are getting boxed out of the paint in South Slope.


Pro's:  great unique renovation, no big broker's commission needed, style for days, nice backyard, extension, basically and owner's triplex with a studio on the garden, AC, working fireplace, width isn't a deal breaker with interior staircase when the hallway isn't eating things up

Con's:  flew way over asking price and many people's budget, kinda budgety reno feel at times, not brand spanking new, already starting to show a little wear 

Ideally:  ultimately, ya can't hate on this one, not one bit.  Proof's in the pudding

South Slope 2-Family Available Only on HomeCanvasr: 6th Avenue

Available only on HomeCanvasr.com, it's a small 2-Family in South Slope that wants $1.65M cash.  At 6th Avenue & 13th Street, weighing in at only 15.5' wide and 3-stories tall, this house is still live-able and delivered vacant, making it a perfect little play for investors and end-users alike.

It's probably best used as a single-family.  We've seen houses where the interior staircase means that 15.5' wide isn't the end of the world.  22 Arlington Place, for example, had full-sized rooms front and back because of its interior staircase.  And that sold for over $2M in Bed-Stuy!

This house on 6th Avenue would sell for more if it went with a big broker and full scale marketing campaign and huge open house.  But as-is, there's value to be had.  With so many Unicorn Hunters still on the prowl in Park Slope, even while fixer-uppers in Bed-Stuy exceed $1.5M now on the open market, we thought this one was worth a look.

A working kitchen with nice tin ceiling like this isn't as palatable to the picky end-users, but sends all the right signals to savvy buyers.  By the time this house looks the way you want it to look, it certainly won't cost what you want it to cost.


Pro's:  Park Slope under $2M, delivered vacant, has some details, live-able, not on everyone's radar, not a sight-unseen deal

Con's:  not much look inside so far, work to be done, super small & narrow, basically all-cash is a must

Ideally:  not a huge play, but value that's worth threading the needle for the right buyer who's set on the Slope

Platinum Member Closing Yesterday in Park Slope: 111 Park Place

Platinum Members scooped another full-sized fixer-upper in prime Park Slope yesterday in an all cash transaction at $2.4M.  111 Park Place barely lasted a minute on the market at $2.3M before full-priced cash offers were coming in, and one buyer stepped up to seal the deal above asking price.  Forget tropes like "the spring buying season."  Yes, the savviest buyers operate like the famous Postal Service inscription, "Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds."

And, while the US Postal Service barely treads water from the brink of bankruptcy, Platinum Members are making decisive profitable moves with a measured take on the market.  If 111 Park Place reminds you of another Platinum pick-up last year on the same block at 101 Park Place - which was a deal at $2.6M cash at the time - you're not the only one.  Except, when Cousin John took a look at 111 Park Place, he announced it was a better house with better details than 101 Park Place.  So a better house for less money in a market that hasn't stopped going up, straight from the mouth of the guy whose renovations have gone for $4M+ twice?  Sounds like a win/win to us.

With high ceilings, original mantles, cool zig-zag original wood, you don't even need to have much "vision" to see what this house will be next...

 

If you let snow on the ground deter you, or an accelerated sale process, you may miss out on Brooklyn's next-best buy.  Heck, over in Bed-Stuy the finish products are already going for over $2.4M, like 101 Hancock Street.  And the unrenovated house next door in Bed-Stuy already had sight-unseen offers of $2M before anyone even walked through the door.  And the Park Slope caché still surpasses Bed-Stuy's, even while Bed-Stuy prices catch up to what Park Slope's were just 2-3 years ago.

The Park Slope market is among those "sky's the limit" neighborhoods, as evidenced by a $7.5M house nearby on Garfield Place lasting less than a month on the market.  That's a price previously reserved for only the likes of Brooklyn Heights.  So when a serial renovator who's brought $6M houses to the market in Brooklyn Heights gets his hands on bones like these in prime Park Slope, we can't wait to see what happens next...

Pro's:  curb appeal, prime Park Slope, "better house" than an off-market $2.6M deal last year, full of original details in good shape, full sized 20' wide 4-story house delivered vacant

Con's:  went over asking price all cash in a flash, plenty of work to be done, couldn't wait until the "spring buying season"

Ideally:  another amazing deal for great bones that will have a 4 in front of it the next time you see it

Available Only on HomeCanvasr.com: Renovated Park Slope Condo

With townhouses in Park Slope fetching over $3M on a regular basis, the floor-through condos have crept up over a million dollars too.  And this 2BR/2 bath condo on Bergen Street in north Slope is no exception, hitting the market this week with an asking price of $1.25M and available only on HomeCanvasr.com.  Gut renovated two years ago, this apartment is a floor through of an Italianate brownstone that's a healthy 20' x 55', for a total square footage just over 1,100.  You get modern kitchen and bath, ductless A/C units, a gas fireplace, laundry in the unit, storage in the basement, and absurdly low maintenance fees (as these things go) below $400/month...

With an open floor plan, this is about as maximized as a floor through 2BR/2 bath can get.

A true second bedroom and true second bath historically makes all the difference in this price point as to whether a 2BR will trade above or below $1M.  If the likes of 112 St. Marks Place, #2 around the corner can fetch $1.15M, this Bergen Street condo is right in line at the right price.  42 St. Marks Place, #2 wants $1.25M as a similar townhouse conversion chopped into 3BR's.  And a slightly dinkier renovation at 105 St. Marks Place, #2 is in contract with a list price of $1.175M.  And, without a big broker's commission on the scene, there's plenty of savings to go around for buyer and seller.  Contact us at info@homecanvasr.com for showings.


Pro's:  renovated true 2/2 condo with low fees in the heart of Park Slope north, great lay-out, close to all trains & everything, tree-lined block, washer/dryer in unit, super low monthly fees, no big broker commission padding stats, rear fire escape may double-as impromptu balcony

Con's:  $1,000/sqft or more is the condo market now, better pics would make a difference

Ideally:  the next best optimized condo available in this row without tens of thousands down the drain to big broker

Platinum Member Closing in Park Slope: 101 Park Place

Don't try this on your StreetEasy or your Corcoran.com, but Platinum Members just closed on a great house in Park Slope without a big fancy listing and without a broker.  Not everyone wants to pay 5-6% commission and have a line of folks around the block to get in their house.  And so this great liveable 4-story brownstone delivered vacant sells for a great price for buyer & seller.  101 Park Place has solid bones, some modern upgrades, and is poised to be taken to the next level...

When off-market SRO's two blocks away are going for over $2.8M, you know $2.6M is a great price for a totally live-able house like this.  Buyers coming in all-cash helped facilitate the deal.  And when you factor out the $100K+ commission a big broker would be looking for at these levels, buyer and seller can pass the savings on to themselves.  Just like another deal Platinum Members are closing 3 blocks away that we'll take a look at tomorrow.



Pro's:  totally turnkey 20' wide 4-story brownstone in prime Park Slope, no bidding war or big brokerage needed, solid deal for buyer and seller, fantastic end-user project in the making

Con's:  gone already, you don't find these everyday, took cash to get it done, renovating in the Slope is no joke these days

Ideally:  a great house at a great price in a no-brainer neighborhood?  Just another day in Brooklyn's under-market deals

Big Piece of Park Slope: 567 10th Street

With $3M prices coming fast & furious in the best parts of Brooklyn, seeing a full-sized building with good details this close to the park asking $2.895M actually screams value.  567 10th Street was asking $3.1M, but has now dropped their price.  Almost 20' wide and an extra-deep 65', this 3-Family is a hefty piece of Park Slope at a not-that-hefty price.  Perfect for all those price-per-square-foot heads out there!

Some original details in good shape.  Some generic upgrades.  Probably a new kitchen is on deck for any new owners...

In locations this prime, ballers pretty routinely pay this price or more for something they plan on putting another $600K-$700K into.  So it's actually a better value to get something under $3M and do your own work than to pay up for original details or other people's work you're going to rip out or try & tip-toe around anyways.  This does offer a totally turnkey potential, and extra-deep size, whose trade-off is a small backyard.  But in Park Slope, who's counting?

"Can be delivered with tenants in place" offers a certain flexibility for some buyers too.  All in all, a price drop in Park Slope under $3M for something this big should not go unnoticed.  Even if the curb appeal is lacking to you because the facade says "mint chocolate chip", that didn't stop the pink house from going over $4M!



Pro's:  huge Park Slope 3-Family under $3M, totally live-able, can come with tenants, extra-deep, original details, nice back deck

Con's:  this is a lot of money even if it's a relative value, dated upgrades aren't everyone's taste, small yard is a trade-off, not what you wanna pay if you wanna do a ton of work - but it happens

Ideally:  this is definitely a best of breed for the certain buyers in this price range.

Stagflation Won't Make or Break Park Slope: 233 Garfield Place

In a highly-coveted no-brainer neighborhood like Park Slope, the fixer-uppers can easily go for more than $2M.  And that's not anything new, per se, either.  It's been going on for years on Garfield Place for homes that need a ton of work.  It's why Platinum Members were so psyched to check out a barely-marketed fixer-upper like 29 Lincoln Place, especially when it became available below $2M.  That's a relative steal in this market.  So just imagine how high the finished products can go in Park Slope.  It was a shock to everyone when Jenna Lyons' house (courtesy of Cousin John's renovation) at 178 Garfield Place soared over asking price to $4M just over 2 years ago...

A year later it was the much more generically renovated 174 Garfield Place, two doors down, that wanted the same kind of ~$4M pricing and pretty much got it...

Getting a totally finished product these days in Park Slope can mean going over the $4 million dollar mark.  In the case of 233 Garfield Place, it took a $2.5M downpayment.

Yeah, that's right.  233 Garfield Place closed this month for $4.25M, just under its latest reduced asking price.  And the downpayment alone was higher than the sellers paid for the entire house in 2012, and higher than many folks to this day think they need to spend in Park Slope.  We were shocked when this pink house dropped so close to $2M, down from it's $2.39M asking price in 2012.  It went the way of 27 7th Avenue, 181 Park Place, and 777 Carroll Street.

In a bar in Crown Heights last week, someone told us this is a bubble because wages have been stagnant for years, the demand will run out, and there will be a glut of supply.  Is that the Brooklyn you see when 100 people crowd an open house, dozens of offers come in, and prices soar to new highs?  Stagflation ain't got nothing to do with these kinds of houses at these pricepoints.  The story isn't being told here by people with stagnant wages; it's being told by folks from Manhattan who sold their company for $50M in a slowly recovering economy in 2011.  By folks "with a unique & deep domain expertise in the Millennial generation."  By folks who've seen "meh" condos asking more than this.  Stagnant wages are a bad thing, but the money certainly does go somewhere.

And who's selling these houses?  Well the Million Dollar Listing guys are happy to Instagram & Tweet when their ~$4M Brooklyn listings are in contract, like this one and 73 South Oxford...

And they're happy to brag about taking "over when the local brokers couldn't get it done."  Ouch!

The moral of the story is, don't sleep on houses that trade at relative values in top neighborhoods where the sky's the limit on end-user pricing.

The Million Dollar Brownstone? Try Million Dollar Floor-Thru Apartments: 777 Carroll Street

We've told you before that the million dollar brownstone in Brooklyn isn't dead, it's just getting harder & harder to find and moving ever east (and north, and south, and to Sunset Park!).  But in the tippy-top neighborhoods of Brooklyn, like a stunning brownstone block in Park Slope, you don't find brownstones for a million anymore, you find ~850 square foot 2 bedroom apartments on just one floor of those brownstones selling for a million or more.  Take 777 Carroll Street, #2 in contract with an asking price of $999K (or over $1,100/sqft) after barely a month on the market.  While they won't tell us if the contract price is above or below asking price, we're willing to bet it's higher, and certainly isn't significantly below.

If every floor is worth a million, isn't this $4M+ they're sitting on?  Sure seems like it to us, which may be news to all the folks who didn't believe us 2 years ago when we were convinced it was undermarketed & worth over $2.5M.  The entire building closed for $2.764M last year, and it didn't take much to get it ready to be worth $1M+ for each floor.  The apartments have killer original details and modern kitchens & baths, even if it's a little generic and has the 7'-wide, one-window "2nd bedroom":

 

 We've put slicker kitchens than this in $1,600/month rentals, but that ain't in Park Slope either.  Or maybe you'd prefer the floor-thru with the open kitchen, the roof access, and the extra half-bath (but still the fakey 2nd bedroom) in contract with a list price of $1.2M:

This isn't the first time we've seen a brownstone that was 80% of the way there trade in the $2M's and sell out for $1M per floor or more.  338 Clinton Avenue is Clinton Hill's answer to 777 Carroll Street.  No wonder proper 2BR's under $950K like 560 State Street, #7D are attractive to buyers facing sub-1,000/sqft floor-thrus for more.  Flipping the garden & parlor duplex at 777 Carroll Street, #1, however, for $2.65M (almost as much as they paid for the entire building less than a year ago), is proving to be a little tougher than the million dollar floor-thru's.

Besides whatever the duplex ends up fetching, what does all this activity teach us?  When the fixer-uppers in a neighborhood are worth over $2.5M cash, dozens of other people will step up for a smaller, more affordable slice of that same block - even if it comes at a premium.  We're sure to see it again on nice brownstones trading off-market nearby.  And brace yourself for what this implies about the condo market in Bed-Stuy with fixer-uppers like 196 Hancock Street going for over $2M.  The price per square foot on the stylish condo at 76 Macdonough Street alone is a harbinger of things to come, and has implications for all kinds of properties in the area.


Pro's:  top-notch Park Slope block, original details in great shape and modern upgrades, affordable pricepoints for the neighb' even if there's a steep premium, low maintenance

Con's:  kinda generic, "2nd bedroom" is ~7' wide, the cheapest two are in contract already, the most expensive one wants what the whole building sold for last year

Ideally:  some folks call it speculation to chop up these condos, some folks say there's not enough profit it in, and other folks are actually doing.  It takes all kinds.