HomeCanvasr.com Lead Hits the Open Market: 45 Sterling Street

Available on HomeCanvasr.com since August 2014, this great little limestone in Lefferts just hit the open market with an open house this weekend.  With an asking price of $1.499M and a bunch of renovations the owner touted to us this morning, the expectation is that 45 Sterling Street will go over asking price.  Which has been happening a lot in Lefferts at this price range.  But the market will tell the story, not us.  The listing only has one interior pic so far...

But when we first saw the house this summer, we were surprised at its condition even then, and original details...

The listing says more of the post-reno photos are coming soon.  This is a great little 1 or 2-Family on a nice block, at the very opening corner of Lefferts.

The backyard is walled-in a bit, but we actually like it.  With 4-story fixer-uppers in Bed-Stuy and Crown Heights commanding this price and higher, it's nice to see a quaint little house like this with nice upgrades at a price that's beats condos in BoCoCa, and even some condos in Bed-Stuy.  When the fixer-uppers in Lefferts this size command over $1.3M, a finished product with all the work already done for $1.5M-$1.6M ain't too shabby.


Pro's:  curb appeal, original details, block, "smart home" upgrades, price in line with market

Con's:  not all the pics are in yet, competition will be more fierce now that it's not a secret anymore, back yard isn't for everyone, sticker shock if you've been living under a rock for the past 1-2 years

Ideally:  a condo alternative with all the work already done for ya

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.

New Crown Heights Listing for the New Year: 1070 Bergen Street

It's a new year, but it's the same ol' real estate game in Brooklyn.  Ok, well the prices are kind of new to everyone still.  Houses people hated on for $1.2M this time last year easily fetch $1.5M or higher - or even worse!  On HomeCanvasr.com first since last week, and coming to more major websites near you soon, it's a barrel-front single family in Crown Heights at 1070 Bergen Street.  We're told the asking price for this 20' x 45' 4-story fixer-upper on a 120'+ lot will be $1.6M.

Lots of original details, but not totally ready for its close-up yet in these pics.  By the time the fancy pics are out, we're sure you'll get the picture.

Nevermind that it traded for $800K a few months ago and wanted as much as $1.8M on the flip.  One of the brokers who brought it to us fairly points out key differences between this house and true $1.8M+ sales in the neighborhood like 1234 Dean Street around the corner.

And $1.6M sounds like a much more reasonable expectation, although people will groan anyways.  A much worse house on Dean went for over $1.6M already.  Brokers tell us they have keys for 1070 Bergen Street and can show the property to BK to the Fullest readers before it even hits the market!  Works for us...


Pro's:  full sized fixer-upper with original details on a large lot, Crown Heights is "so hot right now", delivered vacant, walked off the $1.8M expectation, even the broker's talking real talk, available to show pre-market

Con's:  curb appeal & block aren't for everyone, work to be done, not the million dollar fixer-upper unicorn the novices had in mind, lots of violations and "PARTIAL VACATE ORDER SERVED" per DOB, rental income is tough on the single-fam

Ideally:  when 3-story fixer-uppers worse than this get $1.35M+, why not see this working in the $1.5M-$1.6M range for a few buyers.  And don't be shocked if it goes even higher.

Another Record Being Broken in Bed-Stuy: 101 Hancock Street

Just in time for the new year, it's another new record for a townhouse in Bed-Stuy.  This time at 101 Hancock Street, which listed for $2.45M to much fanfare and is now in contract slightly over that asking price.  From the developers who brought you another Bed-Stuy record breaker over $2M at 22 Arlington Place, and who landed $3.5M not far away on the Clinton Hill / Fort Greene border at 384 Vanderbilt Avenue, this renovated 2-Family is part modern, part generic, part stunner.

From the same broker team that dropped a restoration stunner on ya in Bed-Stuy at 260 Decatur Street, and hit an at-the-time shocking number of $1.95M in May, this market that's "cooling down" (to hear some people tell it) was poised to hit over $2M multiple times the rest of the year in neighborhoods no one thought "deserved" it.  But hitting almost $2.5M in Bed-Stuy when people still think that's Clinton Hill prices?  You've gotta just sit back and say, "Wow!"  We have been for a few months now.  Can we officially say the metamorphosis is complete now?  Bed-Stuy is no longer your creepy crawler caterpillar, but a butterfly ready to spread its wings and fly with any other top neighborhood in Brooklyn.

The style of 101 Hancock isn't for everyone, but you can't please all the people all the time.  These developers were some of the first to really grasp that high-end end users would make their way east and pay a premium for even slightly unique product.  And nifty little stylistic touches that are a turn-off to some really appeal to others.  Playing middle of the road isn't the way to knock it out of the park for that one right buyer.  Remember, the peanut gallery masses don't by this building, one person or couple does.  These developers have employed a medley of styles, and "additional photos of past projects [of theirs] have also been included in this listing to provide a better frame of reference for this project..."

Sure, spiral staircases are impractical, but so are useless garden floors with no ceiling height.

How about the double height on the back half of the parlor with all those windows (dubbed "wall of glass") creating a little atrium in the back?

Maybe not the way you would've landscaped the yard, but it's a totally serviceable landscaped yard...

What the house lacks in character it tries to make up for in newness and nifty touches.  Say what you want about Bed-Stuy.  Say what you want about the quality of renovation of this house.  But you can't say that it's not another record breaker.  And if you think this renovation is only "meh", then what will an even better renovation go for next year?


Pro's:  full-sized 4-story renovated 2-Family, lots of nifty little touches, kinda stylish, one of Bed-Stuy's top blocks, central A/C and Nostrand A/C train is right there for ya

Con's:  omg - the price!, kinda generic, not everyone's taste, where's the original details?, where's the soul?

Ideally:  a modern renovation at a startling price, way above our pay grade.  Possible harbinger of another new normal for the area

Crown Heights Losing Its Mind: 672 St. Marks Avenue

Back before Halloween, we tried to warn that some big contracts were coming down the pipeline.  Among them, this unique 27' wide gem at 672 St. Marks Avenue.  While people are still hating on full-sized fixer-uppers pre-market for under $2.5M in Fort Greene, over in Crown Heights this 5-unit townhouse off of Nostrand Avenue closes for $2.9M.

Even one of the foremost local experts for the area said 6 months ago, "This is one of my favorite blocks in CHN, with a lot of architectural gems on it, but it’s a long way from a 3 million dollar block, no matter how fabulous the house is. That price is just greedy."

Another commenter added, "Price would be a game changer for the neighborhood and not many want to be the buyer who pays the highest price to date. Did I say needs lots of work?"

The highest price for a house on this block up until now was the 20' wide 627 St. Marks Avenue for $1.9M earlier this year, one of the highest ever in Crown Heights...

No wonder we were all about the Platinum Member fixer-upper at 660 St. Marks Avenue for under a million the year before...

But $2.9M?!?  Not in Brooklyn Heights, or Prospect Heights, y'all.  This is squarely in Crown Heights.  What does this say about the market??  Is the glass half-full or half-empty?  Is this $90K "under asking price" or the hands-down record for a townhouse in Crown Heights by almost a million dollars?  The answer...

It's both!!

Like we saw yesterday, 672 St. Marks Avenue narrows in the back which means 3-exposures, although giving up some of that monstrous 27' x 80' footprint on the top 3 floors in exchange.  Still... Worth it!  Even at this price, the estimated 7,500 sqft (the listing calls it that, and on only 3 floors?) is still under $400/sqft.  Try finding bones this unique for that cheap anywhere else in Brooklyn.  Heck, it's not even finished yet and this house still shines.  Can't wait until it twankles & glistens...

140 foot lot?  You don't see that everyday!  Even the backyard has a backyard at this house...

"25 rooms" up in this??  Jeezy said it best.

What's the move?  Who knows?  Even if you sell these as condos for a million a floor (lofty expecations), we can already hear everyone griping that you'll have to put a million into it and then there's zero meat on the bone.  So is this just the juiciest end-user piece you ever saw?  There's no rhyme or reason to some prices for premier flagship properties like these.  All the more reason we were happy to sink our teeth into 669 St. Marks Avenue across the street with the driveway & the two story carriage house...

"Hottest thing in the lot, that there mine."  And 672's pricing is among the many reasons why we thought it was okay to "overpay" for 669.

Now, hindsight is 20/20, but if you were in right place & the right time to pick up 672 St. Marks last year for the $1.1M cash it traded for, you'd really be flipping bricks.  "36 a thousand times, I'm doin' somersaults / Do it right & you can leave your whole summer off."

Let's sit back and think about this again.  $2.9M in Crown Heights!  Sure, the house is huge and unique, but it's not finished.  And this is a price people were too chicken to pay on a vacant 5-story 5-unit corner gem with parking in Clinton Hill!!

Just goes to show that premier properties will command premier prices, even east of Franklin Avenue.  But still, $2.9M for a fixer-upper in Crown Heights, no matter how sensational the house, is a shocker.  Where do we go next, Brooklyn?  We have officially seen it all.


Pro's:  uniquely huge townhouse with killer details on a great block, curb appeal, delivered vacant, ppsf isn't the worst, 

Con's:  record-breaking price, work to be done, where's the upside?, what's the move?

Ideally:  try to keep it in perspective, but feel free to lose your mind over this pricing

Pro-Cro Price Jump: 557 St. Johns Place

A few months ago, we were super excited to hear about this off-market 6-Family on the same block as Franklin Park on the edge between Prospect Heights and Crown Heights.  Especially since it was being pitched as delivered vacant.  Sure, it's only 3 stories, but it IS 20' x 65' on a 131' lot and zoned to build as many as 10,000 sqft.  And did we mention, they can deliver it vacant?  So whether you buy & hold it or develop the heck out of it, there's upside to play with right out the box.  1BR's in the front and 2BR's in the back, depending on how you play it.  And you'll really have something.

But "developers" and "investors" who covet what others are doing are always pessimistic about doing what who they're coveting is doing.  Sounds crazy, we know.  It's like the opposite of "Everyone else is doing it, why can't we?"  They hated on the possibilities of expanding this building at 557, even though they salivate over expanded buildings right around the corner at 790 Classon Avenue...

Or 524 St. Johns...

Granted, those are larger pieces, but still.  Our architect/designer/contractor guy Eli of 242 Gates Avenue glory said that 8,000 sqft on 5 stories plus a penthouse would be feasible and the highest & best use for 557 St. Johns.  The investors said you'd need to add an elevator at that point; Eli says you wouldn't.  But don't take Eli's word for it.  He's only the sole person to bring $3M east of Classon for a townhouse, and a handful of other killer renovations selling in "fringe areas" for top dollar.  Oh, and he also expanded multiple stories onto this garage just east of Classon...

So it's nice to have someone actually doing it on deck to keep these can't-do investors in check.  Investors love the can't-do attitude.  They love having a problem for every solution.  And the best part of all is they get to hide behind that attitude under the guise of shrewdness.  But when we heard some investors notorious for bottom feeding had offers just under $2M and just over $2M on 557 St. Johns, we knew there'd be someone willing to pay more, so we had to take a look ourselves.    What we found was solid bones, some run-of-the-mill dated interior, and plenty of potential...

Beating the bottom-feeder price on this building didn't seem tough.  Like many of the best extra-deep buildings - including 711 Sterling Place, 245 Martense Street, and 1020 Park Place - 557 St. Johns narrows in the back allowing for windows on the side which mean more light & air for more bedrooms.  And you already know (or at least you certainly should) that price per bedroom is the most important metric in valuation for property in Brooklyn.  However, the trade off is, especially on a building that starts out at 20' and narrows significantly, you get a pretty skinny floor plate in the back...

Of course that too is a gift horse that's easy to look in the mouth.  When a building has a huge extension, it makes folks go, "But look how small the backyard is!"  So there's always a trade off.  Do you want more house and a smaller yard, or more yard and less house?  Do you want extra windows and bedrooms on the unattached side, or a wider floor plate and only 2 exposures?  You probably want your cake & eat it too.

How bad is $220/bsf with actual bones when a bombed-out garage across the street sold for $177/bsf this year at 564-570 St. Johns Place?

On top of all this upside on 557, they even had the other investor due diligence deal-breaker... the DHCR reports for the property.  In hand at the showing, with multiple free market apartments...

So with an offer in at $2.1M from bottom-feeders, and an increased asking price of $2.4M, we asked the owner what number got a deal done.  We were told $2.2M cash.  They insisted that got it done, so we shook on it.  We brought a buyer who offered $2.2M cash.  The offer was accepted & signed, and the buyer was awaiting a contract.  Then - without even a courtesy call to the buyer - the owner decided instead to list with a commercial broker in Manhattan who doesn't even market properties openly.  The new asking price?  $2.9M

Anybody can tell anyone any price that sounds higher.  Delivering that price is another story.  We don't doubt they'll land over $2.2M now, but there's that pesky six-figure commission now getting in the way.  If the trade off for listing the property was a ton of experience and exposure, we'd be on board.  However...

Let this be a lesson to sellers and buyers alike.  Buyers, just 'cause you find an off-market seller, it doesn't mean they want to sell to you and only you.  They've got a right to more money if it's out there and they ain't afraid to go after it.  Sellers, just 'cause a broker says a price higher than anyone else has told you, doesn't mean they'll net you a penny more or do it anytime soon.  They may net you the same price or less months later, but it's worth a shot.  It's a market y'all.  A tug of war between buyers and sellers, and nobody owes anybody anything.


Pro's:  location, extra-deep lot & zoning allows for a ton of buildable sqft, delivered vacant, was available off-market once upon a time

Con's:  as-is cap rate of 2%, now on market with a price jump of 32% from accepted offer 2 months ago, work to be done and money to be spent to optimize it, falling up the stairs situation

Ideally:  a totally interesting deal at the right price.  A huge waste of time at the wrong price.