Downward Price Action: 368 Park Place

We're trying not to inundate the site with Corcoran listings, especially not ones already in contract, but what can we do? They get listings, they actually show them, they provide pictures, addresses, layouts, descriptions. Every now & then they'll actually call you back. Corcoran definitely puts your place on the map. We had to take a look at this one, though, because it's a fascinating case with some interesting price action. Check out the Price History from Street Easy for 368 Park Place:

04/17/2008 -- Listed by Corcoran at $1,850,000.
05/01/2008 -- Price decreased by 3% to $1,799,000.
05/07/2008 -- Listing is no longer available.
05/15/2008 -- Re-listed by Corcoran.
05/21/2008 -- Price decreased by 6% to $1,700,000.
08/14/2008 -- Price decreased by 6% to $1,600,000.
10/12/2008 -- Price decreased by 5% to $1,525,000.
11/09/2008 -- Listing is no longer available.
12/03/2008 -- Re-listed by Corcoran.
03/21/2009 -- Price decreased by 2% to $1,500,000.
08/09/2009 -- Listing is no longer available.
09/29/2009 -- Re-listed by Corcoran.
09/29/2009 -- Price decreased by 7% to $1,399,000.
01/01/2010 -- Listing is no longer available.
03/06/2010 -- Re-listed by Corcoran.
03/18/2010 -- Listing is no longer available.
03/31/2010 -- Re-listed by Corcoran.
08/17/2010 -- Listing entered contract.

Yes, before the crash there were lots of hopeful candidates in the $1.8M range. We're not even sure how, according to Property Shark, this property ended up with a Lis Pendens filed 3/30/2009. From what we can tell, the owner owned it outright and pulled just about $1M in equity out in 2005. There should have been ways to keep that loan afloat before going into foreclosure, right? Or a sales price that would've worked prior to it getting to that point?

Either way, the listing almost dates itself by calling this "a diamond in the rough". It's neither that much of a diamond, nor actually in the rough (anymore). The inside is only so-so for the price and the 2-Family status:



414 Park Place would still be a way better buy as a pricey 2-Family. Heck, this place even makes the pricing on 407 Sterling look more appropriate.

Pro's: curb appeal, location, proximity to the park, decent interior

Con's: price, 2-Family status is limiting, way better properties were out there for the same cash

Ideally: This goes for a price the buyer and seller can both live with. It will be very telling to see how much. And it should serve as an example for some other mis-priced properties that ya don't wanna be behind the pricing curve in a down market and end up in a race to the bottom.

A Tale of Two Buildings: 1084 Fulton Street

Okay, not our usual post here. Ordinarily we focus on only residential properties, 2-4 Families. But this match-up caught our attention. Heading east on Fulton past Clinton Hill, towards Bed-Stuy, on a comparatively-desolate stretch we've covered before (that offers some value) comes this huge 3-Family + store. 1084 Fulton Street is 20' wide and 57' deep for a nice floor plate to work with. There's also plenty of space on the lot for what the listing calls a "backyard featuring beautiful landscaping and deck." The listing doesn't provide a layout, but says the rentals are 3BR's and 1 bath. The pictures of the rentals show nice, clean spaces with nice floors:



And we're loving the curb appeal of the bar:



At first glance, the off-the-beaten path location would seem to be the reason for the listing price seeming so low. However, if the building is projected to gross $121K/year after February 2011, that's an incredible Gross Rent Multiple. Compare that to the 16' landmarked building on 274 Court Street with half of Sweet Melissa in it. This building is renting at top of market already and set to gross just $10K more per year than 1084 Fulton. Sure, Carroll Gardens is a huge upgrade from borderline Clinton Hill/BedStuy - but is it worth paying twice the premium for almost the same return and little upside potential? Even Massey Knakal's listing on Smith Street in Boerum Hill just a few blocks away from this Sweet Melissa was a better opportunity, although also top of market.

Pro's: curb appeal, size, rental income potential, price, close to transportation, upside potential

Con's: neighborhood has a ways to go, commercial loans take 30%+ down, managing might be pain, bar might be noisy

Ideally: there's gotta be move to be made here at a price not too far from this. Especially if the desirable neighborhoods of Brooklyn are semi-interchangeable to you, the rental income is there for sure.

Pricey & Not-So-Nice-y: 414 Dean Street

414 Dean Street is a nice looking brick building on quiet-but-centralized block in Park Slope. It's about as close as you can be to Atlantic Yards without feeling the hustle and bustle of it. The exterior looks great, but who's trying to pay this much for a restoration and a 2-Family no less? The current list price of $1.7M makes yesterday's listing look like a steal. The price action here is pretty confusing too. According to Zillow, it was listed at $1.975M in October 2009, then dropped to $1.675M in March 2010, then removed a month later. Now re-listed in August 2010 for $1.7M. We don't know what difference 4 months made that they felt compelled to raise the price it already wasn't selling at by $25K. But we do give credit for a variety of pictures and a legit listing description.

We like 4 stories of nice original details like wood floors and fireplaces as much as the next guy, but not for this price:



Pro's: curb appeal, location, nice block, original details, yard

Con's: lots of renovation needed, price, 2-Family status

Ideally: you take this same cash over to a finished building, or else there's a haircut in order for this place

Pricey but Nice-y: 61A South Elliot Place

Admit it. You wanna live in Fort Greene. But you don't wanna put $340K down. Sorry, can't help ya today. 61A South Elliot Place is a gorgeous 2-Family brownstone in Fort Greene asking $1.7M. Wake up every saturday to the hipster parade that is Brooklyn Flea. Eat a different meal every night on DeKalb, Lafayette, or Fulton. But know you're paying top dollar for a reason.

We love Brooklyn Properties in a way. They bring you great places with killer pictures, not quite as fake-y staged as Corcoran and in even better resolution. But, boy, do they price you outta the game. This is a great looking house from top to bottom, but the 16' width is killing it for us. We'd almost rather buy a doll house to at least up the cuteness factor:



But in all seriousness, this is some place. Look at the variety in the hardwood floors, the crown molding, the pocket doors, the exposed brick:



Even for those of truly baller status, there might be better pickins just around the corner, but it's a matter of taste at that point.

Pro's: curb appeal, immaculate interior, location

Con's: price, width, basically a Single Family in 2-Family clothes

Ideally: you find a little wiggle room on the price, but if you're that baller, why are you splitting hairs?

Close to the Park in South Slope: 584 10th Street

584 10th Street is kind of a dandy, kind of generic, as we wade through the series of listings here in South Slope. This one stands out because of its handsome brick curb appeal, location close to Prospect Park up the Slope between 7th and 8th Avenues, on a great block, with a modest renovation.

What else stands out? The price.

$1.675M is good pricing, but do you get what you pay for? This feels like Park Slope premium for the location and block it's on. Nothing's wrong with a 20' wide house, per se, but the "1.5 bedrooms" on the rentals leaves us wanting more.

For this same money, 407 Sterling is more house and a better play. Or, if you're married to Park Slope, then you might be better off strolling on down to 286 10th Street. It depends on your priorities. This might be a dinky house as $1.675M goes, but this might also be a nice pick up for the block it's on. Who's to say? Justice is blind:



Even the listing itself makes a fair assessment of the rental prospects with the modest claim, "offset your living costs with rental income."

Pro's: curb appeal, proximity to park, nice block, garden

Con's: only so-so renovation for the price, 1.5 bedroom rentals, Park Slope premium

Ideally: This amount of money gets ya lots of house these days. Make sure you really wanna be in the slope before you commit.

Small and Affordable in the Slope: 258 11th Street

South Slope is kind of an interesting play. Lots of the same amenities and proximity to the park as more prime Park Slope, with a slightly different feel and a few less strollers. Luckily, lots of these blocks within a manageable walking distance of the trains at 4th Avenue and 9th Street keep popping up in relatively affordable price ranges. 258 11th Street is a 2-Family brick building listed just under a million at $979K.

With its garden, fair amount of curb appeal,




and presentable interior,




One could argue this is begging to be bought around the 2-Family loan limit of $934K. However, it's also less than 17' wide, and has 3BR's maximum. Yet, as the listing points out, this house may still stack up favorably to many condos around this price.


Pro's: location, affordability, nice condition


Con's: width, not much rental income potential, maybe not the best of its breed


Ideally: worth a look, and there's an open house this weekend! Compare to the other small properties over here like 360 6th Avenue

Just Closed: 324 Carlton Avenue

Back from vacation with a look at a 3-Family building in prime Fort Greene that recently closed for $1.2M on 10/20/10. This Street Easy listing for 324 Carlton says it needs a complete renovation. Property Shark says it was first listed in June 2010 for $1.25M, and it looks to be an estate sale. While this would be a great block to live on, right between the main drags of DeKalb, Lafayette, and Fulton in Fort Greene, our first instinct is the price seems a touch high for a 19' X 35' place in need of a complete renovation. Especially when compared to some of our favorites like 258 Adelphi. Although, you throw in the 17' foot extension and a limited supply of quality buildings on these blocks in this price range... nah, it's still pretty surprising.

The listing brags that, renovated, this "can easily become a $2,000,000+ house" and the pretty immaculate 341 Adelphi might agree. Although the whole might not be greater than the sum of the parts, once all the work is done.

Pro's: curb appeal, prime Fort Greene, 17' extension

Con's: a bit on the small side, 1BR rentals, needs lots of renovation

Ideally: still probably better off with this than the handful of other $1.6M+ places on these blocks in not-impressive condition, but this sales price almost makes poor ol' 204 Clermont look appealing