SRO Dealbreaker Pt. II: 121 Cambridge Place

(Celebrating our 1 year anniversary)

Yesterday's pick was a pretty much hopeless SRO case on all fronts, but at least the listing and the agent were super forthcoming about all those drawbacks - be they as insurmountable as they are. Today's pick is more a wolf in sheep's clothing.



121 Cambrige Place is a huge, 5-story brownstone just off of Fulton Street in Clinton Hill. While listed as "Two family Miscellaneous" on Property Shark and the agent's own listing claims an "Owner's Garden Level Triplex with Income Producing Three Bedroom Upper Duplex", the DOB has it as an SRO. And the agent wasn't quick to reveal this material fact upon first seeing it - which really disappointed us. Unclear what the status of the Certificate of Non-Harrassment might be, but at least it's vacant.

Without the SRO issues, this place would have lots of potential. It's a HUGE 4,300+ sqft with high ceilings on many floors and some great original details. While it's in need of several repairs, it looks like mostly cosmetic things from what we saw. We just wish we'd known it was an SRO sooner. The list price of $1.2M is pretty much academic at that point. We'd love it at $900K, if it weren't an SRO. But for all the huff and puff, you're at least better of with 103 St. James Place - and we can see why even the teenie-weenie turnkey 347 Grand went into contract so fast.

Pro's: size, location, original details, not the worst condition, close to Fulton and the train

Con's: definitely requires renovation budget, SRO status, essentially impossible to finance

Ideally: should've been called out as an SRO sooner, and if you can swing this play, there's better moves to be made right around the corner. Contact us for more details.

SRO Dealbreaker: 268 Dean Street

Across the street from a school in a "no man's land" stretch of Dean Street that isn't quite Boerum Hill, Park Slope, or Gowanus comes the re-listed 268 Dean Street. This 4-story, 3,600 sqft brownstone is a great size and a decent location, but the SRO factor is the dealbreaker. We've documented before some of the pains of the SRO, and this one's got 'em all. 268 Dean Street has a C of O from 1954 talking about 3 rooms on each floor. The listing says the house comes without a Certificate of Non-Harrassment and with tenants. The interior needs work to even be nice, the SRO takes lots of time and money to remedy to any other status, and that's IF the tenants are co-operative. We don't imagine the tenants are in any hurry to leave with the yearly rent roll at just $44K.

By the time you throw in how impossible these SRO's are to finance, at $899K you've got something that's barely feasible or desirable to even the most wealthy buyers. More earthly buyers might not even be able to handle it at half the price. Case in point, the current owner bought in 2003 for $450K and took out some additional loans in the coming years which led to a Lis Pendens in September 2010 for $360K. Even before the Lis Pendens, they'd listed for $995K in December 2009. After the Lis Pendens, the house was shortly-relisted in November 2010 for $895K. Even with the turn in the market since the original listing, we don't see who'd be in any hurry to swoop up something with so many uncertainties. Especially with all the other similar & superior deals out there for those who could even consider affording this.

Pro's: large, decent location, techinically a low pricepoint for the neighborhood

Con's: SRO, no Certificate of Non-Harrassment, impossible to finance, needs repairs, delivered "As-Is" with tenants

Ideally: even as SRO's go, this isn't very appealing

Back In Action on SJP: 103 St. James Place

We're back from a quick hiatus with a play in Clinton Hill that should be very familiar to our readers. 103 St. James Place is 20' x 40' 3-Family brick building in a nice stretch of Clinton Hill that's seen lots of activity. Par for the course is the $999K price tag, no interior pictures, only the Property Shark exterior picture, and little to no details about the place other than "HOUSE NEEDS TOTAL RENOVATION & IS PRICED TO SELL" on the listing and "SUBMIT ALL OFFERS". This could be a good sign that it's poised to sell. With the listing not even out for a month, and the other things that have managed to sell like this, we don't imagine it'll last long. Compare it to another fave of our, 137 St. James, which was in a similar price range and need of repair.

We like the location, the exterior, and the potential. As always with these, the devil's in the details. The expected renovation budget and availability of financing is going to determine the feasibility over here. But it's certainly a genie waiting to be unlocked from the bottle, with decent 3-Fam's over here fetching closer to $1.3M+.



The owner should be sitting on plenty of equity and they're calling for all offers, so any flexibility you can get in the price might open up more room in the renovation budget. And a buyer may be able to fit the whole thing into an FHA construction loan, with a little room under the 3-Family loan limit... as long as it's not a dang SRO (which even the best places sneakily sometimes are).

Pro's: legal 3-Family, price point, curb appeal, nice block, customizable, poised to sell

Con's: no interior pics or details, needs total renovation, financing is tricky

Ideally: If you've got the funds, there's definitely plenty of value to unlock here.

We're Going on Vacation....

Well, it's been almost a year now here at BK to the Fullest. We've seen a little bit of everything. From houses that had no business being listed to gems that slipped right out of our hands. We even saw a harpsichord!

We're off to explore some foreign coasts for a few weeks, but we'll be back and better than ever the first week of July - just in time for our one year anniversary. Still dedicated to bringing you listings, comparisons, and analysis of multi-family properties in Brooklyn like no one else can - it's always BK to the Fullest.

Please post any questions, comments, suggestions, or requests in the comments section. Or contact us by e-mail.

3-Family Shell in Fort Greene: 434 Vanderbilt Avenue

No one's actually bought a livable 3-Family on the open market in Fort Greene for $550K in many years. So imagine our surprise when we saw 434 Vanderbilt Avenue listed with Ideal for that price. What's the catch? It's not livable. It needs a total renovation. It's just a shell. We asked the agent if $200K-$300K would get it done, like it would've on 137 St. James Place, but we were told, "More like $600K-$800K." Too rich for our blood, but worth a look.

This legal 3-Family is 20 x 35 and has 3,120 sqft. Neighborhood-wise, this property's actually more located in Clinton Hill, even though it's technically in the Fort Greene Landmark Historic District. It was purchased in March of 2010 for $440K, and just now listed for sale. A decent flip for that owner, yet we could barely see raising half the money it would take to get this place where it needs to be. And with Cocoran landing many comparable listings in contract in the $1.2M-$1.5M range, a handful around these blocks this spring, it's hard to see a $550K purchase + $800K in renovations netting a whole that's greater than the sum of the parts. The place doesn't even look that great from the outside, which is perhaps why the agent neglected to include even an exterior photo. New to the market, though, and the agent is very upbeat and forthcoming, so if you have $1.1M in cash laying around, it's worth a glance. We'd rather spend that kind of cash on a superior property. Contact us for better ideas on how to spend it...

Pro's: delivered vacant, price point, personalize-able, landmarked district, close to the train

Con's: all cash needed for purchase, lots more cash needed for renovation, landmarked districts can be a pain w/building permits & requirements, curb appeal, better ways to spend $1.1M-$1.3M cash on these very blocks - or in a superior neighborhood

Ideally: this is a qualitatively different play than we usually look at. Even if this building was offered to you at $250K all cash, the whole deal still probably wouldn't be that feasible or profitable. No need to split hairs over price when you're already in over your head.

2-Family Comparisons: 396 Douglass Street

After our last two picks were 1 & 2-Family places in the $1.2M-$1.3M range in Boerum Hill, comes a tiny 2-Family in the north end of Park Slope for $1.25M. 396 Douglass Street is a 16' wide brick building that sits between 4th and 5th Avenues. Ironically, we've already said more about it than the 20 word listing itself does. As we've noted before, Fillmore listings often leave something to be desired. There are also no interior pictures, but the listing is brand new, so we'll give them a chance to remedy that. What we are told is that it's "fully renovated" and there are 2BR's on each floor. Reading between the lines a bit on the "can be delivered vacant" claim, we're assuming there are tenants now and that they are month-to-month. There's no layout provided, but we're assuming there's a duplex involved with the garden level floor.

All things being equal, who wouldn't just go with 82 Douglass Street instead? At least there, you know what you're getting, and the area (or at least that section of it) is more desirable than down the hill in Park Slope. Again, this is why it pays to do "apples to apples" comparisons.



(Besides making you a killing in the real estate market, Apples to Apples is also a hilarious game to play with your friends.)

Also compare to the gut reno listed just up the hill on the same street for $1.3M that didn't last long at all. With the last sale of 396 Douglass coming in 2004 for $350K, some renovation and a modest refinance, there should be plenty of equity in place for a slightly more palatable number. If there's something worth paying up for here, Fillmore ought to show us.

Pro's: "can be delivered vacant", "full renovated", location, potential value, rental income potential

Con's: 16' wide, 1,624 sqft, no interior pictures, better value on the same block in a better patch of neighborhood

Ideally: worth a look, but our spider senses tell us it's simply mis-priced and that 82 Douglass still stacks up way better.

Microscopic Single Family: 293 Pacific Street

We never cover single-family homes, but we couldn't help but notice that this teenie-weenie house in prime time Boerum Hill finally went into contract. Especially after seeing how it stacks up to our last pick in Boerum Hill. Would you rather have a small, turnkey 2-Family for $1.3M? Or an EXTRA tiny Single Family shell that needs a complete renovation for $1.2M? 293 Pacific Street is a 14' wide residence that reminds us of our old Micro Machines toys.



Unfortunately it looks like the owner bought in February 2008 for $1.2M, tragically just before the crash that fall. It was originally listed in February 2010 for $1.299M with Prudential, then de-listed a few months later, then re-listed. Finally, it's been re-re-listed with another broker this year. Great neighborhood, but such a small space AND it needs extensive work? Not gonna happen. We'd be shocked to see this close at it's latest asking price of $1.2M. Granted, it is deep, but 14' is super narrow. And this AIN'T Manhattan. Check out the inside:





You're running for your checkbook, right? Whoever would even consider this would be much better off around the corner at 82 Dean Street. Or if you're not married to this neighborhood, there's a handful of better, similar deals in Clinton Hill and Fort Greene. Contact us for more info...

Pro's: location, deep, personalize-able, rental income potential

Con's: price, curb appeal, needs everything, narrow, noisy schoolyard right across the street, no real backyard, nearly impossible to finance

Ideally: wouldn't even do this at $800K, and totally useless for our purposes anyways at all-cash status. Still a curious case, awaiting the closing price.