$2M+, It's Not Just in Park Slope Anymore: 91 Cambridge Place

Don't tell our $1.5M buyers in Park Slope, but the $2M's are coming to Clinton Hill. 91 Cambridge Place is fresh out with a stunning renovation, a professionally landscaped garden, a bunch of great pictures, no lay-out, an open house, and a $2.05M price tag. When 103 Greene Avenue fetched over $2M, and 338 Clinton Avenue went in contract at its asking price of $2M sans photos or real description... the writing was on the wall. Now we can only look back at purchases like 107 Cambridge and 121 Cambridge, because 91 Cambridge has joined the likes of 110 Gates Avenue around $2M.

Even value shoppers over here have been miffed by the pricing on fixer-uppers like 101 Gates. But this is where the money's heading since $2M gets you so little in the way of a finished product in the best neighborhoods. It's startling, we agree. But at least you get something nice over here:





Nice. Nothing a few hundred thousand and some good style sense couldn't do to 101 Gates, but don't take our word for it, ask Cousin John.

Great exposures in the attic space too:



Pro's: stylish finished product, 20' wide, nice block, close to the C train

Con's: we'd love a lay-out, that's a lot of money, probably won't trickle below $1.75M as it might've 6 months ago

Ideally: don't sleep on Clinton Hill anymore.

In Contract in Carroll Gardens: 564 Henry Street

When you're dropping over $2M on a 4-story brownstone, you want more than a fixer-upper, right? Well, not anymore. At least not in the best neighborhoods. Just ask the folks at 220 Garfield Place. Today we take a look at a 4-Family "currently being used as a 3 family" that some were waiting to come down in price, and we figured never would. 564 Henry Street came out exactly 2 years ago at $2.3M with Prudential and dropped to $1.99M by the October 2010. But it wasn't until Corcoran got their hands on it and listed it for $2.15M that it went into contract.

This isn't the first time we've seen a price come up on a place that can't sell. And it's not the first time we've seen a price coming down that's finally met a buyer as the market comes up in this area. You didn't need to read the tea leaves to know 564 Henry Street wouldn't last forever. Even 6 months ago gut renovations were already going for above asking price over here. The listing tells us that "for over 35 years the same family has truly maintained this home," and the interior over here at 564 Henry Street has an estate feel at first glance:



Not too shabby, but sub-par photography for Corcoran standards & definitely not the best look inside a place for $2.1M, especially compared to the job Brown Harris Stevens did on Warren Street. Luckily, BK to the Fullest "Platinum Members" are headed to another 3,200 sqft 4-Family around the corner for much less money.

Pro's: location, curb appeal, some nice elements

Con's: going to need updating, price is steep for a dated place

Ideally: stunning finished products for just a tad more than this abound. But don't expect the dated places to stop going for these prices at this rate either.

No Upside in Park Slope, Pt. II: 229 8th Street

From our last post on an 8-Family building in Park Slope with no upside for $2M, today we bring you a 6-Family building with even less rental income for $2M. 229 8th Street has been on & off the market since July 2011, and is back out now. Anybody biting?

We have to give these folks a little credit over at "RUinSTYLE", which their Facebook page insists is "pronounced 'Are you in Style'." They took the time to really pitch a few of the upsides of the place and detailed the rent roll. However, just over $8,600/month gross rent isn't going to win over any investors. You can gross that much for less than (and sometimes half of) a $2M purchase price in Fort Greene or Clinton Hill or Crown Heights. Commercial loans take at least 25-30% down, but this rent roll would mean at least $1M down, at which point, why not just go somewhere else? Looking at this building doesn't scream "RU in Style?", but the price certainly screams "RU kidding Me?"

Besides, the rents are already pretty much top of market. That one straggler paying $535/month must be rent controlled or rent stabilized. But even if that caught up to the rest of the other rents overnight, it wouldn't make that big of a dent. While most places brag when they have a legitimate 2nd bedroom (rather than that narrow "office" space), this listing boasts, "True 1 Bedroom – can fit a queen bed." Heck, for $1,650/month, we would certainly hope so! Will the "generous additional 2000 sqft of development rights" actually pan out? Maybe someone can come up with something nifty for this paved backyard?



Please tell us at what price this even starts to get interesting, or what angle makes this a truly a "fantastic investment". If you had this money in Park Slope, get a brownstone. If you want cashflow, get something way better somewhere else.

Pro's: well, it is in Park Slope

Con's: no cashflow, no upside, no curb appeal, not even big

Ideally: why bother?

No Upside in Park Slope: 700 Sackett Street

Celebrating our 300th post!

Most of our readers already know what time it is when it comes to prices in Park Slope - others are still chasing the unicorn. Great sales can kind of mess with your head. It took us the longest to get over being under-bid and mishandled on 96 St. Marks. While it's very discouraging to have one of the best sales in the past 2 years within 20 square blocks slip right through your hands - especially from a phony-bologna all-cash offer and an agent who couldn't be bothered to get her client an extra $100K - we can't spend the rest of our lives living out long-gone glory days like Uncle Rico:



Ok, even at the one year anniversary mark of seeing that crushing sale, it still kinda stings. But we have moved on (somewhat). Accordingly, handfuls of buyers write us lamenting the sale of the gorgeous mansion that we covered 200 posts ago while still on the market last year, 287 Dekalb Avenue. There simply won't BE another 287 Dekalb. Or at least not within 20% of that price. For proof, just look at 338 Clinton Avenue going into contract this past Fall at its asking price of $2M with no pictures of its beautiful interior.

Accordingly, the sale of 158 Garfield Place has messed with the heads of the 29+ folks that submitted a written offer in the first month but didn't get it. On a street with $2M+ fixer-uppers, and $4M celebrity home bidding wars, this limestone, bowfront 8-Family with rent stabilized tenants and an underwhelming rent roll fetched under $225K per unit and a cap rate that isn't even that bad for how prime its location & curb appeal are. Now another 8-Family on a less desirable block with a worse interior wants more money... because??

700 Sackett Street is asking $2M and offers 8 2-BR apartments, 6 of them free market. Having an 8-Family with a majority of units destabilized is a huge plus, and the net operating income is listed at $130K. However, there's also no upside. The rents are pretty much what they're going to be, and a conversion play down the road is expensive, hard to predict when feasible, and the only value we can see left worth extracting at this price. Compare this to the $150K NOI on the gorgeous 603 Vanderbilt, or the genie in a bottle that is 234 St. James Place, with a ton of upside waiting to be unlocked (if only those wanna-be brokers would ever call anyone back). There's also another 6-Family apartment building in Park Slope for $2M and a 5-Family brownstone over here listed for over $2M, but we ain't seeing the appeal there either.

Pro's: never a unit unrented, 6 destabilized units, condo conversion down the road

Con's: little curb appeal, no upside, 2 rent stabilized units, railroad style, kicking yourself about 158 Garfield Place

Ideally: these guys at Terra CRG seem pretty legit. See what their angle is on the place & get in there and bid yourself some upside into the deal.

Price Drop & Open House in North Slope: 34 St. Marks Avenue

34 St. Marks Avenue is a 17' wide 2-Family "finishing the last stages of a complete renovation" that we find clean & generic. You could really take advantage of this location with the right renovation, but this waxy, rental-looking finish on the floors always breaks our heart. Especially when it was asking well over $2M in August 2011 as a half-finished renovation. Take a look across the street to see how to really sell a nice renovated place. 34 St. Marks is more like a better-located 572 Pacific Street, with a renovation that's not as nice. Pacific Street also just dropped its price. 34 St. Marks wanted $2.2M, then $2M, now $1.8M. What do we think is a fair price?



This is what $2M+ interiors actually look like on this street. But 34 St. Marks was a $1.5M+ foreclosure that was picked up just over $850K at auction in March. Just a few months later, the flip was in. We don't know that they'll see the ROI they were expecting on the renovation. Almost like 16 Hunts Lane, they probably would've been better off just leaving it alone. Buyers in these areas expect better and/or have the money to do it their way. They are bound to heavily improve on (or rip out) these renovations that even modest Bed-Stuy flips might look down on. Didn't your grandma ever tell you? "If you don't have something nice to renovate, don't renovate at all!"



At least the price is coming down, there are pics, a layout, and an open house tomorrow from 2pm - 3pm.

Pro's: location, fresh & clean, price coming down

Con's: narrow, dinky renovation, shiny floors like 643 Degraw

Ideally: these owners bought so right, there's room to profit and sell at a fair price, even with the renovation misfire.

A Real $2.5M+: 177 Carroll Street

After taking a look at a listing yesterday that wants a price that's just plain uncalled-for, it's nice to see a place with a price that actually is. 177 Carroll Street is a totally turnkey 2-Family that just came out for $2.65M. This is a lot of money, people, don't get us wrong. But at least they give us 7 great interior pictures, a detailed lay out, and a convenient open house this weekend... which is way more than we can say for this BoCoCa neighbor who isn't even giving a decent effort at fetching its $2.5M list price.

It's not that hard, brokers. For the $100K+ commission coming your way for a listing this pricey, it's worth tidying up, slapping some new paint on the wall, and throwing the trendy lighting fixture up there yourself. These owners picked it up for $1.25M in 2003, and certainly did a good job:







Please tell some of these other jokers with sub-par $2.5M+ listings to step their game up.

Pro's: location, curb appeal, great renovation, professional listing

Con's: 17.5 wide, shallow yard (if any), tons of options at this price

Ideally: hem & haw about the design details if you will, but at least this listing gives it the ol' college try.

The Audacity of Hope: 389 8th Street

Park Slope prices may be out of control, but that doesn't mean you can throw any ol' house up there and expect to land well over $2M. That's a lesson 572 Pacific Street is learning with a recent price drop of $145K last week. It's a lesson that we expect the freshly-listed 389 8th Street will soon learn too. With a list price of $2.425M and some pictures that show a modest renovation, we think they're really hoping to be a part of a Park Slope price point they're not quite ready for. You still gotta knock people's socks off somehow in this mid-$2M range.





Are your socks still on?? So are ours. Ya gotta give us more than 2 interior pictures for this price, please. The price says "Park Slope", but so far the interior says "Gowanus".

Take 184 St. Johns Place, for example, which came out for $2.3M with a great exterior & interior back in November. With original details & stylish updates making it classic AND turnkey, it was in contract in 3 weeks and closed all-cash over $100K above asking price. Did we mention, they took pictures? Even as prices shoot through the stratosphere, there are still too many great properties to choose from in the mid-$2M's to fake the funk. What's the angle on 389 8th Street? 233 Garfield is a better buy. 298 State Street is a better buy. 104 Berkeley is a better buy. And we're covering one tomorrow that's a WAY better buy.

Pro's: location, and, um....

Con's: mediocre renovation, dunno if 3-family's command this price even in the Slope, better buys abound

Ideally: prices are high, but it's not a free-for-all, people!