Closings of Note: A Year's Worth of Deals Wrapping Up, Pt. II

Deals as long as a year in the making continue to roll in, on and off market.  Some are Platinum Member success stories, some are frustrating broker fails.  388 Washington Avenue was a huge play in prime Clinton Hill listed without any real fanfare, with a broker you probably haven't heard of.  Which is why it dropped from $3.5M to accept an offer of $2.65M.  When that offer backed out, they were down to an offer of $2.4M and heading to contract.  In reality, no one cares who the broker is, they just want the best house for the best price.  But if your broker's asleep at the wheel, it will certainly affect your bottom line if you're a seller.  We put the bat signal out after hearing they were down to $2.4M.  Then, after chasing away cash offers of $2.4M and higher, the broker tells us this week, "There were things that came up after contracts were signed.  Things had to be renegotiated in order to close."  'Cause what's a $100K off in this market?  The house closed for $2.3M in October.  Changing your tune after contracts are signed and not having a broker who can advocate for ya?  That's a page right out of the 96 St. Marks Avenue developers' play-book!  The next time you see this property, we bet it won't be an underground listing.

Good news is that not all bumpy contracts are created equal.  Platinum Members held onto this deal in Ditmas at 136 Argyle Road since January/February through all kinds of turbulence, finally closing this week for a price that only got better & better by the day.  Houses smaller than this now command $1.5M+, and the next one of these coming out soon wants more than this - and for good reason!

Also in the Ditmas area, when a commercial broker gets a Victorian with original details and gives you nothing but an areal view, the house is bound to sell for less than it should!  991 Ocean Avenue was asking $1.4M, but sold for $1.25M last month.

When we heard back in June that this 8-Family in "Navy Yard" at 54 Cumberland Street wanted $3M, we thought the price sounded lofty.  However, the rent roll was impressive (if real), and once the right brokers got their hands on it, they secured an all-cash deal with a 10 day closing at $2.9M.  Put that in your comps pipe and smoke it!  $500/sqft and 14 times rent roll for a neighborhood people pretend is in a different continent from Fort Greene, but isn't.  A better 8-Family than this looking to trade off market should soar above their asking price with comps like this.

Even if you've got your finger on the pulse of Brooklyn real estate, it doesn't mean you understand what you're seeing.  One of the most connected people in the business asked us this week if the Platinum Member take-down at 238 Gates Avenue for $1.3M means that Clinton Hill prices are down now in comparison to the $1.7M-$1.85M that's being achieved on top-notch Stuyvesant Heights product.  Is Clinton Hill down?  Au contraire!  No matter what neighborhood the house is in, the price will fall if no one knows it's for sale.  (See 388 Washington Avenue above...)  But if you get shiny pics and the right peddling, anything's possible.  This gnarly piece at 17 Irving Place in Clinton Hill goes for $2M.  An estate sale around the corner is in contract for over $2M, but you won't see that closing for a while yet.  Even though it's basically off-market, once the big brokers get their hands on it, it's game over.

"The BQE is right around the corner" rolled off the tongue from 2008 to 2012 when this house at 31 Cheever Place in Cobble Hill wanted $1.75M.  In today's market, buyers from Brooklyn Heights took it down for $2.5M.

Speaking of buyers from Brooklyn Heights, some took down this Crown Heights 2-Family at 908 St. Johns Place for $1.065M.  This week we also showed you the house next door at 910 St. Johns Place traded for almost $100K less.

Do you like BoCoCa but don't wanna be as close to the BQE as Cheever Place?  Well then, for smaller product it's going to cost you the same price if it's an on-market deal.  The 3-story, 16' wide 414 Sackett Street closes for $2.5M last month to buyers from the Upper West Side.

It won't win any beauty contests, but it IS in Park Slope.  Listed for $2.7M since February, 312 7th Street dropped to $2.5M in June, and closed for $2.275M last month.  When the buyer told us 2 years ago they wanted a fixer-upper in Park Slope for a million, we had our doubts.  Then they upped their budget to $2M this year and we still thought they were dreaming.  But we'll be darned if they didn't take down a nifty little under-marketed spot, and the "meh" rentals are already up.

Over in Boerum Hill, this row of new construction buildings started rolling out, including 301A State Street that sold for $3.4M!

Just down the street, it was hard to hate on 471 State Street in March with its asking price of $2.4M.  They were in contract within 6 weeks and closed for $2.755M in August to a buyer from Manhattan.

Since February, we'd been stalking the vacant lot on the Prospect Heights side of Crown Heights at 529 Park Place as it head to foreclosure auction.  The buyers picked it up in the summer and wanted to flip it for $700K, even listed it for $800K, and got their $700K last month.  Not the most impressive flip ever, but can't scoff at the upside.

Just around the corner, whether you call it Crown Heights or Prospect Heights, the yard is definitely the main selling point of this for sale by owner condo at 651 Washington Avenue, #1.  They were asking $850K in the summer for this triplex, raised their price to $900K, then closed for $850K.

And what month in Brooklyn would be complete without another $900+/sqft condo comp in Prospect Heights?  While developers still underwrite these at $800/sqft or less - to our bemusement - 338 Prospect Place, #2A lasts a month on the market with a list price of $629K, and closes for $698K.  They couldn't get $525K in 2009, but that's back when the Dow was half what it is now and the sky was falling down.  We told you the $700K condo game was tricky!  If you're keeping score at home, that's $930/sqft for a 2BR that's less than 800/sqft, with a kitchen the size of a closet, and $850/month in taxes & common charges.

Closings of Note: A Year's Worth of Deals Wrapping Up

Deals don't happen over night, but the next few weeks will see deals many months in the making finally crossing the finish line.  Take 139 Joralemon Street for example.  This Brooklyn Heights buy & hold gem has been trying to sell for years now.  The price kept going up, and for good reason.  25' x 69' on 5 stories in Brooklyn's answer to the Upper East Side?  The latest asking price was $4M and they closed for $3.9M last month.  Was it really just 2 years ago that these jokers wanted only $2.9M and everybody told them they couldn't get it?  Sure was!!  Inventory is tight, and as you'll see, even the funkiest little pieces are commanding top dollar...

It must've been fun thinking a gem like 296 Prospect Place in Prospect Heights was gonna sell for the $1.695M it listed for.  Then the bidding war begins!  Even with just 3 stories, this bad-boy cruises to $2.2M in October (ahem, $500K+ over asking price) with the extra-deep lot.  A neighbor who thought about listing for $2M is getting cold feet, and we can't imagine why.

This summer Brownstoner called 127 Garfield Place "a blank canvass in central Park Slope" with "virtually no details left", and yet at less than 17' wide it lasted only 30 days on the market at $1.5M before contract and closed last month for $1.635M.  Was this your unicorn flying by?

Would-be buyers told us there was no way that a tiny not-even-17' wide frame house in Greenwood like 352 20th Street was worth the asking price of $825K.  They were right.  It closed for $925K in October.

For an even higher price, a brick house on an extra-deep lot moves in Crown Heights.  910 St. Johns Place sold for $985K last month.

But not everything goes above asking price in this market.  We figured 272 Lafayette Avenue had to come off its inflated price, and with all-cash, they certainly did.  This Clinton Hill fixer-upper with killer molding closed for $1.65M last month.

It went in contract quickly, but took a minute to close.  However, in Boerum Hill, 3 renovated stories - even 17' x 37' - under $2M is like bargain hunting.  453 Warren Street closes for asking price of $1.79M last month.

Even gnarly houses well off the beaten path command some astonishing prices these days.  Nobody was rushing to 137 Clermont Avenue for $1.5M, but it eventually had a priced drop and closed for $1.38M last month.  Just in case you didn't know what Wallabout is all about.

We tried to tell ya back in February when this place was really ready to sell.  138A Classon Avenue may be in a relative no man's land in your book, but that doesn't stop it from getting almost a million.  A few issues made it take a while to close, but this isn't the first property we've seen trade a relative value in this northern edge of the Fort Greene & Clinton Hill.  Closed for $975K last month.  Almost makes the renovated 179 Park Avenue closer to Fort Greene look like a deal.

Even in no man's land Bed-Stuy, 4 stories commands almost a million.  484 Willoughby Avenue listed for $949K with dark interior pictures, but still closed above asking price last month for $960K.

Off-market deals sound appealing to buyers who wanna edge out Joe Public, but they're hard to find, happen in cash, require lots of work, and involve buying out tenants.  131 Jefferson Avenue in Bed-Stuy is a huge 20' x 60' 3-Family with legit 4BR rentals on some floors.  It closed for $785K last month, is now vacant, and will gladly flip to a new buyer for some $1.35M.  We took a tour of the place this weekend and think it's ready for a modern renovation and a new exterior.  Also off-market, even at only 35' deep, it's nice to get a townhouse.  285 Cumberland Street was worth $1.9M to buyers who just sold their condo nearby in Fort Greene for over a million dollars.  It closed last month.  158 Clifton Place in Clinton Hill also closed just under $1M off-market.

Bed-Stuy's First $3M Townhouse: 288 Decatur Street

In this market, Brooklyn's real estate records are meant to be broken.  This afternoon we got a sneak peek at Bed-Stuy's first $3M townhouse listing at 288 Decatur Street hitting the market any day now.  This enormous 5-Family on the corner of Stuyvesant and Decatur is primetime Stuyvesant Heights.  The building is a massive 22' x 48' with a ~20' extension on two floors, full of windows...

Our main man Paul Gooden at Kian Realty has lobbed up great Bed-Stuy gems for Platinum Members like 753 Jefferson Avenue, but he's bound to break a record with this one.  The building is set up as an owner's duplex on the bottom with rentals on top.  Each floor above the duplex has a studio and a 1BR apartment on it, grossing $2,500/floor, with rents the owner told us he hasn't raised in 7 years.  Besides tons of well-restored original details, there's central A/C, all new plumbing and electric, and a parking space for the owner's unit!

Maybe you missed 242 Decatur Street down the block selling for $1.7M earlier this year, or some of the $1.8M's+ deals that are being inked in Stuyvesant Heights.  This area has homes that make Park Slope jealous.  And why might that be?  Oh yeah, 'cause the same architects did those houses!  Like 288 Decatur Morgan Munsey tells us was designed by Axel Hedman, who did hundreds of houses from Park Slope to Crown Heights and Stuyvesant Heights.  288 Decatur's got lots of the limestone exterior embellishments Hedman's known for...

 
With the express A train around the corner at Utica, it's no wonder people are finding it easy to come to this neighborhood.  And there's always that parking spot if you still think it's too far out there.  The interior retained period details where possible...

The top floor of the extension is framed out for a huge master kitchen & dining room, with working fireplace, that the owner's left for users to put the finishing touches on...

There's also a master bath that's bigger than most studio apartments, set up with jacuzzi tub & fireplace in place, and framed out for users to put their own finishes on, including his & her showers.  But the owner's bathroom that's already finished is pretty nice too...

The rental apartments get tons of light with the bay windows and have their own upgrades and period details.  Basement's got solid arched-brick construction, separate boilers for the owner's unit and each of the rentals, plus washer/dryer...

It reminds us of other corner properties like 272 Jefferson Avenue.  Some 5,000 square feet this prime and this nice won't go cheaply, but let's let the market tell the story.  We're told 288 Decatur Street will be delivered vacant and that showings by appointment begin next week.


Pro's:  huge historic corner piece, great owner's unit with parking, turnkey units with great rental income potential delivered vacant, personalize the owner's kitchen and bath to your liking

Con's:  sticker shock, won't go cheap, money left to be spent on finishing up the master kitchen & bath, no yard, not everyone wants 4 units above them for this price, not everyone's ready for Stuy Heights

Ideally:  the peanut gallery with scoff at the sticker shock with reason, but someone's going to make off with an amazing house here either way.

Another Platinum Take-Down in Clinton Hill: 238 Gates Avenue

Platinum Members are it again taking down a nifty little house in Clinton Hill that you won't find on your Streeteasy, your Zillow, your NYTimes, your Trulia, or your Brownstoner.  Do amazing houses sell right under everyone's nose on a regular basis?  That's just Brooklyn's inefficient market for ya.  238 Gates Avenue wanted $1.35M and we couldn't blame 'em.  This legal 5-Family brownstone may look a little narrow, and it's got an extra floor on top that's set back so you can't see it, but the inside is totally legit.  Fully equipped with wood detail, some upgrades, high ceilings, a back deck on multiple floors...

Local broker Celeste Moses has done it again, lobbing up a great opportunity and getting Platinum Members in contract at a way-reasonable $1.3M.  This place is ideal for an end-user who wants a unit to themselves and a ton of income to boot, a pure investor, or a conversion to a townhouse with fewer units.

There's more to life than Corcoran.com, y'all.  But you've gotta dig a little deeper.  Don't be afraid to get your hands dirty, though, 'cause there might be a few hundred thou' in upside waiting around the corner...



Pro's:  price, condition, 5 stories, 5-Family, great rental income potential, delivered with many vacancies, not on everyone's radar

Con's:  gone already, all cash, has a few issues to shore-up inside, narrow 17' width

Ideally:  if you missed this one, the next one's even nicer, and bigger, but will probably go higher!

Limestone Love at First Sight: 1134 Bergen Street

You might've missed when this Crown Heights limestone gem at 1138 Bergen Street from 1896 by architect George P. Chappell went in contract for $1.3M all cash a few weeks ago.  Why'd you miss it?  Because it was locked up for asking price before the brokers could even bring it to market.  Interestingly enough, Platinum Members had just finished locking up the house two doors down at 1134 Bergen Street with an even sweeter renovation.  These 18' x 45' 4-story limestones between Nostrand and New York Avenue are legal 2-Fam's used as 3's...

We're loving the mix of original details and modern upgrades to 1134 Bergen Street...

And that's before you even see the parlor and the pimped-out master bath with the jacuzzi tub!  (Which we failed to get pics of) -  The kitchen's got black granite counters, shiny red cabinets, stainless steel appliances, colorful checkerboard tile back splash...  This may not be precisely your taste, but it is tens of thousands in recent upgrades that you don't have to come out of pocket for on day one.  The extra-deep 127' lot makes for a nice yard...

The rental units are in great condition...

We hadn't realized how prolific this architect George P. Chappell was.  He's got townhomes and churches throughout Brooklyn, including one of our other favorite buildings in Crown Heights, 1142 Dean Street:

We knew we loved this house for a reason!  And across the street...

But if Crown Heights wasn't impressive enough for ya, he even got busy in Park Slope, like here on Garfield Place...

To put the finishing on touches on 1134 Bergen Street, we're calling in a more modern architect, our main man Phil Ryan of Studio Modh, whose renovation around the corner at 1377 Pacific Street we fell in love with instantly last year, and was recently covered in Dwell...

In fact we loved his work on 1377 Pacific Street so much, we helped Platinum Members snag the house next door at 1379 Pacific Street for a staggeringly-low sub-$700K number, just last year!  By the time Phil's done with 1134 Bergen Street, it may not be Dwell magazine material, but it'll certainly be a sight to see.

In terms of valuation, maybe you missed 1261 Dean Street closing around the corner in the exact same condition for $1.7M off-market.  Or maybe you missed 1277 Bergen Street even further east going in contract for $1.5M.  Or maybe you missed 100 New York Avenue around the corner going in contract for a reported $1.6M.  1234 Dean's bids are close to $2M for a single-family!!  When deep Bed-Stuy has a handful of houses hitting $1.7M-$1.8M, is it okay for Crown Heights (at the geographical equivalent of west Bed-Stuy, only on the other side of Atlantic Avenue) to start poking above $1.5M too?  And we're talking about a turnkey house.  We think you could owner-occupy 1134 Bergen Street for years, but we've wondered what it's worth if fixed-up even further.  Could it reach the $1.7M of 1261 Dean Street?  Certainly $1.5M is in reach.  Rumor is buyers might even be open to offers at this point, so let us know.  Either way, it's a win/win.


Pro's:  historic limestone with original details and modern upgrades that wasn't on everyone's radar, extra-deep lot, great owner's unit with rental income, express A train nearby and 3 train up the hill

Con's:  access was tough, this block isn't as nice as Dean's, it's not 20' wide, some work to do to optimize, neighborhood isn't for everyone, some buyers called the interior "dark"

Ideally:  another Platinum Member gem.  Keep as a 3-Fam or restore to its 2-Family double-duplex glory - either way it's a win!