Platinum Plays in Bed-Stuy: 183 Halsey Street

Despite the dozens of folks who continue to enter the real estate market looking for one, the million dollar fixer-upper in brownstone Brooklyn is a dying breed.  Especially if you want to be on one of the more-coveted blocks of the now no-brainer neighborhoods that people once thought of as the final frontier, like Bed-Stuy.  In the time it took for Platinum Members to do a barely on-market deal at 183 Halsey Street well under a million, neighbors like 107A Halsey Street have shot up from the $1.4M range (with offers over asking price) to asking $2M today.  But don't try below-market moves like 183 Halsey Street on your Corcoran.com!

Yes, 'twas a frozen winter night with snow on the ground when the deal at 183 Halsey Street was going down.  We were worried that Platinum Members might lose the deal as word about the good buy started to get out.  One broker had rumored to us that a Corcoran broker's client had the deal all locked up.  At a fancy a holiday-type get together at Crown Heights' 1234 Dean Street, a number of Corcoran brokers asked us, "So you work in real estate?" and stood a little dumbfounded as we described how we make our moves and navigate deals that big brokers are typically shut out of.  Then one of them pulled out their business card and patronizingly said, "Well, when you're ready to run with the big boys, give me a call..."  At that very instant, we got the text that Platinum Members and not the Corcoran client had fully executed the contract at 183 Halsey Street.  And the rest was history.

Yup, with a closing price of $800K in February of this year, and a turn-around refinance of $700K+ back out of the property just a few months later, we checked in last week on the renovation under-way...

By now, you know the drill... solid 20' wide 4-story Italianate brownstone with some original details worth preserving.  Slide the A/C and new plumbing and new electrical in.  Set it up as a triplex over garden rental... and -poof!!- you get something with a 2-handle on it in this market in "west" Bed-Stuy.

With a little heat gun and a lot of elbow grease, years of paint come right off of all kinds of original wood in the building...

The blue stone is in, and the yard will clean up even nicer than this when it's all said & done...

Many buyers with deeper pockets have paid significantly more for worse houses on this same block in the past few months (but we won't name names).  Although, we'll name names for the collabo' at Halsey.  With a little help from Steve Hartstein on the refinance, who was temporarily 'mortgage broker non-grata' to us after failing to deliver a loan on 1134 Bergen Street; and a lot of help from Chris Horner, a broker experienced in the ways of underground and above-ground deals - Platinum Members came out on top and Corcoran clients were left in the cold.  Can't wait to follow-up on this reno when it's all done.



Pro's:  curb appeal, west Bed-Stuy location, well under a million, delivered vacant, legal 2-Family, no SRO issues, appraised for much higher soon after closing, refinanced almost all the money back out to fund the renovation, quick walk to Nostrand express A train & voilà!

Con's:  long gone already, not easily repeated, plenty of work to do, took cash upfront to close, sellers delayed for a bit, rocky road to pull it off, "doesn't pencil" as an investment for overly-greedy investors

Ideally:  another barely-marketed slam dunk.  If "running with the big boys" means missing out on deals like this, what's the point?

Best 8-Family in Brooklyn in Contract: 556 Dean Street

Sometimes the hands-down best 8-Family buy in all of Brooklyn is right under your nose and you don't even know it's for sale.  Then, you tell these so-called investors that it's for sale and they still don't know what to do with it.  Cue the enormous Prospect Heights gem at 556 Dean Street.  That's right - even in the hottest market ever, you can be looking at the best Brooklyn has to offer and "you ain't even know it".  With a serviceable - but uninspiring - marketing plan from the cagey broker/owner, even the best properties can flail on the market, as this did when it listed much higher than $3.5M, and even when it dropped to $3.5M.  But eventually enough sharks were circling and supposedly some additional vacancies came on the horizon, and now the best 8-Family in all of Brooklyn is in contract.  What makes this the best?  Prime Prospect Heights location between Barclays and Vanderbilt Avenue.  A huge 40' x 70' size, netting you over 10,000 square feet. Unique curb appeal, and you won't find many rent stabilized buildings with this kind of original detail intact...

Then some simple renovations really touch it up...

What makes this the best?  Well, if you weren't feeling $4.9M for a 27.5' wider in Park Slope that's basically fully rented with little immediate upside like 703 Carroll Street (closing any day now), or if you missed Prospect Heights' two neighboring 27.5' widers at 531 Bergen Street and 533 Bergen Street, or if you've seen what other prime 8-Families go for $4M plus, then you'll know what we're talking about.  Even with a rent controlled unit and the rest mostly stabilized, the 3BR apartments get amazing rent over here, as the flagship unit here demonstrates at $3,700/month.  And for you condo converters, $350/sqft in the land of $1,000+/sqft apartments ain't too shabby either.  No way this shouldn't go for $3.5M or higher.  An 8-Family in prime Bed-Stuy this size on HomeCanvasr.com has sight-unseen bids of $4M+.

Pro's:  location, curb appeal, upside, some free market & renovated units, supposedly has vacancies, 40' width affords true 3BR apartments instead of the 27.5' wider with railroad apartments, sick original detail inside, condo conversion potential, upgraded mechanicals

Con's:  extensive rent regulation, low cap rate as-is, hard to finance even if you've got a million in cash,  

Ideally:  a top-notch property bound to close at a great number for buyer and seller alike

'So Fresh & So Clean' Rental in Stuyvesant Heights: 236 Decatur Street, #1

Last week we took a sneak peek inside some killer houses, including this rental on one of best blocks in Stuyvesant Heights at 236 Decatur Street, #1.  The recent price increase from $3,200/month to $3,400/month isn't for everyone, but this parlor unit is crisp & clean and ready for its close-up!  Dripping with original wood details for days, and restored pieces that blend in perfectly...

 Oh, and of course, the updated kitchen & bath.  Including counter-height fridges...

Then step into the bedroom where the high ceilings really pop...

And if the house wasn't 'so fresh & so clean' already, there's even an Italian-style fresco on the wall.  (If you're into that kind of thing...)

The house looks just this good in person, and the kitchen looks even better than the photo lets on.  Oh, and don't forget the walk-in closet...

Pro's:  totally mint original details & upgrades, curb appeal, great block, huge ceilings on the parlor, all the fixings you could hope for in a rental

Con's:  it ain't cheap, the price has actually gone up, many want a 2BR for this price, en suite bath is nice for owners until lots of guests show up

Ideally:  if Dixon's actually getting $11K/month for 22 Arlington, there's gotta be a baller couple who wants to be on this block for something this nice

Clinton Hill Gem Coming to Market: 210 St. James Place

When HomeCanvasr.com got the call to estimate this historic gem on one of our favorite blocks in Clinton Hill, we had to go see what it's all about.  On a block with Romanesque Revival and Beaux-Arts, brick & limestone & frame houses, and such huge all-time faves as 234 St. James Place, that many of you might know most notably as Notorious B.I.G.'s former block.  This stunning 17' wide brick building at 210 St. James Place is a one-family with original details for days...

From original wood parquet floors, to doors & door hardware, marble & wood mantles, built-in cabinets, stained-glass windows, marble sinks, wainscoting... almost all of it in incredible condition.

They simply don't make 'em like they used to.  The details from 1890 in this house just don't stop...

Formal dining room?  Check!

Nice backyard, even with the extension?  Check!

Original intercom horns on different floors with original porcelain rims?  Check!

Updates to kitchen and bath?  Check!

Some parts of the house aren't quite ready for their close-up.  Many mechanicals have been updated including a new roof, water heater, forced-air heating system on gas.  Others patches will be left for the new owner to customize.  Currently set-up as a 1-Family with a C of O for a 2-Family the flexibility is there to use it either way, but we see the big ballers keeping these as single-families these days.  Certainly, this house will be up against $3M Clinton Hill contenders like 102 Gates Avenue and a nearby Grand Avenue renovation.  What 210 St. James Place lacks for some buyers with its 17' width and 1-Family configuration, it more than makes up for in its uniquely special details, curb appeal, extension, yard, and block.  We waxed poetic with the owner about pricing for a while, but it's always the market that tells the story.  Where do you think it lands?


Pro's:  curb appeal, location, totally intact details galore, special house, rear extension, new mechanicals, some upgrades, "fun stuff" left to be done

Con's:  won't go cheaply, still a "fixer-upper" in some sense, not 20' wide, rental income isn't as easy with single-family configuration

Ideally:  why are these houses fawned over like rare Fabergé eggs?  'Cause they were built from 1885 to 1917 and they ain't making 'em any more - just like Fabergé eggs!

Most Affordable 2BR Apartment in Prospect Heights: 649 Vanderbilt Avenue, #2B

Who says Corcoran doesn't have good deals?  (Simpletons who don't know the nuances of the real estate game, that's who!)  Feast your eyes on Prospect Heights' most affordable 2BR apartment at 649 Vanderbilt Avenue, #2B asking $565K.

We've been telling jokers for years how hard it is to find a decent 2BR for even $700K in the preferred areas of Brooklyn.  Then along comes this totally legit 2BR apartment, around the corner from Prospect Park, on Prospect Heights' favorite commercial strip, for under $600K?  Platinum Members paid basically this price for a 1BR in Prospect/Crown Heights last year!  649 Vanderbilt Avenue, #2B is a cute, little place that does the trick.  A second floor walk-up with two bedrooms in the front facing out on Vanderbilt, a living room, and updated Ikea-style kitchen and bath.  You'll be hard-pressed to find a better bang for your buck in a location as love-able as this.

Decorative original fireplace, washer/dryer in the unit, low common charges on the co-op?  Park Slope, eat your heart out!  This is a slam dunk deal for dozens of buyers in this market.  Even if you think it's on the small side, or just a starter apartment, you CANNOT beat the price.  Yes, while the NYTimes proudly touts studio apartment rentals further east in Crown Heights for over $2,300/month, you could purchase this 2BR apartment with less than $100K down and have a mortgage lower than $2,300.  But they don't hear us, though.



Pro's:  best of breed price & features for 2BR apartments in the area, original details, cute upgrades, washer/dryer in unit, low monthly fees, open house this weekend

Con's:  on the small side, won't go quietly, people will ask "So, it's a co-op and not a condo?", brace yourselves for calls of "best & final"

Ideally:  a no-brainer for dozens of buyers.  We're taking any and all bets that this goes over asking price

Closed in Crown Heights: 1319 Bedford Avenue

Is it just us, or is Crown Heights, Brooklyn so hot right now?  $2,000+/month studio apartments, $10,000+/month townhomes, and $30M beer halls - oh my!  Even the vacant lots are getting boudgie...

Last month this huge barrel-front limestone 4-Family in Crown Heights at 1319 Bedford Avenue closes for $1.7M cash.  Yup, that's another well over $1.5M sales price for the area, and not delivered vacant, or shiny, or new.  And for all you Google Mappers out there, yes, that is the Bedford-Atlantic Armory directly across the street, still currently used a homeless shelter.

No tree-lined block here, just a busy intersection for sure, so why is a building like this fetching almost $2M?  Well, at 20' x 78', there's lot of space to play with.  Huge buildings like these are nice for investors and developers because they can be spacious floor-thru rentals, condos, or chopped into smaller units.  Many play them as 8-Families in 4-Family clothing, getting the size of a 5+ unit without the rent stabilization.  Even 2 years ago we were bullish on one of these that was a vacant SRO for $1.5M like 1329 Pacific Street:

Which closed last year and by this summer had turned into two renovated 3BR's per floor renting between $2,699 - $2,850/month...

So if an SRO further into Crown Heights that needed a total gut can go in contract for $1.5M almost 2 years ago, is it that surprising that a legal 4-Family that's faster & more straightforward to reposition goes for 13% more today?

The extra-deep 4-Family is a lay-out that's been taken advantage of in other top emerging (at the time) locations such as 33 St. Marks Avenue, 35 St. Marks Avenue, 489 Park Place, 1020 Park Place, and a few others that Platinum Members have under-bid on or have a contract on as we speak.  We'll take a look later this week at a record-breaking 8-Family seen only on HomeCanvasr.com that's in contract in Clinton Hill without even hitting the market. 

The buyers at 35 Rogers Avenue must be really happy with a comp a block away like Bedford as they undergo their renovation.   The same broker on 1319 Bedford Avenue has huge rent stabilized corner Crown Heights 8-Family's in contract for even less than this price.  But 1319 sits somewhere in between those and townhomes.  If semi-finished 3-Families like 1072 Dean Street can go for $1.7M as surprise last year, is a huge 4-Family around the corner that needs more work really that crazy this year at $1.7M?  We've seen studio apartments in East Williamsburg fetch $3,000/month.  "Is Brooklyn Over?" when studios in Crown Heights start going over $2,000/month, or is Brooklyn just getting started?

This week we'll take a look at the most affordable 2BR apartment in all of Prospect Heights, and hopefully some upcoming top-notch Crown Heights rentals near Franklin that we expect will have plenty of demand.



Pro's:  curb appeal, huge size, free market, under $300/sqft, great condo conversion or buy & hold opportunity, technically close to the best Bed-Stuy and Crown Heights have to offer

Con's:  busy block, across from a homeless shelter, really tweener location, took cash, price sounds lofty at first, comes with tenants, work to be done

Ideally:  certainly a buy & hold for the long haul, but you know it's getting frothy when even the bargains have pretty big price tags

Closings of Note: "Is Brooklyn Over?"

This just in:  Brooklyn's not for everyone.  Well, name a place that is.  The NYTimes asks this week, "Is Brooklyn over?" and we say, "No."  Now, granted, the prices will shock you.  $2.495M for a Fort Greene house around the corner from the projects?  Welcome to the neighb.  421 Clermont Avenue closed last month.  But don't front like there still aren't relative values lurking all around.  While the well-documented plight of the Brooklynite continues, so do deals for a million dollars less right around the corner from houses like this.  Another version of 460 Clermont Avenue in Atlantic Commons around the corner - 205 South Oxford - sells for $1.5M earlier this month.  'Twas just a few years ago that people (including our clients and closest friends) balked at paying over $950K for these things.  And even the heavily trust-funded with a million in the bank renting in the likes of Williamsburg these days still wimper at the thought of buying something in Fort Greene for a million less than others are paying for almost the same house.  That's right, slash a million off the price and folks still gripe.  So pardon us if we don't heed the griping too much.  If one of the loveliest boroughs in one of the most expensive cities in the world is - ahem - expensive, that's still a "dog bites man" situation in our book.  The key is you've gotta pick your spots.

Another realtive steal in Fort Greene / Clinton Hill listed with Corcoran?  While cash buyers are coming in on the block for well over $2M with plans to put another $1M into the property, 513 Vanderbilt Avenue rolls out the door in pretty darling condition for $1.68M.  Many hated on its location while buyers from Manhattan took it down.

Another relative value with Corcoran?  404 Grand Avenue was may have been an "estate sale", but the listing insists, "This is NOT an SRO."  Listed for $2.2M in the spring, it closed last month for a "some of you ballers must be kicking yourselves" price of $1.726M with a mere ~$250K down.  Def' worth the risk, even if the loan can balloon to 24%!  The next time you see this house listed, it will have a 3 in front of it.  The same goes for Fort Greene's 40 South Portland closing at $1.85M last month.  Watch as neighbors across the street on Grand cruise to some $3M+ pretty soon to appreciate what a good deal this 404 Grand Avenue was.

Next door to a condo that sold for $1.79M at 453 Warren Street at the end of last year, the entire house at 451 Warren Street just closed for $1.55M last month.

Prime Washington Avenue property for under asking price?  700 Washington Avenue, listed for $1.5M, closes for $1.35M last month.  From the same brokers who laughed at us when we told them 3-story mixed-use properties like this would be $1.3M on Vanderbilt Avenue comes $1.35M a few avenues further.  Still a great price for the trajectory of this avenue.

Some called it painfully generic, but it didn't stop a Crown Heights Corcoran broker from moving the three-story at 608 Sterling Place for $1.445M this month.  Can't say we love it, but still beats a pricier condo on Warren Street in our book

Good thing there's still finished brownstones for under a million.  Granted, they're 3 stories, quick flips, and deep in Bed-Stuy towards Bushwick.  However, 962 Gates Avenue had a pretty good kitchen as these things go.  Closed for $995K last month.

It couldn't get $875K in 2011, but Bed-Stuy's 313 Hancock Street gets $900K this month.  Buyer from Clinton Hill says yes.

The price on Bed-Stuy's 575 Macon Street started at $900K at the end of last year and quickly bubbled up.  But even at its closing price of $1.125M, buyers from the East Village still got a great deal with less than 20% down.  You gotta love them 3-Family loan limits.  A tough needle to thread, but amazing if you can pull it off.

But don't fear!  There's still $5M+ houses in Brooklyn too.  The 5-story at 45 Remsen Street in Brooklyn Heights steps from the promenade closed for $5.45M last month to buyers from the Upper East Side.

But if you want to see a $5M house that doesn't cost five million dollars, you'll have to hoof it (Gosh forbid!) a few miles deeper into Brooklyn than Brooklyn Heights.  Not surprisingly, Prospect Lefferts Gardens is getting in on the record-breaking act too.  Turns out $2M+ purchases are not just for Dixon in Bed-Stuy anymore.  The absolute stunner at 66 Midwood Street listed for $1.975M and closed last month for $2.3M.  If you're going to drop ~$800K down on a house, this one of the best looking pieces in all of New York to do it on.

The Carroll Gardens $1.5M condos of 2010 are the $2M+ condos of today.  348 Sackett Street, #3 closed for $2.33M this month.

Also in the Carroll Gardens condo watch, we can't help but smile at the multi-millionaires who swore they'd be real estate developers with just a little elbow grease, but hated on the likes of 364 Union Street when it was available for $2.5M three years ago.  Back then they doubted the median $700/sqft for the area.  Now the sell-out is averaging an asking price of $1,100+/sqft and 4 out of 5 of them went over asking price, including Unit #3 for $1.73M this month.