Would-Be PLG Tower Site Sold?

31lincolnrendering-3-2011.jpgThe website PLOG informs of the following: “Land once slated for an outsized 23-story glass tower has been sold, local sources told PLOG today. A search of the online City Register shows a memorandum of agreement between the former owner Henry Herbst and a new entity known as 31 Lincoln Road, Development LLC. Our tipsters also told us that the investors behind the purchase have gobbled up another nearby building on Lincoln and several other properties in the area, but we are unable to confirm this at present time.” The option agreement recorded in city records checks out with listing broker TerraCRG’s website, which shows 31 Lincoln Road-510 Flatbush Avenue as in contract. The properties were listed for $6,990,000. Assuming the sale goes through, the question becomes whether or not the buyer is going to dust off plans for the tower.
Lincoln Road Property Sold [PLOG] GMAP
Site for Glassy PLG Tower Hits the Market [Brownstoner]
Graphic via PLOG.

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  • Our PLG Arts Mural sure looks nice in the pictures on the broker’s website :-)

  • I find no evidence of any filings on any adjoining properties: http://beta.local.yahoo.com/sale-lincoln-road-tower-site-yahoo-contributor-network?woeid=55992187. However, four large rental buildings changed hands at the end of last year to a different buyer, already a landlord in the area. Will post link to article when it’s published.

  • Oh, and based on what those apartment buildings sold for, I’d say $6.9 million is a good price for that lot, regardless of eventual development plans.

  • Babs,
    You seem plugged in on this front. do you think the new landlords in the larger PLG apartment buildings will represent a change in the level of maintenance/responsiveness experienced by the tenants? I’ve only heard bad things about the management of most of the larger apartment buildings (on Lincoln, Beekman, Midwood etc.)

    My feeling about the neighborhood is that it will rise or fall in conjunction with the quality of rental stock: that’s the main driver of new retail on Flatbush, not the one-families in LM.

    As for the Lincoln tower, given how long it’s taken the Meier building to move units, I’ll be astonished if it’s ever built as designed. But I wouldn’t be surprised if something slightly more to scale (10-15 stories) eventually rose in that space. It’s a hard location to beat.

  • The buyer of the ex-Lincoln Five portfolio (and they were TERRIBLE landlords; I know from friends’ experience) already owns at least one other building in the hood – has gotten mixed reviews. The building had a devastating fire several years ago – which, surprise, surprise, did clear out a lot of the long-term tenants, who couldn’t wait around for their apartments to be fixed. The new tenants are an entirely different group – and some have told me the renovations after the fire were poorly-done.

    However, I’ve already heard positive things about the change from residents at 10 Midwood and 2121 Beekman, so we’ll see. The key will be in making these buildings desirable enough for people to renew their leases and stay a few years – Praedium was instead banking on making tenants’ lives hell, so they’d move out after one year (or less!) and they could get another trumped-up MCI increase and a vacancy increase.

    That kind of moving around doesn’t ensure a stable enough rental population for people to have time to create a retail scene.

    And considering that many rental buildings in PLG are no pets (or at least no dogs), I think some of the new retailers are catering to homeowners (Trixie’s). Also, most of the hipster types I know from LPT and Enduro’s can’t afford places like 65 Fen – they stick to PBR and Liquors Town.

  • Interesting, thanks for the insight Babs. I guess I’d never thought such a high turnover would benefit landlords. What are typical market rents in those buildings for, say, a 2br? Are they all rent stabilized? I own a 3-family and think I’ve got a good sense of the market for townhouse rentals, but I don’t know many people in the larger buildings. And what large buildings would you recommend for people looking in PLG?

  • Our building on Ocean Ave, and those of several other people we’ve talked to, are pretty good. In any large building there’s the chance for some wacko neighbors, but I’ve heard mostly good stuff about both 163 and 125 Ocean. These are both co-op buildings with lots of rental units.

  • The reason that 163 and 125 Ocean are good buildings (apart from the fact that the recently-apprehended Flatbush rapist lived in one of them) is because the apartment owners have put pressure on the sponsor who owns the remaining rental units to convert them to sale units once tenants move out. New rentals in both of those buildings are explicitly discouraged by the co-op boards (a higher owner-occupancy % is essential for easier bank financing). As a result, there are fewer and fewer rentals here eevery year.

    79 and 99 Ocean, both owned by the same landlord, seem pretty good; the NY Times has an article a few years ago about how this owner favors musicians, with most vacancies filled by word of mouth – people were even auditioning and sending mixtapes to get in.

    40 Lincoln – so-so; I know people who’ve had their apartments broken into by other building residents, they had a peeping Tom a while ago, and have heard of some bed bug problems. Bit of hanging out in the lobby.

    50 Lincoln a/k/a “Shifty 50″ per the 71st Pct. – stay away, although with the recent sale hopefully it will turn around, along with the other buildings in this portfolio.

    25 Lefferts is probably the nicest rental building in the neighborhood, but the only way to get in there is to be recommended by a resident.

    Many, many buildings are rented through Abba Realty (including Patio Gardens); they do not share their listings with other brokers and their tenant selection process is capricious to say the least. I know someone who dressed very frum for her interview and let her boyfriend do all the talking – they got in easily.

    There are some OK buildings on Lincoln Rd.; I’ve heard the apartments at 100 Lefferts have over-the-top renovations (and MCI prices to go with them – $1550 for a 1 BR); mixed bag on Fenimore. I am the exclusive broker for a building there (and I do co-broke w. other REBNY members) – it’s very nice, clean, gread LL, stabilized – I have a 1 BR there now for $1195 and rented out 2 two bedrooms in Dec/Jan for $1400 each. Two-room studios go for $995 or so. This LL encourages 2 year leases and wants to keep good tenants; I don’t know anyone who’s ever had a problem there.

    Unfortunately, the nicer buildings are mostly no pets. 40 Lincoln allows them.