“Crooklyn” House Closes for $1.7M

7-arlington-pl-HOTD
The beautiful George P. Chappell-designed house at 7 Arlington Place, which was featured in the movie “Crooklyn,” has sold for $1,700,000. That’s not quite as high as we first reported, but it’s still indicative of how hot the Bed Stuy market is right now, as DNAinfo reported. The ask was a lot less: $1,300,000. Do you think these prices will last, or are we in some kind of a bubble right now? How do you think it will affect the neighborhood?
“Crooklyn” House Sells for $1.7M, a Reflection of Bed-Stuy Boom [DNAinfo]
7 Arlington Place Gone for $500K Over Ask [Brownstoner]

43 Comment

  • i wouldn’t use the word bubble to describe this, but probably say we’re a year or so off of the peak.

  • I think this area has been undervalued for a long time and now people are realizing that the area is much safer than everyone thinks and it has great transportation (A/C lines) and beautiful brownstones. Add to that a lack of inventory. So overall, I think this price on the low end.

  • Well said brooklyn72, great location, great bones but, for house that will probably need 2-400k in renovations, it’s hardly a bargain. It will be easily worth more in a few years.

  • It seems to me the bubble was because people were paying more than they could afford. Here, it seems buyers re putting a lot down, if not an outright all cash deal, and banks are being more restrictive. Prices might level off, but I would be surprised if they went down again.

  • Not a bubble, because it’s a real supply and demand situation. The volume of sales is actually rather low, but the inventory of houses is also low. As increases prices induce more people to put their houses on the market prices are likely to level off, or drop slightly, but surely not crash.

  • We’re in the same housing bubble since 2003. We simply “bought” time. We cooked the books, sat on pre-foreclosures and printed more IOUs to keep rates low and pay for ever increasing asks and comps to keep this Ponzi scheme going a few more years. It’s the only way you get an acceleration of comps over shorter and shorter periods of time. This thing is nonlinear and will collapse on its face. The dislocations are mounting and time is running out. Guys, $1.7M in Bed Stuy? About double since 2009? Really? We’ve forgotten about past economic calamities like always (1929, 1987, 2000, 2009…).

    • Almost every “prime” NYC neighborhood was once, not too too long ago, a shitty neighborhood, including the village. There’s a big and growing trend toward reverse-suburbinization that is going to continue to gentrify more of the city for a while to come. Plus, the trend for “globally rich” people to buy a place in NYC is also growing.

      This all seems good for NYC real estate, especially considering net number of new units in NYC is nowhere near enough to match the influx of people.

      However, it’s not to say that the market won’t go down on the whole. But if the national market goes down, NYC will go down less– and no matter what, Bed Stuy will gain ground on prime areas on a price-per-square foot basis.

      • “no matter what, Bed Stuy will gain ground on prime areas on a price-per-square foot basis”

        Show your work.

      • Every good scam has a good hook.

        During the tech bubble, it was “the new economy” which was no longer supposed to be subject to classic economic principles until we found out it was in 2000 (kerboom!).

        Now, it’s “reverse-suburbanization” and limousine immigration (as if that “emerging market” bubble $ aint bubblicious in of itself – hello Eurozone, China and Brazil!). Population 16 mil by 2030. Brilliant.

    • bed stuy is not “the market”. it just happens to be luckily situated near the edge of cool. harlem went through this. our brooklyn perspective is skewed, the tail wagging the dog, so to speak. Manhattan – a much more deep and wide market – has not been in the mania like we have over the past 5 years. We are the darling, a hot commodity in short supply. Bed stuy has the potential to come down more than the market in a downturn, and while i see too much complacency in the commentary (ignoring BHO comments) leverage is really what “crashes” a market, and we just aren’t there. A 20-30% decline would be easy, just like the stock market. We popped up 30% without leverage, we can easily drift down, but I just don’t see a panic liquidation scenario.

  • “are we in some kind of a bubble right now?”

  • I just don’t think you can sell a house for 1.7 on architecture alone. There just isn’t the amenities in the area to support these high prices IMO. But then not everyone cares about amenities.

  • My friend Morgan and I were standing in front of this house on Sat. morning, during our Bed Stuy walking tour, with about 20 tourgoers. Someone asked about how much the house had sold for, and when Morgan told them, everyone nodded appreciatively. No one was in the least bit shocked.

    This is a gorgeous house, on a beautiful block, in a neighborhood that has always been safer than the hype and fear, and as brooklyn 72 said, undervalued, (in many ways) as well as convenient to transportation.

    That said, I can’t help but think that across the street, around the corner, in the huge beautiful Alhambra apts that are behind this house, perhaps even next door, and throughout the neighborhood are people who are strugging to get by, pulling in less than the neighborhood median income of thirty something thousand dollars a year. Most of them are renters, and none of them can afford to live in Bed Stuy anymore. Bed Stuy…the place no one wanted to come to, or be caught in, lest they get killed or mugged where they stood. Bed Stuy, the “largest ghetto in America,” according to the media for the last 70 years.

    I think it’s great that an old time homeowner who had to work 2 jobs to pay for a redlined mortgage 40 years ago is making a pile of money and can retire in comfort. I think it’s great that the neighborhood is coming out from under the cloud of fear and ignorance that the outside world put around it. I’m glad much needed amenities and services are finally coming. I just wish that all of this newfound influx of wealth came with some jobs, education, jobs, hope, and jobs, not just a large broom sweeping powerless poor people towards the sea.

    • Honestly, many white collar professionals can barely afford to live in Bed Stuy at this point. I don’t know where it ends but it seems like it must.

    • “I just wish that all of this newfound influx of wealth came with some jobs, education, jobs, hope, and jobs, not just a large broom sweeping powerless poor people towards the sea.”
      That’s polite. You are being very generous. How about, the limousine liberals are coming and will continue to gentrify your neighborhood until they drive up the housing costs to the point where it becomes prohibitive for you to afford to live or do business there any longer if you are just getting by and are not already an owner. Not to worry, once your leases are up and the 200-300% increases hit the market, the new influx will throw you a bone. They prefer someone else clean thier home and take care of thier children, plus there will be alot of new eateries, cafes, and wine bars opening up. They’ll hire some of you back as nanny’s, manny’s, home servants, bus boys, and waiters (At subpar wages without benefits or SS taxes being paid in of course. Paying your fair share is just a slogan). At least the crime rate will go down now that the cops will pay attention. Very un-PC, but true.

  • Guess I won’t be trading up any time soon.

  • This is a pretty intense comp…I also know of another building closing right now as I type this for $1.8 also in Bed Stuy. Also know of another on Arlington that is in contract for over $1.3 (needs minimal work, basically move in with some great detail as well) so maybe the whole “Crooklyn” thing was worth a half a mil to the purchaser of 7…
    I was in this house, it easily needs 250k+ I just don’t see how this makes sense when a year ago it would of sold for 900k a year before that they’d be lucky to get 750k, now 24 months later $1.8?? Im all about a housing recovery but I don’t understand how this makes any sense. You can reference Ft Greene, Park Slope even the Village as a justification of these prices but those neighborhoods took a decade+ before they started seeing INSANE prices for their homes…Don’t get me wrong I hope its not a bubble but how does this make any sense other wise?

  • Brownstoneshalfoff still lives in his mammys garden level rental. Be a good son and thank her today.

  • The real question people have to ask themselves is what are the other options? Buy a condo in the Heights or Park Slope and your looking at over $1m anyway (for anything with more than one real bedroom at least), and with tax abatements drying up in the near future carrying charges will be astronomical. In my opinion multis in brooklyn will always be attractive because taxes are low and rents are always good. Bedstuy will be a good long term hold since there is such a large concentration of beautiful homes, and close proximity to the city/jobs. Real estate goes in cycles, but if you think longterm you will never get hurt buying now.

  • Real estate REALLY is a cycle.
    EXACTLY five years ago, The What (remember him) was ranting similar things as BHO.

    Hey BHO, are you also predicting the end of the world? What date?

  • It’s not a bubble by any means… we may indeed see home values decline at some point, but a brownstone in Brooklyn that’s a 15 minute commute into the city it’s a buy!! tons of cash have been sitting on the sidelines since 2008 and those college grads form that year since aren’t down with 1hr +commutes and absurd taxes that no longer guarantee your kids a gateway to ivy league etc.. 2 parents need to work few min train commute buy it all day to 3 million bux!! and wait to the schools get better in bed stuy!! look out!!