Developers and investors are flocking to Bed Stuy, Crown Heights and Bushwick, according to a report from Massey Knakal. In the North Central Brooklyn market, 162 commercial properties changed hands in the first half of the year, a 25 percent increase over the same period the year before. The report is the first to focus entirely on Bed Stuy, Bushwick and Crown Heights, areas which are rapidly gentrifying and seeing a ton of investor interest. Or, as the report put it, “Each of these neighboring areas, formerly characterized by crime and economic hardship, have seen an influx of artists, young families, and a diverse array of new restaurants and other retail amenities. Driven by strong fundamentals like proximity to market center and transportation (including 10-25 minute subway commutes to Downtown Brooklyn and Manhattan), architectural significance, solid returns and tremendous long-term upside, these transitional neighborhoods have emerged as a focal point of transaction volume in Brooklyn.”
North Central Brooklyn sales accounted for 31 percent of transaction volume in all of Brooklyn. The total value of 524 properties sold in all of Brooklyn during the first half of this year was $1.3 billion. In North Central Brooklyn, the average price was $1,100,000, or 55 percent less than the borough-wide average. In Bed Stuy, 66 properties changed hands. Bushwick had 55 sales and Crown Heights had 44.