Monday Blogwrap

alhambra apartments bed stuy 72014

Film Fest in Williamsburg Celebrates Movies Made on Cell Phones [Brooklyn Daily]
Understanding the Finance Behind Brooklyn’s Real Estate Boom [Q at Parkside]
Little Paris? Crepe Shop Opens on Manhattan Avenue [Greenpoint Gazette]
Adam America Buys Boerum Hill Lot for $6 Million [NY Observer]
Flatbush Activist on Gentrification and the Urgency of Documenting Brooklyn [Ditmas Park Corner]
Plane Flying Swastika Over Brighton Beach, Coney Island… Again [Sheepshead Bites]
Missing Tarantula Hoax Scurries Into Park Slope’s Heart [FIPS]
Seven-Story Apartment Building Coming to Graham Avenue [DNAinfo]
New Sandwich Shop Brings Bold Asian Flavors to Smith Street [DNAinfo]
NYPD Tells Officers to Keep Making Pot Arrests, Despite Brooklyn DA’s Memo [DNAinfo]

6 Comment

  • Please help me understand how the developers of the Boerum Hill lot can make a profit on this without putting up a cheap building?

    They spent $6M for the lot (not including taxes and transaction costs), which can create 12,000 sqft of housing ($500/sqft).

    Lets assume they are trying to get $1,000/sqft for the final product (either four 3,000 sqft units or three 4,000 sqft units) or $12M. Lets assume they need to make 20%+ returns over the two year project or $1.2M+.

    That means they can spend $5.8M in construction and minus transaction, financing, and realtor costs, which could be close to $750K-1M (maybe?).

    So lets say they have $3M-$4M for construction costs or $250 to $333/sqft…..

    Can a professional developer create a nice (high-end) product at $250-$333/ sq foot…. or are my assumptions all wrong?? or both?

    • I totally agree with you (I’m a construction estimator). The developer has paid close to $200 per buildable square foot more than comparable lots in the area. That, plus the fact that he (Dvir Cohen Hoshen) had a somewhat checkered financial record with past ventures, makes me very pessimistic that this site will become the quality project that it deserves to be.

  • Where is the building in this picture?