Soaring prices in Brooklyn for move-in-ready brownstones are attracting high-end flippers who renovate problem properties from the ground up with structural reinforcements, change C of Os from SROs, add central air, and restore or re-create historic details. It might be more accurate, in fact, to call them developers rather than flippers, since construction can last as long as a year.
In neighborhoods such as Carroll Gardens, Park Slope and Cobble Hill, where a 19th century brownstone with state-of-the-art mechanicals, kitchens and baths combined with historic detail in the formal rooms and bedrooms command prices of about $1,000 per square foot, a high-end renovation will sell faster and for a better price than a standard flip job, said developers working in these areas.
Take, for example, 377 6th Avenue in Park Slope, a HOTD here last year. The Anglo-Italianate brick row house with a bay window was listed, went into contract, and closed within two and a half months, according to StreetEasy. The ask was $2,975,000 and it sold for $2,847,500, according to PropertyShark.
Developers Nick Faselis and William Ruggiero reinforced the structure, repointed all the brick inside, changed the C of O from a two-family to a single family, and added herringbone floors, gothic marble mantels, built-ins, a marble bath, and other top-of-the-line finishes usually seen only in custom renovations.
The final sale price worked out to $972 a square foot, even though the house is less than 17 feet wide. (more…)