The Brooklyn market will soon plateau, according to a speaker on a real estate panel, AJ Pires of Alloy, at TerraCRG’s Brooklyn Real Estate Summit Tuesday. That doesn’t necessarily mean we’re in a bubble, although we could be, according to a story in the Commercial Observer. “It feels like 2005 a little bit,” said a different speaker, Roger Fortune of 388 Bridge’s Stahl Organization. “My question is: will it be a hard or soft landing.”
That project was planned to be a condo building, but when financing fell through, the firm turned the building’s base into 80/20 rental housing with condo units on top.
Speakers cautioned developers to avoid problems like that by not borrowing too much, and to invest in high-end amenities. As is well known by now, Brooklyn “is no longer just a value play” for residents, said the panel. “People want to be here because of the lifestyle, not just because it’s cheaper,” said Lightstone Group President Mitchell Hochberg. Since more people who work in Manhattan are now living in Brooklyn, that’s why neighborhoods with the best transportation to Manhattan have changed most quickly, according to the panel.
The panel singled out Gowanus, Red Hook, Bushwick and Greenpoint as the neighborhoods “next in line to progress.” Condo prices have nowhere to go but up, said the panel. Lightstone’s Hochberg said the second phase of the firm’s controversial 700-unit Gowanus development may turn out to be condos after all.
Apartment buildings are going up at a frenzied pace. Do you think demand and financing will keep up? Is this sustainable?
Brooklyn Developers Offer Sage Advice at TerraCRG Summit [NY Observer]