House of the Day: Remsen Street Biggie

house
Arguing about price when it comes to Brooklyn Heights mansions is usually a fruitless exercise, we've decided, in much the same way talking price per square foot on Fifth Avenue has lost any meaning. In these high-end markets with so much money still sloshing around, the question is, "Will some rich person walk in and fall in love with this place?" Today's house, a lovely 5-story, 25-footer on Remsen between Henry and Clinton weighing in at 8,500 square feet, is a slightly different story though. Although it looks to be in quite good shape, the brownstone is chopped up into nine units, three of them with rent controlled tenants (all paying $700 or less) and two with rent stabilized tenants. A quick glance at the rent roll and configuration suggests that there is the chance to create an owner's duplex which would be about 4,000 square feet. The challenge, we think, will be finding someone who can afford the downpayment who also wants to deal with being a landlord to six other tenants. How about as a pure investment property? Well, the building's projected NOI is $157,000 which suggests a yield on the $4.6 million asking price of about 3.5%. What is not included in that calculation is the option value of one of the rent-controlled tenants dying in the near future. Cold but true.
Remsen Street [Brooklyn Cornerstone] GMAP

Comments

This is not on the best block of Remsen. There are other homes, without these issues, closer to the water. And prices are similar.

This listing is with several brokers I noticed

Posted by: Anonymous at March 15, 2006 11:50 AM

to 11:50am this is a coexclusive with william b may and brooklyn cornerstone.

Posted by: Anonymous at March 15, 2006 12:03 PM

you are better off dealing with william b may.

Posted by: Anonymous at March 15, 2006 12:14 PM

pretty darn fancy digs for rent controlled and rent stabilized tenants!!!!

Posted by: Frank at March 15, 2006 12:58 PM

Investment property??? I dont think so
Even if you were willing to accept 3.5% return (assuming their proj are right), whats the upside - if only 5 tenants are non-market rate (since 4 arent rs/rc I am assuming they are mkt), what is the most amount of increase in imcome you could get - $2000 an apartment a month, that would be 120,000 increase of RR -best-case- senario.
So if everything goes your way you return would still only be 5.5% (less if you financed it!) -
Anyone who buys this for investment is strictly counting on the greater fool theory for cap increase - and if you ask me - that buyer might just be the greatest fool

Posted by: David at March 15, 2006 1:11 PM

used to live down the block (right on the corner of remsen and clinton). for the price, i'd definitely want to be closer to the water. but frankly, after about 1 yr i got tired of not having any good places to eat close by (thank goodness for the #52 bus to ft greene).

Posted by: pksloperenter at March 15, 2006 1:18 PM

This looks amazing. Probably works best for an owner to occupy and eventually convert other units. If I had the bucks, I'd do it! Love the photos.

Posted by: Anonymous at March 15, 2006 1:46 PM

pksloperenter, why would you take the bus to Ft. Greene restaurants when it's a short walk to Smith Street? I agree that Bk Hts. has precious few decent places to eat, but proximity to Smith St, Atlantic Ave etc. makes up for it, IMHO.

Posted by: SouthHeightsOwner at March 15, 2006 1:57 PM

Nuts

Posted by: Ebomb at March 15, 2006 2:15 PM

Rent controlled tenants never die, they just develop new live-in relatives to take over the lease. I'm surprised you don't hear of people getting married for a rent controlled lease...

Posted by: babs at March 15, 2006 2:21 PM

agree on smith street, although i found getting there less convenient. but this was also about personal preference bc i have more friends in ft greene. plus i love madiba, chez oscar, buttacup, etc.

what restaurants do you recommend on atlantic?

bklyn heights is great but just not my cup of tea.

Posted by: pksloperenter at March 15, 2006 3:13 PM

I've never lived in Brooklyn Heights. But I have to wonder, if there are no good restaurants there, then why is it the most expensive neighborhood in Brooklyn?

Posted by: Anonymous at March 15, 2006 7:37 PM

The RE tax seems very low for a 9 family building and there are very few details apparent in many of the photos. Too much money.

Posted by: Anonymous at March 15, 2006 7:41 PM

taxes on Times on line is monthly so you do the math. the heights is one of the classics that are still left. there's so much history. you are paying for location location location. unfortunately, this brings on high rent for owners of small businesses. restaurants come and go and it's the big chains that survive. manhattan is worse with turnover and the difference is the issues and choices are spread out over a 24 mile radius and in the Heights it's spread out over 10 blocks. It is unfortunate but watch what happens to Smith St (they've had huge turnover already with restaurants) and 5th Ave as the landlords start getting greedy.

Posted by: Anonymous at March 16, 2006 6:49 AM

I think you mean 3.5% cap rate, not yield.

Posted by: Anonymous at March 16, 2006 7:09 AM

William b may is still in business?? That's amusing!

Posted by: BP at March 16, 2006 9:38 AM

Anon @ 6:49am

Have you ever been to Brklyn Hgts? Its retail is far from "Big Chains" and actually the turn over is relatively low... but I am sure you need to ignore the facts in order to support you 'LLs are greedy' theme.

Posted by: David at March 16, 2006 10:17 AM

Brooklyn Heights is the most expensive neighborhood in Brooklyn because it is the most consistently beautiful neighborhood in Brooklyn, and the closest to Manhattan.

Posted by: Anonymous at March 16, 2006 5:03 PM

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March 15, 2006

House of the Day: Remsen Street Biggie

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