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June 8, 2006

Postcard from The Hook: Million-Plus Club

postcard
According to a marketing postcard from Fillmore, the brokerage's "Red Hook Team" of Nicole Gallucio and Marsha Yarde just set a record for the booming nabe when they sold a two-family house at 105 Pioneer Street for $1.065 million. This doesn't sound so surprising to us but maybe it is a first. Thoughts?
Gallucio's Sold Listings [Fillmore] GMAP P*Shark
More Evidence of Fairway's Effect on RH [Curbed]




Posted by Brownstoner at 9:42 AM | Comments (20)
Categories: Sales

Comments

Is the point of that flyer to make whoever bought that house feel like a fool?

Posted by: fool at June 8, 2006 10:29 AM

Brownstoner, this was already on curbed. Can't you find new material?? You're losing you're touch.

Posted by: Bushwick at June 8, 2006 10:29 AM


It seems high, but with all the play RH is getting in the press, it isn't too surprising. Unfortunately, I don't think the fancy folks moving in are too interested in community issues such as transportation, education and land use. They just go from their car to their house with the occasional stop at Baked and Fairway. While it's true that prices are up, the neighborhood has along what to go before there's a high level of civic involvement like you see in FH, CH or Bed-Stuy. I feel sorry for the folks that fought the good fight against the waster transfer station, the PA's eminent domain push to condemn the entire waterfront as recently as 1999 and redlining - the true watershed events RH's improvement - that are now being pushed out of the area.

Posted by: Anonymous at June 8, 2006 10:33 AM

I don't have a problem with austere, but that facade is crying out for exterior shutters, a period light fixture, window boxes ... something.

Posted by: Anonymous at June 8, 2006 10:44 AM

Oops, I guess there are window boxes ... For that price, I would have thrown in some flowers.

Posted by: Anonymous at June 8, 2006 10:46 AM

There is snow in the window boxes. Not good enuf for you?

Posted by: Anonymous at June 8, 2006 11:04 AM

Yeah, that's what we get for only publishing in the morning...the tip came in in the afternoon.

Posted by: Brownstoner at June 8, 2006 11:05 AM

Looks like snow, but something is green and leafy in the pic ...

Posted by: Anonymous at June 8, 2006 11:06 AM

Houses that size have been hovering around a million for the past year, it just depends on the block and condition, but that one really is on one of the prime blocks in the Hook. It's on Pioneer just off Coffey Park and on a block of almost all original houses that are well cared for and sans vinyl siding. But they're not homes with a big footprint either. And don't discount the new residents as uninvolved. I've met a lot of them at the CB6 meetings. They're very invested in the neighbhorood.

Posted by: combustibelgirl at June 8, 2006 11:59 AM

We looked at this house and seriously considered making an offer - it is gorgeous on the inside and has a great backyard, deck, and roofdeck for the tenants. A welcome break from all the Home Depot-ish renovations/rehabs you usually see. The drawback is, as always, transportation issues. We are about to have a baby and the agent specifically said that the owners were moving so they could be closer to family and childcare providers (they have twins). We absolutely love Red Hook, think the house is worth the $$, and have a car, but fear isolation with the little one on the way ...

Posted by: Anonymous at June 8, 2006 12:42 PM

I love that awning over the front door, does anyone know where it was purchased.

Posted by: Anonymous at June 8, 2006 1:49 PM

No it's not to make the buyers feel like fools man, this is a normal marketing thing done by brokers when they break pricepoints for property types in areas. It is validation that the area is truly becoming a commodity when prices break the million mark for a brick attached two-family. Haven't you seen the posts about brownstones breaking 2Million marks etc, in other areas? don't be jealous - fool. lol.

Posted by: bkreguy at June 8, 2006 3:05 PM

Whether the buyer will feel like a fool or a savvy investor will depend on how the market does in the near future.

Posted by: djr at June 8, 2006 3:44 PM

to "djr" I have to politely disagree with your statement: "Whether the buyer will feel like a fool or a savvy investor will depend on how the market does in the near future."

That is the problem with all these, great, savvy, hipster real estate investors - they think real estate is stock.... your statement, "the near future" is absolutely wrong.

REAL ESTATE IS A LONG TERM INVESTMENT, only in the last 5 years have people jumped into it thinking of it as a short term investment. Those who made the real money in real estate the last 5 years, bought 15-20 years ago...sure you sorry "investors" doubled up in the last 5 years - congrats on your half-mill pittance of profit... had you bought 10-15 years ago you would have made a clear mill or more....

their investment will pan out, real estate - in long term - has - GET READY - NEVER gone down... yes in small 10 year windows it may drop - think 80's - but it is cyclical and always rises to greater heights - because it is a limited commodity.

sorry for the rant i just hate when I hear "stock talk" in relation to real estate.

Posted by: bkreguy at June 8, 2006 4:18 PM

$1.065 million may seem like a lot for a small building in the hook...but let's not forget more has been spent for larger, nicer buildings in more desirable neighborhoods.

Posted by: Mike Ruby at June 8, 2006 4:22 PM

...totally agreeing with "bkreguy" here:

1.) Real Estate cannot be measured by the same yardstick as the stock market - for the love of God, most of the time they swing in OPPOSITE directions. Jeez.

2.) Real Estate DOES always go up in value, long-term. And always WILL.

Want to know why?

It's simple.

Companies and securities can be created and destroyed. Precious metals and gems can be mined and/or synthesized. And so on.

However... and I want you to read the next sentence VERY carefully:

LAND CANNOT BE CREATED.

(Well, ok, with the exception of landfill-based airport extensions & such, but that is not permanent enough for long-term development).

Most of the value of R.E., especially in developed, over-populated cities, derives from the value of LAND, not the buildings. Anyone who disagrees - check out the price of a Manhattan townhouse VS the price of an identical townhouse in the far end of Queens, or other-than-Downtown-Brooklyn for that matter. Same building, what's so different?

*L*A*N*D*

(Yeah, it's the same "Location, location, location" speech. Again. Get used to it.)

You can build on it, you can improve it, develop it, whatever. You can't MAKE more of it.

Fixed supply + increasing demand = ?

That's right. Economics 101. Increasing prices.

The market may rise, the market may fall. But if you look at the LONG-term price changes (from 1975 to 2005, fer-instance), you'll see that damn near everyone who invested in R.E. and played the game to the end made out like a bandit.

Example: 1976 - $ 24,000 for a 4-story brownstone in Park Slope. Even a FIFTY PERCENT drop in the market value (i.e. the $2M 'stone will drop to $1M... boohoo) will STILL yield the better part of a MILLION BUCKS as pure profit.

So, in conclusion: don't call anyone who invests in NYC real estate a "fool". Jealousy, my friend, is NOT a positive emotion ;)

Posted by: BrooklynBoy at June 8, 2006 10:45 PM

Seems like almost yesterday... When I was in the market in 1998, the big news in Red Hook was that houses were starting to sell for 200K.

Posted by: Anonymous at June 9, 2006 12:24 AM

ever heard of monopoly..you win by buying prop and taxing those who use it..yeah, you can go broke if others do the same and tax you, but at least you stand a chance.

Posted by: anon at June 9, 2006 12:48 PM

Regarding questions of community - when we first started looking at Red Hook 5 years ago we wondered where all the people were. Back then, driving through Red Hook on a Sunday, you could get the impression the place was pretty much deserted. Only after living here, as we have for 4 years, do you get a very real idea of what sort of community exists down here. People are very engaged - by necessity - with the garbage dump proposal, and more recently the Ikea, Fairway, Cruise Terminal developments and their inherent issues, people have had to get involved. Of course people are concerned and actively working towards improving traffic and transportation issues - but more than anything else people are wanting to keep the wonderful community we have down here. On Pioneer Street parents sit on the stoops and chat. Children play on the sidewalk, or alternate playing at each others houses, or meet with their families for a picnic at Coffey Park or Valentino Pier. It's a real community. People know each other and look out for each other. Having met some of the so called "fancy folks" moving in, all I can say is that's what they say they see in Red Hook, and that's the attraction.

Posted by: Pioneer at June 9, 2006 6:41 PM

I have read the comments about 'fancy folks...' and the funny thing is, that by all standards- we are so totally middle class that it makes me laugh that someone could willingly write 'fancy' in the same paragraph (We don't even own a car yet) that describes absolutely middle of the road people moving to places that may be up-and-coming. In the mid to late 90's I made a good investment in the East Village... to the horror of my family I was investing my entire nest egg in a community I believed in that not many could understand would eventually turn in to the bigger nest egg we used to finance our little house in Red Hook. I can't wait... I'm excited to be here now... We're not here for the 'hipness', we're here for our family... time for more space, time to settle down. The EV was nice, but I don't need the constant nightlife.. what I need is a big house. So for that amount of money, I get to stay close to the city I love, I get to move in to a fabulous place, and I hope I get to add my amazing child to a community that he will thrive in.

Posted by: TD at June 14, 2006 3:00 PM

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