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November 4, 2008

Last Week's Biggest Sales

Pretty strong week in the brownstone belt.

1. BROOKLYN HEIGHTS $2,450,000
150 Henry Street GMAP (left)
This one didn't take long to sell: According to StreetEasy, the 4,312-sf house was listed for $2.5 million in early May and went into contract a few weeks later. Its listing noted, "Beautiful detail and great proportions but in estate condition, needing everything. Legally a two family plus professional space, the possibilities abound. Great for a developer or an end user, but not for the faint of heart. Will be delivered vacant." Deed recorded 10/29.

2. BOERUM HILL $2,350,000
440 Pacific Street GMAP (right)
This townhouse, on the other hand, stayed on the market for quite a bit longer than 150 Henry. StreetEasy shows the listing first appearing in October '07, with an asking price of $2,450,000. The 3,360-sf, two-family property went into contract this September. Listing verbiage: "Owner's spacious triplex features a gorgeous double parlor with a dramatic living room and a WBFP, floor to ceiling windows, 12' high ceiling and wide plank oak floors. An open chef's kitchen with an island is facing a garden and a large tiled deck...High income large floor-thru apartment on the garden level has a separate entrance." Deed recorded 10/29.

3. COBBLE HILL $2,300,000
211 Congress Street GMAP
3,732, 2-family house was listed for $2,500,000 in mid-June and went into contract in early September. Deed recorded 10/28.

4. PARK SLOPE $2,175,000
865 Union Street GMAP
Asking $2,550,000 when we had it as an Open House Pick in late March. 4,024-sf, two-family, turn-of-the-century house, by Property Shark's reckoning. Deed recorded 10/27.

5. SOUTH SLOPE $1,995,000
237 14th Street GMAP
Listed for what it went for, $1,995,000, when it was an Open House Pick in July. 2,893-sf, three-family, wood-frame house. Deed recorded 10/30.

Photos from Property Shark.

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Comments

Still nothing in HOBOKENROCKS' price range!!!

Posted by: daveinbedstuy at November 4, 2008 11:04 AM

"Still nothing in HOBOKENROCKS' price range!!!"

Actually there is, but it's for a 600 square ft studio in the above areas.

Posted by: Biff Champion at November 4, 2008 11:07 AM

Mr. B: Could you possibly post the political leanings of the buyers for these properties in the future?

Posted by: daveinbedstuy at November 4, 2008 11:19 AM

No surprise here. The "brownstone market" is a very specific one. Not much supply anyway. Brownstones in the historical and landmark districts of Brooklyn will always hold their value.

Posted by: brownie77 at November 4, 2008 11:19 AM

brownie77 - keep dreaming...

Posted by: gkw at November 4, 2008 11:22 AM

South Slope house is a surprise...2m for a frame...okay!

Posted by: bayridgegirl at November 4, 2008 11:29 AM

Go frame go.

Posted by: Park Place at November 4, 2008 11:39 AM

I remember liking that South Slope frame when it came on the market - full ask is impressive. Gotta hand it to Warren Lewis, they really do maximize the upside of every one of their properties with staging and knowledgeable salesmanship (and no, I'm not a WL broker, but am impressed by the prices they get for their South Slope listings).

Posted by: zeebee_in_bklyn at November 4, 2008 11:44 AM

well GKW, that's not a dream, is it ? Seems to be reality actually. Look at the national real estate market and look how much we've come down. Clearly we can't be too far from bottom. Clearly it hasn't affected the brownstone market in brooklyn (I am talking nice brownstones not brick rowhouse on a sheety block).
It's like everything else my friends. You always get what you pay for.

Posted by: brownie77 at November 4, 2008 11:54 AM

i don't think the south slope place is in a historic district, actually. in any event, it's not just about supply or about historic/landmark districts, though those obviously are important. you don't have the quantity of folks as you once did who might qualify for the necessary loans. but, at least for the near- and middle-term, enough people seem to.

and it's also about intrinsic value and demand. unless the city's economy completely falls apart in a way that's vastly disproportional to the rest of the country, you won't see prices tank in "central" brooklyn as they have nationally. these neighborhoods improved in a sustainable way through renovations, through new businesses, through improved schools, and, yes, through quality new construction - all of which forces have less to do with speculation and a lot more to do with professionals and other middle- and upper-middle class people wanting to stay in the city and wanting to invest in their neighborhoods. unless things get really bad, i don't see those people changing course drastically. especially now - most can't afford to.

yes, prices will continue to drop, until credit loosens up again and prices have come more in line with incomes and rentals. but expecting prices to return to pre-2000 prices, when brooklyn was a very different place, is evidence perhaps of having partaken of the smoke of ye olde crack pipe.

Posted by: i disagree at November 4, 2008 12:17 PM

Very psyched about the 14th street place. Almost $700/sf.

Posted by: FatLenny at November 4, 2008 12:26 PM

I think when all is said and done and the dust settles, you might be able to pick up a prime Brownstone in Park Slope for around 2-2.5 million, a 2 bedroom for around 700K, a 1 bedroom for around 450K and a studio for around 300K.

Just a guess.

Posted by: 11217 at November 4, 2008 12:28 PM

Holy Crap ... no comments so far on 4,024-sf 865 Union Street (7th-8th Aves) going for $2.175MM when a South Slope frame on 14th St btw 4th - 5th Aves goes for $2MM?!?!

Somebody please explain this!

Posted by: Mr Joist at November 4, 2008 12:29 PM

Yeah, what is up with that. Anyone see the Union St. place? Kind of a crappy 2-way street to live on but those are nice houses on Union.

Posted by: FatLenny at November 4, 2008 12:44 PM

Mr. Joist:

The Union Street house needed almost a gut renovation. It is in VERY poor condition and the South Slope frame house is move in ready and gorgeous.

Posted by: 11217 at November 4, 2008 12:44 PM

"Brownstones in the historical and landmark districts of Brooklyn will always hold their value."

Yup. Their intrinsic values that is. Problem is they're way down there somewhere, like half comps.

Posted by: DOW8000SP800 at November 4, 2008 1:17 PM

DOW & SP seem to be quite a bit above your forecast!!!!

Posted by: daveinbedstuy at November 4, 2008 1:20 PM

Does anyone here think that a frame house on 14th between 4th and 5th (no matter how nice) would sell for 1.95 mil today?

Posted by: manofelt at November 4, 2008 1:38 PM

I looked at the Union Street house. I think it sold for the right price at the time. Would get less now. It is a gorgeous limestone from the outside. But it needed a lot of work (had no functioning kitchen, baths were hideous and a whole section of the house smelled of urine even through the incense the brokers tried to use to cover it up) but it has good bones. I passed on it because I've lived on that block of Union before and I hated the traffic. In the summer you can't open your windows because the exhaust from the cars sitting in traffic wafts into the windows. Also a very noisey block due to foot traffic from the 2/3 at all hours.

Posted by: Nobrokersplease at November 4, 2008 1:39 PM

Manofelt -- I would say no. I don't even think it should have sold for that much when it did. But there continue to be people crazy enough. I still haven't gotten over that someone paid $3million for a house on 8th Street between 6th and 7th. Who are these people? Are they Europeans who would have paid twice as much for a dumpy house in the UK had they not been relocated? I just don't get it.

Posted by: Nobrokersplease at November 4, 2008 1:44 PM

the local economy still hasnt hit bottom yet. Unless jobs in finance can be replaced by independent contractors working in the "entertainment" industry, NYC still has some room to fall.

Plus higher taxes and such will also affect prices.

Posted by: slick at November 4, 2008 1:50 PM

slick...to be honest, those of us who avail themselves to "independent contractors in the 'entertainment' industry" are even starting to feel the pinch. I've told all of mine that next year will be a year of belt tightening and less belt loosening!!!

Posted by: daveinbedstuy at November 4, 2008 1:53 PM

brownie - do you not follow business news? We're not even close to bottom in nyc. Look at articles from NYT in 92 and 93 for a cold splash of reality (and all economic indicators are suggesting we're in for a deeper recession than the late 80s/early 90s one)

Posted by: gkw at November 4, 2008 2:35 PM

All the contracts were signed prior to October 1 and therefore do not reflect today's market realities.

Posted by: Suburbandude at November 4, 2008 2:43 PM

Impressive that a house in Boerum Hill (aka Gowanus) could fetch almost as much as one in Brooklyn Heights. What a world!

Posted by: sam at November 4, 2008 2:51 PM

i think the condition of the houses is what made the houses more or less equal.

Posted by: jelly donut at November 4, 2008 3:25 PM

sam - also, given the proximity of that house to cobble hill, fort greene and park slope as well as a gazillion subways, many people would consider it a better location than bkln heights. bkln heights has a very specific appeal - many people would never consider living there.

Posted by: gkw at November 4, 2008 3:38 PM

GKW - clearly you don't get it. You talk about business news on TV or in the papers when I am talking about brownstones in prime Brooklyn neighborhoods. The brownstone market in landmark districts is very different from the stock market or the commodity market. 1BR or 2BR in a high rise brand new building might be more subject to fluctuation but my point is that the $2-3mil+ brownstones in prime Brooklyn Heights, Cobble Hill or Park Slope are being bought by people who will actually live there and most of the time raise families there for many many years to come.
look at the comment by "idisagree" (which made quote of the day by the way). When it's about life in a neighborhood, it's rock solid. As I said, 1 or 2BR in high rise are flooding the market and therefore will go down more.

Once again, in life, you really get what you pay for.

Posted by: brownie77 at November 4, 2008 3:40 PM

brownie77 - I side with you.
DOWS&P - From my post yesterday re OBBP:
A 2003 study by the NYC Independent Budget Office concluded that although prices for historic properties have at times increased less rapidly than for similar properties outside historic districts, overall price appreciation from 1975 through 2002 was greater for houses inside historical districts.
Significant finacial turmoil over the period noted above. Any reason you feel this will not be the case going forward?

Posted by: ITM at November 4, 2008 3:44 PM

"Any reason you feel this will not be the case going forward?" - ITM @ 3:44.

No, not at all. Overall, historic home values will outperform all others because they're like antiques. However, that outperformance does not mean they will escape -25 to -50 percent price drops from their recent peaks. Condos, coops and new homes will do worse.

This is a once in a life time boom and bust. You will be shell shocked.

Posted by: DOW8000SP800 at November 4, 2008 4:58 PM

Brownie: Are Crown Heights and Bed Stuy landmarked? The brownstones there are beautiful. But short sales, at least in Bed Stuy, are causing prices to drop dramatically in the last few weeks. You may not know it looking at a real estate agency's Web site. But if you are a buyer in the market, they let you know the owners are considering substantial price cuts. The comps are dropping. The houses won't appraise now for what they would have appraised for before Oct. And the buyers can't get mortgages if the houses don't appraise.

Posted by: mopar at November 4, 2008 5:01 PM

brownie - Just because people bought their brownstones planning to live in them for years, doesn't mean they will be able to do so if we have a deep recession. I think many young families in brooklyn brownstones are vulnerable because they stretched to afford their homes. in any case, we shall see.

Posted by: gkw at November 4, 2008 5:36 PM

I really and truly believe that most of the people who stretched to afford their homes were buying in the 300-800K range or so.

I really don't think all that many people who can afford 2 or 3 million dollars homes stretched all that much. You do realize what it takes to afford such an amount, right?

Posted by: 11217 at November 4, 2008 5:58 PM

DOWS&P -
"-25 to -50 percent price drops from their recent peaks"
Is this a Brooklyn wide estimate or are you talking about specific local markets?
Also, just to clarify, you think condos and coops that reside in buildings that are in landmark districts will do worse than the 1 to 3 family homes (bldg types used in IBO study) they share the same street/location with?

Posted by: ITM at November 4, 2008 6:05 PM

11217 - first of all, predicting brownstones will for 2-2.5 mill is silly when many of them already go for much less - so much depends on specific size, condition, block, etc. If you mean only Park Slope 4-story 20 footers, that's one thing, but otherwise, your comment is meaningless. Also, I know for a fact people who stretched to buy properties that cost way more than 300-800K. Plenty of people stretched to buy brownstones in the under 2 mil range, and a few of them are starting to feel the pinch. I personally know of people who now, sadly, are suffering job losses, unexpected personal issues (i.e. divorce) and find they have to sell and are getting nervous to do so. I am frankly shocked that the 14th St house sold for ask, but it was a unique property due to the outbuilding, and I suspect that was a huge selling point. It's also possible that buyers who went into contract before the meltdown suddenly had some misgivings but given the 10% tied up in deposit, had no choice but to suck up the high cost and hope they could swing it in the long run. Of course, I've also seen some places that went into contract negotiate some break post-meltdown, but those negotiations are limited by definition. Deals that go into contract post-meltdown, however, are a whole other story. I agree that prime Brooklyn will hold up better than the fringes, but we all seem to agree prices will go down everywhere so the real question is just how big a decline will it be, and how long will it last.

Posted by: Miss Muffett at November 4, 2008 9:18 PM

« Checking in on The Washington Bergen Street Brewery Still on the Block? »

November 4, 2008

Last Week's Biggest Sales

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