« Thursday Links Open Thread »

May 7, 2009

Rentals, Price Cuts and Loan Extension at 1BBP

One Brooklyn Bridge Park, the high profile condo conversion set in Brooklyn Bridge Park on the Brooklyn Heights waterfront, announced late yesterday that it had managed to successfully negotiate an extension on its loan agreement for another two year, buying it some time to try to move some of the many unsold units in the luxury building; to that end, prices were cut across the board by as much as 20 percent in some cases. According to the website, this means that studios are now as low as $500,000 and a two-bedroom can be had for under a million bucks. “We believe that our new pricing structure creates smart investment opportunities for buyers who will be able to realize long-term appreciation on these residences," said R.A.L.'s namesake Robert Levine. In the mean time, up to 25 percent of the units will be offered as market-rate ($1,875 for studios, $2,800 for one-bedrooms) rentals. (Note: One Brooklyn Bridge is an advertiser on Brownstoner.)
Stribling Closes at 1BBP, Optimistic About Spring [Brownstoner]
Tough Times at One Brooklyn Bridge Park [Brownstoner]
What's New at OBBP [Brownstoner] GMAP

Trackback Pings

TrackBack URL for this entry:
http://www.brownstoner.com/mte/mt-tb.cgi/9647

Comments

as LOW as 500,000....for a studio!!!!!

Posted by: binnyG at May 7, 2009 9:14 AM

Would that be nmore than $1,000 psf for a studio???? ROTFLMMFAO

Posted by: daveinbedstuy at May 7, 2009 9:16 AM

The house is on fire and they're still hiding in the closet.
400K for a studio would mean that they finally managed to get to the fire escape.

Posted by: DeLepp at May 7, 2009 9:22 AM

I live nearby and toured this place out of curiosity.

binnyG, the studios are actually really large, with a "home office" that could easily be used as a bedroom (but with no windows it can't be called a bedroom).

I've never loved this building (I like old over new), but if they lowered prices a bit more and introduced rent to own options, even I would consider it.

Posted by: alsawo at May 7, 2009 9:26 AM

looking at the availability page, the smallest studio available is 588 sq ft - so $850/sq ft.

Still v v v pricey...

Posted by: the chicken at May 7, 2009 9:30 AM

DUMBO prices are very high (many record sales, and some pretty recently). I don't understand exactly why, but that's probably just because of my lack of familiarity with the neighborhood. It doesn't surprise me at all to hear prices that are higher than other areas of Brooklyn.

Prices in DUMBO will level out higher than other areas of Brooklyn. Prices in Carnegie Hill will level out higher than Harlem. Prices at 15 CPW will always give me vertigo. Just because prices are coming down across the board doesn't mean every apartment in the city should be affordable for the people who frequent this board.

Posted by: lechacal at May 7, 2009 9:34 AM

2800 is market rate for a 1 bdrm? f me.

Posted by: randolph at May 7, 2009 9:35 AM

lechacal, this is in Brooklyn Heights, not DUMBO. It's a bit of a stroll from there to DUMBO actually.

alsawo, I thought, like me, you weren't crazy about the location of this place.

Posted by: Biff Champion at May 7, 2009 9:38 AM

true, Dumbo is pricey, but sort of depressing after buying in, to wake up in a windowless box ( if you sleep in the "study") or with a view of your kitchen

Posted by: binnyG at May 7, 2009 9:38 AM

These prices are all well and good - but they don't account for the fact that this building is still under 15% sold. Unless they get the numbers up to where an owner can re-fi or sell (75% sold), buyers are basically getting an illiquid asset with a strong possibility that it could take years to make the building viable.

Posted by: FlowerGal at May 7, 2009 9:39 AM

This is not dumbo and this is not a "new" building.... also, lovely view of the BQE from half the units has to be the big elephant in the room.

Posted by: oe at May 7, 2009 9:42 AM

Biff... oh yeah. Duh.

Posted by: lechacal at May 7, 2009 9:42 AM

They should move the building to the other side of the BQE.

Posted by: northsloperenter at May 7, 2009 9:42 AM

Obviously I have never looked at this building and didn't look closely at the map. Carry on.

Posted by: lechacal at May 7, 2009 9:43 AM

Biff, you're right. I'm definitely not crazy about the location. I like neighborhoods. But at the same time, I live only a block or so away in a much smaller and dingier apartment, and I think the location could grow on me when (if?) the park opens.

At the end of the day I probably wouldn't buy here (I'm too much of a sucker for old hardwood floors, tin ceilings and such), but the fact that I've moved from "never" to "probably not" is probably a good sign for OBBP. Prices are still too high, but they're getting closer to what they should be.

Posted by: alsawo at May 7, 2009 9:44 AM

Actually - I think despite his geographic incompetence, what lechacal said still has resonance. Even though this building is in Brooklyn Heights it has more in commone with a typical Dumbo condo than a brooklyn heights home. It's a converted industrial building with awe-inspiring views of the Manhattan skyline, east river, and bridge, but is close to a noisy highway and relatively isolated from everything else. That also describes 90% of the buildings in DUMBO. I personally have always used DUMBO as a comp to understand this building.

Flower Gel - I think the building is a bit over 30% in contract (maybe only half of those have actually closed though). Either way - if you're looking to hold for at least 5 years, this is still a good investment. With the park around this building clearly in construction now this would be the building I'd want to own in (if I could afford it) once the recession is over...

Posted by: bkre at May 7, 2009 9:53 AM

aslawo, that makes sense. Seems to be a bit of movement regarding the park. While I'm highly doubtful any part of it will be done in accordance with the initial schedule, it appears it's at least being worked on.

Posted by: Biff Champion at May 7, 2009 9:56 AM

Just walking by this building is intolerably loud. I can't imagine living next to the BQE and having to walk to this desolate (and NOISY) location. It's near a nice neighborhood, but not in one.

Posted by: zinka at May 7, 2009 10:00 AM

The building looks like DUMBO.

Posted by: daveinbedstuy at May 7, 2009 10:02 AM

"I can't imagine living next to the BQE and having to walk to this desolate (and NOISY) location. It's near a nice neighborhood, but not in one."

Exactly right. This isn't Brooklyn Heights. It's down the hill and under the expressway from Brooklyn Heights.

Posted by: Sparafucile at May 7, 2009 10:35 AM

“We believe that our new pricing structure creates smart investment opportunities for buyers who will be able to realize long-term appreciation on these residences"

i.e. "If you buy at our above-market prices and hold long enough, inflation will make you think you made a gain."

Posted by: Back40 at May 7, 2009 10:36 AM

There are easily four stories of this building that are practically unsellable: who would want to play 500K for a studio or nearly a mil for a 1-BR for the privilege of sucking in exhaust from the BQE every day?

Posted by: Ditmas at May 7, 2009 10:46 AM

Ditmas- Makes you wonder "what were they thinking?" It can't be healthy and it's not pretty for those facing the BQE. But that's what happens when your greed outruns your common sense.

Posted by: bxgrl at May 7, 2009 11:12 AM

"ne Brooklyn Bridge Park, the high profile condo conversion set in Brooklyn Bridge Park on the Brooklyn Heights waterfront, announced late yesterday that it had managed to successfully negotiate an extension on its loan agreement for another two year, buying it some time to try to move some of the many unsold units in the luxury building; to that end, prices were cut across the board by as much as 20 percent in some cases. "

What was the Bondholder was going to do, foreclose on a depreciating asset???? I'm willing to bet the largest Condo developments will have a Bankruptcy Judge dispense the Assets!!

If you bought in one these Condo developments you are so fucked it's not even funny!!

The Condo Management Companies are on life support (Hanson Place, Forte, Oro, etc..) ! When they go BOOM who is going to take care of the maintenance you your place???!!!

T-Minus Six Months Assholes!

The What

Someday this war is gonna end...

Posted by: Return of The What at May 7, 2009 11:14 AM

I'm a fan of some of the condo developments in BK, but not this one. One Hanson is excellent but overpriced. Forte looks good & prices OK but would not buy in a new development that still has as many unsold units. One BBP is in an inferior location to either, in my view, with premium pricing and apparently greater financial risk.

Posted by: etson at May 7, 2009 11:24 AM

the extension of the loan agreement is good news for the developer of this historic printing plant on the Brooklyn Heights waterfront. The circa 1920's building was purchased from the Watchtower Bible Society who used it as a production plant for printing its bibles and other religious books. I think they have relocated this operation to the exurbs along with the workers. So what to do with an obsolete historic printing plant? I think what was done here is a good thing, the apartments are quite nice from what I saw one weekend, the idea is that eventually this building will be connected to Fulton Ferry and Dumbo by a waterfront park to be called Brooklyn Bridge Park. It is an exciting concept, some are skeptical of the delays in building the park, but a glimmer of hope comes from recent leaks that the Mayor wants to take over full control of the Park (along with Governor's Island) and eliminate the State's role. That would get things moving assuming Bloomie is re-elected. Unlike the Oro and the Forte and the Torren, this is not a new building, it has been adapted to a new use like One Hanson Place. And the units are not at all loud in fact they are very silent thanks to new windows and modern HVAC. People should visit the property before saying things that are completely inaccurate.
I have no connection to this project at all but I am rooting for its success. It would be good for Brooklyn.

Posted by: sam at May 7, 2009 12:39 PM

"2800 is market rate for a 1 bdrm? f me."

I think the archstone buildilng on montague is charging close to 3k for one bedrooms.

if they really want people in here cut the studios down to 350k or rent the studios for 1600 and one bedrooms for 2200-2400

Posted by: dirty_hipster at May 7, 2009 12:47 PM

Yes, Archstone's official prices for their BH building were higher than several of their Manhattan ones when I checked a couple of months ago.
Think it's the scarcity value of the large building / good amenities / no broker fee type rentals in Brooklyn that drives it.
In spite of my comment above I think that rentals in this building will do well.

Posted by: etson at May 7, 2009 12:53 PM

And i'm sure those are starting rental prices for a unit facing the BQE. I live very close to the BQE and it's loud and dirty. But then again, I pay 40% less in rent then a similar space in my neighborhood. No matter how nice the building is - paying a premium to live in an inferior location is silly.

Posted by: dirty_hipster at May 7, 2009 1:13 PM

An inferior location???? The building is right on the freakin' New York Bay with the most incredible views you can imagine. Are you comparing it to a dumpy tenement with a fan in the window on the other side of the highway?
It is the location of this building that makes it special. Maybe not to everyone's taste, some would prefer to live in desolate stretches of Flatbush Avenue or Livingston Street or Myrtle Avenue but others like the idea of the location right on the water. When you walk into those units the views can knock your socks off. they are awesome. Really. The BQE runs right around DUMBO too but those buildings are very successful.

Posted by: sam at May 7, 2009 1:29 PM

sam - they are renting out the units they couldn't sell which I would venture to say are the studios on low floors pretty much at eye level with the bqe.

Take the views out of the equation and you have exactly what I said before - an overpriced rental in an inferior location.

Posted by: dirty_hipster at May 7, 2009 1:45 PM

this location is shit and should have been developed as affordable artist residences. you can do so much better than what they are offering here for the same money or less.

i lived near by facing the water with nearly the same views and honestly, it gets boring after a year or so and with the apartments across the hall at almost half the cost, it's hard to justify the price.

Posted by: travy at May 7, 2009 1:56 PM

The lower floor apartment facing the BQE are the least desirable but there are relatively few of them, why hate the whole building?
I for one, would never get bored of a panoramic view of the bay, which is more interesting than an east river view. The change of seasons, the boat traffic, the big liners coming in and out. How could it be boring?

Posted by: sam at May 7, 2009 2:24 PM

i didn't mean to sound like i was hating on the entire building.

just meant to hate on the east side of the building.

Posted by: dirty_hipster at May 7, 2009 2:36 PM

dh, you mean the west side.

the lower floors are definitely not good, but I saw a fifth floor unit facing west that had really nice open views of brownstone brooklyn all the way to the Hanson Place tower.
it was surprisingly nice. And the huge windows let absolutely no sound in. so it is really just the lower four floors facing west that are the subpar units. They will probably rent those indefinitely.

Posted by: sam at May 7, 2009 2:45 PM

Cool Sam - what ultimately made you decide against this buildling, as it seems you were in teh market.

Posted by: dirty_hipster at May 7, 2009 2:53 PM

sam- like i said it's cool for a year or two but i found i wanted to live closer to stores and transpo for less money. air quality is crappier down there too...

Posted by: travy at May 7, 2009 2:58 PM

DOWN GOES BROOKLYN!!! DOWN GOES BROOKLYN!!!

***Bid half off peak comps***

Posted by: Brownstones Half Off at May 7, 2009 3:04 PM

I wasn't really in the market, I just like to go to open houses and I was visiting friends in the Heights, which is across the street (not "up the hill"). I really liked the unit I saw facing north to the Bridge. really liked it.
Enough to sell my house? Who can sell a house in Brooklynh today? there's the rub.
The apartment in the DUMBO thread appeals to me too. I guess I'm dreaming of big windows and views, two things you don't get in a brownstone.

Posted by: sam at May 7, 2009 3:22 PM

I have to agree with some of the earlier posters that this isn't really Brooklyn Heights. You are kind of in the middle of nowhere. You have to walk a few blocks to really get to Brooklyn Heights and further for any decent restaurants or services.

Assuming that the park gets done (huge assumption), the area around the park will be nice, but the price per sq. ft. is just too high for that risk.

Also, I wouldn't compare this to Dumbo. At least, in Dumbo you have easy access to a grocery store or restaurant.

Posted by: nems at May 7, 2009 4:41 PM

This place is amazing. They even have rent to buy options and every condo I visited had huge ceilings. It feels so much bigger than the sq. ft. make it seem. When the park is done everyone will want to live here. Plus virtual golf and an entertainment theatre? pretty sweet. The views are absolutely beautiful . . . I think anyone who is into open houses and seeing what is on the market needs to give this place a chance. the times for open house are on www.onebrooklyn.com

Posted by: yenn at July 20, 2009 12:13 PM

« Thursday Links Open Thread »

May 7, 2009

Rentals, Price Cuts and Loan Extension at 1BBP

Trackback Pings

Comments

Post a comment

Latest Restaurant Additions