Dixon is selling one of its Brooklyn homes and has started leasing another batch of rentals, including properties in prime areas of Brooklyn such as Park Slope.
The sale is unexpected, its first in Brooklyn although not the greater New York area. Dixon’s strategy has always been to buy and rent out its properties, not flip them, holding them for at least five years, because of a U.S.-Australia trade agreement. Dixon purchased 777 Rugby Road, a standalone Victorian in Ditmas Park that had been on and off the market for years, pictured above, from its longtime owner for $1,055,000 in May of 2013.
The firm spent $120,000 on a “light renovation,” Managing Director and Chief Executive Officer for Dixon Advisory USA Alan Dixon told us. Dixon is selling the property because it has been unsuccessful at accumulating a large portfolio in the neighborhood.
“We really love Ditmas Park and were hoping to pick up a good selection of houses, at least 20 plus in the area. Unfortunately, we were outbid on a large number of houses and were unsuccessful in getting any other houses in this location. As such, it is not efficient for our fund to keep just the one house in the area and we are best to look to sell it to the open market. We no longer think it is possible to get an economic size parcel of properties in the location so we want to sell this one.”
As it happens, Halstead agent Ban Leow, who specializes in brownstones in Bed Stuy and recently sold 22 Arlington to Dixon for the record breaking price of $2,250,000, is the selling agent on the property. It is asking $1,350,000. If it sells at ask, Dixon stands to make about
$267,000 $167,000 $94,000 on the deal.
Meanwhile, Dixon has already put 22 Arlington on the market as a rental, along with several other properties it has renovated in Park Slope, Bushwick and Crown Heights, all of which include landscaped outdoor space. About 16 more rentals are coming later this summer and in the fall, including three others in Park Slope. All the Park Slope properties are clustered near each other and will share parking in a renovated and historic four-car garage behind one of the homes.
The single family townhouse at 22 Arlington Place in Bed Stuy is available for $11,995 a month with one month free and no broker fee, which works out to $10,995 a month for the first year. As with all Dixon rentals, Town is the agent and Dixon will pay an unheard-of 12 percent to renters’ brokers. Rents can be paid by credit card.
The house at 302 Weirfield Street has already been rented. It was asking $4,995 a month.
Dixon gut renovated 568 Park Place in Crown Heights. The Italianate had some detail left, such as wood moldings under windows, but Dixon decided it wasn’t worth saving and turned it into a completely modern home with a working gas fireplace and wall of windows in the rear of the parlor floor with a huge folding door that opens up to the outside. The ask is $11,995 a month, although with one month free rent it works out to be $10,995 a month the first year.
Over at 37 Prospect Place in Park Slope, Dixon made some slight alterations to the house but preserved and restored the detail that was still there, including an unusually ornate tin ceiling in what is now the parlor-level kitchen that looks as if it could date from the 1870s or so. The firm also added radiant heat to the bathroom floors and other upgrades. The asking rent at 37 Prospect Place is $11,495 for the triplex, although the garden floor rental can also be included for an as yet undetermined price.
So far, Dixon has rented out about 25 properties, Town agent Josh Carney told us. The firm recently updated its count of the number of properties it owns in Brooklyn: It is 87, not 73. The firm can sell a small number of properties every year but not its entire portfolio. “We are super bullish on Brooklyn and plan to hold the overall portfolio for the long term,” said Dixon.
37 Prospect Place, Park Slope:
22 Arlington Place, Bed Stuy:
568 Park Place, Crown Heights:
First photo by Kate Leonova for PropertyShark; ceiling at 37 Prospect Place by Cate Corcoran; other photos by Dixon