354 Franklin Avenue: A Positive Development
A block away from the controversial development at 333 Greene, there’s an 8,000-square-foot residential development in mid-construction. When we walked past it earlier this week, it struck us as Scarano-esque, which is not surprising because, as it turns out, it is a Scarano project. While we haven’t always been easy on the man or some…
A block away from the controversial development at 333 Greene, there’s an 8,000-square-foot residential development in mid-construction. When we walked past it earlier this week, it struck us as Scarano-esque, which is not surprising because, as it turns out, it is a Scarano project. While we haven’t always been easy on the man or some of his designs (though we did opine favorably on this one recently), we have to say that we think this building is a positive development (no pun intended) for the nabe. It’s also interesting to note that it is being built for $250 a square foot. We don’t know exactly how much a Fedders building costs to construct but it can’t be a whole lot less. If the developer can acquire the land at $100 a buildable foot, build it for $250 a foot and sell it for $450 a foot, everyone’s a winner, right? GMAP
I’d like to propose a thought experiment. How could the Brownstoner brain trust convert one of the “Fedders” buildings into something palatable? Could these be redeveloped with our superior aesthetic eye in a way that would make them saleable to the pseudo-intelligentsia?
I ask because some of these developments are actually on decent blocks and can be purchased at a discount relative to the more enlightened designs. Is there a taste arbitrage opportunity here?
Thoughts?
Oh and to address the topic, I like this Scarano building. I like the other one too, the one that looks like a 70’s school building – I’ve always thought those 60’s and 70’s school buildings were cool! I know I’m odd woman out on that one.
8000 square foot building on 4,242 square foot buildable lot. Something’s not adding up. That would be a lot of mezanines.
Has anyone discussed (or even merely identified) the new condos being constructed on 1st street between 5th and 4th; or the big condo bldg on 4th ave several blocks down? Neither are on Developers Group website, and not on any realty website I can find. I just feel so shut out of that condo market, b/c I don’t understand how people find out about them. Yet many or all units often sell pre-construction. I asked my realtor and she herself didn’t know about those particular buildings I mentioned. It’s a mystery! Thanks for any info anyone can give.
Peeking at public records(ACRIS) it looks like 354 Franklin LLC, acquired the property in Aug 05 for $800K. The lot has a buildable FAR of 4242 sqft. That puts the cost/ft sq @ $188.6 per buildable foot.
They then turned around and took out $1million in loans, which i take is for construction. Construction/loan costs would be $235/ buildable foot.
Right now, the LLC has incurred costs of almost $425 per buildable foot.
Is it really feasible for the LLC to turn around and sell it for $450 a foot?
If in fact the developers cost basis was $425 a foot, what’s a ‘fair’ mark up? A
$100 a foot mark up on $425 is just under 25%.
So $525 a foot seems closer to the mark.
We defer to your judgement, Shahn. $550 it is.
You also need to add in between $20 – $30 a square foot for financing and $20 – $30 a square foot for soft costs.
I’ll bet a Fedders building can be built for $125-$150 a square foot. That’s why they build that way. It’s cheap.
If these people are really building for $250 a square foot, then trust me, they don’t expect to be selling for $450 a square foot. It’s more likely they are projecting sales prices of $550 a square foot – or more.
I agree that this building is looking pretty good, especially in comparison to all the Fedder’s crap we’ve seen lately. I really wonder how many units are in the building and what the prices will be. Any idea when this project might be finished?
When I walked by yesterday, they were pumping in soy-based “green” insulation.
$250 per Sqft. $450 per SqFt $100 Sqft. Where do you get your numbers? This is not a game of Bingo. Everyone is a developer now?