Downtown Rental Developments: Is Two a Trend?
Halstead is now marketing two new developments within a block of each other on the Court Street corridor. This in itself would not be big news were it not for the fact that they are both rental buildings as opposed to condos. The 13-story, 50,000-square-foot building nearing completion at 65 Schermerhorn Street (left) will have…
Halstead is now marketing two new developments within a block of each other on the Court Street corridor. This in itself would not be big news were it not for the fact that they are both rental buildings as opposed to condos. The 13-story, 50,000-square-foot building nearing completion at 65 Schermerhorn Street (left) will have 64 units, a mix of studios, one bedrooms and “one bedroom plus office” units. (Some readers predicted this would be a rental a year ago.) No word on what the rents will be. With seven three-bedroom apartments spread out over ten floors and monthly rents starting at $8,100, 183 State Street (where, according to an earlier thread, the developer is the former proprietor of the chinese restaurant that used to occupy this site) is going after a significantly ritzier demographic. Do you think the demand will be there? What do you make of the decision of both these developers to go rental from the start?
65 Schermerhorn Street [Schermerhorn Court] GMAP
63 Schermerhorn: How You Lookin’? [Brownstoner]
183 State Street [Halstead] GMAP
I was in the schermerhorn property this weekend and was unimpressed. Prices started at $1800/month for studios and $2800/month for 1BR. The pricing is in line with the Courthouse development by Two Trees, but the finishes are much nicer in COurthouse – plus you get a doorman and the gym. No amenities in Schermerhorn.
Also, there are plenty of other rental projects in the pipeline right now for downtown, including the recently announced 600-unit project from Avalon Bay on Flatbush Ave. The increase in rentals doesn’t signal softness in the condo market, it signals a renewed stregth in the rental market. Many developers would rather do rentals and have only been building condos for the past couple of years because the economics didn’t work for rentals. Now that rental rates are going up, they’re switching back to rentals.
Dude, not EVERY building that includes rentals rather than condos marks softness in the market! As evidenced by the huge number of condos coming on the market right now, there is a lot of demand for housing in Brooklyn. And, many NYC residents rent. So of course some rental buildings have got to go up to cover the demand on that side.
(Don’t get me wrong, I’d love nothing better than to see softness on the market. Even if it makes my own property less valuable, the fact is that my on-paper equity gains have been caused by a bunch of rich dorks who gleefully pushed prices to nosebleed levels in the hopes of future flips, thereby making it impossible for normal middle-class folks to live in these great neighborhoods. With as little offense as possible to Mr. B (one of those very dorks, after all), I’d love to see the holdings of these people plummet in value, just to sock them with a bit of a comeuppance.
Nice neighborhood but the crowds going to and waiting outside the movie theater often aren’t so great – been a number of robberies assaults and larceny arrests IN and around the theater
The State street property has structural problems.
Did anyone ever notice that ominous black Mercedes CLS that used to sit on the corner of Schermerhorn and Court while 65 Schermerhorn was being built? I always thought they were someway affiliated with the building.
Yeah the rents at The Courthouse are lower, but that’s because the space is smaller and while the finishes were nice they aren’t as nice as 183 State. The Courthouse offers 2 bedrooms from just over 800 sq. ft. to just over 1000 sq. ft. these apartments are listed at 2200 sq. ft. so in terms of pricing the are, again, right in line with the building across the street, i.e., The Courthouse. Agreed the neighborhood is actually pretty damn great. I loved living literally right next door to some of the best brownstone neighborhoods Brooklyn has to offer with all the others a short walk away, tons of restaurants and bars too (and banks, Starbucks, and Dunkin Donuts if that’s your thing). Also agree that the Schermerhorn place is a dump and the rents should reflect it instead of what they’re currently asking.
The rents at Danny’s are ridiculous, and they won’t fly because a big chunk of Courthouse is moving to 110 Livingston (aided by a timely rent hike from Two Trees, of course). Even the new, higher rents at Courthouse are way lower than Danny’s is asking.
As for Schermerhorn Court, that place is a disgrace. I think that guy knows his product is sub-par and has too much competition, so he’ll take whatever cash anyone will give him ASAP.
I think we’re seeing a new stage in the real estate market. Prices aren’t going down, necessarily, but buyers have quality options at their price points. Used to be you just had to hope there were options at your price point. So you get a Vista vs. 99Gold scenario, where two buildings within a block or two of each other have drastically different sales results.
the apartments on schermerhorn are so ugly i don’t know why anyone would want to rent there. The kitchen has a long flourescent lighting fixture (not easily replaceable even if you wanted to) and a similar flourescent light in the bathroom. It just reaks of cheap. The apartments on the corner of state and court (right photo) look a lot nicer with floor to ceiling windows, fireplaces, nice lighting fixtures. But this building has looked finished for months. I don’t know what they’re waiting for. And for those who think that’s a bad area, you obviously do not know it. Why would you even formulate an opinion on an area you’ve only seen when you were in court fighting traffic tickets or begging a judge to let you see your kids on weekends?
The price is right in line with the Two Trees building across the street. The re-rent on my 643 (Bullshit) Sq Ft. apt was $2500.00. These are 2200 Sq Ft which my calculations show actually come out to less per sqaure foot than The Courthouse and considering the finishes. Having said that you could get a mortgage for that amount of rent.