House of the Day: Remsen Street Biggie
Arguing about price when it comes to Brooklyn Heights mansions is usually a fruitless exercise, we’ve decided, in much the same way talking price per square foot on Fifth Avenue has lost any meaning. In these high-end markets with so much money still sloshing around, the question is, “Will some rich person walk in and…
Arguing about price when it comes to Brooklyn Heights mansions is usually a fruitless exercise, we’ve decided, in much the same way talking price per square foot on Fifth Avenue has lost any meaning. In these high-end markets with so much money still sloshing around, the question is, “Will some rich person walk in and fall in love with this place?” Today’s house, a lovely 5-story, 25-footer on Remsen between Henry and Clinton weighing in at 8,500 square feet, is a slightly different story though. Although it looks to be in quite good shape, the brownstone is chopped up into nine units, three of them with rent controlled tenants (all paying $700 or less) and two with rent stabilized tenants. A quick glance at the rent roll and configuration suggests that there is the chance to create an owner’s duplex which would be about 4,000 square feet. The challenge, we think, will be finding someone who can afford the downpayment who also wants to deal with being a landlord to six other tenants. How about as a pure investment property? Well, the building’s projected NOI is $157,000 which suggests a yield on the $4.6 million asking price of about 3.5%. What is not included in that calculation is the option value of one of the rent-controlled tenants dying in the near future. Cold but true.
Remsen Street [Brooklyn Cornerstone] GMAP
Brooklyn Heights is the most expensive neighborhood in Brooklyn because it is the most consistently beautiful neighborhood in Brooklyn, and the closest to Manhattan.
Anon @ 6:49am
Have you ever been to Brklyn Hgts? Its retail is far from “Big Chains” and actually the turn over is relatively low… but I am sure you need to ignore the facts in order to support you ‘LLs are greedy’ theme.
William b may is still in business?? That’s amusing!
I think you mean 3.5% cap rate, not yield.
taxes on Times on line is monthly so you do the math. the heights is one of the classics that are still left. there’s so much history. you are paying for location location location. unfortunately, this brings on high rent for owners of small businesses. restaurants come and go and it’s the big chains that survive. manhattan is worse with turnover and the difference is the issues and choices are spread out over a 24 mile radius and in the Heights it’s spread out over 10 blocks. It is unfortunate but watch what happens to Smith St (they’ve had huge turnover already with restaurants) and 5th Ave as the landlords start getting greedy.
The RE tax seems very low for a 9 family building and there are very few details apparent in many of the photos. Too much money.
I’ve never lived in Brooklyn Heights. But I have to wonder, if there are no good restaurants there, then why is it the most expensive neighborhood in Brooklyn?
agree on smith street, although i found getting there less convenient. but this was also about personal preference bc i have more friends in ft greene. plus i love madiba, chez oscar, buttacup, etc.
what restaurants do you recommend on atlantic?
bklyn heights is great but just not my cup of tea.
Rent controlled tenants never die, they just develop new live-in relatives to take over the lease. I’m surprised you don’t hear of people getting married for a rent controlled lease…