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
Nuts
pksloperenter, why would you take the bus to Ft. Greene restaurants when it’s a short walk to Smith Street? I agree that Bk Hts. has precious few decent places to eat, but proximity to Smith St, Atlantic Ave etc. makes up for it, IMHO.
This looks amazing. Probably works best for an owner to occupy and eventually convert other units. If I had the bucks, I’d do it! Love the photos.
used to live down the block (right on the corner of remsen and clinton). for the price, i’d definitely want to be closer to the water. but frankly, after about 1 yr i got tired of not having any good places to eat close by (thank goodness for the #52 bus to ft greene).
Investment property??? I dont think so
Even if you were willing to accept 3.5% return (assuming their proj are right), whats the upside – if only 5 tenants are non-market rate (since 4 arent rs/rc I am assuming they are mkt), what is the most amount of increase in imcome you could get – $2000 an apartment a month, that would be 120,000 increase of RR -best-case- senario.
So if everything goes your way you return would still only be 5.5% (less if you financed it!) –
Anyone who buys this for investment is strictly counting on the greater fool theory for cap increase – and if you ask me – that buyer might just be the greatest fool
pretty darn fancy digs for rent controlled and rent stabilized tenants!!!!
you are better off dealing with william b may.
to 11:50am this is a coexclusive with william b may and brooklyn cornerstone.
This is not on the best block of Remsen. There are other homes, without these issues, closer to the water. And prices are similar.
This listing is with several brokers I noticed