HOTD: 306 Washington Avenue, Two Price Cuts Later
The price of 306 Washington Avenue in Clinton Hill has been in free-fall since we featured it as a House of the Day when it came on the market last summer at $2,300,000. It looks like it was a bit of an understatement when when we said that the “asking price might be a bit…
The price of 306 Washington Avenue in Clinton Hill has been in free-fall since we featured it as a House of the Day when it came on the market last summer at $2,300,000. It looks like it was a bit of an understatement when when we said that the “asking price might be a bit on the high side.” In September, the price was trimmed to $2,100,000 and then another $200,000 was taken off last month to bring the current asking price to $1,900,000. The house was also included on this past weekend’s multi-broker house tour. Think it has a shot at this price?
306 Washington Avenue [Douglas Elliman] GMAP P*Shark
House of the Day: 306 Washington Avenue [Brownstoner]
I work with Christine Blackburn and was in attendance at the open house tour on Sunday. Part of the reason we coordinated the tour was to help explain the various financial scenarios and options so that potential buyers could see the value. We had 50+ people and not one expressed that the property over-priced. In fact we were asked a couple of times if the $1.9M was just for the owner’s duplex.
We are so confident about the pricing that we invited brokers of 12 other townhouses priced between $1.6 and $2.2M to open their doors also so that buyers could see all the inventory and weigh the pros and cons themselves.
christine, welcome. what are the rents on each of the three units? and why was the market-unit rent so low?
Hi Brownstoner,
I am the listing agent and just wanted to clarify a couple things.
First of all, there are 2 units are stabalized, and a third that is free market and can come up at least $1100 right away (month to month with no lease). This would bring the income to $4200 very shortly after closing.
I challenge anyone to find a brownstone with this much original detail where you can live in a 1400 sqft owners duplex with a giant yard for a purchase price of $1.9 Million and income of $4200. Most builings in the $1.7-2M price range are not 4 families, they are 2 or 3 families- maybe double duplex 2 over 2 bedrooms, or 2 smaller 2 bedrooms in addition to owners duplex. Those units would not bring in much more the $4200 a month in income at full market rate. Anyone is welcome to compare the income here with similarly priced properties and see for themselves- we are not intending to price the building above the market.
For me, as a buyer- i would purchase a building where i have undervalued rents that will continue to go up every year or 2 years when tenants renew, and watch my income grow every year, than purchase a building at 1.8 or 1.9 with maxed out income and fewer units.
The net effective cost of living in the owners duplex after tax savings is approximately $4200 (with 25% down which is required on 4 family buildings). Id say thats a pretty great opportunity.
Rent-stabilized tenants???? Are you serious??? $1.9 million for a house with TWO rent-stabilized tenants, in Clinton Hill??? Dream on.
Someone is asking 1.9 million dollars for a house with two rent-stabilized tenants? But that’s crazy. A rent stabilized tenant can easily ruin your life and wreck your health. And here there are two? Forget it.
no kidding. rent roll of $3021, and that’s including one market rate tenant. i wonder which apt. is the market rate one.
Problem is it’s got three occupied units, two of which are rent stabilized, for a rent roll of about $3k. With 20% down this place will cost over $9k a month. SO the choice is either pay $6k a month for a duplex, or begin the arduous legal process of evicting the tenants to convert to one family. Either way, there’s no easy way to up the rent roll to market rate, which is about double what it currently brings in. If it were delivered vacant, it would sell pretty close to this, I’d guess.
They are clearly not giving enough of a discount considering there are two rent-stabilized tenants. Either someone has to be totally comfortable with that, or be prepared to spend a lot of money to get rid of the tenants.
Even if money were no object, I’d feel pretty crappy dislodging two households.
still looks high if you have two rent stabilized units.