HOTD: Price Cut at 408 Stuyvesant Avenue (Again)
It started at $2.1 million last winter. In the spring it was reduced to $1.95 million. Then $1.85 million in early summer, at which point we wrote,” it seems like it’s still got a ways to go, especially considering the tenant who’s looking pretty comfortable in that sixth unit. Waddya say? $1,600,000? $1,500,000?” Looks like…

It started at $2.1 million last winter. In the spring it was reduced to $1.95 million. Then $1.85 million in early summer, at which point we wrote,” it seems like it’s still got a ways to go, especially considering the tenant who’s looking pretty comfortable in that sixth unit. Waddya say? $1,600,000? $1,500,000?” Looks like we got that one about right: The price was just cut to $1.55 million over the weekend. Think that’ll be enough to get it done?
408 Stuyvesant Avenue [Corcoran] GMAP P*Shark
House of the Day: 408 Stuyvesant Avenue Revisited [Brownstoner]
408 Stuyvesant Avenue [Brownstoner]
3:25
No bank is going to lend at a cap rate less than 6.5% for a building like this. But lets say for the sake of argument they go as low as 6%.
$8K per month = $96,000 a year.
Let’s say the owner gets the tenants to pick up most of the operating expenses. There is still real estate takes which at minimum will be 18% of EGI
Let’s just say the noi is 80% of the gross income.
That comes out to $1,280,000. That $1.3MM price seems like quite a stretch to me, and in the current lending environment, I really doubt it’s doable. In fact, I’d say a bank would be pretty foolish to lend on those numbers – but then again, banks ARE foolish.
Now that the bubble has popped, and mortgages harder to get, these ‘jumbo’ class units will be a thing of the past, especially in Bed Stuy that is getting so much bad press on the foreclosure and sup-prime debacle. I’d say this unit will sell form $500k to about $700k and no more. Heck, it’s old and probably in need of pipes and roofing.
The age of the million dollar brownstone is a thing of the past.
This listing shows the perils of over-pricing. They’ve already cut 25% off, so why not wait until they’re really desperate? At this point, you’d have to be an experienced r.e. investor who knows the B-S market to even consider making an offer. Also, interesting point about this possibly being considered a commercial property. If true, that would also rule out most homebuyers in favor of investors. All that said, I would guess the rent roll might be over 8K a month, which with enough down would cover a 700k mortgage and upkeep pretty comfortably. So at $1.3 mil. or so this might go.
And the slow motion crash continues…
…coming to a neighborhood near you.
“…especially considering the tenant who’s looking pretty comfortable in that sixth unit.”
LOL
In case you haven’t noticed, 2:23…there have been some housing problems over the last year…
Bed Stuy has a HUGE uptick in foreclosures and people don’t want to spend large amounts of money on a fringe neighborhood right now.
Does this not sound familiar?
It’s far more marketable as a 1 or 2 family. I also have a sneaking suspicion that the stabilized tenant is over 62.
At the current price and config, it seems like a tough sell.
Anyone know what it would bring in rental income? 7k per month (ignoring the stabilized tenant)?
Hmmm. I wonder if they are having trouble selling it because it’s more than the 3-4 unit threshold that banks use to distinguish between commercial and residential property.. All sorts of things change when you have more than 3 units, more cash down and all sorts of fire code issues.. Otherwise I think for $1.3-1.4 million this should sell if reality supports the pristine condition the pictures show…
And this quote at 1:31pm:
“Bed Stuy is not a place where people are looking to buy property at this time.”
What are you talking about?
Lack of subways??? This house is one short block from the A train (Utica Ave stop). That’s a very easy and convenient commute to Manhattan.
The mansions on this block are amazing. Recently I went to the open house at 404 Stuyvesant, a huge, beautiful house in fairly good condition, with great details inside. The surrounding blocks are beautiful and quiet (such as McDonough between Stuy and Lewis, which won the Greenest Block in Brooklyn this summer). In terms of service, the area is slowly improving, we now have a good wine store, and a few restaurants and cafes.
That being said, I’m not convinced the house is worth 1.55M at this time. But at least 1 or 1.2M, that’s for sure.