House of the Day: 87 Garfield Revisited
While most signs point to a fairly strong market for townhouses in the more desirable neighborhoods of Brownstone Brooklyn, one property in Park Slope just took a 20 percent price cut after failing to attract interest at its initial asking price of $2,500,000. When we wrote about 87 Garfield Place back in June, we thought…
While most signs point to a fairly strong market for townhouses in the more desirable neighborhoods of Brownstone Brooklyn, one property in Park Slope just took a 20 percent price cut after failing to attract interest at its initial asking price of $2,500,000. When we wrote about 87 Garfield Place back in June, we thought it looked best-suited to a condo conversion because of its unusually large floorplates. Before someone with some kind of vested interest chimed in multiple times in the comments section, several readers expressed negative views about both the price and layout. Seems the cynics were right. We’ll see whether the new price of $1,990,000 stimulates more interest.
87 Garfield Place [Corcoran] GMAP P*Shark
House of the Day: 87 Garfield Place [Brownstoner]
Home prices will get hit everywhere, its a matter of time. But Manhattan and some parts of Brooklyn are still going up for now. How long that will last is beyond anyone. Maybe a year or two more and than a good 10-20 percent drop will occur. When the foreclosures start on the east coast than I will be buying again.
Please, don’t waste your time feel sorry for folks who did absolutely nothing and now going to split a lottery winning.
Darren Kearns from Corcoran seriously mispriced this house to get the listing and gave the heirs a bunch of crap. This is typical. I feel sorry for them taking a load of bull from an agent who knows nothing about the Park Slope market..
The layout could be fixed. Referring to the thrid floor in Corcoran’s layout pics, you would change the kitchen+bath into a bedroom, and the dining room into another bedroom, both of them accessed from a hallway where that long closet on the right is now. Put the kitchen, bathroom, dining room and living room in the center of the house. The front could be a third (huge) bedroom or a luxurious opening up of the dining/living area.
Or more likely (because who wants a 3-bed/1-bath?), have what I called the second bedroom be the living room, and put a bedroom in the front. You could have two nice 2-bed/1-bath apts and one huge 3-bed/2-bath. Total rent roll in that configuration would be about $9k/mo.
You *could* have that, after $500k or more in renovation (during which time you are paying the mortgage on the $2MM with no rental income). Meh.
My personal valuation puts it at about $1.5MM, which in this market means it will probably go for 1.8.
Sorry, I think $3,000 month seems high for that layout. It works great for a couple, but not for a family. It’s a giant 1 bedroom. Is that the going rate for 1 bedrooms?
dcardoni —
You proved my point. I said my calculations were based on an assumption of $6000/month. If you increase that by $3000, then yes, you’ll have a $3000 monthly profit. Who’s dumb here?
If the rent roll is closer to $9000/month, than I’d guess $1.3 million is ballpark based on fundamentals. Does someone with a better sense of the rental market than me know what a fair rent would be?
900k max? Just dumb.
If you assume rent of $3,000 per floor (which is probably quite conservative given Park Slope rents) – you make $9,000 per month. Assume also a 720k mortgage (180k down) – payments of about $5,000 per month. Assume other costs of $1,000 per month. That’s $3,000 monthly profit (not assuming tax benefits) – thus, you’re buying fairly prime Brooklyn real estate at a 20 cap.
I just wish people knew what they were talking about before they spouted garbage.
anon 2:49 – this prop isn’t for someone looking of ‘proper’ 20×45 ft 4 story house. And even if were – for under $2m not going to get ‘proper’ neighborhood.
This is for a developer for condo conversion. A 20 x 45 4 story is 3600 sf this is over 5000 and maybe potential for more.
If the seller holds on, it might end up two doors down from that Enrique Norten thing we had pimped here two months back…
http://brownstoner.com/brownstoner/archives/2007/06/enrique_norten.php