Last Week's Biggest Sales
1. BROOKLYN HEIGHTS $3,895,000 80 State Street GMAP (left) This 4,550-sf, 2-family was first listed for $4,950,000 in late 2008, according to StreetEasy, and the price was cut a number of times until it was asking $3,895,000 last September. Ad said: “Rare opportunity to own a 25-foot-wide Gothic Revival 1850’s Brooklyn Heights townhouse with original…
1. BROOKLYN HEIGHTS $3,895,000
80 State Street GMAP (left)
This 4,550-sf, 2-family was first listed for $4,950,000 in late 2008, according to StreetEasy, and the price was cut a number of times until it was asking $3,895,000 last September. Ad said: “Rare opportunity to own a 25-foot-wide Gothic Revival 1850’s Brooklyn Heights townhouse with original details intact. Grand double parlor with exquisite moldings and original pocket doors, three wood-burning fireplaces, and rooms flooded with superb Southern-facing light…” Its seller bought it for $3,300,000 in 2005. Entered into contract on 10/1/09; closed on 1/5/10; deed recorded on 1/27/10.
2. COBBLE HILL $3,200,000
243 Kane Street GMAP (right)
As covered last week, this renovated townhouse was originally asking $2,950,000 in ’07, but the price was raised to $4,075,000 in mid-’08. As it lingered on the market, the price was reduced several times until it was last asking $3,500,000 as of mid-’09. Its seller bought it for $1,802,000 in 2007. Entered into contract on 1/15/10; closed on 1/15/10; deed recorded on 1/28/10.
3. BROOKLYN HEIGHTS $2,995,000
20 Grace Court Alley GMAP
As previously noted this 2,550-square-foot brick house was originally asking $3,300,000 and the widget appraisal came in at $2,766,135. Its sellers bought it for $2,675,000 in ’05. Entered into contract on 11/17/09; closed on 1/15/10; deed recorded on 1/28/10.
4. PARK SLOPE $2,125,000
524 2nd Street GMAP
When this 2-family was a House of the Day in October, it was listed for $2,375,000. The reader widget guess on it was $1,952,045. Entered into contract on 11/5/09; closed on 1/11/10; deed recorded on 1/26/10.
5. FORT GREENE $1,870,000
119 Fort Greene Place GMAP
When this brownstone was a House of the Day in November, it was listed for $1,995,000. The reader widget appraisal clocked in at $1,615,042. Entered into contract on 11/25/09; closed on 1/7/10; deed recorded on 1/27/10.
Photos from PropShark.
“More ammo for me. Thanks wasder!”
You are welcome though it wasn’t precisely my intent as much as to be honest. I do think there is something to your argument of course but I also think that it lacks a bit of nuance for the particulars of the properties we are discussing. I mean I actually have no idea what my rent roll would be other than to guess at it and a few hundred dollars difference in either direction means a lot on the bottom line. And clearly there are plenty of buyers, as evidenced by the above, who are willing to purchase without any consideration of rent rolls. Brownstones are weird like that.
In my own case, I feel decent about the fundamentals of my purchase price.
“residential financing tied to comps and individual income”
Yeah, 3x median (including rental income) is the other fundamental. And what are comps tied to?
And why the constant rent vs buy decision then? They are heavily related. In fact, when RE is in the doldrums, buying is usually cheaper.
***Bid half off peak comps***
Pete- thats great – but 4 families is barely (if at all) investment grade RE and therefore the valuation will be more aligned with individual units/houses…
the type of properties that Knakal is referring (in Col Steves links) are elevatored and walk-up investment properties – for investment – not owner occupied.
That’s how it should be, Pete.
My quality of life since home ownership has skyrocketed. It was one of the best decisions I’ve ever made. Infinitely more happy than as a renter worrying about moving/dealing with landlord/not being able to decorate, etc.
I’m not advocating overpaying, but certainly there are factors associated with home ownership that BHO won’t fully grasp until he is one.
so what is the MISSING LINK?
how do you explain the 3 and 4 family TH that regularly sell for 15-20x in bklyn?
are those investments or *residential* homes?
i don’t see big psf differences btwn 4 families and single families in prime brooklyn, which leads me to conclude the underlying rent roll is a fundamental metric. there is no single magic number but they sure seem correlated to me.
I bought (many years ago) a multifamily(4) , I looked at it as place for me to live. I did not look at rent roll as a multiple (only how much of mortgage it would pay).
Or even worried what it would be worth 5, 10 years later.
I bought it for security, to control where I lived, and to live in it as a home. And am still there 25 years later.
EXACTLY WHAT differentiates the valuation of multifams to singles, coops and condos?
the purchaser is not going to live in an investment property and bank financing strictly tied to RR – on residential financing tied to comps and individual income.
GRM is an INVESTMENT metric
I’m not answering anymore of your unintelligible questions until you answer mine.
And again for you:
“Give examples from the list above on how these sales prove your point that we are headed for 50% off peak.”
This is the sampling we are discussing here today. If you can’t come up with data, then save your rants for another day where your comments might be better applied.
Today you’re just looking desperate as you write on a thread about some pretty large and impressive sales.
“that x times rent roll is in reference to buying apt. buildings as investment property.
Not buying a home to live in.”
So a multifam brownstone is not an apartment building and not an investment just because the owner moves in? Wow! That’s awesome, Pete!
“15 for individual home ownership.”
Local source, 11217? So far you’ve got this from the bubble-skewed ’87 to ’07 calc. Hold no agua. What did all property types located in 11217 trade for in 2003? What did they rent for?
“FWIW–I overpaid for my place at 10x. I am right on target at 13 or 14x.”
More ammo for me. Thanks wasder!
***Bid half off peak comps***