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.
The Colonel’s link has EVERYTHING to do with the discussion. EXACTLY WHAT differentiates the valuation of multifams to singles, coops and condos? And why does the department of finance use 10x?
Any property comes down to median income and rents (like p/e for stocks).
***Bid half off peak comps***
nothing is a very strong (and wrong) sentiment.
you might also have argued previously that subprime lending crisis had nothing to do with nyc real estate.
there is a linkage. the absolute number is not the linkage as i previously noted.
single family resi real estate cycle is related to multi family resi investment real estate cycle. period. fullstop.
I cited numerous sources, BHO. 4 of them in fact, with another 20 I could have just as easily posted.
Yours is from the NYTimes. The most trusted news source for Real Estate.
NOT.
“BHO–the 10x annual rent roll thing–is that NYC specific or is that the national norm?”
Wasder – read http://tinyurl.com/yb8hft9 or see below.
It was written in 2003, the beginning of the boom.
“With certain properties producing incomes far below their potential, some buyers have been willing to pay as much as 12 or 14 times the current rent roll in Manhattan. That is not the norm, however. The more typical range in recent sales in Manhattan is 9 to 12 times the annual rent [average about 10], brokers and investors say.” [circa 2003]
Manhattan is as NYC-specific as it gets. 11217 cites ’87 to 2007 which was undoubtably skewed by the +200% Ponzi effect of this insane housing bubble. We go back and forth about this to no avail. Further, 11217 cites a CNBC article (of all sources) written in July 2008, far before Lehman collapsed when “real estate only goes up”.
Moreover, the department of finance uses 10x to valuate condos for tax assessment.
Finally, my own experience. During the late 90’s, rents in my building at the time were $1,500/floor in 4-story brownstone that would trade for no more than $750K and quite possibly less.
***Bid half off peak comps***
pidgeon and antidope – Col’s articles are very interesting, but have NOTHING to do with the price of housing being discussed on Brownstoner (i.e. individual houses/apts for use not investment)
Thanks for that first link you posted, Colonel, (at 12:50 PM). It defines Gross income multipliers, gives a short history of gross income multipliers in NYC, and concludes that gross income multipliers must fall because vacancy rates are increasing, operating expenses, especially real estate taxes, are increasing, and the cost of debt and equity are higher. Interesting.
csa, that massey article is very interesting. the rent roll multiple discussion is more complex than picking a simple number.
others, if you think there’s no relation, well keep on keepin’ on.
Yes, that’s correct FSRG. Thanks for the clarification.
Col Steve you are talking about something different then I believe 11217 or BHO – your cites have to do with GRM for INVESTMENT property, I beleive that BHO and 11217 are referring to Sale price:rental multiples for individual housing units.