Optimism on State Street
New York Magazine has a feature in its real estate section this week called “Hey, This Might Work,” in which the mag asks six optimistic developers for their strategies for coping in this market. One of the six properties featured: The planned six-townhouse development at 345 State Street. Says developer Hesky Brahimy, “We’re not worried….
New York Magazine has a feature in its real estate section this week called “Hey, This Might Work,” in which the mag asks six optimistic developers for their strategies for coping in this market. One of the six properties featured: The planned six-townhouse development at 345 State Street. Says developer Hesky Brahimy, “We’re not worried. It’s six, not 600.” As far as we’re aware, no one’s given him a deposit yet for any of the new homes, which are priced at over $3.5 million a pop.
Hey, This Might Work [New York Mag] GMAP
Six More New Brownstones for State Street? [Brownstoner]
Here’s the logic, which is likely to be successful. Some buyers will be attracted to a modern asthetic and a fresh take on historic townhouse architecture (pre-brooklyn europe). Rehab of a historic townhouse is $1.5-$2mm on top of building cost and, frankly, few homes are available that don’t have historical detail that one might be apprehensive about gutting. In each case, buildings will sell in comparable ranges.
Also, modern systems like HVAC, electric, etc that works + lighting + windows + super dope back yard/terrace.
2-3 years to construct gets you into 2012 to sell on completed units.
Previously stated, mid-$600 sq ft.
May be a bit rich at $4mm, but will get a serious look from the right buyers.
I would need a crazy discount and contingencies up the wazoo to even consider it. My guess is that this developer is posturing as part of his neighbor relations/Brooklyn Friends negotiating.
I think you need to price at $3.5m now if you want $2.8 because everyone expects to bargain down 20% off ask…so then price high , negotiate big, and everyone’s ego is intact.
14 TH’s sold for an avg $2,580,000, or $626 psf. A 5,500 sq ft townhouse at $3,500,000 equals $636 psf. So on a psf basis not much of a difference. That said, there is definitley a disconnect btwn suggested price, location, current market conditions and use (ie a single-family townhouse). A three family – owner duplex with two floor-thru rentals might be a better fit for this location.
Tricks73 or anyone else – what type of discount would you be looking for in exchange for signing a pre-construction contract? If you were given the opportunity to customize the finishes in conjunction with doing a deal at a price you felt was appropriate and reflected current market conditions would you be willing to make a deposit and sign a contract, pre-construction?
Pete, those 14 TH sold in the 2’s. 3.5M now would be a big premium over stuff on mkt and to expect to fill someone to pay that premium in an area that’s predominantly brownstone type buyers, that is a little “needle in haystack” situation. Now if they price these also in the 2’s like the initial 14, then odds much much better
right, most people on Brownstoner would prefer old house with orig detail…but the 14 townhouses and perhaps these are for the market that want Townhouse Modern. and I think the ones on State were excellent example of that. (even tho their backyards face a parking lot and stadium lighting.
“Not sure about this guy’s reputatation”
I heard he has no tatas.
The 14 townhouses a block down caught the tail end of the cycle and all went for less than $3m. More than $3m when you can get a place in the Heights for that now is nuts, not to mention that noone in their right mind is signing pre-build contracts no matter how good the developer’s reputation.
I think the Boerum Hill blocks of State Street are beautiful, but the suggested price is ludicrous. I’m sorry, but for $3.5 million, I’d rather buy an old house with original detail several blocks west in Brooklyn Heights.