Renting 1 BBP: 'We Would Like Things to be Different'
This weekend’s cover story in the real estate section of the Times is about Brooklyn developers who have started renting units in their condos, with a focus on the hybrid-ization of One Brooklyn Bridge Park, where developer RAL recently began renting some of the unsold inventory. First, the stats: There have been 77 closings at…
This weekend’s cover story in the real estate section of the Times is about Brooklyn developers who have started renting units in their condos, with a focus on the hybrid-ization of One Brooklyn Bridge Park, where developer RAL recently began renting some of the unsold inventory. First, the stats: There have been 77 closings at the building and 26 other units are in contract, leaving 300-some-odd vacancies; for now, RAL is only renting 20 units, and five one-year leases have been inked. Then, there’s the commentary from RAL president Robert Levine, who says stuff like, “This building is not a rental building, it is a condominium,” and “We would like things to be different,” and “We had a vision and it turned out to be exactly what we wanted. And then the world fell apart.” (On this last quote, it’s worth noting that 1BBP went on sale almost a year and a half before “the world fell apart” last September.) Anyhow, the bigger questions the article addresses are, how much of a stigma is it for a condo to rent some units out, and to what extent—if at all—does it push down values? On the first question, an Elliman broker says, “if you start to rent 25 percent of the building or more, it takes on the flavor of a rental,” and on the second question, appraiser-guru Jonathan Miller says that “In the long run, there’s no impairment to value.”
Renters to the Rescue [NY Times]
Rentals, Price Cuts and Loan Extension at 1BBP [Brownstoner]
Bxgrl – you are being too defensive.
How offensive? Don’t really care (rented for 13 years BTW). Now you are actually equating race and ethnicity with being a renter? Seriously?
I really don’t care how you feel. This is purely economics and statistics are there.
Lech – I mainly agree with you – but I do wonder even if they did drop the prices on these condos, are there buyers out there willing to buy into said condo/nabe/development
Just b/c they lop off $100K on a unit doesn’t mean more buyers will sprout – right?
Agree with ditto and northslope. I can see the appeal of the apartments with views of the harbor, Manhattan, the Brooklyn Bridge, etc., but I’m not sure who is going to shell out the kind of money they want for the apartments overlooking the BQE, no matter how sound proof the windows may be. Personally, 1BB doesn’t appeal to me, not only because it seems very isolated, but also, like many new developments, the apartments are carved up like rabbit hutches.
Owners are no more responsible or clean than renters. It’s about the person and how they were raised more often than not.
I’m really not seeing the big deal in offering up a few units for rent. Almost all but the most elite co-ops in the city have some sort of renting policy, so essentially we are all living in mixed owner/renting situations unless you have a full brownstone to yourself.
Who cares?
Let me rephrase that saminthehood. Maybe you think that way because that’s how you would behave.
“All I am saying is in that case, a renter who knows they are gone in a few years wont be as mindful when they know its not their property that will depreciate/appreciate compared to an owner who paid big bucks for that same space and will have to sell at some point.”
I hadn’t realized you’re so omniscient. I rent. I am as respectful of my landlord’s property as if I owned it. And I know plenty of other renters just like me. You’re full of crap.
I think the whole renter not treating the place as well is an ancillary issue. If you bought in the building rented apartments are built in supply overhang. It is better than being vacant, but still pretty bad news for owners.
300 vacancies??
I think the real question is do you want to rent out those units or have your building owner go bankrupt.
How many of those BQE units are really going to sell anyway?
agree with the jackal.