Report: Foreclosures Hurting Prices in Bed-Stuy
Small multi-family buildings in lower-income neighborhoods of Brooklyn have been particularly hard hit by the housing crisis, according to a new report from TerraCrg Commercial Realty Group. As reported in The Real Deal, 80 percent of foreclosure filings in Brooklyn over the past year were for mortgages under $1 million and 51 percent of non-residential…
Small multi-family buildings in lower-income neighborhoods of Brooklyn have been particularly hard hit by the housing crisis, according to a new report from TerraCrg Commercial Realty Group. As reported in The Real Deal, 80 percent of foreclosure filings in Brooklyn over the past year were for mortgages under $1 million and 51 percent of non-residential mortgages were for three- to four-unit residential buildings; the article also notes that “the majority of the foreclosures took place in lower-priced neighborhoods like Bed-Stuy and East New York.” The result? “A bevy of three- to four-unit residential buildings in Bedford-Stuyvesant can be had for under $300,000.” No big surprises here, though the headline tries to put a positive spin on the news: “Discounted Brooklyn brownstones coming to market, but not in prime neighborhoods.”
Discounted Brooklyn Brownstones Coming to Market [TRD]
A few weeks ago I saw a brownstone in BS that was at first listed around 600k, go for 475k. Buildings going for around 300k wouldn’t shock me, particularly in certain parts of the neighborhood. Some streets are definitely less desirable due to: safety (actual or perceived), transportation and just general services.
Yes, MM. If the tenants are problems these things will sit and sit and sit or only be sold at very deep discounts to what would normally be the needed yield.
I think I could have gotten $1,300 – 1,400 for mine when I first rented it in January 2008. I did not raise the rent in 2009 but I’ve seen things that are smaller on my street go for $1,100-1,300.
I have excellent tenants.
My neighborhood is chock full of 8 unit flats buildings. There are three right across the street from me, all very well kept up, with more on the block. I’ve always thought that if I wanted to invest in multi-unit properties these would be a good investment, assuming right building, and deep enough pockets to carry through vacancies, repairs, whatever. I think the article was correct – too many people bought without a financial plan or a cushion.
What the article and the thread doesn’t speak of is what happens to the tenants? Those going about their business paying rent are in danger of either losing their homes, or suffering reduced services while the building is in limbo, or the owner bails. Those who see this as an opportunity to stop paying rent will contribute to the building’s decline and everyone suffers. I hope this is looked at seriously and not just as a financial situation where bargain hunters can clean up.
1700
YES, chicken…the two houses on the 200 blocks of Chauncey and bainbridge.
They look very attractive. Devil in the details as to whether or not the tenants are paying rent.
BBB…my typical 750 sq ft floor thru garden level rents for $1,200. What is yours going for???
Dave the apt. is a floor thru in Fort Greene. Very typical 750 sft Brownstone floor thru
DIBS,
anything worth looking at in this lot?
http://bk.ly/TZ
Even Massey Knackal has nothing below $500,000