Tons of Apartment Buildings Going up All Over Brooklyn

If it seems like every other corner in Brooklyn has a new building going up on it, you’re not imagining things. Thousands of units of housing are being built in the borough, most of them rentals, reported The Real Deal. New rental buildings are more common than new condos, which are in short supply, because lenders are still leery of financing the development of the latter. “Sources say the pipeline for new Brooklyn developments is far fuller than it’s been in recent years, due to the revival of stalled projects and the increasing willingness of lenders to finance projects in the outer boroughs,” said The Real Deal. In the past, most development occurred in Manhattan, but the balance has shifted to Brooklyn. Buildings are going up throughout the borough, but especially in Downtown and Williamsburg. About 100 new buildings with more than 19 units are slated to open this year or later, bringing at least 14,000 new units to the market. (Click through to the story to see a chart of new builds.) The situation is leaving would-be condo buyers frustrated, however — and also explains the frenzy over open houses: “We’ve opened five condo buildings in the last five months or so,” said aptsandlofts.com founder David Maundrell. “Each building has had no less than 250 people attend the opening night. Every building has sold out. For the most part, they were sold out within 24 hours of opening.” Even all-cash buyers have to offer above ask to secure a deal. For the condo squeeze to let up, condo prices would need to increase above $1,000 per square foot in prime areas to make building them more attractive than rentals for developers, said the story.
Brooklyn’s Building Bonanza [TRD]