Aug 10, 2017
One of the top stories of the past week is the continued struggle of the Manhattan luxury market, with just 14 contracts signed for homes priced at $4 million or more last week. It’s the sixth week in a row the number of luxury contracts has fallen below 20. The top contract was on unit 56A at 252 East 57th Street. The five-bedroom, 5k square foot apartment was last asking $14.7 million, down from its 2015 asking price of $19 million. The development launched in 2014, and the sponsors have cut asking prices and offered increased commissions to buyers’ brokers. The median asking price for luxury apartments last week was $5.5 million. The average discount from original ask to the final asking price was 7 percent. The average number of days on market was 357, as reported by the Real Deal.
Glamorous high-end deals have become common in Brooklyn’s real estate market over the past few years, but during the second quarter of 2017, the biggest deal in the borough was fairly dull purchase. The government of NYC purchased the $160 million purchase of a Williamsburg storage facility. Residential sales dominated the biggest sales in BK list for Q2, taking up 5 of the top 10 spots. The top 10 sales were worth about $468.3 million in total. Although this is much less than the roughly $1 billion worth of deals that took place in Brooklyn during the year’s first quarter, the difference is largely due to that quarter’s $600 million purchase of a Dumbo Heights portfolio by Kushner Companies, LIVWRK and RFR Realty.
The second largest Brooklyn deal in Q2 was another Jehovah’s Witnesses building that went for $87.5 million.
633 Fulton Street, in Downtown BK came in 3rd place at $68 million
Buyer: Rabsky Group
Seller: JJ Operating
Rabsky Group purchased this 36,000-square-foot property in May as part of its expansion plans for a Downtown Brooklyn skyscraper. The company was initially planning to build a 36-story office tower that was roughly 618,000 square feet, but the addition of 633 Fulton Street gives them 770,000 square feet of space to work with.
Buyer: CIM Group
CIM Group purchased this 12-story Crown Heights building with 173 units from LIVWRK in June. Real Capital Analytics did not publish a sales price but believes it is likely still in the top 10 Brooklyn deals. LIVWRK has retained an interest in the property.
Buyer: CW Realty
Seller: Eleven North Capital
Brokerage: Cushman & Wakefield
CW Realty purchased this 42,000-square-foot industrial property in May with plans to demolish it. They will be able to redevelop up to 575,000 square feet if they include an affordable housing component.
Buyer: DiMaggio Realty
Seller: First Ocean Realty, Sentinel Real Estate
Brokerage: Rosewood Realty
DiMaggio Realty purchased this 122-unit rental building in Kensington in June. The 149,450-square-foot, six-story property is rent-stabilized, as are multiple other properties that DiMaggio owns in Brooklyn.
Buyer: SL Development
Seller: Barnett Brickner
SL Development plans to convert this Williamsburg warehouse into a residential building with 69 condominiums. The 34,500-square-foot building comes with roughly 70,000 square feet of development rights, and SL plans to add four stories to the building and put retail in on the ground floor.
Buyer: Millennium Venture Capital
Seller: BCB Property Management, Hager Pacific Properties
This Williamsburg building is Millennium’s first purchase in New York City. The six-story building contains 41 units, and BCB had purchased it in 2014 for $12.8 million.
For the auto-mechanics and other small business owners who call Ridgewood’s radioactive Superfund site home, Federal plans for cleaning up and demolishing their businesses could mean the end of an era. There are six businesses at the intersection of Cooper and Irving Avenues in Ridgewood slated for demolition under the cleanup plan overseen by the Environmental Protection Agency. The radioactive Superfund project now promises to change a long established part of the neighborhood and eventually turn it over to new development.
But the long-time neighborhood business owners say they have nowhere else to go and that compensation from the EPA is not enough. An EPA spokesman stated that “we’re not just cleaning up for today and tomorrow. Eventually the intention is to clean up on a long-term basis.” [NYT]
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