Live at 597 Park Place (btwn Classon and Franklin)? You might have to move.

whynot_31 · August 2013

This site catering to the Real Estate community says it has changed hands:

bktothefullest wrote: this Crown Heights 8-Family went in contract for its asking price of $1.6M. 597 Park Place is a 4-story 25' x 65' building on a 131' lot just off of the hub of Crown Heights, Franklin Avenue. Chopped into eight 1BR apartments, many well under market, it's a decent look at size & upside in an area on the rise. Especially in a climate where 8-Families like this can command more than twice this price just a few avenues over.

bktothefullest wrote: Whether you count by gross rent multiple or cap rate, neither the as-is or pro-forma numbers provided will wow you. But at even the most modest market rental numbers for these units, $1.6M is less than 10 times rent roll and a 6.5% cap rate. With only 1 apartment currently rented above $1,150/month, you'd have great tenants tripping over themselves to nab one of these 1BR's for more than that. Yet the price per square foot of $266 is competitive with anything else in a location of this caliber.

quotes: http://bktothefullest.blogspot.com/2013/08/crown-heights-8-family-in-contract-597.html#comment-form

xlizellx · August 2013

A few things:

1 - I lived here for 5 years. We paid more than $1150 when we started the lease 6 years ago, and we weren't the lowest paying tenant. So not sure why it says that. I know for a FACT the two apartments on the top floor are going over that.

2 - This building just sold a year ago, which is why we moved out. The upped our rent then. Our old unit is going for $1700 already

3 - They are all 2 bedrooms, not 1 bedrooms

whynot_31 · August 2013

Although HCR (the folks who enforce rent stabilization) is pretty toothless, I suspect that the HCR "legal rents" are the ones listed on transfer documents and advertisements. One does not want to be obnoxious in breaking the rules.

This "post sale" article is kind of interesting in that it does not describe any of the apartments as still being under rent stabilization rules, whereas most "pre-sale" ads that I see from Real Estate firms DO state that such rules apply.

I'm too lazy to check at the moment, but this building seems like it would be governed by the rules. If the tenants are presently being charged a "preferred rate", (a rate below the Max Legal rate the LL could charge as per Rent Stabilization) it would not surprise me if all of the tenants were:

increased to Max Legal,

AND/OR

bought out

AND/OR

had their apartments renovated to the degree

that the LL could escape rent regulations.

Anyone know a contractor who would like to freshly tile bathrooms at exaggerated prices, in exchange for kicking back some $ to the LL?

newguy88 · August 2013

whynot_31
Anyone know a contractor who would like to freshly tile bathrooms at exaggerated prices, in exchange for kicking back some $ to the LL?

Anyone know a contractor who wouldn't want to is a better question. I'm wondering if we're finally going to see that black change. It's always felt different then the other blocks on Park to me.

whynot_31 · August 2013

Several buildings on that block have already changed.

...just look for bicycles locked to the fencing; they serve as reliable signs of single, young people.

deano · August 2013

increased to Max Legal,

AND/OR

bought out

AND/OR

had their apartments renovated to the degree

that the LL could escape rent regulations.

...AND/OR get "thugged out". Some noisy new neighbors, a vicious dog or two, maybe a little accidental flooding. This building could be vacant in a jiffy.

whynot_31 · August 2013

I think it is safe to assume that the new owners believe that they will not recoup (much less get a ROI) on their purchase with the current tenants in place.

Yes, it is just a matter of which combination of tactics they utilize.

Winter is coming; they might forget to order oil for the boiler or have mechanical problems that didn't occur under the last owners.

whynot_31 · August 2013

xlizellx

August 26, 2013 at 7:44 PM

"With only 1 apartment currently rented above $1,150/month" -- Where did that figure come from? I know 3 apartments in that building that have been renting over that for at least 6 years.
Jonathonne

August 28, 2013 at 12:45 PM

According to the rent roll provided by the listing broker, only 1 apartment is *currently* rented for more than that.

http://bktothefullest.blogspot.com/2013/08/crown-heights-8-family-in-contract-597.html#comment-form

Keep it on the down low.

xlizellx · August 2013

deano said:

increased to Max Legal,

AND/OR

bought out

AND/OR

had their apartments renovated to the degree

that the LL could escape rent regulations.
...AND/OR get "thugged out". Some noisy new neighbors, a vicious dog or two, maybe a little accidental flooding. This building could be vacant in a jiffy.

You clearly haven't been in the building. That last thing has been going on for years. Water pouring through the ceiling, mushrooms then growing in said ceiling, loud dogs, lots of screaming/fighting, cops visiting frequently, LOUD neighbors...including neighbors you could see from your apartment in you laid on your stomach and looked through the cracks between the floorboards. Etc.

whynot_31 · September 2013

Although it seems to describe several levels above this building, this seems the right place to post this....

CollegeHumor's Favorite Funny Videos

whynot_31 · September 2013

This stat sheet about the latest mean rental rates for Brooklyn neighborhoods, also seems like it should be put here:

http://www.mns.com/brooklyn_rental_market_report

Live at 597 Park Place (btwn Classon and Franklin)? You might have to move.

Comments

Howdy, Stranger!

Categories