578 Sterling, the little blue house near Classon

whynot_31 · March 2015

A few years ago, @eastbloc wrote

flashback...

eastbloc said:

I would be. At $950k that's still $500/square foot. A buyer would have a very hard time convincing a bank to lend even that sum given neighborhood comps.
578 Sterling, which is a block away in the right direction, is a slightly smaller single-fam. It's presently listed for $520k and has no takers in the past 90 days. Sure, it needs a reno, but $200k of work would turn it into a pretty posh pad, and the lot is 50% larger than 662's.
I'd peg the value of 662 at around $800k, tops.

Eastbloc-

578 Sterling, the little blue house in the below photo, was covered by Brownstoner today.
http://www.brownstoner.com/blog/2013/08/building-of-the-day-578-sterling-place/
As a result of recently being sold to a LLC, they speculate that it will soon be torn down, and (in a few years) the lot will feature something like the building on the left.

photo: Brownstoner

whynot_31 · March 2015

578 Sterling finally received its demolition permit on Wednesday, 3/4/2015

http://a810-bisweb.nyc.gov/bisweb/JobsQueryByNumberServlet?requestid=1&passjobnumber=321089362&passdocnumber=01

eastbloc · March 2015

No construction plans yet, though.

I wonder if we've reached the point where demolishing an old wood-frame house qualifies as enough "value add" to flip for significant gain.

whynot_31 · March 2015

I believe this house been vacant for quite some time. So, I suspect the economics were similar to the lot on Franklin that used to be a community garden.

http://www.brooklynian.com/discussion/38833/730-franklin-ave-btwn-park-and-sterling-formerly-a-garden-now-a-fence-soon-to-be-a-6-story-bldg#Item_5

From my understanding the cost of constructing a building have increased substantially as a result of the building boom.

Despite that, the economics seem to now point to "demolish and build" as opposed to merely "continue to hold". I believe a new condo on a quiet CH street can now fetch $1000 a sq ft.

LLCs seem to be able to wait longer for their returns than others, but even they take their profits eventually.

eastbloc · March 2015

The house has been vacant for about two years now. It sold for the mid $400's around then, pennies on the dollar for what it's worth now.

eastbloc · March 2015

These lots have a 5200 square foot buildable. They're 20x131. Property around here has been selling for $200 per buildable square foot, so you can do the math.

whynot_31 · March 2015

That part I can do.

It is my ability to predict construction costs that has been shot to hell as a result of the increasing costs.

eastbloc · March 2015

I certainly won't be doing any constructing any time soon for mostly that reason.

whynot_31 · March 2015

The DOB is also really slow as a result of the building boom and the recent arrest of a number of its inspectors on fraud charges.

http://commercialobserver.com/2015/02/dob-overwhelmed-by-construction-demand/

http://manhattanda.org/press-release/manhattan-da’s-office-doi-nypd-announce-arrests-and-criminal-charges-widespread-briber

I hear the small construction projects are being given lowest priority, and now take about a month to get a relatively simple permit ...like demolition.

whynot_31 · November 2015

Demolition is now occurring

eastbloc · November 2015

The demolition is stalled at the point visible above. The crew that was doing it looked pretty ragged. I thought they were squatters at first. No permits posted. No further sign of life.

whynot_31 · November 2015

It is not uncommon for laborers to be so poor they live on site.

whynot_31 · December 2015

House has now been reduced to a pile of wood.

whynot_31 · April 2016

Wood now gone.

578 Sterling, the little blue house near Classon

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