The New Coney Island - Brooklyn's Times Square by the Sea

Saturday, July 26, 2014

South Brooklyn real estate prices

NY Mag excerpt -

And honestly, can one consider the outer boroughs cheap when the median price of a condo in South Brooklyn, which includes far afield areas like Sunset Park, Sheepshead Bay, and Brighton Beach, is now $428,000, according to the Corcoran Group? A single-family in those parts is asking a median of $782,000, which would typically require a down payment of nearly $160,000.

The Brooklyn real estate boom

NY Post excerpt-

“In Manhattan, land costs are higher than the costs to build a building,” says Stern. “In Brooklyn, that’s not the case — there’s quite a bit of room for growth. And there are a large crop of people who are choosing to live in Brooklyn as their first choice.”

Which definitely helps explain why developers have been so focused on Brooklyn. But something else is driving the trend towards condos instead of more rentals — and that is the explosion in land prices.

“In the last 18 months, asking prices have gone from $75 to $350 per square foot,” says Tucker Reed, president of Downtown Brooklyn Partnership. “That’s in the space of 18 months. That’s unheard of. And that makes rental development difficult. … That’s why developers have turned continuously towards condo.”

Gabriel Saffioti, a director at the investment sales brokerage firm Eastern Consolidated, is currently marketing a parcel of land at 295-309 Schermerhorn St. in the mid-to-high $50 million range, which comes out to around $400 per square foot of buildable space. “We’ve had people who have looked at it from a hotel, a rental and a condo perspective,” Saffioti says.

Plus, all of the commercial and retail development in the works is only going to make the area more attractive for buyers.

City Point, for instance, the 1.9 million-square-foot complex (of rental and retail) which will be released in phases and completed in 2020, promises 700,000 square feet of retail, including an Alamo Drafthouse theater and a CityTarget.

“There’s been significant growth in retail in last 7 years, but we still think there’s a tremendous gap,” says Paul Travis, managing partner of Washington Square Partners, which is developing City Point. As for future commercial tenants, “It’s going to be very Brooklyn.” By that he means artisan and local.

Collectively all this development has attracted the kind of buyer who never before would have considered Downtown Brooklyn.

Hot demand sends Brooklyn home prices to new record high

Daily News excerpt -

A lack of inventory coupled with strong demand sent the average price of a residential property in the borough to a record $783,296 in the second quarter, up 16.6% from the year-ago period, according to a report from Douglas Elliman.

"Prices pretty much soared," Frank Percesepe, senior regional vice president, Brooklyn, at Corcoran Group, told the Daily News.

"The inventory crunch continues. We would have done much more business if there was more to sell."

With Brooklyn prices rising, the borough's affordability rep is rapidly fading.

The gap in median sales prices between Brooklyn and Manhattan has gone from $500,000 in the second quarter of 2008, before the real estate market tanked, to $335,000 today - a 33% decline, according to Douglas Elliman.

"The spread is narrowing," Jonathan Miller, CEO of appraisal firm Miller Samuel, which compiles the Douglas Elliman report, told the Daily News.

Brooklyn's luxury market, representing the top 10%, also broke records: the median sales price of a luxury property surged nearly 30% to $2,138,325, Douglas Elliman said.

There were 103 sales in the borough priced above $2 million, according to Corcoran. Of those high-end deals, 58 were townhouses, including the sale of 273 Hicks St. in Brooklyn Heights for $6.4 million.

Brooklyn's inventory crunch has been fueled in part by a stall in condo development during the financial crisis.
New condos, such as Toll Brothers' Pierhouse at Brooklyn Bridge Park, are now coming into the market, but it will take some time before the borough sees a sizable number of new units.
"Supply has increased, but continues to be extremely low," said Douglas Elliman executive vice president Yuval Greenblatt.

With demand building, buyers are pushing into neighborhoods that they may not have considered in the past.

"We are starting to see, in small ways, deals in places where we had done little before, including Cypress Hills and East New York," Percesepe said. "I am seeing a push deeper into Brooklyn."

Friday, July 25, 2014

Get ready for the next Oceana in Sheepshead Bay!

Muss is in again!

Commercial Observer excerpt -

A joint venture between Muss Development and AvalonBay Communities is planning a residential development on a recently acquired site in Sheepshead Bay, Brooklyn, Commercial Observer has learned.

The partners are planning a split condominium and rental building on the vacant 83,000-square-foot site at 1501 Voorhies Avenue, Jason Muss of Muss Development confirmed.

The partnership closed on the acquisition of the site in April for $16.2 million, according to public records. The site at 1501 Voorhies Avenue allows for approximately 250,000 square feet of development, according to a source familiar with the transaction.

In a separate deal, Muss acquired an adjacent retail property at 1600 Sheepshead Bay Road for $4 million. The building is anchored by a 4,500-square-foot Citibank branch and boasts an additional 4,000 square feet of retail space and 9,000 square feet of commercial space, Mr. Muss told Commercial Observer in an email.

Wednesday, July 16, 2014

Shore Theater update

Brooklyn Eagle excerpt -

Last summer, his heir Jasmine took the Shore Theater off the sale market. A year later, brokers are still trying to convince her to entertain offers from deep-pocketed investors.

“I have clients who are ready, willing and able to write a check for the Shore today,” broker Joe Vitacco told Eye on Real Estate.

He has tried to submit purchase offers to her, but in vain: “She won't even look at them.”
Vitacco said he has four “solid” suitors for the Shore Theater:

* A “very well known restaurateur” from Manhattan who wants to build a cooking school downstairs and a restaurant on the top two floors.

“The view from the seventh floor is magnificent,” he said, and there's a Juliet balcony where diners would be able to watch the Brooklyn Cyclones playing baseball at MCU Park.

* A “nationally known athlete” who would turn the Shore back into a movie theater — and no, it's not Magic Johnson (who isn't actively involved in Magic Johnson Theatres' operations these days, anyway).

* A billionaire with a home in Brooklyn who “thinks it's a beautiful building and should be restored,” Vitacco said.

This interested party made an offer when Horace Bullard was alive, but it wasn't high enough. Now, “he's willing to come to the table with more money,” the broker said.

* A real estate developer who is involved in Coney Island. 

Vitacco marketed Horace Bullard's properties for about a decade. When the Shore was Vitacco's listing, the asking price was $12 million.

He vowed to keep on trying to get through to Jasmine Bullard.
“I've got a lot of patience,” he said.

“A primary motive for me is that Horace's dream should come true. He had some great ideas.”
Commercial agent Richard DiPietro of Coldwell Banker Reliable received an offer from a group of investors who would pay for renovations but ask for an equity stake in the building. 

“Ms. Bullard could maintain ownership, enjoy the profits — and pursue her dad's vision and be a part of it,” he said. But he has been unable to reach her.

He estimates that renovating the 115,000-square-foot building could cost approximately $300 to $500 per square foot, about $35 million.

Her late father hired DiPietro in January 2013 to market the Shore. Before Horace Bullard's death, DiPietro got at least 10 written purchase offers with proof of funds.

When he contacted Jasmine Bullard several weeks after her father's passing, she told him to take the property off the market.

Since then, DiPietro has gotten 63 inquiries about the property from brokers, prospective buyers or investors interested in seeking a partial stake in it.

Eye on Real Estate also heard from other sources about an intriguing lease proposal for the Shore that didn't pan out.

They told us the Alliance for Coney Island was involved in the proposal last year to rent the theater and restore it with Federal funds from the Neighborhood Game-Changer Investment Competition, a post-Hurricane Sandy recovery program administered by the city Economic Development Corp.

Jasmine Bullard didn't respond to our calls by deadline. So we don't know if she has devised a plan for the vacant property that had belonged to her father since 1979.

Tuesday, July 15, 2014

Great News - Construction begins for Checkers in Coney

From Twitter-

What's NEW in Coney Island? Contractor starting work today for CHECKER'S burger joint in Surf Ave entrance to Subway Terminal next to Lola's

Friday, July 4, 2014

Chains currently improving Coney

Applebees, It'Sugar, Ritas, Little Caesars, Grimaldi's, Nathans, Pie Face, White Castle, Maui Wowi, Uncle Louie G's, Popeyes, Dunkin Donuts, Subway, McDonalds, Famiglia. Hopefully Johnny Rockets and Red Mango by end of summer.

There is no doubt that the chains have already arrived and are leading to an improved economy in Coney. And more to come........

Thursday, July 3, 2014

Great article on the development going on at Coney

Real Deal excerpt -

Coney Island’s comeback crawl

Mapping out this season’s real estate additions in the beachside community long looking for reinvention

Good details here-
I find it so interesting that Zigun put down chain restaurants when we all know how important  franchises are to the future of Coney development. They are absolutely imperative. Here is a Zigun quote in the article-

“It’s awesome that Mian has turned this into an upscale business, and that it’s not a franchise restaurant,” he said.
And here is another quote in the article from  Joe Vitacco, a broker speaking about a different parcel-

The other five storefronts are empty, but three of them, totaling 5,400 square feet, are now being eyed by a “national chain restaurant,” said Vitacco, who’s representing Yakubov.