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

Friday, February 20, 2015

Financial Times - Bed Stuy Real Estate

Excerpt -

Late last year a restored 1890s townhouse on Gates Avenue sold for $3m, a record sum for Bedford-Stuyvesant and more than $300,000 above its asking price. A four-storey brownstone a few blocks south on Arlington Place sold last December for $2.25m, more than $200,000 above its list price. Townhouse sales in the district hovered around $600,000 two years ago. Today, renovated brownstones in Bedford-Stuyvesant list for about $1.5m, according to Corcoran Group Real Estate. 

“I’m seeing in Bed-Stuy what I saw happen in [hip Brooklyn neighbourhood] Williamsburg in 2002,” says David Maundrell, founder and president of Brooklyn real estate brokerage The firm is marketing several new condominiums in the district, including 1188 Bedford Avenue, a 14-unit project that is among the most expensive in Bedford-Stuyvesant. A two-bedroom, two-bathroom apartment is priced at $825,000.

“The surge began with buyers who were priced out of other areas, but now prices are rising much faster than anyone predicted,” says Maundrell.

In the fourth quarter of 2014, the average sales price in North Brooklyn, which includes Bedford-Stuyvesant, rose 17.7 per cent year-on-year to $605,961, according to data from property appraiser Miller Samuel. Prices in the area have risen 65.6 per cent since 2010, representing one of the largest increases of any New York City district.

Despite the rise, Bedford-Stuyvesant still represents a relative bargain compared with more established areas of Brooklyn such as Park Slope, Fort Greene and Williamsburg. The average price of a home in the latter — among the most rapidly gentrifying areas in Brooklyn — reached $1.12m in the fourth quarter of 2014, according to Miller Samuel. “Buyers are getting a lot more for their money in Bed-Stuy and that’s still the most attractive feature,” says Brooke Safford, a broker at Corcoran Real Estate Group.

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