Thursday, April 24, 2014

The Long Transformation Of The Brownstone at 132 Second Place To $9,895,000 Investment Property

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Halstead Realty listing for 132 Second Place
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Previously

132 Second Place in 2008
132 Second Place in 2008
Addition of the Fifth Floor in 2008
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Removal of the stoop in 2011

It has been a long nine years for the brownstone at 132 Second Place.   What started in 2005 as a vertical and horizontal enlargement, quickly turned into a comedy of errors, complete with a  back wall collapse,  DOB violations for work done without proper permits,  and stop-work orders. Add to that a change in ownership and a time in limbo after the Carroll Gardens Wide Street Text Amendment and Contextual Rezoning, which all contributed to long delays.
But perhaps, all the setbacks will finally pay off for its owner.  Just recently, the brownstone been listed by Halstead Realty for $9,895,000 as an investment property.  That sicker price may be a record for Carroll Gardens.
According to the listing, 132 Second Place is:
"setting a new tone for investment properties is this fully renovated energy efficient 5-unit brownstone. The buildng has undergone a thorough and extensive high end renovation, has 5 high income producing apartments and will be delivered vacant. Building measures 25x50x14x14 on 5 floors and the lot is 100 feet. Each apartment has their own HVAC air/heating unit, hot water heater, K6 wiring, washer/dryer, high end appliances, custom finishes and much more. Includes: Garden level duplex w/Rec Room and landscaped backyard; Apartments 2-5 are 3 bedroom, 2 bath w/Terrace and 5th floor includes a private roof deck. Prime Carroll Gardens location and conveniently located to public transportation, schools, playgrounds and local neighborhood shops and restaurants. Estimated rent roll and set up available upon request."

Back in 2005, the building was sold for $1,850,000 to Mohegan Holdings, Co. LLC. In 2007, the deed to the property was transferred from the Mohegan Holding Company, LLC to a Henry Azcue for $1,825,000. Zillow indicates yet another sale for $8,500,000 in 2007.
In the recent past, the individual apartments were either listed as rentals or as condos.  However, none of the units were ever occupied, and per the Halstead listing, the building will be delivered vacant.

It is worth pointing out that 132 Second Place is right next to the elevated F train tracks.  And perhaps it is an oversight, but the Buildings Department site does not indicate that a Certificate of Occupancy exists for the building.

So what do you think? Is this more real estate folly or do you think the seller will get his price?


10 comments:

Anonymous said...

even if it doesn't get the asking price, that's what venture capitalism is all about...but this is what redevelopment should look like.. wonderful job..

Anonymous said...

If the listing is to be believed, the building's FAR is 2.5. The fact that the "community" feels that an FAR of 2.5 steps from a train station, around the corner from a drug store, super market and all the restaurants you could ever want, is too much, just proves that citizens should not control their land use. To reduce impacts, maintain sane housing prices and reduce driving, we need to be encouraging development at sites like this, not whining about an extra story.

The price, however, is insane. That's what happens when you downzone a desirable area...

Anonymous said...

To get to the 4.06% advertised cap rate the apartments need to net on average ~$6800/mo for 1000sqft. apartments. Interesting they could come up with a cap rate to one-hundredth of a percent without any rental history whatsoever.

SashaK said...

I don't know about the price, but that crooked awning bugs me every time I pass by.

Katia said...

Sasha, you and me both. I think the awning may just be an indication of the level of 'care' taken during construction.

vintagejames said...

Fugly.

BrooklynMatt said...

I think we need a competition for the best sales pitch wording for the porches that overlook the barreling subway. Maybe: terraces provide invigorating view and spiritual/body awakening.

Becky said...

Fugly about covers it.

Jim said...

He'l never get it.

Anonymous said...

I would hate to have my back yard have to see how they hogged up space. Talk about out of context. What if everybody did this?