266 Washington Goes for $20 Million
Last week, The Real Deal reported that 266 Washington Avenue in Clinton Hill recently changed hands for $20 million. The buyer? Dermot Realty. Built in 1928, the 114-unit building has an additional 38,689 square feet of developable air rights. Brokers on the deal were Marcus & Millichap and GFI. Anyone know what kind of rentals…
Last week, The Real Deal reported that 266 Washington Avenue in Clinton Hill recently changed hands for $20 million. The buyer? Dermot Realty. Built in 1928, the 114-unit building has an additional 38,689 square feet of developable air rights. Brokers on the deal were Marcus & Millichap and GFI. Anyone know what kind of rentals these are now? Is there much rent control and/or rent stabilization in the building? The big question is what they will be able to do with those air rights in a landmarked district.
Brooklyn Apartment Building Sells for $20M [The Real Deal] GMAP
266 Washington Avenue Sells for $20 Mio [Set Speed]
Unfortunately, this is very representative of Clinton Hill rents (apart from the 1 BR, which, as I said, is way overpriced) west of Pratt and south of Myrtle. Cheaper apartments are on Grand and east or north of Myrtle; brownstone floor-throughs in this western part start at about $1800, but go for as low as $1400 in the east. And sometimes you can luck into a rent stabilized place that hasn’t turned over too much and get a deal.
I can’t believe that rents there are that expensive. Is this an anomaly or is this representative of the rental market in Clinton Hill?
This is a great building – nice lobby and elevator, a nice mix of residents. Of course, their goal here is to renovate the heck out of vacant apartments in order to get the biggest MCI increase possible and get them off of stabilization ASAP. I actually saw 2 apartments in the building this weekend. One was a big one bedroom, with exposed brick walls, brand new kitchen and bath, etc., but to me way overpriced at $2500. The I saw a big studio with a small separate kitchen, entry foyer, and dressing area leading to windowed bathroom. Nice details — molding on the walls, sunny. Kitchen to be replaced — asking $1550.
You can tranfer air rights only from a zoning lot that adjoins another (called a zoning lot merger), unless you’re in a few special districts that allow you to transfer the development rights from one place to another, like across a street from a historic building that’s under FAR. At any rate, you can never tranfer development rights to other lots in the city.
Can’t air rights only be transferred to adjacent building? I don’t think you can use a building’s extra air rights “elsewhere in the city.”
FAR for this area is 2.43. This building already has a FAR of 3.9. Where do they get the 38,689 square feet of developable air rights.
As it stands 105,000 @ $190/ft sq sounds pretty good. Can you say Condo Conversion. Dermot Realty is also doing One Hanson Place, so i’d expect the same kind of finishes.
Buy for $200 sq ft. Spend $150 sq ft ‘converting’. Sell for $500-600 sq ft. Make tidy profit….
However, not quite as nice as the previous ‘flipper’ who closed Jan 05 for $10.8 million and double their money in less than 2 years.
Sucks for the current residents though.
I was fortunate to be able to spend a couple of years in a great apartment in this building. It has a good mix of old time residents and newcomers. As far as I knew it was mostly market rates. After leaving I heard that the building was going condos and that many of the long time residents were upset because they didn’t feel that the insiders price was low enough to allow most people to stay.
BTW, like the new look but kill the Ariel.
they probably won’t use the air rights in that area. they’ll probably apply it to developments to increase their FAR elsewhere within the city.