Value Investment: Boerum Hill 3-Family


This week's listing spotlight is a 3-Family brick townhouse in one of Brooklyn's most popular neighborhoods. Conveniently located, with easy train access, and a host of amenities including some of Brooklyn's best boutique shopping, restaurants, and bars - Boerum Hill, Brooklyn Heights and Downtown Brooklyn's brownstone filled southern neighbor, is one of the Borough's less recognized high performers in terms of PPSF value add over the past 5 years. Since 2012, the average resale price per square foot of 2-bedroom condos has increased from $784 to $1,162, a more than 48% increase.

Multi-family home prices have also increased dramatically. In the third quarter of 2017, the average active price per square foot was $971, which translates to an average listing price of $2,797,500. Looking at rent rates in the area, one bedrooms rent for between $2500-$3200 per month, two bedrooms for between $2800-$4000, depending on finishes

This week's gem can be had for well under $2,500,000, at a price less than $870/sqft. This is unique because there are only four listings under $3M in this area. The other listings are priced at $996, $1,005, and $1,348 per square foot -- and none are currently useable as a 3-family.

As a 3-family, an owner/investor could conservatively expect net rental income of well over $100,000 per year, given the low taxes and high rental demand in the area.

I like this property even more for the end user who wants to live in 1-2 units combined and rent out the remaining units. For that end user, even with only 20% down, they could live in an enormous brownstone duplex with basement and yard for under $4,500/month in net carrying costs.

If this piques your interest, or you'd like to find out about other investment opportunities, please don't hesitate to get in touch.

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Isil Yildiz Team

 

Compass 

110 5th Avenue

New York, NY 10011

(P) 985-714-4470

isil@compass.com

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Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdraw without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. Exact dimensions can be obtained by retaining the services of an architect or engineer. This is not intended to solicit property already listed.