by mgranizo-ohare on April 21, 2011
Bushwick, Brooklyn, an area traditionally known for its “industrial backwaters” and dilapidated properties for many years, today is “trendy!”
Many residential real estate investors had identified Bushwick, Brooklyn as a neighborhood with future potential. As recently as four years ago, property values in the area bespoke of bargains in a real estate market on the brink of collapse. Now four years later in response to the residential development, cafes, bars, an art gallery and even an organic grocer have set up shop in the area. The Knick, a “green” condo building with forty-nine units opened last spring. Castle Braid Apartments, a 144-unit complex also recently opened and the developer, Mayer Schwartz is offering up to six months’ in free rent to tenants who improve the building’s asthetics. In sum, with its substantially lower rents, both for retail and residential tenants and its easy access to public transportation, Bushwick has become an up and coming area in Brooklyn! For investors and developers who made calculated bets on this area’s future potential, it might very well be an investment that will pay high returns as Bushwick continues its regentrification. Multifamily and single family properties values are still meaningfully discounted in Bushwick area as compared to their Williamsburg and certainly their Manhattan neighbors.
[Data Source: Crain's New York Business, April 18-24, 2011 Issue]
For Multifamily Properties that Meet Your Investment Criteria, Contact Marti O’Hare toll-free at 888-302-6116 or mohare@frandimapropertiesllc.com.
by mgranizo-ohare on December 13, 2010
Due to the anticipated increase in household formation from an improving economy, multifamily housing is the one commercial real estate sector that is expected to perform well in 2011. Multifamily vacancy rents are predicted to decline and rents are expected to increase 1.4 percent-particularly in the major metro areas. The New York City Multifamily housing market is expected to do well both in the short and long terms. Rising employment levels coupled with continued growth in hospitality and retail trade sectors will further strengthen the basis for recovery in our City.
Consequently, Manhattan is expected to see an increase in rent growth in the 6 percent range. The Bronx has experienced building activity due to its tight housing market and it affordability as compared to the other boroughs. It has seen an increase in effective rents of 3.4 percent and promises to continue to maintain low vacancy levels in 2011. Northern Brooklyn, a historically strong renters’ market, is anticipated to see a resurgence in rent growth. Other markets in Brooklyn, however, such as Bedford-Stuyvesant, Crown Heights and Bushwick are expected to experience a slower pace of growth. In the largest borough, the Queens Multifamily housing market is expected to benefit from job growth as well and is anticipated to see a 2.8 percent increase in revenues.
[Data Sources: NAR, Commercial Real Estate, Quarterly Market Report, November 29, 2010; and Marcus and Millichap, Fourth Quarter 2010, Apartment Research Market Update.]
For Multifamily Property Offerings that Meet Your Purchase Criteria, Contact Marti O’Hare at mohare@frandimapropertiesllc.com.
