Delusional landlord wants $4.5 mil for townhouses

You would think with the massive mortgage crisis that we'd stop seeing property listings with sky-high asking prices. Ha! says the owner of 60, 62, and 64 Hawthorne Street, who is asking $4.5 million for three contiguous homes on the block between Flatbush and Bedford (which happens to be our own). Nevermind that the highest price for a townhouse sold on this block is $1 million — and that that place was in great shape. The owner expects a payload for these messes, which are being sold as a lot because they all share a boiler. Bummer. We have friends who have been looking to buy a multifamily home in the nabe, but it seems like the only people selling are comedians. 

On the bright side, there's little risk of a teardown; R6 zoning prevents that from being profitable.

Comments

[Bob Marvin]

Built in 1931? That's what the ad says. Perhaps that's when the single boiler was installed for all three and they were cut up into small apartments. I's think the houses were built c. 1910.

[Matt]

Bob, the records I've seen for the brownstones on the south side of hawthorne all say 1930 or so. I hadn't known the style was built that late, either. But were these houses (which are painted brick, I think) ever single families? This developer is nuts to ask 1.5 each. If they're serious about it, they could get maybe half that. Market rate for a renovated floorthrough there is probably $15-1600. So 10x rent roll would be around $750k per building. The rent stabilized units, 2 to a floor, are probably a lot less, so there has to be a discount there. Say 750k each for the two market rate buildings, and 500k for the stabilized. That's 2 million for the three. This is me playing armchair developer, but that's my guess for a fair value. Of course, there's a half-finished condo across the street, and who knows when that's going to get finished.

[tomgee]

Yes c.1910 seems accurate. The 1930s saw little to no developement as it was the Great Depression. The next building era was post-WW II and by that time this style of townhouse was long gone. I think this style and design became extinct in the 1910-1918 era. I am around the corner and my house was built in 1909 (I found evidence from a newspaper stuffed in the facade). So I believe Bob Marvin is accurate.