Apartments In Dumbo Brooklyn Not Selling As Well As Predicted?

By Author: Lawrence Roy
Total Articles: 10
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As reports come in about the Jehovah's Witnesses moving headquarters to upstate Warwick, NY, one must wonder why the dormitory building at 107 Columbia Heights sold for a mere $87 million. There was speculation that the building was worth just about $1200 per square foot, which would translate to a value of over $185 million.

One thing to consider on the sale price may have been the amount of renovation the buyer was going to do on the property. It has been said that the massive courtyard could be converted into additional residential units. The second thing to consider is that the building can not be torn down, and currently exceeds the zoning codes as far as height is concerned. And lastly, one must consider that the property has been on the market for over 1-1/2 years.

According to some experts, the real estate market went soft in the 4th quarter of 2016. While the lower end of the market remained tight, the high end of the market did not. The reason behind this is the demand for certain properties. Price ranges around $500K were still attainable, while the demand was significantly less for those properties ...
... in the 1-2 million dollar range.

For the JW team, the under priced sale seems unfortunate, but for the buyer it seems like a steal. After the renovations are finished, the new units should bring top dollar. If you take a look at other luxury rentals in the area, you will find the average rent to be around the $5000.00 range for a 2 bedroom apartment, and around $2600 for a studio apartment in the same neighborhood.

We are looking forward to getting more details concerning the renovations at 107 Columbia Street to see how the units compare to the units in Brooklyn Heights owned by Two Trees Management.