The Reel

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A blog for breaking sales and neighborhood real estate news.

According to Massey Knakal’s Research department’s 2013 Brooklyn Property Sales Report, Brooklyn led all markets citywide in annual transaction volume. There was over 1,400 transactions totaling over $3.6 billion in aggregate dollar volume borough wide – almost doubling that of 2011. When taking a magnifying glass over North Central Brooklyn, which we define as comprising the rapidly transitioning neighborhoods of Bedford-Stuyvesant, Bushwick, Crown Heights and Prospect Lefferts Gardens, we see much more of an exciting picture. 

Transaction volume for these four neighborhoods alone accounted for 356 trades or a staggering 30% of the borough’s total transactions. Due to the capital gains related selloff we saw citywide in 4Q12, Brooklyn saw a 2% decrease in transaction volume and a 25% decrease in dollar volume (It should be noted that one transaction, King Plaza Mall sold for $750 million in 2012), while North Central Brooklyn saw a 12% increase in transaction volume and a 16% increase in dollar volume.

By year end, we had recorded that a total of 423 buildings sold in North Central Brooklyn - 52% of these buildings were walkups, 26% mixed-use and 11% development sites. Another impressive metric is the percentage of turnover across these neighborhoods. The long term average for Brooklyn is 1.9%. In 2013, the turnover rate for Bedford Stuyvesant was 2.2% down 13% from 2012, Bushwick 2.6% up 8% and Crown Heights 2.5% up 28%.  

In 2009, total dollar volume had an aggregate value of $104 million.  At the end of 2013, total dollar volume was over $566 million – that’s over a 400% increase! When looking back at 2011 and 2012, Bedford Stuyvesant, Bushwick and Crown Heights have consistently been three of the top five neighborhoods in terms of total transactions across the borough. An important side note is that the average sale price in this submarket is currently $1.6 million, 50% less than the borough wide average.

It is without doubt that demand for investment properties in North Central Brooklyn continues to grow stronger each year, boosting property values and encouraging turnover.

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