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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