An article published late last week by The Real Deal cites that “the median closed sales price in Brooklyn has already fallen back to 2005 levels, dropping 19 percent over the past two years, according to StreetEasy. Rental listing prices dropped 12 percent over the past year”. Brooklyn is such a large area, so any generalizations on price levels may not apply to specific neighborhoods, especially the small area of Dumbo.

The Real Deal looked at Brooklyn as six sections:

• Downtown Brooklyn/Clinton Hill/Fort Greene: “experienced the most rapid fall in median sales price, 29 percent over the past two years.”
• Dumbo/Brooklyn Heights/BoCoCa: “The largely landmarked district comprised of Dumbo, Brooklyn Heights, Boerum Hill, Carroll Gardens and Cobble Hill had the smallest median sales price decline over the past two years, at 7.5 percent. The area also saw one of the smallest declines in rental listing prices over the past year — 4.7 percent.”
• Williamsburg/Greenpoint/Bushwick: “No area in the city epitomizes the boom and bust more than the neighborhoods of Williamsburg, Greenpoint and, to a lesser extent, Bushwick”. “listing rents here have already fallen the furthest, 21.5 percent over the past year”. “The median closed sale price fell 18.5 percent over the past two years, and the area has the most inventory of any market. In addition, the number of transactions declined the most, 58.2 percent, over the past year.”
• Bed-Stuy/Crown Heights/Prospect Heights: “Of all six areas The Real Deal examined, median sales price fell the least over the past year in the neighborhoods of Bed-Stuy, Crown Heights and Prospect Heights, at a combined 5.7 percent.” “Listing prices saw the most aggressive decline over the past year, at 20.9 percent, and the median listed rent fell by 11.7 percent.”
• Red Hook/Sunset Park/Windsor Terrace/Gowanus: “has seen the second largest overall decline in median closed sales prices over the past year, at 24 percent. Conversely, its median rental listing prices have declined the least during the same time period, by only $50, to $1,900.”
• Park Slope: “over the past year the number of transactions saw the second-highest drop at 48 percent. Median listing prices over the past two years fell 25 percent, and rental listing prices fell 7.4 percent.”

Looking at the data, The Real Deal combined Dumbo with Brooklyn Heights, Boerum Hill, Carroll Gardens, Cobble Hill, and Vinegar Hill. Dumbo is such a small neighborhood with very little inventory and higher demand that rental and sales prices have not fluctuate much, according to sales records and emails from area realtors who wished to remain anonymous. If the $25million condo at One Main sells, the average price of a Dumbo condo will rise, said one broker.

In the article, Jonathan Miller, president of the appraisal firm Miller Samuel, says that “the area with the highest amount of new development concentration there, by definition, has the most exposure to the troubles with new development lending…In terms of the hundreds of troubled residential projects looming in the shadows, the more units you push into the market, the more impact you can have on values.” While Dumbo had new development (i.e. 85 Adams, 84 Front, 206 Front St, 100 Jay, for example), many of them were sold out (or converted to rentals such as 133 Water and 99 Gold) by the time the credit crisis hit in 2008.

So how is Dumbo faring, according to The Real Deal?:

“While the area saw relatively few cranes during the building boom, retail districts flourished, like Smith Street’s “restaurant row” and Dumbo’s arty mash-up of bars, bookstores, furniture stores and more recently, two Brooklyn Flea outposts.

Several area brokers pointed out that, with the simultaneous mall-ification of Manhattan, these quaint neighborhoods have become preferred alternatives for many buyers: “what the West Village was like 20 years ago,” said Janet Gigi Zimmerman of Brownstone Real Estate.”

“With no comparable properties, experts say its sale will affect little in the Brooklyn market.

“It’s hard to put a price on a property that’s so unique and iconic,” said Kim of StreetEasy. “However, looking at comparable properties in Manhattan like the listings at Palazzo Chupi and the Police Building, it will be very difficult to find a buyer at its current pricing.”

When we spoke with realtors in Dumbo in June about Dumbo’s condo prices, they estimated a 5% drop in pricing. The data by The Real Deal is not too far off with the district having the “smallest median sales price decline over the past two years, at 7.5 percent.”

Some of the upcoming new development in Dumbo and Vinegar Hill are:
100 Gold Street
181 York Street
109 Gold Street
192 Water Street
53 Bridge Street
37 Bridge Street
201 Front Street
Dock Street Dumbo

Atlantic Antic will transform 10 blocks of Brooklyn’s Atlantic Avenue into a huge street festival on Sunday, October 4 between 10am-6pm. Spanning from Hicks Street to Fourth Avenue, passing through Brooklyn Heights, Cobble Hill, and Boerum Hill in the heart of brownstone Brooklyn, the Atlantic Antic is one of the largest street fairs in the country. There will be something for everyone: shopping, food, live performances, free demos, celebrity sightings, games, belly dancing, drinking, and tours of the Brooklyn Bridge Park.

We are planning to be at these events as part of the Atlantic Antic:
1) Tour The new Brooklyn Bridge Park with Regina Myers

Regina Myer has joined forces with Moxie Spot, Karen Auster of the Atlantic Antic Street Fair and One Brooklyn Bridge Park to offer “Hard Hat Construction Tours” of Pier 6, including the children’s playground in Brooklyn Bridge Park. The Brooklyn Bridge Park Conservancy and the Brooklyn Bridge Park Development Corporation will swing open the gate at Pier 6 to give Atlantic Antic visitors a special sneak peek of the 1.5 acre playground. See how Slide Mountain and Swing Valley are taking shape and get a glimpse of the sandbox and water play area under construction. Set to open in early 2010. Tours will leave every half hour from Noon to 3:30pm. Meet at The Moxie Spot, 81 Atlanic Avenue at Hicks Street. Remember to wear comfortable, closed-toe shoes, (FREE)

2) Sixpoint Craft Ales Pub Crawl

One of our favorite beers, Brooklyn’s own Sixpoint Craft Ales is hosting the “Sixpoint Atlantic Antic Pub Crawl,” featuring the fourth incarnation of the Atlantic Antic Amber, which is only available for one day – Sunday, October 4th – at 7 bars pouring a variety of their beers. They will also have a booth set up between Court Street and Clinton Street.
3) GUMBO at 493 Atlantic Avenue
Stop by at GUMBO at 493 Atlantic Avenue to see some music and performances. Our friends at A Child Grows in Brooklyn will be there to hand out balloons for your kids.

Happy 100th Birthday Manhattan Bridge!

The following are selected links from this past week on blogs and websites with discussion about Dumbo (and its neighboring areas):

• Commercial landlords donate space to arts, 28Sept09, TRD
• Blackbird Artists Agency Signs Lease From Two Trees, 29Sept09, NY Observer
• 25 Wash Being Converted to Condos, 29Sept09, Brooklyn Paper
• Happy 100th Manhattan Bridge!, 01Oct09, Brooklyn Paper
• Dumbo Art Festival, 29Sept09, NY Daily Photo
• Cursor kites fly over Brooklyn, 28Sept09, Core77
• Art Under The Bridge Fest, 27Sept09, MyNYCPhotos
• Fishwithoutbicycle, Patron Of The Arts, 27Sept09, FWB
• 100 Jay Apt House Tour, 28Sept09, Apt Therapy
• Art Fest Attracts 100k+, 28Sept09, Brooklyn Eagle
• Dumbo Visit, 29Sept09, callmedeebs
• Yassky: DUMBO School Not Up to Standards, 29Sept09, Brooklyn Eagle
• Manhattan Bridge 100th Anniversary Special, 01Oct09, TONY
• Manhattan Bridge Turns 100 In Style, 01Oct09, PMFA
• 38 Essential NY Restaurants (Incl 1 in VH), 02Oct09, Eater
• Studio in Dumbo, 02Oct29, Blue on Blue
• The Business of Social Media w/ Carrot Creative, 01Oct09, Slam

A project named “Almost Perfect” is filming all day today until 7pm on Jay Street in Dumbo. There was a TV series with the name of “Almost Perfect”, but was back in 1995-1996. Anyone know if this is for a movie?

“DUMBO wedding goes to the dogs…” (Photo by mimi_destiny)

“Gloves Off” at Gleason’s Gym (Photo by wesleyrosenblum)

“Calm” (photo by Blinding Lights)

(Photos are from the DumboNYC Flickr Pool. If you have your own pictures related to Dumbo, please feel free to drop them there.)

TONIGHT: A festive occasion each month for art lovers. A chance to visit many quality galleries at night in the Dumbo Historic District – galleries showing works from artists of many disciplines, especially photography, while hosting receptions, producing live music performances and curator/artist talks among other highlights.

Let’s not forget the incredible views you can enjoy as you walk from one gallery to the next and the local drink specials afterward. Most of the art is for sale. Printed maps and 1st Thursday cards are available on-site.

Participating galleries may vary each month. For more information contact Zannah Mass at zannah@twotrees-dumbo.com or 718-222-2500 x38.

Check gallery websites for updates.
A.I.R. Gallery, 111 Front St., Suite 228
Amos Eno Gallery, 111 Front St., Suite 202
Bose Pacia, 163 Plymouth St.
Brooklyn Art Project, 5 Front St.
Brooklyn Arts Council, 111 Front St., Suite 218
Caption Gallery, 55 Washington St., Suite 802
Central Booking, 111 Front St., Suite 214
DUMBO Arts Center, 30 Washington St.
Farmani Gallery, 111 Front St., Suite 212
Henry Gregg Gallery, 111 Front St., Suite 226
Klompching Gallery, 111 Front St.
Kris Graves Gallery, 111 Front St., Suite 224
Magasin Totale, 10 Jay St., Suite 724
Melville House, 145 Plymouth St.
Pochron Studios, 20 Jay St.
Possible Projects, 68 Jay St., #510
Powerhouse Books & Powerhouse Arena, 37 Main St.
Rabbithole Studio, 33 Washington St.
Randall Scott Gallery, 111 Front St., Suite 204
Smack Mellon, 93 Plymouth St. @ Washington Street
Spring, 126a Front St.
Umbrage Gallery, 111 Front St.
VII Photo, 28 Jay St.
Watermill Brooklyn Gallery, 55 Washington Street, Suite 216