There’s a new commercial building offering office space at 231 Front Street (between Bridge and Gold Streets). A 70,000 square feet office property, 231 Front Street is an Early 20th Century commercial style factory building, designed by William B. Tubby, and built in 1908.

At this point, the first floor is built out with 25 office spaces with rents ranging $950-1,300 per month. These are single room offices (no food or retail) similar to GreenDesk in Dumbo. Two larger spaces, for $2,200 and $2,500 have already been leased out. For further details, contact Creative Real Estate Group, who is handling the leasing (Frank DeCarlo 917.882.2185 or francisdecarlo@gmail.com.

{LPC Reviews 30 Henry and 231 Front Street, 10Jan2012}

We received the below update from Chris Havens, Chief Executive at Creative Real Estate Group, a local commercial real estate business on the Dumbo Retail Report for January 2012:

“We now track retail activity closely, as you can see from the attached report, the first of many to come. Note that Superfine is on the cover, my favorite watering hole in all of BKLYN. Without Superfine, Dumbo would not be Dumbo.”

Inventory

One hundred and twenty-nine storefronts currently utilized as retail, restaurant, office and studio space comprise the area market, totaling 316,474 SF.

Four distinct mini sub-markets outline what is now called DUMBO: Fulton Landing/Old Fulton Street; Between the Bridges/Central DUMBO; DUMBO east of the Manhattan Bridge (John to York, Jay to Pearl); Vinegar Hill (east of Jay to Hudson Avenue/Navy Yard overlook).

Spaces range from 50SF to 6000SF, which most availability above 3000SF. Demand for stores under 1000 sf exceeds supply by a wide margin. Yet larger sizes languish. Bars, food tenants, restaurants home goods and apparel comprise much of the demand. DUMBO nightlife is growing, with the addition of Rebar, the expansion of 68 Jay bar and increased tourist traffic. However, the area doesn’t yet compare to Smith Street or 5th Avenue in Brooklyn. That being said, the area hosts a soon to be famous pizza block bounded by Old Fulton, Front, Dock and Water boasting Ignazio’s, Grimaldi and soon to be Julianna’s.

Vacancy Rate

The area-wide vacancy rate is 11.5 %.

Eleven storefronts and retail sites are currently offered, with nine sized 2000SF and above. All but one of these large spaces are on Fulton Street or in Vinegar Hill, not the center of DUMBO. The one large space Between the Bridges, 6600SF at 81 Front, is now Leases Out after receiving multiple offers last fall. Small Space – at the time of this writing, only mini-spaces at the Shops at 145 Front are available and an office-oriented space on Bridge.

Asking Rents/Taking Rents

Asking rents range from $40 to $75 per foot, based on size and location. The high end of the range are spaces under 500 SF.
Recent taking rents include last year’s relocation of P.S. Books from 147 Front Street to 2138SF at 76 Front for $37 a foot in late 2010. One Girl Cookies took 1457SF at One Main for $42 a foot in October 2011. The 1250 SF space at 57 Front was leased in December 2011 to a spa for $40 a foot.

Spaces that may become available in 2012 under 2000SF on prime streets, which are Front, Washington and Jay, would be worth a minimum of $60 a foot.

The Brooklyn retail market has accelerated this year, trending upward in both price and velocity.

Previously:
{Dumbo Retail Report (Dec 2011)}
{Dumbo Commercial Real Estate Update (Nov 2011)}

(30 Henry Street)

(231 Front Street)

The Landmark Preservation Commission reviewed proposed changes for 231 Front Street (Vinegar Hill) and 30 Henry Street (Brooklyn Heights) in today’s meeting. No word yet on the results.

231 Front Street is an Early 20th Century commercial style factory building, designed by William B. Tubby, and built in 1908. The application is to alter the façade, rebuild entrance stairs, and install a canopy. Brownstoner mentioned in October 2011 that the plans for 231 Front Street is to convert the building into office space. (BIS for 231 Front Street)

30 Henry Street aka 28-30 Henry Street is a building reconstructed in 1963 as a factory and store building. The application is to demolish the building and construct a new building. As the Brooklyn Eagle has reported, the proposed new building will be five stories and will contain six residential units with balconies. Additionally, the building will contain underground parking and outdoor space with a waterfall. Currently, the building is home to Brooklyn Daily Eagle.

(Photo from Brownstoner).

That was fast. The two most expensive condo units at 205 Water Street, the new Toll Brothers development are under contract. Unit #7A, a 3 bedroom, 2.5 bath, 1,866sqft condo is in contract for $1,959,990 ($1,050/sqft, cc $2,047/mo, $678/mo taxes) includes a 782sqft terrace and was on the market for only 17 days. Unit #PHN, a 3 bedroom, 2.5 bath, 2,187sqft condo is in contract for $2,296,990 ($1,050/sqft, cc $2,785/mo, $922/mo taxes) includes a 2,344sqft of combined terrace space and was on the market for a month and a half.

Penthouses at another development at 37 Bridge Street (aka Kirkman Lofts) have recently been put on the market and the building is 70% sold.

The new condo re-developments on Water Street and Bridge Streets are moving quickly. Realtors we spoke to recently told us that larger units in Dumbo sell very quickly as more families are looking to move into the area. The large lofts at 192 Water Street sold very quickly. According to Streeteasy, there are two active listings at 192 Water Street.

For those looking for that trophy condo in Dumbo, the $23.5MM Penthouse at 1 Main Street is still on the market.

(Photo: Emily Berl for The New York Times)

Two Trees Management principal Jed Walentas was featured in The New York Times Sunday Real Estate. At 37, he looks “more Silicon Valley entrepreneur than big-city real estate tycoon”, but runs the real estate management firm his father built by buying two million square feet of former factory and warehouse space between the Manhattan and Brooklyn Bridges in 1981 (for $12 million) and creating the most expensive neighborhood in Brooklyn. Mr. Walentas tells the NYTimes that he wants “to find ways to better connect Downtown Brooklyn with the thriving neighborhoods that ring it. With so many college-age students attending classes — but often not living — in that section of Brooklyn, he said it mystified him that more hadn’t been done to keep them there.”

He not only has influence on Dumbo, but neighborhoods stretching from the West Side of Manhattan to Fort Greene, Brooklyn. He also supports entrepreneurs and the tech community, when he helped present the Dumbo incubator last summer. He also contributed a piece on Brooklyn Eagle on how AT&T, an international corporate entity is supporting the local community.

Bruce Ratner, the president of the Forest City Ratner Companies, which is developing the Atlantic Yards in Brooklyn said

“Battery Park City is a great place, but it does not have the same sense of character as Dumbo. Rockefeller Center, on the other hand, has a definitive sense of character, because “the Rockefellers had some idea of what they wanted that place to be.”

In Dumbo, he said, the guiding vision was to retain the area’s industrial flavor (without the industry), while providing a street-level experience both diverse and interesting — even if it means subsidizing rents for small-business owners and declining the high rents offered by big-box stores, or selling off properties and cashing out.

“Jed holds firm to the vision,” Mr. Ratner said. “And that is not a minor comment.”

High praise from one of the more well known develpers. However, Judy Stanton, the executive director of the Brooklyn Heights Association has been a critic has battled with both David and Jed Walentas over numerous projects, including the controversial Dock Street project.

Read the article to find out why attracting diversity is important for NYC, why real estate prices are so high, and how he and Donald Trump differ in their styles.

We received the below update from Chris Havens, Chief Executive at Creative Real Estate Group, a local commercial real estate business on the Dumbo Retail Report for December 2011:

“Snap shot of vacancy rate, asking prices and estimated rents for the area bounded by Old Fulton Street, York Street, Hudson Avenue and the East River – known as Fulton Ferry, Dumbo and Vinegar Hill.”

Inventory

One hundred and twenty-nine storefronts currently utilized as retail, restaurant, office and studio space comprise the area market, totaling 309,000 SF.

Four distinct mini sub-markets outline what is now called DUMBO: Fulton Ferry Landing/Old Fulton Street; Between the Bridges/Central DUMBO; DUMBO east of the Manhattan Bridge (John to York, Jay to Pearl); Vinegar Hill (east of Jay to Hudson Avenue/Navy Yard overlook).

Spaces range from 50SF to 6000SF, which most availability above 3000SF. Demand for stores under 1000 sf exceeds supply by a wide margin. Yet larger sizes languish. Bars, food tenants, restaurants home goods and apparel comprise much of the demand. DUMBO nightlife is growing, with the addition of Rebar, the expansion of 68 Jay bar and increased tourist traffic. However, the area doesn’t yet compare to Smith Street or 5th Avenue in Brooklyn.

Vacancy Rate

The area-wide vacancy rate is 10.2%.

Ten storefronts and retail sites are currently offered, with seven sized 3000SF and above. All but one of these large spaces are on Fulton Street or in Vinegar Hill, not the center of DUMBO. The one large space Between the Bridges, 6600SF at 81 Front, is now Leases Out after receiving multiple offers this fall. There are no spaces at 2500SF and four below that size.

Asking Rents/Taking Rents

Asking rents range from $40 to $75 per foot, based on size and location. The high end of the range are spaces under 1000 SF.

Recent taking rents include last year’s relocation of P.S. Books from 147 Front Street to 2138SF at 76 Front for $37 a foot and One Girl Cookies taking 1457SF at One Main for $42 a foot in October.

Spaces that may become available in 2012 under 2000SF on prime streets, which are Front, Washington and Jay, would be worth a minimum of $60 a foot.

The Brooklyn retail market has accelerated this year, trending upward in both price and velocity.

Previously:
{Dumbo Commercial Real Estate Update (Nov 2011)}

Sotheby’s has listed today this 3 bedroom (currently used as a 2 bedroom), 2.5 bath, 1,592 sqft condo at 100 Jay Street #28H for $1,799,000 ($1,130 per sqft). The condo looks to be in perfect condition and has some great views of Manhattan and Brooklyn Bridges. We’re told by a tipster that it’s owned by married celebrities who “may or may not be splitting.”

Price: $1,799,000
tax (monthly): $30
cc: $1,115

Kirkman Lofts, a new condo conversion development at 37 Bridge Street in Dumbo, Brooklyn, has just released four new penthouses on the market.

• Penthouse B, a spacious 1,469 sqft three-bedroom, two-bath unit with skylights for $1.5 million
• Penthouse C, an airy 938 sqft one-bedroom, one-bath unit with a second floor loft mezzanine with skylights for $800,000
• Penthouse D, a 1,693 sqft four-bedroom, two-and-a-half-bath with a kitchen pantry and a spacious great room with skylights for $1.65 million
• Penthouse E, a 1,670 sqft four-bedroom, two-and-a-half-bath unit with an open living/dining area and kitchen skylight for $1.425 million.

The common penthouse foyer is formed by an original steel silo that is drenched in light from the skylights above. Other historic accents include oversized industrial-inspired windows and reclaimed wood accents that are installed in common areas and throughout the homes. The development is currently over 70% sold and prices have increased three times since sales launched in April 2011. Move-ins are expected to begin in the winter of 2011-2012.

Previously:
{Kirkman Lofts 55% Sold, 27Sep2011}
{37 Bridge Street Nearly Complete, Now Known As Kirkman Lofts, 22Apr2011}
{Lightning Strikes 37 Bridge in Dumbo, 24Mar2011}
{37 Bridge St Gets Quiet, 17Dec2009}
{37 Bridge Street Update, 14Aug2009}
{Soundproofing Windows in Dumbo, 03Dec2007}

Brooklyn Eagle reports that Massey Knakal has been retained to sell a “warehouse/manufacturing/conversion/development site with additional air rights” at 51 Jay Street in Dumbo. The building is also known as 201 Water Street or “Jay Street Arts Building” per the sign on the building.

The Brooklyn Eagle writes:

Calling it a potential conversion or development site, Palmese, who has the listing, said the owner is asking $200 per square foot for the second and third floors and $150 per square foot for the development rights.

The existing through-block, three-story building, which is on the east side of Jay Street and has frontage on both Water and Plymouth streets, falls within the DUMBO Historic District and will have to go before the Landmarks Preservation Commission for approval of any changes, according to Palmese.

It contains approximately 80,000 square feet, with a partial basement and an annex building and sits on a lot that is approximately 200 feet by 155 feet.

The air rights total approximately 75,000 square feet.

With 80,000 square feet plus 75,000 square feet of air rights, the building can potentially be developed as a mixed-use development site and will be delivered vacant. The building size is 200′ x 155′, or 31,000 square feet per floor. If the owner is asking $200 per square feet for the 2nd and 3rd floors ($12.4MM), and $150 for the air rights ($11.25MM), that would bring the asking in the range of $23.65MM for the 2nd, 3rd, and air rights plus costs for 18,000 square feet on the ground level. Does this sound right?

The third floor is an open floor with a glass roof structure. The space can be made into a grand space for a business or residential. Spaces like this are becoming more scarce in Dumbo, so it seems like a good development opportunity for the right real estate developer.

Massey Knakal also have other warehouse/development properties in Dumbo, including 29 Jay Street, 60 John Street, and 109 Gold Street (Vinegar Hill).

According to a Curbed NY post, PropertyShark published their quarterly list of the most expensive neighborhoods (based on median closing price for each neighborhood). PropertyShark noted that Dumbo was one of the most expensive NYC neighborhoods in Q2 2011. In Q3 2011, Dumbo moved up one notch. Curbed writes, “Dumbo continued to rise in the ranks (up from #4 last quarter to #3), and Tribeca overtook Soho for the top spot.” Median sales price in Dumbo for Q3 was $1,460,000, which increased by 39% over Q2 (which was tops in NYC) and percentage change over the year was 99%. PropertyShark’s listings of the most expensive sales in Dumbo last quarter were:

• 30 Main Street, #11G sold for $2.8MM on 7/11/2011. 2,474 sqft ($1,131/sqft), 3bed, 2.5bath, $2,035/mo cc, (PropertyShark listing)
• 31 Washington Street, #15 (aka #6B) sold for $2.8MM on 8/23/2011. 3,194 sqft ($970/sqft), Open floor plan, 2.5bath, $843/mo cc, (Featured on Brownstoner)

A commenter on Curbed notes: “So the neighborhood with the highest rate of appreciation is DUMBO. The neighborhood with the 2nd highest appreciation over the year was Boreum Hill. IN BROOKLYN. So Brooklyn snags the top 2 slots for housing appreciation in all of NYC. Surprised West Village didn’t make the top 10 though.” Is Dumbo WAY too bubbly for its own good?

Related:
{Dumbo Is One of the Most Expensive NYC Neighborhoods (Q2 2011)}