Today’s Living In article in the real estate section of NY Times features Dumbo. You can read the article yourself, but here are a few descriptions of Dumbo from the article:

• “one of the most expensive and sought-after loft districts in New York“
• on Dumbo life: “there is life on nearly every corner, with strollers and bicycles bumping along the Belgian-block streets, and aromas of eggs Florentine and shiitake mushroom ravioli spilling onto the sidewalks”
• on New Developments: “Each tower [J Condo and Beacon Tower] is almost complete, and sales have already begun, with most unit prices beginning a hair under $1 million and edging upward.”
• Commercial: “Though consumer-friendly commercial activity was difficult to find a few years ago, small businesses have emerged all over the neighborhood.”
• Real Estate: “prices per square foot depend on the views. “I’ve sold way above $1,200 a square foot,” Ms. Heyman said, adding, “It’s about the view.””
• Rentals: “Rentals in Dumbo are hard to find. One-bedrooms can rent for as much as $5,000 per month; there is very little available under $2,000.”
• Eats: “Restaurants, like Superfine on Front Street and Bubby’s at the base of the Clocktower building, keep appearing, as do stores like P. S. Bookshop on Front Street”
• Schools: “Dumbo itself has no schools; many parents send their children to the private and public schools of nearby Brooklyn Heights. At Public School 8 on Hicks Street in 2004-2005, 54.8 percent of students met standards in state and city English language arts tests, versus 60.9 percent citywide; 68.5 percent did so in mathematics, versus 65.1 percent citywide.”
• History: “The names of Dumbo’s streets (Main, Front, Water) reflect its beginnings as a commercial downtown for Brooklyn, starting in the 1600’s.”
• Likes: “A walk through Dumbo is like none other in New York City; without looking at the baby clothing and natural food stores, the near-perfect preservation of its houses of manufacturing and unrivaled waterfront views are highly compelling.”

And residential properties mentioned in the article:

• 1 Main Street (Clocktower)
• 30 Main Street (Sweeney Building)
• 70 Washington Street
• 85 Adams Street (Beacon Tower)
• 100 Jay Street (J Condo)
• 84 Front Street (The Nexus)

Finally the article mentions at the end that a few small markets may not be enough for staples; “a full-scale grocery store is needed. A supermarket, anyone?” As the informative Peter Hyman reported earlier, a Whole Foods supermarket isn’t coming to Dumbo.

{Living In | Dumbo, Brooklyn: From Afterthought to Sought-After, NY Times, October 22, 2006}

  Courtesy of NY Times

The 421 program was created in 1971 to encourage new investment by abating the taxes on the added value of new construction while maintaining existing taxes. This was in contrast to the city’s J-51 program, which actually reduced existing taxes on rehabilitated residential property. The Bloomberg administration recommended yesterday that the 421 program for developers be overhauled as a way of creating more lower-cost housing. The new plan would expand the two zones in which builders must create affordable housing to get the tax breaks:

“Under the new proposal, those areas would be expanded to include Lower Manhattan, parts of Harlem, the Dumbo section of Brooklyn, Brooklyn Heights and other parts of the Brooklyn and Queens waterfront. The tax break would be tightened in other ways, too. There would be a strict limit on the size of tax breaks to market-rate units, and the maximum benefit — a 25-year tax break — would go only to projects citywide that include low-priced units.”

New development in Dumbo that are under the 421a program include J Condo at 100 Jay Street and Beacon Tower at 85 Adams Street. Barring action, the state law enabling the program will expire on Dec. 31, 2007.

{Bloomberg Recommendations On Tax Break Program Derided, The New York Sun}
{A developing storm over tax-break plan, Daily News}
{New York City Acts to Add Low-Cost Homes, NY Times}

We’ve seen a lot of buzz on the development at 99 Gold Street in Vinegar Hill, Brooklyn. Designed by Scarano Architects in Dumbo and marketed by The Developers Group, this building was converted into 88 studio, one, and two bedroom lofts, and has a small non-regulation basketball court in the basement.

Okay, this isn’t really an update, but I was over there yesterday to check out the progress, and it looks like from the outside, most of the work has been completed. I went to the opening “launch party” this summer (has it already been 4 months ago?) and saw the apartments, the rooftop, and the basketball court. The finishes were nice, and the building seemed solid, but until more stores/services come to the area, residents will have to go to Brooklyn Heights for their pharmacy.

 99 Gold Street before conversion. Photo from The Developers Group

Aside from some reported price cuts by Robert Guskind at Curbed, we haven’t heard too much in the past month about 99 Gold. With the updated prices, the condos range between $522/sq.ft. for a studio with 2 bathrooms (1571 sq.ft.) to $969/sq.ft. for a penthouse two bedroom, 2 bathroom (not including the 1077 sq.ft. of outdoor space). Below are some photos taken this weekend.

From Scarano Architects:

“99 Gold is a renewal pioneer within the area’s industrial landscape. An upscale loft conversion is the latest trend in stylish city living, which redefines the 19th-century concrete and block building, originally designed to house and supply New York’s souvenir market. Following that industry’s decline and decades of misuse and neglect, vast quality-of-life improvements are assured by this adaptive reuse.”

 Click photo for close-up. 99 Gold in Vinegar Hill, October 8, 2006

 Click photo for close-up. 99 Gold in Vinegar Hill, October 8, 2006

Some sample pricing:

• 1 bed 1 bath, 757sq.ft. $575,000 ($759/sq.ft.), $328 maintenance, $48 tax
• 0 bed 1 bath, 988sq.ft. $645,000 ($653/sq.ft.), $412 maintenance, $61 tax
• 2 bed 1 bath, 1035sq.ft. $699,000 ($675/sq.ft.), $432 maintenance, $64 tax
• 2 bed 2 bath, 1215sq.ft. (1106sq.ft. outdoor space) $1,150,000 ($946/sq.ft.), $636 maintenance, $94 tax

Does anyone have info on move in date or how sales are going so far?

{99goldstreet.com}
{scaranoarchitects.com}

We previously reported the sale of the penthouse condo at 70 Washington, but the New York Post has an article about the sale today with additional info:

• A prominent Westchester lawyer has purchased the condo
• The 70 Washington penthouse was initially eyed by rap star Busta Rhymes, but he did purchase two J Condo units.
• J Condo: 87% sold
• Beacon Tower (79 units): 80% sold
• 70 Wash (210 of 259 units sold): 81% sold

{CLOCK $TRIKES, NY Post}
{70 Washington Street Record Sale, DumboNYC.com}

   Image courtesy of Curbed.com

According to the Brooklyn Daily Eagle, the 70 Washington Street building is 80% sold out. Last month, the largest sale at 70 Washington was the purchase of two penthouses (my guess is the combination of an E and F line, based on the total square footage) by someone who plans to combine the two units for a total square footage of 2,720. I can’t confirm that the purchaser is Busta Rhymes or any other celebrity, but one of the units is the clock face duplex apartment that was featured on Curbed back in April, 2006. The total value of the duplex penthouse with two terraces and corner views of Brooklyn Bridge, Lower Manhattan, and the Statue of Liberty is $3.42 million (that’s $1261/sq.ft.).

Compare this to the article from the NY Times in June, 2006 on the former executives at Goldman Sachs and J. P. Morgan Chase paid $5.8 million ($1211/sq.ft.) for two adjoining apartments at 1 Main Street in Dumbo, Brooklyn. The two units, with a combined 4,790 square feet, have views of the East River and Manhattan. In 1998 when 1 Main Street went on sale, the two apartments sold to separate buyers for a total of $1.55 million (only $324/sq.ft. for both units).

Not a bad return, but it isn’t likely that we’ll see the same ROI 8 years from now in 2014, which would make the 70 Washington Street combined penthouse at $12.8 million or over $4700/sq.ft.

In just two weeks, we’ve seen progress on the Vista in Vinegar Hill. The modern stainless steel window frames have been installed and the rear balconies are in place (not shown in pics). It would’ve been nice to see townhouses in place of this development just like the ones across the street from Vista, or the 14 Townhouses on State Street in Boerum Hill, Brooklyn which preserved the townhouse block, but the developers had a vision of “living that sets past, present and future into a seamless atmosphere offering the best of all worlds”. From Corcoran:

“A charming five block area characterized by brownstones and Belgian block streets, this exclusive enclave offers a way of living that sets past, present and future into a seamless atmosphere offering the best of all worlds. This is where you can take a walk in the park, watch a show, sample some the world’s best chocolate, or stroll through art galleries that are setting the trends of tomorrow.”

Pricing start at $550,474 for 1 bedroom, 1 bath, 898 sq.ft. ($613/sq.ft.) to $1,075,680 for 2 bedroom, 2 bath, 1245 sq.ft. ($864/sq.ft.)

 Click photo for close-up. Vista on Vinegar Hill, September 3, 2006

 Click photo for close-up. Vista on Vinegar Hill, September 17, 2006

 taken on September 17, 2006

206 Front Street
Brooklyn, NY 11201

{The Vista on Vinegar Hill, Corcoran website}

 53 Bridge Street, 9/2006

Below are two photos of Beacon Tower in Dumbo taken two months apart. They must be hard at work on the interior because it looks like the exterior is mostly done, as the difference between the photos is small (compare J Condo progress in the background). The supposed dented exterior noted by a commenter can be seen in a close-up photo I took below, but it’s a work in progress so we’ll have to see when the building is ready for occupancy in 2007.

 June 20, 2006 (photo by dumbonyc)

 August 11, 2006 (photo by dumbonyc)

 Click photo for close-up of Beacon, September 8, 2006 (photo by dumbonyc)

{related: Beacon Tower Garden Update, Dumbonyc.com}

The Real Estate Board of New York announced last week that Brooklyn property values continue to rise despite a nationwide slowdown. The price of apartments Listed in Dumbo rose 10% between 2004 and 2005 and 4% borough-wide. “Of the 18 Brooklyn neighborhoods surveyed, DUMBO/Fulton Ferry had the highest apartment sale prices, with an average of $1.3 million – or $780 per square foot. Brooklyn Heights had the highest sale prices for one- and two-family homes, with an average of $3.1 million – or $891 per square foot.”

Let’s take a look at the current condos in Dumbo. I looked at four real estate firms that have Dumbo listings, Douglas Elliman, Corcoran, Halstead, and Brown Harris Stevens. There are others such as Nestseekers, who have many listings, but I was too lazy to add up the 91 listings they have (sorry Nestseekers. If you email me your stats, I’ll be happy to add it to this list).

Here’s what’s on the market in Dumbo, Brooklyn as of September 10, 2006:

• Douglas Elliman has 6 listings. The average asking price is $1,265,500 while the average price per square feet is $818.81.
• Corcoran has 43 listings. The average asking price is $1,053,741 while the average price per square feet is $774.93.
• Halstead has 4 listings. The average asking price is $1,192,250 while the average price per square feet is $936.02.
• Brown Harris Stevens has 4 listings. The average asking price is $1,492,500 while the average price per square feet is $888.79.

So adding up the 57 condos on the market:
- the average asking price is $1,116,541, while
- median price is an even $1,000,000 and
- average price per square feet is $801.95.

In other words, Dumbo is expensive. The real estate brokers I talk to say that although condos stay on the market longer these days, Dumbo is still selling at asking prices and should continue to increase in value. But I wonder how well the values will hold with more inventory – condos nearing completion (such as J Condo or Beacon Tower) and investors trying to flip property. Do you think Dumbo real estate will keep going up?

{Brooklyn Heights, Dumbo Win BK’s Elitist Crowns, Curbed}
{B’KLYN HEIGHT$, BOROUGH’S REAL ESTATE BUCKS MARKET, NY Post}

From The Times UK on Friday, a piece about the NYC housing market mentions the Dumbo, Harlem, and Williamsburg area becoming more popular as the limited land in Manhattan drives gentrification out to these areas:

“Another Brooklyn suburb to see its fortunes rise is Dumbo (Down Under the Manhattan Bridge Overpass), dubbed “the new East Village”. Situated between the Manhattan and Brooklyn Bridges, it has cobblestone streets, warehouse buildings perfect for loft living and incredible views of the Manhattan skyline. Two apartments in a converted cardboard-box factory in Dumbo sold this summer for $5.8 million.”

{Bite into a sweet big apple, The Times UK, September 8, 2006}