According to the April 2012 Brooklyn Rental Market Report by MNS, prices have increased year over year for studios, one bedroooms, and two bedrooms, and Dumbo is the most expensive across the board (Bay Ridge was the least expensive):

In Dumbo, studios were $2,656, one bedrooms $3,463, and two bedrooms $4,934. Comare that to April 2012 mean Brooklyn rental prices for studios ($1,749/mo), one bedroom ($2,328), and two bedrooms ($3,015).

Here are the Dumbo price trends over 13 months for studios, one bedrooms, and two bedrooms:

 [+]

 [+]

 [+]

The Brooklyn Rental Market ReportTM is based on a cross-section of data from available listings and priced under $10,000, with ultra-luxury property omitted to obtain a true monthly rental average. Our data is aggregated from the MNS proprietary database and sampled from a specific mid-month point to record current rental rates offered by landlords during that particular month. It is then combined with information from the REBNY Real Estate Listings Source (RLS), OnLine Residential (OLR.com) and R.O.L.E.X. (Real Plus).

The Brooklyn Rental Market Report ™ is published by MNS. The full Brooklyn Rental Market Report ™ by neighborhood (PDF(1.1MB)).

The NY Times published an article about the 30 Washington Street building conversion, which will be about 100 rental apartments and will take about a year to renovate. Writer Jake Mooney includes some other nuggest of information, including a reference to how Dumbo’s housing market is doing well.

Brooklyn Paper also mentioned last month that Dumbo rents are higher than most of Manhattan. With the limited inventory in the neighborhood, the average price of a studio in Dumbo was $2,567 per month ($300 more than last year and $458 more than the average studio price in the Lower East Side), writes Brooklyn Paper.

With 205 Water Street, 220 Water Street, 37 Bridge Street (Kirkman Lofts), 192 Water Street, and 133 Water Street added to the real estate mix, real estate developers are trying to meet the demand in the area.

The other item mentioned in the NY Times article is the long-planned 400-unit Dock Street project next to the Brooklyn Bridge is to begin in July. Currently, a parking garage and lot occupy the space where the Dock Street project will break ground (photo above). We spoke with the garage staff who mentioned that they are no longer offering monthly parking there and renters have been notified that they will have to find other garage space by June to prepare for the Dock Street project.

From Loftlaw.info:
Please Join
Assemblyman Vito J. Lopez, (D-Bushwick & Williamsburg)
Councilmember Stephen Levin, (D- Brooklyn Heights, DUMBO, Greenpoint, Williamsburg

Panelists:

New York City Loft Board
New York City Department of Buildings

Co-Sponsors:

DUMBO Neighborhood Alliance
New York City Loft Tenants
Brooklyn Arts Council
East Williamsburg/Bushwick Loft Tenants Association
Neighbors Allied For Good Growth
New York Live-Work Coalition

Attend this event to learn about your rights and show support of the Loft Law.

7:00 PM Tuesday, April 24, 2012
Our Lady of Pompeii Community Room
225 Seigel Street, Brooklyn, NY

The conversion process at 30 Washington Street (between Water and Plymouth Streets) to renovate the building into a residential property started over the weekend. The scaffolding has been installed and interior has been cleared for renovation. The change of use from commercial to residential began when Two Trees Management notified the League Treatment Center, that they would need to relocate in 2009. The League Treatment Center (as featured on DumboNYC) serves 100 preschool children and 150 adults (they’ve since found a new home at 470 Vanderbilt Avenue which will server over 300 children and adults). The Dumbo Arts Center was also located at 30 Washington Street until they moved to their current location in Dumbo at 111 Front Street, Suite 212.

According to the job filing on the NYC Department of Buildings website, “Change of use to convert existing building from commercial to residential. relocating floor area to create addition of 7th floor. general construction and partial demolitition throughout.”

The building, also known as 26-38 Washington Street (northwest corner Water Street; 113-119 Water Street) is one of the most attractive buildings in Dumbo, in our opinion. There are 6 stories plus a basement, and has plans for an additional story. The building, an American Round Arch style, was built in 1887 by architect Benjamin Finkensieper, and originally owned by Robert Gair. (See pages 122-125 of the NYC Landmarks Preservation Commission for details.) A NY Times article reference states the conversion will be for 100 rental apartments.

The building across the street, 25 Washington Street was also converted, which began occupancy in May 2011.

133 Water Street, (the silver building in the above photo), currently a rental building, has started to sell apartment units as condos. According to streeteasy, there are four units on the market, all offered by Brown Harris Stevens:

• $939k: #8A, 2 beds, 1,124sf, $838/mo maintenance ($835/sqft)
• $885k: #3B, 2 beds, 1,057sf, $1007/mo maintenance, ($837/sqft)
• $725k: #5E, 1 bed, 912sf, $680/mo maintenance, ($794/sqft)
• $700k: #10D, 1 beds, 802sf, $598/mo maintenance, ($872/sqft)

Seems they are within current prices in Dumbo (at least in price per square feet), which is currently at a median of $827 per square feet, according to Streeteasy.

(Source: WSJ)

An article over the weekend by the Wall Street Journal discussed the dearth of apartments and commercial space in Dumbo. The Observer’s BetaBeat, Brooklyn Paper, and The Real Deal also reported on the limited commercial space in Dumbo last week.

According to the WSJ article, three large development projects have been created on Water Street (between Jay and Bridge Streets) – 192 Water Street, 205 Water Street, and 220 Water Street:

But developers are betting that with little inventory available in the more-developed part of Dumbo, buyers and renters will be willing to pay similarly steep prices to live along the grittier border with Vinegar Hill, a six-block neighborhood along the waterfront.

“The concept that Dumbo is just a two- or three-block area is a misconception,” said Carre Harnett, director of leasing for the developer, GDC Properties, which developed one of the new properties, 220 Water St. “There are a finite number of developable buildings and a few parts of land, so we’re filling out Dumbo.”

…thanks in part to a rezoning a few years ago to allow for residential conversions and new construction, eastern Dumbo has seen a modest influx of apartments. Construction was sluggish through the recession, but several buildings ahave finished or are nearing completion.

At 205 Water St., Toll Brothers is building a 65-unit condo project that tries to emulate the warehouse buildings in the area, including using reclaimed wood from the Coney Island boardwalk as part of the interior decorating.

In addition, at 192 Water St., Alloy Development and Hamlin Ventures have converted a century-old tea warehouse into nine lofts, most of which were priced just under $2.5 million.

While many of the streets still feel desolate, a mix of stores—from a baby and maternity shop Egg by Susan Lazar to clothing boutiques like Blueberi and Trunk—have popped up.

Other development projects in East Dumbo not mentioned in the article are 37 Bridge Street (residential), 231 Front Street (commercial), 109 Gold Street (now a rental), 185 York Street (residential), and 51 Jay Street (commercial, on the market). I’m sure this contributed to the Jehovah’s Witnesses properties in Dumbo being considered for sale.

In a story that makes you wish you did what they did, the NY Post wrote about one couple’s real estate sales in Dumbo in a span of 14 years. Victor and Athena Calderone bought in Dumbo in 1998 for $275 per square foot at 1 Main Street (when Two Trees redeveloped the building), a 1,700 square foot condo for $467k. For approximately the same cost today, you can get a 565 square foot studio at 205 Water Street.

The story continues with the sale of their place for more than double and upgraded to a two bedroom condo on the same floor, which was then sold three years later worth twice. They invested in two penthouse condos at 70 Washington Street (“one a two-bedroom for $2.2 million, or $1,269 per square foot; another a one-bedroom for $1.5 million, or $1,197 per square foot”), which we profiled in April 2010 and was sold in 4 weeks for under $4million.

They purchased a condo at One Brooklyn Bridge Park before buying back into Dumbo, a $2.3 million, 2,187-square-foot, three-bedroom penthouse (with two terraces, a balcony and a private roof deck that total 2,344 square feet.)

Karen Heyman handled all of their sales and purchases since their purchase at One Main in 1998.

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

In a sign of the times, Pete’s Downtown Restaurant at One Fulton Street closed and the approx. 3200 RSF space is for lease at $70/foot. Of the 133 storefronts or retail sites in my database, eight spaces above 3,000 sf are available and two at 1,000 sf each. Four leases are out on as many spaces. The Shops at 145 Front Street concept is popular and set to be expanded on Pearl Street.

Aside from the new small-tenant building at 231 Front in Vinegar Hill we are handling, there are less than twenty-five conventional office spaces available today in the area. Tenants seeking above 5,000 SF are not finding space.

Answering the calls for new restaurant options, Two Trees has under construction in One Main a space for the people behind Colonie, a hot bar/restaurant on Atlantic Avenue off Henry Street.

Bridge Street is the new retail frontier. With the attractive 220 Water high-end rental offering a good restaurant space, a possible food space for lease at 79 Bridge and many new residents of Vinegar Hill on the way, we are watching the growing move east. The highly successful Vinegar Hill House is steadily building out their second space on Hudson, said to be a casual open all day cafe.

It has been reported that the Brooklyn Bridge Park Development Corporation is negotiating possible leases with three potential developers of the residential and hotel site at the foot of Old Fulton Street.

Previously:
{Dumbo Brooklyn Retail Report (Jan 2012), 13Jan2012}
{Dumbo Retail Report (Dec 2011), 16Dec2011}
{Dumbo Commercial Real Estate Update (Nov 2011), 22Nov2011}

We received a notice from the reps at GDC Properties, the developers of the 220 Water Street rental building. 220 Water St is a 5 story, 134 unit loft conversion building that features a large 30 foot high central lobby with skylights, a coffee bar, lounge area and a “water feature”. The building has studio, one- and two-bedroom residences, many with home offices and large skylights, priced from $3,150 to $6,150 per month. There are 18 floorplans, all with 10 foot windows and 14 foot ceilings.

“We’re thrilled to begin welcoming residents to 220 Water Street,” said Adam Ginsburg, co-chairman of GDC Properties. “These gracious loft homes were created with the greatest care, skill, and materials to maintain the look and feel of classic DUMBO, while offering luxurious and modern living spaces, top quality amenities and a superior level of service for our residents.”

Natural light illuminates restored accents including exterior brick walls and concrete or wood plank ceilings with original timber beams that preserve the building’s industrial past. Modern design elements include multiple well-designed closets per unit, full-size washers and dryers, and moveable kitchen islands accented by high-end finishes and appliances.

Here tenants will have access to Abigail Michaels Concierge services, where they can request anything from apartment cleaning and nanny services to premium tickets for theater or sporting events. On-site amenities include a manicured roof deck with fireplace, lounge chairs and barbeque grills, a fitness and yoga facility with natural light adjacent to a children’s playroom, on-site reserved parking, as well as bicycle and generous private storage facilities.

220 Water Street, once the Hanan & Son shoe factory, is located between Front, Bridge and Water Streets in Dumbo (within the historic district). There’s also a ground level space for a cafe, restaurant, or retail for 4000 square feet. No word yet on who will occupy that lease. Welcome new residents! Please comment or send us an email letting us know what you think of the building.

Previously:
{220 Water Street Building Opening January 2012, 09Aug2011}
{201 Front Street Gets New Scaffolding, 04Oct2010}
{201 Front Street Building Activity, 15Jul2009}

The sidewalk on Plymouth Street betwen Jay and Bridge Street is being finished in front of the Toll Brothers building at 205 Water Street. The Dumbo BID and Dept of Transportation are working together to ensure the work complies with the Landmark requirements.