mns.com Brooklyn New Dev. Market Report 2014 3rd Quarter

Brooklyn New Dev. Market Report 2014 3rd Quarter mns.com

Brooklyn New Development Report 3Q14

TA B L E O F C O N T E N T S

TABLE OF CONTENTS 03 Introduction 04 Market Snapshot 09 Neighborhood Price Trends 09 Bay Ridge 10 Bed-Stuy 11 Brooklyn Heights 12 Bushwick 13 Carroll Gardens 14 Clinton Hill 15 Cobble Hill & Boerum Hill 16 Crown Heights 17 Downtown Brooklyn 18 DUMBO 19 Fort Greene 20 Gowanus 21 Greenpoint 22 Kensington 23 Prospect Heights 24 Prospect-Lefferts Gardens 25 Park Slope 26 Williamsburg Report Explained 27 The

page 2 Gramercy Park 212.475.9000

115 East 23rd Street, New York, NY 10010

Williamsburg 718.222.1545

165 Bedford Avenue, Brooklyn, NY 11211


40 North 6th Street, Brooklyn, NY 11249

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INTRODUCTION MNS is proud to present the Third Quarter 2014 edition of our New Development Market Report. New

New Development Sales data, defined as such “Arms-Length” first offering transactions where the seller is considered a “Sponsor”, was compiled from the Automated City Register Information System (ACRIS) for sponsor sales that traded during the Third Quarter of 2014 (7/01/14 – 9/30/14). All data summarized is on a median basis.







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MARKET SNAPSHOT Market Snapshot Year-Over-Year Median PPSF

13.92%

Quarter-Over-Quarter Median PPSF

26.5%

Year-Over-Year Median Sales Price

9.5%

Quarter-Over-Quarter Median Sales Price

11.9%

Brooklyn New Development Sales Inventory

63.4% from 2Q14

Neighborhood with the highest inventory

Clinton Hill 37.5% of all Brooklyn) Total New Development Sales Volume

72.3% to $46.99 Million from $169.6 Million in 2Q14

Largest Quarterly Up-Swing

Largest Quarterly Down-Swing

PPSF $868/SF from $700/SF Sales Price $1M from $661K

PPSF $573/SF from $1,262/SF Sales Price $725K from $2M

Boerum Hill/Cobble Hill

Brooklyn Heights

Highest New Development Sale

Park Slope - 777 Carroll Street - 1 - $2,545,625

Highest New Development Sale PPSF

Dumbo - 70 Washington Street - PHJ - $1,651/SF Market Summary The total number of New Development Sponsor sales in Brooklyn fell down 63.36% from 2Q14. The following neighborhoods did not account for any New Development sales during this time: Bay Ridge, Bushwick, Gowanus, Kensington, Williamsburg, and Prospect-Lefferts Gardens. The drastic decrease in the number of sponsor sales in Brooklyn is likely due to the slower maturation of the market in certain more established neighborhoods such as Williamsburg, however with several new developments and conversions in the pipeline this number expected to increase in upcoming quarters. Median sales pricing in all of Brooklyn decreased 11.9% from the previous quarter and Median Price per Square Foot decreased 26.5% compared to 2Q14.







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MARKET SNAPSHOT Market Up-Swings This past quarter sponsor sales in Boerum Hill-Cobble Hill only accounted for 6.25% of all New Development sponsor sales in Brooklyn, however saw the greatest uptick in prices. Despite experiencing a significant drop last quarter this area is back to customary prices levels and is continuing its rise. Since 2Q14 Median Price per Square Foot increased 24% from $700 to $868 and Median Sales Price increased 53.3% from $661,080 to $1,013,158. These large shifts are due to luxury units that closed at 138 Sackett Street entering the market, while lower priced closings at Cobble Hill Towers have exited the market. Also deserving mention is DUMBO which has seen a steady, yet less dramatic, rise in prices dating back to 2Q13.

Market Down-Swings This quarter’s largest market down-swing was seen in Brooklyn Heights. Median Price per Square Foot fell 54.6% from $1,262 to $573 and Median Sales Price fell 68.9% from $2,329,247 to $725,503. This was the result of a significant inventory drop from last quarter as unit sales fell by 16 units, leaving behind only 2 closed units at One Brooklyn Bridge Park at 360 Furman Street. Furthermore, the units that exited the market were higher priced units at premier properties such as The Riverview at 183 Columbia Heights and The Heights at 30 Henry Street. Sales Volume Three-Bedroom units and One-Bedroom units represented 50% and 29.17% of all sales in Brooklyn during 3Q14, respectively. The neighborhood that accounted for the highest number of New Development Sponsor unit sales was Clinton Hill with 18 transactions, 36.73% of total borough sales. This was due to an influx of units that closed at the Clinton Lofts at 91 Grand Avenue. *Tracking: Neighborhoods where the majority of each unit type was sold in 3Q14

33%

Studio Bed-Stuy/Clinton Hill/ Boerum Hill-Cobble Hill

64%

One Bedroom Clinton Hill

43%

Two Bedroom Clinton Hill

21% 1200+SF Clinton Hill/ Prospect Heights







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1,691,206

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MARKET SNAPSHOT 3Q14 Median PPSF By Neighborhood

3Q14 Median Sales Price By Neighborhood

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MARKET SNAPSHOT

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16%

35%

% Of Total New Development Sales Borough-Wide







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BROOKLYN 3Q13 Unit Mix Of New Development Sales

Median PPSF

$697

Studios 6% 1 Bedrooms 29% 2 Bedrooms 15% 3 Bedrooms 50%

Median Sales Price

$812,300

Brooklyn Quarterly Tracking Median PPSF

Median Price

$1,000

$1,000,000

$900 $800,000

$800 $700

$600,000 $600 $500

$400,000

$400 $300

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

$200,000

Price







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BAY RIDGE Bay Ridge PPSF By Unit Size

% Of Sales Within Bay Ridge

Studios 1 Bedrooms 2 Bedrooms 1500+ SF


Bay Ridge Quarterly Tracking Median PPSF

Median Price

$600

$900,000

$500

$700,000

$400

$500,000

$300

$300,000

$200 3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

$100,000

Price







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BEDFORD STUYVESANT Bed Stuy PPSF By Unit Size ($348/SF Median)

% Of Sales Within Bed Stuy

Studios $823 1 Bedrooms 2 Bedrooms $669 1200+ SF $670

Studios 20% 1 Bedrooms 0% 2 Bedrooms 20% 1200+ SF 60%

Bed Stuy Quarterly Tracking Median PPSF

Median Price

$700

$800,000

$700,000

$575

$600,000 $450 $500,000 $325 $400,000

$200 3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

$300,000

Price







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BROOKLYN HEIGHTS Brooklyn Heights PPSF By Unit Size ($965/SF Median)

% Of Sales Within Brooklyn Heights

Studios 1 Bedrooms 2 Bedrooms $579 1200+ SF $568

Studios 1 Bedrooms 2 Bedrooms 50% 1200+ SF 50%

Brooklyn Heights Quarterly Tracking Median PPSF

Median Price

$2,750,000

$1,300

$2,500,000

$1,200

$2,250,000

$1,100

$2,000,000

$1000

$1,750,000 $900

$1,500,000

$800

$1,250,000

$700

$1,000,000

$600

$750,000

$500

$500,000 4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

Price







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BUSHWICK Bushwick PPSF By Unit Size

% Of Sales Within Bushwick



Bushwick Quarterly Tracking Median PPSF

Median Price

$800

$800,000

$650

$625,000

$500

$450,000

$350

$275,000

$200

$100,000 3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

Price







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CARROLL GARDENS Carroll Gardens PPSF By Unit Size ($1,008/SF Median)

% Of Sales Within Carroll Gardens

Studios 1 Bedrooms 2 Bedrooms 1500+ SF $1,263

Studios 1 Bedrooms 2 Bedrooms 1500+ SF 100%

Carroll Gardens Quarterly Tracking Median PPSF

Median Price

$1,300

2,000,000

$1,050

$1,525,000

$800

$,1,050,000

$550

$575,000

$300

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

$100,000

Price







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CLINTON HILL Clinton Hill PPSF By Unit Size ($799/SF Median)

% Of Sales Within Clinton Hill

Studios $897 1 Bedrooms $623 2 Bedrooms $580 1500+ SF $612

Studios 5.6% 1 Bedrooms 50% 2 Bedrooms 16.7% 1500+ SF 27.8%

Clinton Hill Quarterly Tracking Median PPSF

Median Price

$900

$1,300,000

$725

$1,025,000

$550

$750,000

$375

$475,000

$200

$200,000 4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

Price







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COBBLE HILL & BOERUM Cobble Hill & Boerum Hill PPSF By Unit Size ($654/SF Median)

% Of Sales Within Cobble Hill & Boerum Hill

Studios $651 1 Bedrooms 2 Bedrooms $868 1500+ SF $1,068

Studios 33.3% 1 Bedrooms 2 Bedrooms 33.3% 1500+ SF 33.3%

Cobble Hill & Boerum Hill Quarterly Tracking Median PPSF

Median Price

$1,575,000

$1,100

$900 $1,116,667 $700 $658,333 $500

$300 4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

$200,000

Price







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CROWN HEIGHTS Crown Heights PPSF By Unit Size ($486/SF Median)

% Of Sales Within Crown Heights

Studios 1 Bedrooms $898 2 Bedrooms 1500+ SF

Studios 1 Bedrooms 100% 2 Bedrooms 1500+ SF

Crown Heights Quarterly Tracking Median PPSF

Median Price

$1,100

$2,000,000

$875

$1,550,000

$650

$1,100,000

$425

$650,000

$200

$200,000 4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

Price







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DOWNTOWN BROOKLYN Downtown Brooklyn PPSF By Unit Size ($711/SF Median)

% Of Sales Within Downtown Brooklyn



Downtown Brooklyn Quarterly Tracking Median PPSF

Median Price

$1,600,000

$1,000 $900

$1,340,000

$800 $1,080,000 $700 $820,000 $600 $560,000

$500 $400

$300,000 4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

Price







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DUMBO Dumbo PPSF By Unit Size ($852/SF Median)

% Of Sales Within Dumbo



Dumbo Quarterly Tracking Median PPSF

Median Price

$1,300

$1,700,000

$1,200

$1,512,500

$1,100

$1,325,000

$1,000 $1,137,500

$900 $800

$950,000

$700

$762,500

$600

$575,000

$500

$387,500

$400

$200,000

$300 4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

Price







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FORT GREENE Fort Greene PPSF By Unit Size ($810/SF Median)

% Of Sales Within Fort Greene



Fort Greene Quarterly Tracking Median PPSF

Median Price

$1,100,000

$1,200 $1,100 $1,000

$900,000

$900 $800

$700,000

$700 $600

$500,000

$500 $400

$300,000

$300

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

Price







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GOWANUS Gowanus PPSF By Unit Size ($785/SF Median)

% Of Sales Within Gowanus



Gowanus Quarterly Tracking Median PPSF

Median Price

$1,000,000

$900

$800 $733,333 $700

$600 $466,667 $500

$200,000

$400 4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

Price







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GREENPOINT Greenpoint PPSF By Unit Size ($675/SF Median)

% Of Sales Within Greenpoint

Studios 1 Bedrooms 100% 2 Bedrooms 1500+ SF

Studios 1 Bedrooms $922 2 Bedrooms 1500+ SF Greenpoint Quarterly Tracking Median PPSF

Median Price

$950

$800,000

$857 $650,000

$764 $671

$500,000 $579 $486

$350,000

$393 $300

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

$200,000

Price







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KENSINGTON Kensington PPSF By Unit Size ($800/SF Median)

% Of Sales Within Kensington



Kensington Quarterly Tracking Median PPSF

Median Price

$800

$800,000

$650

$625,000

$500

$450,000

$350

$275,000

$100,000

$200 4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

Price







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PROSPECT HEIGHTS Prospect Heights PPSF By Unit Size ($704/SF Median)

% Of Sales Within Prospect Heights

Studios 1 Bedrooms $812 2 Bedrooms $902 1500+ SF $781

Studios 1 Bedrooms 25% 2 Bedrooms 12.5% 1500+ SF 62.5%

Prospect Heights Quarterly Tracking Median PPSF

Median Price

$2,000,000

$1,100 $1000

$1,525,000 $900 $1,050,000

$800 $700

$575,000 $600 $500

$100,000 4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

Price







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PROSPECT-LEFFERTS GARDENS Prospect-Lefferts Garden PPSF By Unit Size

% Of Sales Within Prospect-Lefferts Garden



Prospect-Lefferts Garden Quarterly Tracking Median PPSF

Median Price

$600,000

$700

$600

$500,000

$500 $400,000 $400 $300,000

$300

$200,000

$200 4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

Price







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PARK SLOPE Park Slope PPSF By Unit Size ($966/SF Median)

% Of Sales Within Park Slope

Studios 1 Bedrooms 2 Bedrooms 1500+ SF $589


Park Slope Quarterly Tracking Median PPSF

Median Price

$1,400,000

$1,100,000

$800,000

$500,000

$200,000 4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

PPSF

1Q14

2Q14

3Q14

Price







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WILLIAMSBURG Williamsburg PPSF By Unit Size ($709/SF Median)

% Of Sales Within Williamsburg



Williamsburg Quarterly Tracking Median PPSF

Median Price

$1,300

$2,500,000

$1,200

$2,244,444

$1,100

$1,988,889

$1,000

$1,733,333

$900

$1,477,778

$800

$1,222,222

$700

$966,667

$600 $500

$711,111

$400

$455,556

$300

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

PPSF

4Q13

1Q14

2Q14

3Q14

$200,000

Price







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THE REPORT EXPLAINED Included in this research are walk-up and elevator new development condominium buildings, as well as new conversion condominiums if the sales were applicable sponsor transactions. Excluded from the report are all cooperative sales.

Unit types such as studios, one-bedrooms, and two-bedroom units are grouped by square footage ranges. Studios are under 700 square feet, one-bedrooms are under 900 square feet, and two-bedrooms are under 1,450 square feet. Added to the report is the over-sized unit type that ranges from 1,500 square feet to 7,000 square feet. Presented with a quarter-over-quarter and year-over-year comparison, both city-wide and by neighborhood, MNS New Development ReportTM tracks the market trends throughout Manhattan and Brooklyn. MNS offers a unique insight into the new development market by tracking stalled construction sites on a quarterly basis, a great indicator of where development in general is moving. MNS is your source to find neighborhood price per square foot analysis, average sale prices, unit type sales trends, overall price movement, neighborhood inventory comparisons, and absorption rates.

Can’t find what you’re looking for? Ask MNS for more information at www.mns.com. Contact Us Now: 212.475.9000 Note: All market data is collected and compiled by MNS’s marketing department. The information presented here is intended for instructive purposes only and has been gathered from sources deemed reliable, though it may be subject to errors, omissions, changes or withdrawal without notice. If you would like to republish this report on the web, please be sure to source it as the “Manhattan New Development Report” with a link back to its original location http://www.mns.com/manhattan_new_dev_report







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