Prices soar on Flatbush development sites as ‘Affordable New York’ spurs onslaught of investment
Development sites in Flatbush have seen a tidal wave of demand from investors in recent months, due largely to the reinstatement of a popular tax incentive this past spring. The program, called “Affordable New York”, has electrified activity in the up-and-coming neighborhood, causing prices to jump on these assets.
The April enactment of Affordable New York – a reiteration of the expired 421-a tax program – has undeniably been a game-changer, swiftly turning Brooklyn’s stale development market in the first half of 2017 into a revitalized asset class. Tightening credit markets and concerns over absorption suppressed development activity earlier this year, but the expiration of 421-a almost two years ago has been the market’s biggest impediment.
During 1H17, New York City’s largest borough saw development site dollar volume decrease 41% to $1.04 billion and transaction volume drop 12% to 148 compared to 2H16, according to Ariel Property Advisors’ “Brooklyn 2017 Mid-Year Sales Report.”