Changing from condo to rentals, luxury development still attracts attention in Downtown Brooklyn
A recent development in Downtown Brooklyn shows both the continuing attraction of the area as a place to live and the flexibility of the borough’s real estate market in responding to market conditions, especially in the wake of the COVID-19 pandemic.
Faced with the slowdown of the luxury condo market, Avery Hall Investments, a development and architecture firm, has changed its new development, One Boerum Place, to luxury rentals. And people are still very much interested.
Bloomberg News reported that the company, back in 2016, spent $76.5 million for the main plot and $15 million for the air rights. At the time, the condo market was booming, and one Boerum Place “was very much envisioned as a condo,” founding partner Avi Fisher told Bloomberg News.
Then the pandemic hit. In March 2020, the number of contracts signed for new condos in Brooklyn went from 12 to four, despite the fact that the number of listings went up. By the fall, the number of unsold condo units had reached a level not seen since the 2008 “Great Recession.”
The company then adapted to the situation. One Boerum Place is now a luxury rental development, with prices ranging from the low $4,000s for a one-bedroom apartment to $12,000 a month for a four-bedroom unit, Fisher told Bloomberg.
The building, which is rising 22 stories high, has many luxury amenities, including a pool, a gym, a yoga room, a children’s playroom, a residents’ lounge and more, including a stargazing lawn. Many of the apartments have private terraces.
Luxury rentals have also taken a dive during the pandemic, but they seem to be coming back. By the end of the summer, according to Bloomberg, more luxury leases were signed than new listings posted. Real estate observers expect more new buildings to convert from condos to rentals.
One Boerum Place encompasses an entire tree-lined flatiron-shaped block framed by Fulton Street, Boerum Place and Red Hook Lane, according to StreetInsider.
Fisher is quoted on StreetInsider as saying, “There is no rental building of this caliber in the New York City region and we’re eager to welcome residents this summer.”