Take a $7.8 million rental apartment building, throw in the fact that several of its 20 units are about to lose their rent-control status, wait three years and you apparently can ask $12 million for it.
More than half of the apartments in the building, 477 3rd Street between Sixth and Seventh Avenues in Park Slope which was just put on the market, will become market-rate in 2017 when the property’s J-51 tax credit expires, according to GFI Realty Services. Eight units will remain rent-stabilized until the current tenants move out.
The building has 10 two-bedroom, eight one-bedroom and two studio apartments, according to CoStar.
Erik Yankelovich of GFI, who has the listing, said the property is unique because there aren’t many rental buildings in Park Slope on the market.
“You have significant increases in income especially once you deregulate the units,” Mr. Yankelovich said.
Mr. Yankelovich declined to provide the name of the seller, but described him as an “overseas investor” who wanted to capitalize on the market right now. While the seller’s name wasn’t available in property records, CoStar lists it as Brooklyn NY Properties Corp. It bought the 14,672-square-foot building in late-2012 for $7.8 million—more than $4 million less than the current asking price.
“It’s a testament to the strength of the market, especially in a neighborhood like this,” Mr. Yankelovich said of the $12 million price tag. “We think it’s a tremendous value for what you’re getting in this specific deal.”