by Tyler King, Resident Hipster
Currently, if people who know nothing about the local real estate market are to believed, Williamsburg is doomed, kaput, see you in the next cycle, take the bucket and kick it, put a fork it because its done, finished.¬† But after a little digging some interesting things are coming to light.¬† First, things have sold in 2009.¬† In fact, whole buildings have sold with absorption harkening back to the glory days of 2007.¬† Furthermore, more buildings are coming to market.¬† In the past couple of weeks the brave folks over at Corcoran began marketing a 38-unit project located on the corner of North 10th and Berry called the Allen Building.¬† This is an interesting test because directly next door is everyone‚Äôs favorite swiftly selling development, Mason Fisk (72 Berry Street).¬† 26 units, three months, boo-yah! And this was in 2009 no less.
The great thing about what is happening in Williamsburg is all the broker posturing and babble is coming to an end.¬† The public record is the arbiter of truth.¬† Luckily, for all of the readers out there, I took the liberty to doing a little research and finding out exactly what things are selling for.¬† Mason Fisk did in fact sell like a gazelle being chased by a cheetah (fast).¬† However, pricing was about $620 per square foot.¬† Peak pricing in Northside Williamsburg two years ago?¬† Somewhere around $750 to $850 a foot.¬† Hey Williamsburg, the phone is ringing and twenty to thirty percent declines are calling!
So now the Allen Building (70 Berry Street) is bravely coming to market. ¬†I found some shiny, brand-spanking new listings with an aggregate average asking price of $657 per square foot within the building on the Corcoran website.¬† Taking into account a listing discount, this is right in line, or in this case next door to, Mason Fisk.¬† Developers out there should take notice:¬† Pink is the new black, and $600-$650/SF is the new baseline in Williamsburg.¬† Underwrite with care my friends‚Ä¶underwrite with care.