A new Brooklyn rising: The most popular borough in the world right now - by Daniel Bollinger

Daniel Bollinger, Azad Property Group

It is said that if Brooklyn was an independent city, it would rank as the fourth most populous city in the U.S., behind only the other boroughs of NYC combined, Los Angeles, and Chicago. But if you look at Brooklyn from a development point of view, it is the most popular borough in the world right now. It is experiencing an unparalleled surge in development these days that the recent Chinese, nor U.S. Stock market free falls can bring down. Brooklyn is on track to produce over 22,000 new apartments in the next four years. Though most of these are going to be in Downtown Brooklyn and Williamsburg, there is development going on in all areas of Brooklyn. Bruce Ratner’s Atlantic Yards Phase II project (which he has rebranded as “Pacific Park”) comprises much of this development on Pacific and Dean Sts., and Vanderbilt and Carlton Aves. Atlantic Yard II is currently open for EB-5 investment and since their Phase I was highly successful and their investors have receive their EB-5 Green Cards following their I-526 approvals I am sure there will be a lot more EB-5 investment monies being diverted into this project. Ratner has even hired Frank Gehry to design some of the project.

The numbers that support that Brooklyn is the new capital of the world right now are very interesting indeed. Brooklyn’s numbers are nearing Manhattan’s in some respects, and in some circumstances surpassing it. Brooklyn is also making record breaking deals. For example, the average price of a Brooklyn property is now $788,529 (a new record) and the median price is an equally impressive $605,000, reflecting a 5.2% increase from the same period last year. The gap between Brooklyn and Manhattan continues to shrink. Williamsburg and Greenpoint combined have surpassed Manhattan’s median price of $960,000 and is currently at $1.05 million. These figures are what is making Brooklyn the most popular borough around currently.

And this is going on all over the borough. Besides four major projects affecting these numbers: (Boerum Hill: 265 State St. with 128 condos, Downtown Brooklyn: 388 Bridge St. with 378 units combined rental and condos, DUMBO: 51 Jay St. with 74 condos, and Williamsburg: 429 Kent Ave. with 216 rental units) there are a number of developments going on all over the borough. And many of them are setting records as well. For example, St. Luke’s Evangelical Lutheran Church of Clinton Hill sold for $8.8 million and is slated to become a residential condo. The $8.8 million is a record sales price for the year.

The increased cost per buildable s/f in Brooklyn is also setting records. New development price per s/f in Williamsburg is up 86% year-over-year. Downtown Brooklyn is up 70% from last year from an average buildable s/f of $787 in 2014 to $1,338 per buildable s/f in 2015. The bulk of new development in Downtown Brooklyn continues to be residential, with six new projects that started construction in the first half of this year looking to add 1,052 units to 5,300 already in construction. There are also another 8,400 units “in the pipeline.” The numbers continue to astound and there seems to be no stagnation in this momentum.

In researching this article, I came across two articles by Alexandra Lange in New York Magazine published in 2004 and 2006 (one source: http://nymag.com/nymetro/realestate/urbandev/features/n_10288/index3.html). It’s great to look back in history and see what was then and what is now. I was interested in Harvey Lichtensteins’ view of Fort Greene. In the article, Lichtenstein is quoted, “Now Harvey Lichtenstein (BAM LDC chairman) wants his beloved Fort Greene neighborhood to become Brooklyn’s cultural hub, a goal he believes is now well within reach. The Fort Greene district lies at the crossroads of all these different forces.” I agree that he is correct that his goal “is now well within reach.” The property values are so high that historical changes are possible. One such possible change lies within the properties encompassed between Prince St., Carlton Ave., Myrtle Ave. and Park Place. There are over 4 million buildable s/f encompassed within these NYC Housing Authority communities. That is enough buildable s/f for a new BAM theatre, a museum, a shopping mall, and residential and commercial development. The possibilities of building a “cultural hub” and expanding on Lichtensteins’ vision is here in the now. The newest building on this land was built circa 1942. The proximity to the BQE, Brooklyn Bridge, Flatbush Ave., and Brooklyn Heights makes it a central hub indeed. I can see a developer realizing this potential and wanting to develop this area of Fort Green. There are 2,500 units of affordable development within this area. There is an opportunity for a developer obtaining this space not through eminent domain or any type of forced evictions, but more so in the spirit of the Black Lives Matter movement. I mean, how hard can it be to beat the construction of a building built circa 1939? This is a real chance for de Blasio to not only make his plans of building a lot more affordable housing throughout NYC, but also to make room for one of the largest historical developments in the most sought after borough in the world. Who wouldn’t want to move out of an apartment building over 75 years old into a brand new apartment building with brand new appliances, heating systems, etc? There is a win-win opportunity for all parties involved. Brand new affordable housing for all the current tenants in these buildings, a windfall of opportunity for development of a historical monumental project redefining the New Brooklyn Rising that is going on all around us, and increased shopping, living, and arts and culture for all the residents of NYC. You may be laughing right now at the futuristic view I have of Brooklyn right now, but in the years to come, maybe someone will be quoting me in this article as I am quoting others from Alexandra Lange’s article referenced above.

Daniel Bollinger is a senior associate at Azad Property Group, New York, N.Y.