Halstead Property

William S. Ross
Director of Development Marketing
wross@halstead.com
(212) 613-2001

Florence Clutch
Vice President
Midtown Office
Tel: (718) 707-0023
fclutch@halstead.com

Finding A Town House For Under A Million

By CHRISTINE HAUGHNEY

PEOPLE interested in buying brownstones or town houses should not assume that all of the bargains are gone. Brokers say there are still properties in New York City that cost less than $1 million, but only if buyers are willing to venture into often overlooked neighborhoods and tolerate extensive renovations.

“You can still get a lovely brownstone in Bedford-Stuyvesant for well under $1 million,” said William S. Ross, executive director of sales for Halstead Property in Brooklyn. “The market begins around $650,000 to $700,000 for a real four-story brownstone.”

Because brownstones in Bedford-Stuyvesant and Crown Heights have been less appealing to renovators than those in Brooklyn neighborhoods like Park Slope and Carroll Gardens, many still have original details, Mr. Ross said. These often include fireplace mantels, tall parlor windows and high ceilings.

Mr. Ross, who owns a brownstone in Cobble Hill, warns buyers to invest upfront in advisers — like engineers knowledgeable about brownstones — who can identify all of the costly problems that inevitably arise. If a brownstone in a historic district needs a new facade, for instance, that alone can cost $100,000, he said. Restoration work can also be pricey — restoring moldings in a living room can cost $40,000.

But buyers say that these changes can be worth the hassle. In 2002, Florence Clutch, now a vice president at Halstead, bought a brownstone in Crown Heights for about $350,000. She spent about $150,000 in renovations like updating the electricity and replacing the water main, to increase water pressure. Now she rents out three floors and believes she could sell her property for three times the purchase price. Ms. Clutch says that 8 to 10 brownstones in Crown Heights typically come up for sale each year.

There are always houses on the market requiring renovation. One of Ms. Clutch’s listings, a two-family town home at 1318 Prospect Place in Park Slope offered at $559,000, will require “tons” of investment from a buyer, in cosmetic renovations and in dealing with current tenants, she said.

A town house for sale in Bedford-Stuyvesant, at 177 Nostrand Avenue, was recently reduced in price to $620,000 from $640,000. The broker, Malik Mitchell, who is an executive vice president for Century 21 NY Metro, estimated that the buyer would have to spend about $40,000 to make the walls and floors presentable.

A buyer would also have to deal with the city bureaucracy to get the home’s classification changed to a three-family from the current two-family, if he or she wanted to legally rent out the already renovated basement apartment.

While most empty shells of brownstones in Harlem fetch more than $1 million, Prudential Douglas Elliman is selling a brownstone at 237 West 131st Street for $895,000. Todd Stevens, the agent representing the seller, says its situation across from public housing might make it attractive to an investor for converting into studios.

Brokers say buyers willing to wait for deals on town houses might look in areas like Sunnyside in Queens and Mott Haven in the Bronx. Carmela Massimo, an associate broker with Welcome Home Real Estate, estimates that a town house comes on the market in Sunnyside about every six months. Buyers willing to take on renovation projects typically pay about $600,000 for one-family homes and $800,000 for two-family homes, she said.

The enclave of 100-year-old town homes in Mott Haven also offers properties costing about $600,000 to $750,000 when they come to market. Sasha Catus, president of Catus Properties, is listing a 107-year-old two-family town house at 304 Alexander Avenue for $749,000. He says that prices for these town houses have doubled in the last two to three years because of the steep increases in nearby Harlem. “In Brooklyn and Harlem,” Mr. Catus said, “you have several thousand town houses, whereas in the South Bronx you have a fraction of that. The commodity itself is rare.”

Copyright 2007 The New York Times Company

Sunday, January 14, 2007