GFI Realty Named Exclusive Agent for Site on ‘Legendary’ Bed-Stuy Retail Street
- May 18, 2015
New York—GFI Realty Services Inc. has been named exclusive sales agent for 1425 Fulton Street in Brooklyn. The site is located in the resurgent Bedford-Stuyvesant area, the busiest development neighborhood in Brooklyn.
The vacant parcel offers development rights allowing for 22,365 square feet of buildable space, which would accommodate a 33-unit residential structure. It would be eligible for 44 residential units with the addition of inclusionary housing, which would permit an increase to 29,820 buildable square feet.
Why was GFI tabbed as sales agent? “Relationships are a very big part of the equation,” GFI senior director of investment sales Erik Yankelovich told MHN.
“We have an excellent relationship with the seller, who we have worked with many times in the past. He, in turn, knows the GFI Realty rolodex includes the names of many investors other brokers don’t have access to. Right now, our firm is working on arranging sales of a total of 1.5 million buildable square feet of development sites in New York City, and the seller of this property knows we can leverage our large network of buyers to get him excellent offers.”
The site is located on one of Brooklyn’s most legendary retail streets, making it attractive to developers interested in luring multifamily residents.
The vacant area has been the beneficiary of a number of improvements in the last few years, with landscaping and signage enhancements and public benches among the notable upgrades. Restaurants, shops and houses of worship are all situated nearby. Public transit on the A and C trains is located within blocks.
“An ever-present challenge with properties like this is the lack of certainty regarding what legislation, regulations and provisions may be pushed forward by policymakers in the near term,” Yankelovich said. “For example, we don’t have clarity about what kinds of tax incentives, building bonuses, etc. will be on the table when the buyer decides to build. This actually gives the property a great deal of upside, as the uncertainty may provide more value to the buyer.
“Since New York City has a lack of housing and a growing population, there may be zoning changes that will allow for more dense development. This would result in a lower cost per buildable square foot, making the property more attractive to buyers.”
The New York real estate market is enjoying substantial development activity, having fully recovered from the real estate crash of 2008-09, GFI Realty president Michael Weiser reports. Given the limited number of buildable parcels across Manhattan and a number of outer-borough areas, land is at a premium. “Investors with hopes of molding the future of New York City real estate will have to move quickly to acquire these development sites,” he said.
Yankelovich is similarly upbeat. “The Bed-Stuy neighborhood is booming right now,” he said. “It’s the busiest area for development in the entire borough, and it will be further invigorated as more product hits the market. In this climate, the site’s buyer will likely opt to construct dozens of residential units. Located in proximity to public transit on an iconic retail corridor, a multifamily building on this property site will be sure to meet with strong residential demand.”