Brooklyn New Development Market Report

Updated: 3Q11

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Table of Contents:

1. Introduction
2. Market Snaphot
3. Neighborhood Price Trends
   • Bay Ridge
   • Bed-Stuy
   • Brooklyn Heights
   • Bushwick
   • Boerum-Cobble Hill
   • Park Slope
   • Carroll Gardens
   • Clinton Hill
   • Crown Heights
   • Fort Greene
   • Greenpoint
   • Downtown Brooklyn
   • Gowanus
   • Kensington
   • Prospect Heights
   • Prospect Lefferts Gardens
   • Williamsburg
4. The Report Explained

Introduction

MNS is proud to present the Third Quarter 2011 edition of our New Development Market Report. New Development Sales data, defined as such “Arms-Length” first offering transactions where the seller is considered a “Sponsor”, was compiled from the Automated City Register Information System (ACRIS) for sponsor sales that traded during the Third Quarter of 2011 (07/01/11 - 09/30/11). All data summarized is on a median basis. This month also includes quarterly tracking graphs over a seven quarter look back (1Q10) and will continue to track the trends going forward.

Market Snaphot

Year Over Year Median PPSF - up 7%
Quarter Over Quarter Median PPSF - up 3%

Year Over Year Median Sales Price - up 6%
Quarter Over Quarter Median Sales Price - down 6%

Brooklyn New Development sales inventory - down 34% from last quarter.
Neighborhood with the most inventory - Williamsburg (30%)

Largest quarterly up-swing: Carroll Gardens
PPSF: $703/SF from $626/SF
Sales Price: $800K from $646K

Largest quarterly down-swing: Crown Heights
PPSF: $477 from $571
Sales Price: $366K from $383M

Highest New Development Sale:
OBBP 360 Furman Street #1203 - $2,643,451

Market summary:

In Brooklyn, 2011 has faired better than 2010, with the biggest delta in the second quarter comparisons from a median sales price in 2Q10 at $515K to 2Q11 at $630K.

Year-over-Year Brooklyn New Development Condominium sales price per foot numbers are up 6% ($594/SF this quarter versus $557/SF in 3Q10), and median sales prices are up 7% (just under $600K this quarter versus $550K in 3Q10).

Compared to last quarter 2Q11, Brooklyn New Development price per square foot median numbers are up 3% but median sales prices are down 6%.

Market up-swings:

Bay Ridge is finally entering into the market, with 8 two-bedroom closings from a new development called Pier Pointe at a median sales price of $480K, a 50% median sales price improvement from last quarter.

Selling two bedrooms at a slightly lower median price of $460K is The Waterfalls on Ocean, bringing Ditmas Park back into the new development market. Not quite the $565K median sales price of two bedrooms at MNS’Vista in 3Q10, but it is a 7% boost in median sales prices from 2Q11.

Last quarter’s median prices in Gowanus was $660K and this quarter jumped 17% to $775K. This quarter, new development sales at Third + Bond and 26 4th Street (median ppf $700/SF) caught up to its competition in neighboring Carroll Gardens and Boerum Hill (median ppf $703/SF).

In Downtown Brooklyn, without the closings from 189 Schermerhorn this quarter, the median sales price in the neighborhood actually buoyed to $587K from last quarter’s $475K median sales price. The median price per foot is still hovering around $650/SF with Oro (80% sold), Toren (75% sold), and Belltel (60% sold) selling off their remaining inventory, a combined total of 210 units.

Market down-swings:

Despite Crown Heights’ increase of Brooklyn’s new development inventory from 4% to 7%, units at 765 Park Place and The Pacific Street Lofts closed at a median ppf of $475/SF, dragging both the neighborhood down $100/SF from last quarter and sales prices down 10% since the beginning of the year.

Now that the developer auction closed out the last 6 Penthouses at One Hanson Place, Fort Greene’s $593/SF median price per foot from last quarter is at $577/SF this quarter. Rockwell Place on the border of the neighborhood, where MNS has sold 70% of the building, and a few remaining units at Clermont Greene now structures the bulk of the neighborhoods’ new development closed inventory.

Inventory analysis:

The third quarter of 2011 brought 34% less sponsor sales to Brooklyn’s city registry, compared to last quarter, but the shift occurred outside of Williamsburg, which steadily holds the same 30% of all Brooklyn’s new development inventory. Of that 30%, the Edge closed 48 units at a median price of $846/SF.

A dramatic decrease in inventory occurred in Downtown Brooklyn and Greenpoint, both down 5% from the beginning of the year, and One Prospect Park in Prospect Heights had just 2 sales this quarter.

A 5% increase of new development sales was found in Park Slope this quarter from 8 closings at 136 Saint Marks Place at the north edge of the neighborhood and another 8 closings at 226 15th Street at the south edge of the neighborhood.

Market Snaphot