When it comes to Brooklyn development, the first thing that comes to mind is Downtown Brooklyn: skyscrapers, rezoning, CityPoint, the new Albee Square office project, thousands of new residential units and much more.
Not every developer can get their hands on the Downtown Brooklyn gold rush, but that's good news for the rest of Brooklyn. One largely overlooked market is the Prospect Lefferts Gardens area, sandwiched between Prospect Park and the Kings County Hospital Center.
In fact, CPEX Real Estate’s Development & Conversion Investment Sales Team has found a surprisingly robust development market in PLG over the past few years. Led by managing director Sean Kelly, the team has sold six development sites in the area since 2012, including two adjacent properties on the corner of Nostrand and Clarskson avenues that were sold to The Hudson Cos for $10M and $13M, respectively. The two properties will form a 350k SF site, upon which Hudson will build two buildings (pictured) that'll bring more than 420 residential units to the neighborhood.
Meanwhile, PLG land prices have steadily risen year-over-year as more developers look to alternative areas to construct rental apartments that are less cost-prohibitive than northern Brooklyn. Since CPEX’s Development Team sold 333 Lenox Rd in 2012, for example, the price per buildable SF has more than tripled. Its most recent sale of 309 Lenox Rd, a 20k SF development site, was purchased by Gemstar for $1.94M.
Downtown Brooklyn may still be the center of the Brooklyn development universe, but between the 421-a situation and developers looking at other markets, that universe is only going to expand.
For more information on PLG and the Brooklyn development market, contact CPEX’s Development Team or click here.
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