Greenpoint Not a Boiling Point

Greenpoint not at boiling point

After rezoning three years ago, onslaught of new development slow to arriveDecember 31, 2007 12:25PMBy Alec Appelbaum

Manhattan Avenue Condos, a 24-unit building near McCarren Park, has sold 25 percent of its units in the last three months.

The hipster haven of Greenpoint in Brooklyn may get a lot of real estate buzz, but for the moment it is a calm market, still awaiting an onslaught of new development that was expected following the rezoning of the area and neighboring Williamsburg three years ago. 

While hundreds of new condos are in the pipeline for the heavily industrial neighborhood, some projects do not yet have solid timelines for completion. 

But some of the first luxury condos are already on the market. Still, for now, as the area awaits its waterfront revitalization and infrastructure improvements, it can be hard to find a place to live there. 

"Condo inventory is really next to nothing," said Prudential Douglas Elliman team leader Christine Blackburn, who manages dozens of North Brooklyn listings. 

Although the shaky national housing market and caution from banks for project financing could modify the timeline, the Bloomberg administration said the two miles of rezoned land in Williamsburg and Greenpoint will spur more than 10,000 new units of housing. 

Much of the timing could depend on Greenpoint's neighbor, Williamsburg. If Williamsburg development projects stay strong for the next six months and that neighborhood gets too crowded, Greenpoint will likely end up picking up overflow, said North Brooklyn Realty broker Herbert Kliegerman. 

Kliegerman said that while the Greenpoint market is healthy and that development in connection with the rezoning seems to be on pace, developers "who were literally knocking on my door" three years ago aren't coming today. 

"Greenpoint will be redeveloped," Kliegerman said. "It's impossible for it not to happen. It's just a matter of how long it will take." 

He said it could take anywhere from seven to 15 years for all 10,000 units to be built, depending on the economy and the housing market. 

A StreetEasy database lists 50 new developments in Williamsburg and 10 in Greenpoint. 

Those Greenpoint projects include the Manhattan Avenue Condos, a six-story, 24-unit building near McCarren Park that has sold 25 percent of its units in the last three months, and the historic Pencil Factory redevelopment, a 93-unit condo project that will include ground-floor duplexes, and top-floor penthouses with outdoor terraces. 

Basketball icon Magic Johnson has also invested in the 130-unit condo building at 110 Green Street, with completion scheduled for mid-2008. The project will include a pool, an outdoor putting green, a gym, a screening room and several other amenities, said Elan Padeh, president and CEO of the Developers Group. 

And, the executive vice president at the Park Tower Group, Alfred Bradshaw, said he is hoping to begin the first phase, or 500 to 700 apartments, of his planned 4,000 unit, mixed-use development that will include condos, rentals, retail and parking within the year. The project ?" which will account for a big chunk of the 10,000 units ?" is not underway yet. Bradshaw said he is "working on financing." 

At 185 India Street, NYBridge is developing a six-story, eight-unit condominium, where one- and two-bedroom homes range in size from 525 to 1,000 square feet, with prices running from $379,000 to $999,000. Completion is expected in spring 2008. 

Next door in Williamsburg are several major waterfront projects, including Palmer's Dock, a mixed-use, mixed-income mid-rise, and the Edge, which are closer to opening than Greenpoint's mega-project. 

Evan Thies, a member of the local community board who is planning a run for City Council, noted that residents who have lived in Greenpoint for decades are managing to convert small factories to condominiums pretty quickly. 

Those marketing properties in Greenpoint said the relatively small stock of housing in Greenpoint coupled with the unobstructed views of Manhattan and pending redevelopment is helping sellers meet their asking prices and, in some cases, exceed them. 

"A townhouse with an asking price of $1.15 million recently went for $1.2," Blackburn said. "And a house with a backyard went for $1.5." 

At the same time, there are still deals to be had in Greenpoint, particularly when compared to Williamsburg and Long Island City. A two-family house that was converted into apartments at Eckford Street and McGuinness Boulevard, near the Queens border, sold three units over the summer for an average of $497 per square foot, according to StreetEasy. That's about 25 percent less than comparable stock in Long Island City and Williamsburg, said Blackburn. 

The appeal of Greenpoint is simple. In addition to the new zoning regulations, development can be constructed so close to the water's edge that no future construction can jeopardize the stunning Manhattan views. 

But the rezoning has not come without political friction. Advocates have already mobilized to ensure that the city's affordable housing plans come to fruition. 

"The city said right now we have about 2,000 affordable units of 3,500 projected in the rezoning either occupied or on their way," Thies said. 

The waterfront conversion will mean more communal amenities for all residents. City officials are hoping to create a 40-foot waterfront esplanade with financial help from private developers who are building new residential towers. The land will include part of a proposed 14-mile greenway that connects to Dumbo, Red Hook and Sunset Park. But, for now the community is stuck with the notoriously poor service of the G train. Kliegerman said, however, once the housing gets built there will be ferry and bus service even if it means developers provide it themselves. 

"If they are investing in 4,000 units of housing, they will make sure there is more transportation than the just G train," he said.