Brooklyn for rent

June 11, 2012 by  

Brooklyn scored another bonanza in the rental housing market. American Realty Advisors just bought a 62-unit apartment building at 111 Kent Street for the record sum of $55.5 million.

Developer Douglas Steiner, chairman of Steiner Studios, called it “an eye-popping number.” While the rental market in the borough has been strong for the past three years, this latest sale surprised even veteran housing analysts.

Lots of factors account for the current hot trend in this segment of the housing market. For one thing, despite rock bottom interest rates on home mortgages, fewer people are able to satisfy the stringent credit requirements banks now impose.

Brooklyn also had a significant number of condominium projects that were half-finished when the 2008 recession hit. These became a prime source for conversion to rental units. The happy combination of higher demand for apartments coupled with supply did not escape the notice of investors. Money for development flowed.

Not only has the surge in rental housing been good for attracting young professionals and new families to the borough, this expansion is a boon for local business. It’s easy to see, for instance, how brochure printing, catalog printing and other marketing-related services benefit from this kind of real estate development.

The community welcome mat is out and as Stanley L. Iezman, the chairman of American Realty Advisors said:

“From a price standpoint, you get more value in Brooklyn.”

Iezman is backing-up his words with actions. Currently, American Realty Advisors is looking for additional properties, residential and commercial, in the area.