The Real Deal New York

“Bed-Stuy East”: The next Park Slope?

October 04, 2013 01:30PM

bed-stuy

426 Bainbridge Street rendering and Boaz Gilad

In recent years, brokers had a hard time branding the area east of Malcolm X Boulevard in Bedford-Stuyvesant. Now, as this section of the neighborhood is on the eve of resurgence, they call it “Bed-Stuy East.”

Weissman Equities is starting construction on a mixed-use building at 426 Bainbridge Street later this month. A café, wine store and custom T-shirt retailer have approached the company’s co-founder, Seth Weissman, with offers for the available retail space.

Residents’ food and drink options are growing. The Simplicity Wine Bar & Cafe opened earlier this year, while a new take-out joint and bar called the New Casablanca Cocktail Lounge is set to arrive by the holidays. Also, grocery store Bed-Stuy Fresh and Local at 210 Patchen Avenue plans to open by November.

Meanwhile, brownstones east of Malcolm X Boulevard largely cost less than $1 million. In central Bed-Stuy, prices fall between between $1 million and $2 million.

“You see Malcolm X Boulevard and still see many shuttered stores, but that’s actually not a bad thing,” developer Boaz Gilad of Brookland Capital told the Wall Street Journal. “It means that the need for those businesses have disappeared. In five years, Malcolm X Boulevard will start to look like Fifth Avenue in Park Slope.” [WSJ]Mark Maurer

9 Responses to ““Bed-Stuy East”: The next Park Slope?”

  1. October 04, 2013 at 1:54 pm, bedstuydoordie said:

    Laughable broker babble. In 5 years, Malcom X is going to look like 5th Avenue in Park Slope? Somehow I don’t see Grand Central Oyster bar, Blue Ribbon, Luke’s Lobster and Calexico on Malcom x in 5 years. That doesn’t make it a bad thing, but the over the top brokerspeak is truly a joke. Bed Stuy still has a pretty terrible crime rate with multiple daylight murders this year and what you save on housing costs, you will need for private schools and a car to get your kids around. None of the new residents of Bed Stuy are using the public school system, they are overpaying on a house and then complaining about where all the wine bars and organic markets are. Just let Bed Stuy be Bed Stuy and stop suckering in more people to spend 1 million dollars for a house in a neighborhood that still has A LONG way to go before it approaches desirable for all but a few hard core gentrifiers willing to live in one of the most dangerous neighborhoods in NYC.

    • October 04, 2013 at 2:52 pm, guest said:

      I lived off of Fifth Av. in park slope in 1994, and it was a lot like Malcolm X is now. I now live on Stuyvesant, a block away from Malcolm X. It is a great area. It needs more amenities, but that is happening. After the recent high prices, there has been some backlash–but in comments sections only. Everyone i know wants to buy more properties in the area, and thinks things will continue to go up. I used to hear gunshots at Union and Fifth avenue, and now its a big retail corner. The upper west side used to be the same. I am with Boaz on this.

      • October 04, 2013 at 3:13 pm, bedstuydoordie said:

        Fair point, but 1994 was nearly 20 years ago. People are paying 2013 prices in Bed Stuy for a 1994 neighborhood. Big difference. in 1994, you could get an entire brownstone in Park Slope for 500k dollars and now people are paying 1-2 million for Bed Stuy. You don’t think that’s crazytown? if you get into a gentrifying neighborhood for cheap, that makes sense, when you overpay for gentrification that is 10 years away, that’s called nuts.

        So Boaz says Malcolm X looks like 5th Avenue, but what he means to say is that it looks like 5th Avenue 20 years ago. Not quite the same thing here.

        BTW, even at the height of the bad times on 5th Avenue, it never had the kind of crime Bed Stuy still grapples with today. and in 1994, the public school ps. 321 in Park Slope was already a top notch school.

        Hey, if I could get a house in Bed Stuy for 300 or 400K that might make sense given the huge improvements that still need to come, but paying 1 million or more is just absurd and stupid.

        • October 04, 2013 at 3:16 pm, bedstuydoordie said:

          I take that back, in Park Slope in 1994, you could get 2 BROWNSTONES for 500K. And the neighborhood was already pretty gentrified with regard to schools and crime. Now I see 2 million for a house in Bed Stuy is the norm? Hell no. Maybe in 2030, not now.

          • October 04, 2013 at 4:18 pm, guest said:

            In 1994, you could probably buy a townhouse in the same area of bed stuy for $50k. Fifth Ave. started getting a broad range of bars and restaurants in the 1998-2000 period–only about five years later. I can easily see that happening on Malcolm X, at least below Halsey.

            I got in at great prices and i am happy, but I think the prices are still going to go up, simply because there is so much pressure from the other neighborhoods. Also, with the huge inflow of new people, the neighborhood is going to take off very quickly.

            Btw, not every kid in the slope can go to 321. In fact, they keep shrinking the school’s zone. If you live around Fifth Ave., you probably have to go to school in Gowanus. You can bet most of those families go private too.

  2. October 04, 2013 at 2:45 pm, JON said:

    I CANT WAIT FOR THE CRASH!

  3. October 04, 2013 at 10:09 pm, Hans Delbruck said:

    Valid points are made. In the here and now Bed Stuy it’s still the only place you can still buy a brownstone for under $1m. I worked on 5th ave in 1991 and it was an outright dump. Maybe not as much violence but still not a nice place. It’s housing stock was a big part of the draw along with transportation options. Sound familiar? The east village,Williamsburg and Park Slope were all once dumps. Now look at them. I don’t recall the national guard or police coming in and making it safe for everbody first. Folks moved there for various reasons and dealt with the crime. It will be kinda like that for Bed Stuy. Maybe we need to actually ask the neighborhood to attempt to behave as opposed to sitting back and lamenting crime.

  4. October 12, 2013 at 10:14 am, Dan said:

    I dont know about this but the investors of GoAllCash.com-real estate cash buyers buying like crazy in this area i saw their signs all over the place and heard from few brokers that this group spent nearly 10 million dollars last twelve month buying properties there so it is obviously that something going on there

  5. June 09, 2014 at 5:05 pm, Market watcher said:

    Regardless of whether this was paid placement, the potential
    investors should look deeply in the Weissman Equities’s track record:
    1. 121 E. 23rd # 6D: Acquired 7/05 for $1,176m. sold. $1,330m 2010. After transfer taxes and brokerage fees, likely a wash.

    2.
    402 W. 22nd: Acquired 2/08 for $2,615m. sold $3,53m 11/12. After
    transfer taxes, brokerage fees, and renovation costs, likely a wash.

    3.
    The Pines. Purchased for $20m. Weissman mismanaged the hotel, food
    & beverage. Weissman was removed as manager of the complex.
    Investors lose millions. http://markatlarge.com/new-yor

    4.
    2299 Adam C Powell Blvd. Acquired for $1,412m 8/13, after being
    flipped by previous owner who acquired for $920k 16 months earlier. SRO
    units with high FFE costs. Didn’t learn from Pines experience on
    furnished spaces. What is the NOI these days? 12% cash on cash on a
    total basis of $2,22m would have to equal at least $260k right? What is
    the NOI here?

    5. 262 Malcolm X, Bed-Stuy — Acquired for $1,5m
    8/13 after being flipped by previous owner who acquired for $700k 8
    months earlier. Renovated a few units. Now has three mechanics liens
    against the property for $227k by Jabar Construction Corp. Doesn’t pay
    his people?

    6. 426 Bainbridge St., Brownsville — Acquired for
    $1,15m 9/13. Several tax liens on the property. Renovation started and
    then stalled. Started and then stalled. Status?

    That’s it folks. 6
    total deals, not 10. 2 exited break even during biggest boom time in
    our life. 1 mismanaged into the ground. 1 mismanaged currently, maybe 2.
    1 bad business plan in Harlem SROs.

    Rich kid, or not, they teach you at Wharton, if you fail once as an entrepreneur it is likely you will fail again.

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