Built at the turn of the 19th century as a blue-collar Irish community, Vinegar Hill is being touted by developers as the next frontier of Brooklyn gentrification – one with historic allure.
Like many up-and-coming neighborhoods, the boundaries of Vinegar Hill are somewhat disputed – and will surely expand if development is a hit there – but, at its core, the district covers the eight blocks bordered by the Brooklyn Navy Yard to the east, the East River to the north, Bridge Street to the west, and York Street to the south.
The area’s profile has risen on the coattails of the boom of neighboring Dumbo, as well as the attention paid the Navy Yard’s planned overhaul. But those familiar with the neighborhood say that Vinegar Hill’s strength lies not just in its location, but also in its well-preserved, modest three-story row houses and wide, Belgian-block streets where parking is still plentiful.
“Vinegar Hill is red hot. It’s been discovered,” said Steve Gerber, a senior vice president of the Corcoran Group. “It’s absolutely a destination onto itself, and in a lot of ways it’s more appealing [than nearby Dumbo] since there are not as many tall buildings and it’s a landmark district. It looks like an old New England fishing village.”
Manhattanites may be attracted to such ambiance, but the growth potential of the neighborhood is inherently limited by its small size, the historic district status, and the infrequent arrival of its townhouses on the market. However, the small factories and workshop buildings that remain have taken steps toward their inevitable high-end residential conversions.
Depending on where you draw the boundaries of Vinegar Hill, there will be seven condo conversions there by the end of this year, according to Elan Padeh, CEO of the Developers Group.
Because inventory is limited by Vinegar Hill’s boundaries, steep price increases are normal. Chris Thomas, managing director of sales for Brown Harris Stevens in Brooklyn, reports that four-story townhouses 20 feet wide by 40 feet deep in good condition sell for $1.5 million – up from $400,000 to $500,000 six years ago. A floor-through apartment in such a building – a one-bedroom plus a den – typically rents for $1,800 per month, he said.
Recently, Massey Knakal Realty Services sold an 185,000-square-foot former vinyl product factory at 220 Water Street for $23 million – marketing it as an easy property to convert to residential use. Also, the Developers Group in February will offer properties at 99 Gold Street, which features its own basketball court. The 1919 building is being converted into 88 condos, including 750-square-foot studios starting at $385,000, and two-bedroom penthouses for $1.3 million and more.
Last year, Corcoran’s Gerber said that one-bedroom apartments in a nine-unit development at 85 Hudson Avenue went for $486,000 to $524,000, while the penthouse drew $950,000.
While buyers may be willing to pay for location – the York Street stop on the F train is a short walk from most parts of the neighborhood – the neighborhood lacks infrastructure, and relies on grocery stores and restaurants in Dumbo. This is a situation that may or may not change soon.
Vinegar Hill and Dumbo made headlines last year when their neighborhood associations protested the Jehovah’s Witnesses successful plans to build a 1,000-unit headquarters and residential complex at 85 Jay Street. The 20-story building, they say, will clash with the adjoining neighborhood and block views of the bridge. Some brokers say the influx of thousands of people living, working and worshiping at the headquarters will be good for retail.
Vinegar Hill Neighborhood Association president Nicholas Evans-Cato said that will not happen – even though Vinegar Hill’s residential buildings have been grandfathered in as mixed-use properties. There simply isn’t the foot traffic to support such retail, he said, adding he doesn’t believe the new neighbors will often leave the self-contained complex.
Cato, who has maintained an artist’s studio in Vinegar Hill for 10 years, says the eight blocks have maintained their color despite intense developer interest.
“Some of the buildings have been spiffed up, but some are as shabby as ever,” he said. Many of the neighborhood’s longtime Lithuanian residents remain, as do the artists who moved there in the 1970s. “Now,” he said, “we simply have newer and more affluent neighbors.”