By Sonia Samuel/New York Observer
The migration of Manhattanites into Brooklyn hit its highest mark in 2006 and we are beginning to see that trend yet again. “Initially people were coming here to purchase condos, co-ops and apartments but we didnt see a heavy rental market. But in the last five years due to rise in rental prices in Manhattan, more Manhattanites are moving to Brooklyn” Says Peggy Aguayo, Principal Broker and Owner of Aguayo and Heubener.
Brooklyn is no more a “second option” to Manhattan. In fact an increasing number of people want to move to Brooklyn and away from the city’s hustle and bustle where they can find a larger apartment for lesser value. At the same time one can still have bars, restaurants, parks and amenities nearby, along with a quieter more ‘neighborhood feel’.
The most popular areas are Park slope. Cobble Hill, Brooklyn Heights, Dumbo and Williamsburg. Brokers are seeing mixed demographics that are moving to these areas but leaning towards “18-49 years while Williamsburg, a trendy, cutting edge area is seeing a more 25-35 years age group” Says Vicki Negron, Senior Vice President at Corcoran.
One of Park Slope’s popular developments is the Arias at 4th avenue. The Arias was initially built and developed as a condominium by Iconic Group, but the development team then decided to go rental. The building was 90% leased out within just five months of its opening. That’s 86 homes in five months! That’s how hot rental property is now in Brooklyn. State of the art amenities such as a fitness area, yoga room and a residents lounge; stunning views of the Manhattan skyline and the surrounding area; and a sense of community, all while being conveniently located, makes Alias a hot seller. “7th avenue was always congested, with restaurants, bars, coffee shops population and 6th avenue was more residential. Now 5th avenue has evolved, 10 years later. And as a natural progression moving down the avenues, there are stores, bars and restaurants coming up towards 4th avenue” says Jacqueline Urgo, President of Marketing Directors.
DUMBO is another area that has evolved from what it was in the 18th century. DUMBO (Down the Manhattan Bridge Overpass) used to be an industrial area with factories, warehouses and dock storehouses. These old factories were then converted into Luxury lofts and apartments. But David Walentas, founder of Two Trees Management was really the one that pioneered the development and transformation of the area. Today DUMBO is a charming and vibrant neighborhood with a mix of retail and artistic activity. As DUMBONYC defines it: Dumbo is not quite Brooklyn brownstone and not quite Manhattan glass condos, It has a unique character of its own. It is attracting a number of families and Manhattanites and the rental prices are on power with Manhattan.
Recent development, GAIR2 by Two Trees Management is the hottest and most expensive property in the area with an average of $57 per sq foot. It was named after the original architect Robert Gair, who built the property in 1901; the building maintains a historic exterior but an ultra modernized interior. The list of amenities is endless, from Bosch washer and dryers in every apartment to a golf simulator. In less than 2 and 14 months, 106 apartments were leased. “We wanted to create something true to the DUMBO area “says Asher Abehsera, VP of Residential Properties at Two Trees Management.
As more people flock to Brooklyn, rental customers are taking lesser time to make their decision as they understand the market situation. “We are seeing no negotiating on prices, no concessions and only very large buildings that are doing their initial lease up, paying the broker fees. Condo owners renting their units out are getting fantastic numbers. In Williamsburg, anything with a view on the waterfront or in a building with amenities are seeing fantastic rental numbers.” explains Sarah Burke, Executive Vice President and Director of Sales, Prudential Douglas Elliman.
According to a report provided by MNS, August 2011, the top 3 expensive rental areas for 2 bedroom apartments were Dumbo, Brooklyn Heights and Boreum Hill (in that order). The report also shows that Dumbo, Parkslope and Williamsburg are the top areas in Brooklyn that saw a steady rise in prices in studio, one bedroom and 2 bedroom apartments.
With the pace of development, super sleek buildings and a relaxed neighborhood, increasing number of people are finding it feasible to live in Brooklyn. “Brooklyn was a trickle down from Manhattan” says Aguayo. “But as vacancy rates fall, Brooklyn has definitely become a preferred place over the latter”.
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