BROOKLYN — As part of its weekly market watch review issued on Monday, Ariel Property Advisors reports that rents are climbing in Brooklyn
The climbing apartment rents — a 10 percent increase in 2010 and a 7 percent increase in 2011 — are expected to continue, increasing by an estimated 5 to 10 percent in the next 12 to 18 months.
Ariel reports that the continued difficulty in obtaining mortgages has led investors to pay Manhattan level prices for multifamily properties in Brooklyn.
The firm attributes its data to an article in The New York Times which credits several factors in the recent trend, including a strong rental market and low interest rates.
An example cited by the Times is American Realty Advisors’ $55.5 million acquisition of 111 Kent Ave. in Williamsburg, which translates to more than $895,000 per apartment (there are 62 of these).
Many condominium projects that had been stalled in Williamsburg following the financial crisis are being repositioned as rentals or sold to investors who are handling the rental conversions, Ariel reports.