Eye On Real Estate: Developer Sees Upside in Rental Apartments
By Lore Croghan
Brooklyn Daily Eagle
Greystone is the new kid on the block in DUMBO, and a busy block it is.
The Manhattan real estate investment development and financial services firm decided to go with rental apartments for its neighborhood construction debut.
Bulldozers are digging the dirt at its 47 Bridge St. site, where a seven-story, 27-unit building will rise.
“There aren't many new rental properties in the DUMBO area; rentals are still doing really well, so the demand is still high,” said Jeffrey Simpson, CEO of Greystone Property Development.
Has the firm, which has building projects in progress from Miami to the West Village, come late to the party in DUMBO? No, said Simpson – just do the math.
“We purchased the property for around $216 per square foot and the area is now trading around $300 per square foot – with some fairly high-profile purchases as of late – so this shows the development of DUMBO is still on a fairly active upswing,” he said.
Greystone bought the site through an LLC for $6.53 million last March, city Finance Department records indicate. In December 2012, Brooklyn builder Yaron (Ron) Hershco had signed a contract to buy it from an LLC that had just closed on it for $6 million, the records show. That investor instead sold to Greystone.
Hershco is known in DUMBO as the developer of 133 Water St., which operated as a rental apartment building for several years before converting to condos. His entity that owned 133 Water St. filed for a technical bankruptcy in 2009 but he continued to operate the property, according to The Real Deal.
He is Greystone's partner in the 47 Bridge St. development, Simpson said.