Maybe, But ‘There’s a Long Journey Ahead’
By Linda Collins
Brooklyn Daily Eagle
BROOKLYN HEIGHTS — Citing Newsweek’s pronouncement last week that the recession was over, David Kramer, chair of the Brooklyn Real Estate Roundtable Steering Committee, said this week, “Perhaps we are at the bottom, and there’s a long journey ahead. But at least there’s a journey ahead.”
Kramer was speaking at the Roundtable luncheon Tuesday at the Brooklyn Historical Society in Brooklyn Heights. In kicking off the day’s program, he added, “Brooklyn real estate continues to be endlessly interesting.”
And the speakers then seemed to prove him right.
Although speaker Mark Caller of the GLC Group has one successfully-sold-out condo development in Williamsburg and another under construction in Clinton Hill, he described the effort of developing in the city now as a “nightmare.”
“I don’t see how I could possibly buy land today for development. We’re sitting with land, but lenders are saying ‘no,’” the developer said.
Noting that HSBC was his lender on his two current projects, he said, “Luckily we had a proven track record and a strong relationship with them.”
The secret to convincing a potential buyer it’s better to buy than to rent in today’s market is in the concessions and amenities a developer can offer as well as keeping prices as close to affordable as possible, according to Caller.
Asked what the most popular concession is today (no, it’s not a BMW or a Lexus), he replied that it’s covering a buyer’s closing costs.
“For the most part that’s what they’re asking for,” he said. “And we are certainly willing to do that now.”
Another concession he made for the new homeowners at his Nforth development (161 N. Fourth St.) in Williamsburg was to provide a washer and dryer in every unit. Just the hookups for these were included in the original design, he said, but “ultimately, at the end, they [the new owners] had washers and dryers.”
The amenities that buyers are demanding these days include a gym or fitness center, outdoor green space and underground parking, he noted.
“We looked at cutting costs,” he said. “But we made the decision to not cut any costs.”
Of his development at 163 Washington Ave. in Clinton Hill, he said he originally planned to fill the property with two separate buildings. But after the recession hit and after spending $200,000 on plans, he had it redesigned as a single 17-story tower.
Although the project brought opposition because of its height, he believes it will also sell quickly because of the “magnificent views above the fifth floor.” The subsequent rezoning of the neighborhood guarantees these great views will be preserved, he said.
The Mess in Albany
Also included on the Roundtable’s program Tuesday was state Senator Eric Adams, discussing “the mess in Albany.”
Among other things, Adams said “We’re caught up in an 8-track world in Albany when we need to be in an iPod world” and to those in the real estate industry, “We need to bring you in on our discussions and we need to come and visit your sites.”
For his very diverse district, which includes Boro Park, Sunset Park, Prospect Heights, Crown Heights, Bed-Stuy and Brownsville, he said there is a great need for senior housing and pointed to hospitals with air rights and churches with vacant lots where such housing could be built.
He also noted that condos and co-ops should be treated equally with respect to taxes.
Finally, as chair of the Racing and Gambling Committee, he said he believes that casinos and gambling “done in a responsible manner can be good for the state.”
Gowanus Canal Cleanup
Speaking about their visions for the cleanup of the Gowanus Canal and its potential Sept. 16 Superfund listing were Brian Carr, assistant regional counsel for the Environmental Protection Agency (EPA), and Cas Holloway, chief of staff for the deputy mayor of operations and special advisor to Mayor Bloomberg.
Their estimates on the cleanup are that it will take between eight, eight and a half, and nine years.
Holloway, who noted that the EPA and the city have basically the same goal of cleaning up the canal, said the city’s recommendation is: “Don’t list the canal right now; let us continue to work with the Army Corps of Engineers and National Grid and Nydia Velazquez; let us find our volunteer partners; and let us finish our remedial study.”
He also said, “Our interests are galvanized. The city is focused as never before. We are committed. This plan is not hypothetical. It will be predicated on binding agreements.”
“Let September come and go. Give us another six months,” he concluded.
But Carr said “By listing it now, it shows we have a certain degree of confidence in obtaining future funds and it shows the EPA’s willingness to accomplish the task.”
Carr believes the project represents a “unique cooperative opportunity to streamline things” — by working together with the city and with the Army Corps of Engineers (“which also does our own work”) and with National Grid.
The entire project has been estimated to cost in the neighborhood of $400 million.
For information about the next Roundtable event on Nov. 10, please call (718) 243-1414.
All proceeds from the quarterly luncheons benefit the Brooklyn Historical Society.
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© Brooklyn Daily Eagle 2009
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