Crown Heights has a history that is undeniably turbulent, but the neighborhood has transitioned itself recently into an area that has a real estate market filled with both promise and potential. It is a neighborhood that boasts some of the best local food in New York, is home to some of the most recognizable brands in the country, and is one of the better places to invest in the entire city.
One trend that has found success in Crown Heights is the idea of space sharing. On the residential side, the effort has been spear-headed by a company called Common and its founder, Brad Hargreaves. Common provides each of its tenants with his/her own bedroom (there are 19 bedrooms in total), while the living rooms and common areas are all shared. Common began taking applications for its 19 rooms in September 2015 and received 150 applications in the first week alone.
On the commercial side of things, Sam Strauss-Malcolm plans to open his second co-working space in Crown Heights later this fall. His first project, called “Dean Machine” and located at 1037 Dean Street, has not been able to keep up with demand, forcing Strauss-Malcolm to open a second location. The new space, called Work and Co. and located at 650 Franklin Avenue, will have 20 cubicles that each rent for $425 per month, as well as communal work spaces and 24-hour access.
Commercial Developments in Crown Heights
The large majority of commercial developments in Crown Heights deal with restaurants, bars, and coffee shops, most of which are solely unique to the neighborhood. One restaurant, in particular, earned high praise a few months back from Fodor’s — one of the nation’s leading travel publications. Fodor’s named Barboncino Pizza in Crown Heights the No. 1 place for pizza in Brooklyn, edging out some of the other popular places like Roberta’s in Bushwick.
Jennifer Rhodes of Ideal Properties Group argues that Franklin Avenue in Crown Heights has become “restaurant row,” and Ari Harkov of Halstead Property’s Harkov-Lewis Team likens it to the Williamsburg of years ago.
There has been, however, one notable brand name that has recently entered the area: Starbucks. Starbucks opened its first location in Crown Heights roughly a year ago at 341 Eastern Parkway. The coffee chain shares the building with Capital One Bank, who signed a 10-year lease for its space back in 2014.
Residential Developments in Crown Heights
A search on OLR shows a number of new condo developments in Crown Heights, three of which are new constructions, two that are pre-constructions, and two that are new conversions. “The amount of development in Crown Heights is extraordinary,” says Ari Harkov.
The three projects that are new constructions include:
- 1670 Dean Street – five floors/five units/$524 per square foot
- 830 Dean Street – four floors/two units/$925 per square foot
- 954 Bergen Street – six floors/36 units/ $942 per square foot
Additionally, 954 Bergen Street has incredibly high rental prices as well. One-bedroom apartments in that building have been rented for $2,500 and $2,600 despite the fact that
the median price for a one-bed in Crown Heights is $1,800 (according to StreetEasy).
Rental Dispute in Crown Heights
One of the more note-worthy developments in Crown Heights over the past few weeks and months has been the on-going fight between Renaissance Realty and the tenants of the two buildings the company now owns. The tenants have been paying below-market “preferential rent” for more than two decades, but Renaissance has wanted to raise prices since taking over the properties.
The courts originally ruled in favor of Renaissance Realty, saying that the firm was in fact allowed to charge market-price rents. A number of tenants, however, are appealing the decision in what is almost certain to be a long, drawn-out fight.