South Bronx? Barbara Corcoran Says Buy!
A: Real Estate mogul and "Good Morning America" contributor Barbara Corcoran listed the South Bronx as the top place to put your investment dollars in her rankings of 5 'ripe' locations for growth.
I love it! Not only do I have the utmost respect for Barbara Corcoran and what she accomplished decades ago to make her real estate company a household name in Manhattan, but I also think she has one of the best 'noses' for smelling out future growth areas.
According to an ABC News Original Report, Corcoran goes on to say:
South Bronx, N.Y. Average home: $380,000What makes it great: The South Bronx is the last housing frontier close to New York City. It lost 57 percent of its population in the 1970s; now people are coming back. Public money is flowing in, and developers are really starting to lay their bets. Most importantly, it's attracting creative energy (artists and musicians are moving there) which can really revitalize an area.
What you can learn: Here are three tips from the South Bronx that apply to any depressed area. One, track the number of classified ads selling property each week. They should double every month. Second, assess an area at night. A night life (like clubs and cafes) is a good sign that a neighborhood is on the rise. Third, look for the price of a cup of coffee to rise. Up-and-coming neighborhoods draw expensive coffee sellers.
I especially like how she analyzes the rising price of a cup of coffee as executives at Starbucks and Dunkin Donuts do their homework to decide where to open new branches in high growth neighborhoods.
Of particular note is "...developers are really starting to lay their bets". While I haven't investigated this myself Im willing to bet that Corcoran has analyzed the public records at the attorney general's office that lists filings for building permits by developers. Usually the paperwork process that developers have to go through before being allowed to build takes years. Savvy brokers are hip to neighborhoods where developers have filed for future new buildings, both for their own real estate investing and for their clients. It seems the South Bronx has some nice action in the works that would spur development over the coming years. If you take Corcoran's advice, you'll get in early!
Personally, I think South Bronx still has some time. If you did buy now, it will probably take a good 7-10 years for you to realize appreciation gains that the 'kings of real estate' are used to when getting into a new area. Just dont expect a quick fix. If you want a neighborhood that is a bit more stable as a potential future growth area, look into Harlem.
Some of the historic districts in Harlem, such as Strivers Row and Mount Morris Park, can offer some great values if the seller gets frustrated and can't get rid of a property here. Some of these tree lined streets are beautiful and the area itself is in the midst of a radical transformation. With Columbia University's campus on 116th & Broadway and its medical center on 168th & Broadway, students and faculty are always looking for rental units closeby.
A typical townhouse in Harlem usually goes for between 1.0-1.75M, depending on the size, location and condition. This townhouse, marketed and IN CONTRACT by Douglas Elliman's 'Harlem King' Todd Stevens is a 20-footer and was priced at 1.575M:
A typical 2BR condo in a Townhouse goes for about $600K, such as this one listed by the same broker:
You must analyze your strategy when deciding where to put your money. If you are sure you are buying real estate and want a medium risk/high reward property, then stick with Corcoran and look into the South Bronx. However, if you want to play it safer and want a lower risk/medium reward property, then look into Harlem!
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Comments (5)
From Bums to Nuns: A Real Estate Adventure in the South Bronx
Boarded up and broken down, the building seemed to be a silent witness of better times in Mott Haven and the pain of people living on the edge. I stood there wondering if I should become its next master. Where was I - just 20 min subway ride from Grand Central and the world of investment banking - now contemplating walking down a grimey alley to find a way into another world; another life, and I would never be the same. The summer of 2001 seems like yesterday, like a dream, a real estate dream. But its real, the scars of renovation damage are real. Here, you will meet Johnny the Squatter, The Nuns, Can Bum Willy, Ricky Numbers, Stumpy, White Boy, The Lesbos, and Roney from the BlueOx Bar. You will be awaken by roosters. You will learn to separate your metal for copper bums, brass bums and aluminum bums. You will learn to avoid the trash police and building police. You will not know this from books, or television, or This Old House - no. This aint your mommas Bronx - its This Old Bronx and it is not for the faint of heart.
Posted by Jason | January 12, 2006 4:52 PM
I wouldnt tuch the lofty areas of the south bronx/chelsea or the west village with a ten foot pole. I like formal pre war apartments and lavish lobbies which is why I live on the Grand Concourse and will stay here forever. One does not give up a cavernous space like mine.
But the South Bronx is coming back with its bohemian crowd.
Grand Concourse is gentrifying and will continue to get better stock with all of our new migrants from Manhattan. I welcome all of the newcomers.
Posted by Hollywood | April 2, 2006 6:56 AM
I just moved from Lower Manhattan and bought a co-op along the Grand Concourse at 166th across from the expanding Bronx Museum of the Arts, not too far from the soon to be redeveloped Yankee Stadium. My very affordable pre-war apartment offers great space and my neighbors are invested in the growth of the area. Get a piece of this while things are still affordable! It's worth it and won't last for long once the new Stadium is complete.
Posted by Evelyn | April 27, 2006 10:55 PM
Two thumbs up for the Grand Concourse near Yankee Stadium 161-167th st. I'm looking into buying a co-op in this area ASAP and can't wait to get out of my overpriced Manhattan shoe box of the moment. I cannot believe the deals - and the apartments are HUGE. If anyone is selling - please post here!!!
Posted by Joshua | December 2, 2006 9:56 AM
Glad to see some savvy folk are in the know. The Grand Concourse between 161 and 166 is really one of the best kept secrets in real-deal real estate for forward thinking investors. I was just shown several LOVELY affordable apartments at 1075 Grand Concourse across from a museum. Big is an understatement. If anyone is interested, lookup EK Realty in the Yellow Pages. Great D train subway access. Manhattan entrance less than 1 block away. Serious-minded Manhattanites looking for a neighborhood on the cusp should really get up there. It's definitely in my top choices. As a New Yorker for 20 years my first thoughts were that the area is the Upper West Side of the 80s - families, young people, and about to be BIG.
Posted by Ashton G | April 21, 2007 7:50 PM