No amount of jokes about rhubarb syrup or Monocle magazine or Iberian lynx taxidermy can pierce the gloom that is New York Real Estate. Existence demands shelter, and shelter demands pulverized rock, and pulverized rock commands money, the entity that is seemingly everywhere and nowhere. An article in the business section of today's Times detailing the manner in which Brooklyn real estate is being swallowed up by deep-pocketed investors isn't so much news as it is the dry sand of a tsunami's drawback. Take a good long look.
“I’d say by the spring, maybe 70 percent of the sales we were seeing were to hedge funds, investors and others taking advantage of what was happening in Brooklyn,” said Stephanie O’Brien, a real estate broker with Douglas Elliman in Brooklyn. “Only about 30 percent were actual end users or first-time buyers.”
That was enough, until we read this bit about what Australian investor Alan Dixon regrets. What Alan Dixon, the investor whose group wields $380 million and owns 71 rental houses in Bushwick (538 total in the NY/NJ area), regrets is what we all regret, really. Time.
If Mr. Dixon has a regret, it is not moving faster, especially in Brooklyn, where prices quickly began to climb. His group has been essentially priced out of well-established neighborhoods like Park Slope and Brooklyn Heights.
Fast, But Not Fast Enough. Feel familiar?
[h/t Free Williamsburg]