East New York has been re-zoned, and the immediate result is a record sale of 2840 Atlantic Avenue, for $16.75 million, which includes the buildings that were once home to Empire State Dairy and Borden’s Dairy Factory.
As per Real Estate Weekly, “This was the largest, most significant sale in East New York since the rezoning of Atlantic Avenue, which has addressed the affordable housing shortage and is helping to reshape this area of Brooklyn,” said Eli Klapper, of CBRE, the company that brokered the deal.
The property was purchased by the NYC Housing Partnership, a city-authorized administrative agent for affordable housing, which plans to build a 14 story mixed use development.
LSC Development purchased the property for $11 million last year, immediately after the city re-zoned East New York, which gives them a $5 million profit in just one year. This is how developers flip houses. It can be disguised as new affordable housing coming to East New York, but the truth is the first developer made out like a bandit, sells the property back to a city affiliated agency for a lot more money, and the cost of the development of “affordable housing” increases because of the higher sale price, which causes “affordability” to not be so affordable.
And the gentrification in East New York continues. If you do not already know, it started years ago.
Watch for more sales and purchases in East New York, in the upcoming months and years.
Stay tuned at EastNewYork.com