Will it sell (or rent)? 1042 Bloomfield
The 1042 Bloomfield Street “Will it Sell?” entry is back – with an update!
Will 1042 Bloomfield Rent?
Well it appears these sellers have finally come to their senses and will attempt to start generating “positive cashflow” from this financial anvil around their neck.
The danger here is in an attempt to stop falling deeper into the red, they will have to accept fair market value for these units (1,600-$2,000), which will blow a hole in their claims of getting an average of $3,750.00 per unit.
The other issue with units this small is there is typically much higher turnover due to people starting families and needing a bigger place, job losses, death, etc. This will cause units to remain un-rented for a month or two during transition… not to mention apartment maintenance every time a tenant turns over. Renters also have little regard and respect for their units. If being new is a big selling point out of the gate for these to compensate for their lack of size, this will not be true in 2 years when Jimmy decides to convert this to a loft by removing all the interior walls (supporting and non-supporting) after he sees it done on Design on a Dime on HGTV!
Oh, and one last tip for anyone thinking about renting here. The day after you sign your lease go to town hall and file a rent control petition. The rent control laws may be on your side. When you go from paying $2,200.00 to $650.00 you will thank me!
(411 note: I’m not sure they’ll help much at City Hall – I think the fire in 2008 pretty much erased that option…)
SEE THE HILARIOUS ORIGINAL ENTRY AFTER THE JUMP!!!
You decide: Overpriced, or a great investment?
[The Hoboken411 “Will it Sell?” Real Estate analyst / realist / comedian is back with another installment today! This time taking a look at a FSBO (for sale by owner) property at 1042 Bloomfield Street!]
Tale of the tape:
Address: 1042 Bloomfield Street
Realtor: For Sale by Owner
Type: 4 Unit Rental
SF: 3,576 Livable Space (3 Units are 911 SF and 1 Unit at 843 SF)
COST: $2,495,000.00 (This was being offered at $2,795,000 3 months ago)
What the Seller Paid: $1,150,000 (2005)
TAXES: $15,884.10 (not sure if a re-evaluation has hit this one yet)
I decided to profile 1042 Bloomfield Street based on constantly seeing work done on the property, and also a recent open house I attended there. It seems there is an open house every weekend, and from the math I have done – will continue to be the case for a significant amount of time.
This is being sold as a “Once in a Lifetime Opportunity!” My question is if this is the case why doesn’t the landlord just hold onto it? Funny how after all this time people who bought at the wrong time continue to live in denial. All the fancy marble and crown molding in this place will not change the negative cash flow.
Official Listing (with commentary):
- “Once in a lifetime opportunity to own the most solid, time and time again tested, unparralled investment ever! A four family in Hoboken!”
(These people must have the same economists as Barack Obama. A 4 Family was a solid investment in Hoboken when you weren’t spending 2.5 Million to buy it)
- “Elegance and grandeur echo throughout this original brownstone located at 1042 Bloomfield Street in Hoboken, NJ – or should we say “New Jersey’s gold coast”.”
(There is nothing original about this place. It was completely gutted, and it is a 4 story walk up…not a one family brownstone)
- “Let’s commence on its location, 1042 Bloomfield Street is a corner property that is detached on three sides. Bloomfield and Eleventh Street are two of the most sought after streets in town.”
(11th Street…really? I bet Hudson, Garden and Park are pretty pissed now)
- “You are welcomed with two sets of fully restored antique European double Rosewood/Cedar and wrought iron doors, along with basket-weaved white and black marble and glistening classic chandeliers.”
(For the rent these people are expected to pay how about welcoming them with a glass of champagne and a blonde named Inga)
- “Any where you turn you will find extensive classic woodworking, elegant wainscot paneling and double crown molding.”
(Any where you turn you will see a wall since this place is so small)
- “There is one unit per floor, showcasing three bedrooms and two baths.”
(3 Bedrooms + 2 Baths / 843 SF = Claustrophobia)
- “Each apartment entrance door is six paneled and has been hand stained Mahogany.”
(Whew…. I was worried this might have been done with a brush?)
- “Custom interior finishes that are unsurpassed, such as the Statutory White Marble that was carefully selected and designed for each bathroom.”
(What does carefully selected mean? Every bathroom has the same exact tile so I assume they got a bulk discount)
- “The installation was done in such a fashion to create the illusion that the marble is one large piece.”
(Houdini was the installer)
- “Designer bathroom fixtures and chrome faucets. First class designer kitchens that showcase archways, custom made Mahogany, European size kitchen cabinets, granite countertops, and subway tile back-splashes, top of the line appliances and classic school house chandeliers and scones.”
(This was all totally unnecessary and a bad business decision for Rental Units. Renters do not expect this type of detail, and will not pay a premium for it. If this building was converted into 4 condos – which it should have been – then this would be applicable.)
- “Great views from each of the nine new custom made windows in each unit.”
(Nothing like looking at a busy intersection after a tough day at the office. “Look honey, a car just made an illegal U-Turn!”)
- “Aiphone intercom/communication system has been integrated.”
(Hey Cindy, your mother is here again. Quick shut the lights out and let’s pretend we are not home….again)
- “Storage is outstanding, as each unit has five double closets.”
(I mean how much storage can there really be in a 843 SF Unit with 3 Bedrooms and 2 Baths?)
- “The finished lower level offers five secure storage units, porcelain flooring and a half a bathroom.”
(Very comforting. Storing things makes my bladder stimulated)
- “There’s nothing like having a garden that wraps around your entire building in Hoboken’s exclusive urban setting.”
(I am looking at the pictures and I do not see any Garden. Does a few half cracked flower pots qualify as a Garden?)
- “Who needs a car? 1042 Bloomfield Street is walking distance from the Path, Ferry, all major transportation, shops, parks and all Hoboken has to offer.”
(Insert generic Hoboken Real Estate Ad Line here)
- “Let’s not forget being a stone throw away from the capital of the world, Manhattan! This investment is for the most discerning buyer.”
(If you could hit Manhattan with a stone you would be in the major leagues and not living in this overpriced dump)
- “Approximate Monthly Income is $14,900.00. Tenants pays all utilities.”
(That is $3,725.00 a unit!!!! For this kind of money you could live at the Shipyard in a 1,500 SF Unit with Elevator, etc.)
- “Financing available for qualified buyers.”
(From where Pamrapo? Oh wait they are gone)
It is too bad these people did not convert this to either 3 condos (owners 2 story unit, and 2 condos), or a giant 1 family. I think they would have had a much easier time selling it, and would have actually saved construction costs by not having to pay for 4 kitchens, 4 utilities, etc.
I am sure they are getting nervous as they spent 1.1 Million, plus close to a million on construction. Think about the carrying costs of the mortgage and construction loans along the way too. This is a perfect example of the last guy out. He watched all those “Flip it” shows on HGTV and thought he could do it himself. I just hope they did not invest their life savings (or a relatives) into this misguided project.
Stay tuned for the next edition of Hoboken411’s “Will it Sell?”!