Investor/Developers have been land banking development opportunity properties in the Gowanus neighborhood in Brooklyn, NY for decades in the hope that one day in the not too distant future the City Council would approve an area wide rezoning. With the 2004 rezoning of nearby Downtown Brooklyn came a historic boom in residential and commercial development that continues today.
Approximately 1 year ago on November 23rd 2021, the City Council did approve the area wide rezoning of Gowanus in an effort to shape a more positive future for this wonderful Brooklyn neighborhood. One of the many goals of the rezoning was to chip away at the housing shortage crisis we are in and the affordable housing shortage we are facing in New York.
Hopes were high and the potential was great, with approximately 8,500 units of new housing, 3,000 permanently affordable units, 6 acres of new open space along a cleaned up Gowanus Canal, new commercial and community space and thousands of jobs.
For a variety of reasons, such as changing market dynamics, lingering concerns and continued outbreaks of Covid 19, the expiration of the states tax incentive program, Affordable New York or 421A, skyrocketing interest rates, high construction and borrowing costs, the impact of this area wide rezoning effort has been severely dampened.
The ripple effect of these dampening factors are being felt in Brooklyn with Investment Sales down 36% from $3B to $1.95B in the 3rd Quarter of 2022 according to a TerraCRG market report.
Today, filed permits for Gowanus development sites that began construction before the 421A expiration (a key requirement to qualify for the tax incentive) shows approximately 4,000 units planned or already in the pipeline. The question is how many of these units will be built before the completion deadline in 2026?
To be continued...
If you are interested in selling your property or you know someone who is planning to sell their New York or Brooklyn property, whether a single family residential property, an apartment building, a commercial property, mixed use, multi family, coop or condo, vacant land or a development opportunity, call us. You will be very happy that you did.
We always bring our clients the top market price for their property and provide exceptional personalized service from initial consultation to closing.
Thank you,
Accord Real Estate Group
Your Brooklyn Realtors
