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Multi-Family Home in Bushwick Brings $2.5M, Double Going Rate, Broker Says

By Gwynne Hogan | May 25, 2016 3:49pm
 117 Wilson Avenue recently sold for $2.5 million.
117 Wilson Avenue recently sold for $2.5 million.
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Courtesy of Ariel Property

BUSHWICK — Bushwick real estate just got pricier.

A multi-family home on Wilson Avenue sold for $2.5 million Wednesday, one of the highest sales per square foot for a building of it's kind, according to the deal's broker.

A newly renovated, three-story building at 117 Wilson Ave. racked in $606 per square foot, double the 2015 average square foot price for multi-family homes, which was about $300, according to a recent report from the broker. 

The building has three apartments and the clothing store Worship on the ground floor.

The multimillion dollar price tag continues years of surging prices for multi-family homes in Bushwick. In 2011, the average square foot price was about $110.

And the fact that the building was newly renovated marks a shift, said broker Daniel Tropp at Ariel Properties.

“The typical deal we see out here is a stabilized asset, a stabilized building and investors are...willing to take a low return because they know that they’re going to be able, in time, to vacate units, do work on them and bring them up to or close to free market.”

Investing in already renovated properties is the kind of transaction more likely seen in nearby Williamsburg, he said, and it's likely to become something that's more prevalent in Bushwick. 

"They love the retail, they love what’s going on there and they still see long-term growth,” Tropp said. "We'll start to see more of these renovated returns...You'll probably see more buyers merge as the area continues to improve."