According to Crain’s bids are due tomorrow for an L-shaped parcel at East Houston and Suffolk streets which is apparently envisioned as the site of a new rental building. The property has two addresses: 255 East Houston and 171 Suffolk Street.
Crain’s reports:
(The property) could fetch between $250 and $300 per square foot, depending on whether the purchaser plans to build a rental or a condo, according to Dan Fasulo, managing director of Real Capital Analytics, with condos being the use that would attract the best offer. Mr. Fasulo said he thinks a rental is more likely in this environment and for that location. He notes that the young people who live in this increasingly trendy spot for galleries, restaurants and residential developments are more likely to rent than to buy. In fact, rentals in the area have been hot, with landlords able to command between $70 and $80 per square foot for apartments. In contrast, Mr. Fasulo doubted that a developer would want the obligation of having to sell over 100 condo units in a building in that area.
In the spring of 2010, a day care center, Action For Progress, was displaced when construction at a neighboring site destabilized 255 East Houston.
