DUMBO joins most expensive list
by Heather Senison
Nov 30, 2011 | 2380 views | 0 0 comments | 14 14 recommendations | email to a friend | print
One of the views of the Manhattan skyline from DUMBO.
One of the views of the Manhattan skyline from DUMBO.
DUMBO is not only nestled between the Manhattan and Brooklyn bridges, it now sits comfortably between the Flatiron District and the Upper East Side of Manhattan with the fourth highest median sale price in New York City during the second quarter of 2011, according to a report from Propertyshark.com.

According to the report, DUMBO had a median sale price of $1,075,000, up 9 percent from the median sale price reported in the second quarter of 2010, which was $990,000.

Other neighborhoods who made the top 10 list were SoHo in first, Tribeca in second and the West Village at eighth. The only other Brooklyn neighborhood to make the cut was Boerum Hill, which came in last, with a median cost of $801,000.

Alexandria Sica, executive director of the DUMBO Business Improvement District, said “the rise in property values is indicative of how dramatically the neighborhood has changed in terms of amenities and visibility.”

She noted the view of the Manhattan skyline from Brooklyn Bridge Park and the influx of technology and creative firms to the area as contributors to DUMBO's appeal.

“That adds a ton of life to the street during the day and into the evenings,” Sica said.

However, the limited amount of buildings in the small neighborhood creates a supply and demand issue, which also increases property value, she said.

But diversity and affordability are also important to the area, so companies such as Two Trees Management Co. LLC, a leading developer in the area, are putting buildings with 20 percent affordable housing up for rentals, Sica said.

“We're seeing a lot of families moving in,” she said. “We're also at the same time seeing a thriving commercial scene.”

In addition, “I think as long as there are buyers at those price points,” she added, “DUMBO is going to continue to be at the top of the list.”

Asher Abehsera, managing director at Two Trees, also said DUMBO's housing costs are reflective of supply and demand.

He said the number of landmarks in the area and zoning for manufacturing causes a “scarcity of product,” regarding places to live.

DUMBO is “a very charming neighborhood tucked away between the bridges,” Abehsera said, citing its cobblestone streets as an example.

“There's a real sense of community in a real urban area,” he said, “so that's a rarity in any place like New York.”

DUMBO's proximity to the bridges, location on the waterfront and diversity of residents also adds to its desirability, he said.

Abehsera said its reportedly high housing costs will not discourage people from looking to live in DUMBO.

“All it does is recognize the earlier people who made their commitment to live in DUMBO, that they've made a good investment,” he said. “At some point there's not going to be more of it left.”

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