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Updated 09/09/2010 07:11 PM

Boutique Properties Bring New Dimension To Brooklyn Real Estate

By: Jill Urban

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Boutique apartment buildings are offering buyers a new option in Brooklyn. NY1's Jill Urban filed the following report.

Amidst the quiet, charming brownstones, a new type of property is emerging in Brooklyn.

‘In Brooklyn, we are seeing smaller buildings going up with higher-end finishes, because developers are realizing that competition is still there and buyers are demanding a higher-quality product,” says Andrew Booth, a broker at the Corcoran Group.

Booth says over the last five years, Brooklyn has been offering buyers a new type of product – small, quaint buildings with ultra-modern, high-end finishes. These boutique developments offer the luxury found in many of the new high-rise projects, but with the community feel of a walk up.

Jayme Sklar bought in Carroll Gardens a few years ago and says the new buildings keep getting better and better. She says the change just reflects the way Brooklyn has evolved.

“Brooklyn has evolved in so many ways,” says Sklar. “It’s evolved in that we have restaurants and cafes and shops and now the real estate is mimicking that. It all blends now. It's not just a trendy shop next to a brownstone. It’s maybe a trendy shop maybe next to a small boutique building.”

Most apartments come with top-of-the-line appliances and the highest-quality finishes. And while the buildings do not offer the amenities you may find in a new high rise, Booth says that a just allows buyers to get more bang for their buck in terms of space.

“In a boutique development, your common charges may be $400 a month, where in a larger building, because you have a staff to pay for and a gym to maintain, your common charges could be $800 per month,” Booth says. “So here you can spend a little bit more on the apartment and get something bigger and nicer.”

At a time when it’s difficult to secure capital, these boutique developments are allowing developers to do a lot more with a lot less.

“Usually your land or acquisition costs are a lot less,” says Veronika Fernandez of the Basile Builders Group. “Your building, your hard costs and your soft costs are also a lot less, so you can do more deals in different areas of Brooklyn with less capital.”

Basile Builders Group currently has five boutique properties in the works. Fernandez says a small-scale project has less risk. And with new mortgage guidelines, a building with fewer units makes it easier for buyers to close.

These buildings are creating quite a draw, especially for Manhattanites looking for more space.

Boutique properties are popping up all over the borough, and are helping to add a new dimension to Brooklyn real estate.