Thursday, September 05, 2013

Are Lincoln Square two-flat sales dead? Long live Lincoln Square two-flats!

Lincoln Square was once filled with families living in two-and three flat multi-unit buildings (often just referred to as a "two-flat").  It was common for immediate families or "owner-operators" to live in these multi-apartment arrangements for most of the 20th century.  Near the turn of the century (2000) highest and best use for these properties overwhelmingly became single family home conversions.  Multi-unit sales were brisk over the last decade from 2000-2008 and these buildings were quickly converted to luxury houses by their owners or by developers.
An exceptional multi-unit in Lincoln Square (Photo Eric Rojas)

It feels like 2013 has been a slow year for multi-unit sales.  Let's check the MLS data for Lincoln Square multi-units (two-four units).

Lincoln Square multi-unit sales January 1st to September 3rd 2013

38 multi-unit buildings (two to four flats) have sold this year. The median price is $500,000.
40 sold same period last year with a median of $379,000. So, while unit sales are about EVEN, the median price for these types of properties has gone UP. 

While personally looking at the buildings sold this year I noticed several "move in ready" two-flat buildings with well finished "owners units" had sold for well over $600,000 and $700,000.  This reflects the tight market for single family houses.  Sellers put their nice buildings on the market for top dollar while buyers shut out of the single family home market looked for new options.  The cost for "development" properties has gone up too (properties needing tear down or complete rehab).  These factors have raised median price.

Lincoln Square Multi-Unit sales have steadily risen since 2009 (the year after the financial crash).  Of course, not all of these buildings are converted and many still remain investments or "owner operators".
31 sold in 2011
24 sold in 2010
19 sold in 2009

I wonder if I'll still be on this planet when the last of these small multi-unit dwellings is converted to a house!  MORE LINCOLN SQUARE HERE

All sales data gathered from and analyzed by Eric Rojas Real Estate Broker with Kale Realty.  These numbers are approximates.  Call us to find Lincoln Square multi-units or for consultation on your property sale.

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