Property Tales

Queens is ripe with investment opportunities of all kinds-in well-developed neighborhoods and those that are just emerging. You've got Astoria and Flushing-both are mature markets where you can still find great deals in small, livable multi-use buildings. Then, there are Elmhurst and Corona, which are not as well known, nor as trendy, but are rather rapidly developing into desirable residential areas. You can get a lot of bang for your buck in Queens.

-Swain Weiner, real estate broker,

Massey Knackal Realty Services,

Queens branch

QUEENS IS THE new Brooklyn. That's been the buzz, at least, among real estate bargain hunters for a while now. It's catchy. But what does it mean?

Not much, really.

Both boroughs have beautiful neighborhoods with great upsides. Brooklyn still has good buys, while some of Queens' well-established and notably desirable areas-like Forest Hills, Rego Park and Kew Gardens-are priced too high for budget-minded and/or first-time buyers. Investment-wise, the two boroughs offer a similar range of opportunities.

"For investors purchasing multi-unit or mixed-use buildings to become in-residence, hands-on landlords in either borough, knowing neighborhoods and selecting one with a profile that matches expectations is essential," says Swain Weiner, Massey Knackal's specialist for the Corona and Elmhurst neighborhoods.

"Throughout Queens, you'll find that many multi-unit apartment buildings are on primarily residential side streets, while mixed-use properties are on commercial avenues. Typically, mixed-use buildings have two-sometimes three-stories, with retailer space on the ground floor and one or two apartments on the second and third floor.

"In-residence buyers live in one or more of the apartments and rent the remainder for mortgage-covering income," says Weiner.

The retailers tend to be mom-and-pops with boutiques, bodegas and 99-cent stores-rather than chain stores like Duane Reade, which usually look for larger spaces with attached parking-which means that retail-space renters in these situations are usually not credit-backed by large corporations. If mom-and-pops default on rent, it can be a costly hassle to get them out of the space. So, take the renter's record into consideration before buying.

"Many Queens neighborhoods are rather close-knit and still somewhat ethnically defined. Astoria is primarily Greek, Flushing is Asian and Corona is largely Hispanic, for example. Many investors find that this adds to the borough's charm. If you're thinking of buying in Queens, you should really explore several neighborhoods, walking the streets, eating at some of the local restaurants, doing a bit of shopping and testing your commute to work."

Many personal-use building buyers seem to think of Brooklyn as a first choice, perhaps because they perceive the borough as closer to Manhattan.

"Actually, Elmhurst and Corona, as well as Astoria and Flushing, and Jamaica, have excellent subway and bus connections. There are good investment opportunities in those neighborhoods. Small multi-unit and mixed-use buildings priced from $400,000 to $1.2 million come on the market with some regularity in Corona and Elmhurst," according to Swain.

Massey Knakal's Queens listings currently include two three-story, seven-unit residential buildings in Corona: Priced at $885,000, one of them contains about 4380 square feet, has two-bedroom apartments and has an actual gross annual income of $76,986 (75 percent of current market rents). The second, selling for $1,145,000, has some 3150 square feet divided into a studio apartment, five one-bedroom apartments with terraces and a three-bedroom basement apartment, and has an actual gross annual income of $98,128 (80 percent of current market rents) and has a 25-year tax abatement in place, effective until 2021.

Also listed is a mixed-use building with three stories containing about 3300 square-feet divided into one retail space, two five-bedroom apartments and one one-bedroom apartment with a finished basement. It currently draws an annual income of $80,400 (80 percent of current market rents) and is selling for $925,000.

Another mixed-use property, with 2432 square feet built out as retail space on the first floor and in the basement, plus a one-bedroom and a two-bedroom apartment on the second level, has a projected gross annual income of $42,240 (80 percent of current market rents), and is priced at $410,000. It's already under contract for sale.

"Similar properties come on the market with regularity," says Swain. "Be persistent and search actively, and you'll find them." o