The Steiner family is moving from movie studios at the Navy Yard to an apartment high rise on a low-rent stretch of Flatbush just blocks from the Brooklyn Academy of Music and One Hanson Place. David and Douglas Steiner plan to build a 52-story tower called The Hub, according to the WSJ, and it is a bet that there is enough demand for residential development in Brooklyn that people will begin to move beyond more traditional neighborhoods like Park Slope, Brooklyn Heights, and Fort Greene. The Steiners' development company purchased the lot at Flatbush and Schermherhorn?in the DoBro/Boerum Hill DMZ? for $30 million and expect to break ground in early 2013.
The tower is expected to cost $325-$350 million, and of the 720 rental units that will go for market rates, pricing is planned to be in the $40-$50 a square foot range. Plans to build the Hub as a rental property come at a time when rents in New York, and Brooklyn in particular, are soaring. Rents across Brooklyn increased 6.6% in 2011 and are expected to continue to grow. Even construction of new inventory like the Hub should not relieve upward pressure on rents, as new development will just lure more residents to Brooklyn from higher-priced Manhattan.
· Brooklyn's Shifting Center [WSJ]
· Brooklyn Rents Surged in '11; Crown Heights Leads Way [CurbedNY]