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230 Union Street, Brooklyn, NY 11231 2015
(Google Maps)
230 Union Street: Preliminary Due Diligence ReportProfessor Hallenborg, Real Estate Principles
Juan Migone
November 19, 2015
Case Study #1
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230 Union Street, Brooklyn, NY 11231 2015
EXECUTIVE SUMMARY The following report is written to provide information to potential buyers interested in
investing in 230 Union Street, Brooklyn, NY 11231. The report is divided into four components:
Property Description, Title & Ownership Issues, Property Condition, and Zoning and Land-Use
constraints. In these sections investors can hope to find the following information: legal
boundary details, neighborhood background information, market and sub-market analyses,
demographics, research on the property’s school district, deed and legal document specifications,
mortgages and liens, property conditions, recorded violations, zoning conditions, and unused
development opportunities. These sections are then followed by a variety of exhibits that show
images depicting these various specifications. After reading this report, investors will have a
better knowledge of whether or not to invest in 230 Union St.
Location (ZoLa: nyc.gov)
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230 Union Street, Brooklyn, NY 11231 2015
I. Property Description
230 Union St. is located in Carroll Gardens, Brooklyn between Henry and Clinton streets.
The property occupies block 344, lot 27, in Brooklyn Community District 6. The lot itself is
16ft. 8in. x 100ft. with a 1,667 sq. footage. The building on the lot is a 2,551 sq. ft., three story
brownstone that is 16ft. 8in. x 81ft. The home was built in 1900 (Property Shark, 2015; ZoLa:
nyc.gov). It is composed of 3 residential units, the first being a triplex, the second being a one
bedroom apartment on the second floor, and the third being full floor apartment at the top
(Exhibit A) (Foley, 2015).
The property is conveniently located as it is well serviced by public and private
transportation alternatives. It is approximately 0.3 miles from the Carroll St. subway stop which
services the G and F lines (Google Maps). Via subway, Lower Manhattan is a 20 minute
commute while Midtown is 30 minutes. Without traffic, Lower Manhattan is a ten minute drive
via I-478 and the Brooklyn-Battery Tunnel (The New York Times, 2014).
Along with its convenient location, 230 Union Street is situated in Carroll Gardens, a
neighborhood with a calm and cozy atmosphere away from the hustle and bustle of the city but
not too far to seem isolated. Its spacious, tree-lined streets, handsome brownstones, deep-front
gardens, and wrought-iron fences give the area an “urban-small-town atmosphere” appealing to
families, seniors, and young professionals alike (Brooklyn Library; The New York Times, 2014)
Adding to the small-town charm is the neighborhood’s Italian flair. Carroll Gardens was first
populated by Irish immigrants in the late 19th century but were overcome by Italian immigrants
in the early 20th century (Brooklyn Library). Walking down main commercial strips, residents
and visitors can see old-time Italian delis, cheese shops, and restaurants, now alongside “hip
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230 Union Street, Brooklyn, NY 11231 2015
boutiques”, trendy restaurants, and organic markets (The New York Times, 2014). The mix of
history, culture, social classes, and transportation alternatives, as well as its laid back
environment makes Carroll Gardens an ideal place for many to call home.
Housing values in Carroll Gardens have seen a 67.5% increase on average for the past
five years with a 31.5% increase just this past quarter (trulia.com, 2015). Property Shark
currently values 230 Union Street at $3.08 million, a 434% increase from the last sale price,
$578 thousand in 1998 (Property Shark, 2025; ZoLa: nyc.gov). The valuation is based on the
sale of comparable multi-family walk-ups of similar size within a 0.5 mile radius and sold within
the past 18 months (Property Shark, 2015). However, in Carroll Garden’s volatile market
(Exhibit B) a significant price drop can be expected in the near future. Currently though sales
have had a downward trend since 2014 encouraging average sales prices the past year to remain
101.54% higher than the average sales price in Brooklyn (trulia.com, 2015). The area’s annual
residential turnover remains high at 18% which further strengthens the current housing market
(Douglas Elliman, 2015).
Carroll Gardens is slowly being populated by a middle-aged professional class, many of
whom are seeking a quiet haven to raise a family while still enjoying the charms of city life.
Exhibit C displays this trend but also show the neighborhood’s continued diversity. The area’s
median income sits at $103 thousand, the median age at 37.72 years old, and the average
household size at 2.08. 21% of households in the area have children. The majority of residents
are also well-educated: 41.5% having attained a Bachelors Degree and 27.9% having received a
Graduate Degree (Douglas Elliman, 2015).
Carroll Garden’s school district, District #15, was given a “Great School’s” rating of 6
out of 10. The rating is based on standardized test results, student academic growth, and college
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230 Union Street, Brooklyn, NY 11231 2015
readiness. A score of 1-3 signifies “below average”, 4-7 “average”, and 8-10 “above average”.
The best rated schools in the district are as follows: The Carroll (Pre-K to 5th) scored 10, the New
Voices School of Academic and Creative Arts (6th-8th) scored a 9, the Math and Science
Exploratory School (6th-8th) scored a 9, and the Millennium Brooklyn High School (9th-11th)
scored a 7 (Great Schools!).
II. Title and Ownership Issues
230 Union Street is jointly owned by two independent property owners, John Foley and
his wife, Martina McGuiness-Foley. According to the deed and the correction deed (Exhibits D
& E) the property was purchased on January 15, 1998 from Carmello Modica and his wife,
Phyllis Modica. The reason for the correction deed, which came into effect February 3rd, 2004,
was “to correct the name of the grantee, Martina McGuinness-Foley and to correct the legal
description of the premises.” The original deed stated McGuiness-Foley instead of McGuinness-
Foley, and also confused the directions and parallels of the metes and bounds for the property
(NYC Department of Finance). Since the property was built before 1938, the Certificate of
Insurance is unavailable through the New York City Department of Buildings (Building
Information Systems, 2015). The deed also states that the estate is a fee simple estate, conveyed
through a Bargain and Sale Deed with a covenant against Grantor’s Acts - i.e. a Special
Warranty Deed (NYC Department of Finance).
Since the 1998 purchase there have been a number of mortgages recorded against the
property; however, a Subordination of Mortgage (Exhibit F) was recorded on November 11,
2012 and a Satisfaction of Mortgage (Exhibit G) was recorded on December 26, 2012 (NYC
Department of Finance). The property’s total mortgage came out to be $578 thousand (ZoLa:
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230 Union Street, Brooklyn, NY 11231 2015
nyc.gov) Also, there are no recorded liens against the property nor easements or restrictive
covenants (Property Shark, 2015; ZoLa: nyc.gov). The owners currently lease out the
apartments within the building, but a thorough search of the NYC Department of Buildings
database shows no leasehold agreements for the property (Foley, 2015; Building Information
Systems, 2015).
III. Property Condition
(Google Maps)
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230 Union Street, Brooklyn, NY 11231 2015
230 Union Street is in very good physical condition as the property does not sit on or near
a toxic site and is not in a FEMA flood zone. The nearest 100 year flood zone is 771 ft. away
(Property Shark, 2015). There are also no environmental restrictions or Department of Building
or ECB violations recorded on the address. The last alterations to the structure were done in
1955 (Building Information System, 2015). Only minor improvements, such as painting or
redoing the floors, have been done to the structure by the present owners (Foley, 2015).
In all the structure is very elegant, and like most brownstones in the neighborhood, gives
off that Carroll Gardens charm with its ornate façade. This front is composed of what appears to
be a brown stucco covering. The façade is flanked at the bottom with a grand staircase leading
up to a narrow stoop with wooden double doors and covered by an ornate aedicule. The roof
line, even with adjacent properties, is topped with a dark brown cornice. To avoid a flat texture
on the façade, each window has individual cornices held up by two brackets.
IV. Zoning and Land Use Constraints
230 Union Street is zoned R6B (Exhibit H). The zoning map (Exhibit I) delineates this
zone in proportion to the property. This zoning is meant for traditional row houses as it
preserves their scale, stoop, front yards, and the iconic streetscape they create. The zoning limits
building height to 50 ft. but base height may only be 30-40ft. Space above base height must be
set back 10 feet from wide streets and 15 feet from narrow streets. This zoning mandates off-
street (i.e. side streets or within the lot) parking for 50% of dwelling units within the structure.
Maximum FAR is 2.0, and maximum lot coverage for corner lots is 80% whereas for inside lots
it’s is 60%. Since the structure is part of the Quality Housing Program it must provide interior
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230 Union Street, Brooklyn, NY 11231 2015
amenities for residents. R6B also allows apartment construction that follows the above
guidelines (Department of City Planning).
R6B apartments (Department of City Planning) R6B-zoned brownstones (BK to the Fullest)
Buildings in R6B zones allow single-family and multi-family dwellings (Department of
City Planning). 230 Union Street land use allows accommodation for four families but currently
only caters to three families (Department of City Planning; Foley, 2015). Since the structure is
an interior lot its lot coverage cannot exceed 60%; however, it sits at 81% lot coverage and
cannot be built outward. The structure can be built up though for since its total floor area is at
2,551sq.ft. and the lot area is 1667 sq. ft. there are 783 sq. ft. of unused space – or air rights).
There is also unused FAR as the current FAR is 1.53. The structure does not lie in a historic
district (Exhibit I) and is not landmarked (ZoLa: nyc.gov; Department of Finance).
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230 Union Street, Brooklyn, NY 11231 2015
EXHIBIT A (Douglas Elliman, 2015)
EXHIBIT B (trulia.com)
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230 Union Street, Brooklyn, NY 11231 2015
EXHIBIT C: Carroll Gardens Demographics and Statistics (Douglas Elliman, 2015)
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230 Union Street, Brooklyn, NY 11231 2015
EXHIBIT D: Deed (Department of Finance)
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230 Union Street, Brooklyn, NY 11231 2015
EXHIBIT E: Correction Deed (Department of Finance)
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230 Union Street, Brooklyn, NY 11231 2015
EXHIBIT F: Subordination of Mortgage (Department of Finance)
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230 Union Street, Brooklyn, NY 11231 2015
EXHIBIT G: Satisfaction of Mortgage (Department of Finance)
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230 Union Street, Brooklyn, NY 11231 2015
EXHIBIT H: R6B Zoning Guidelines (Department of City Planning)
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230 Union Street, Brooklyn, NY 11231 2015
EXHIBIT I: Zoning Map/Historic District (ZoLa: nyc.gov)
230 Union St.
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230 Union Street, Brooklyn, NY 11231 2015
EXHIBIT H: Certificate of Occupancy (ZoLa: nyc.gov)
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230 Union Street, Brooklyn, NY 11231 2015
Bibliography
"Carroll Gardens." Our Brooklyn. Brooklyn Public Library, n.d. Web. 17 Nov. 2015.
Coulton, Claudia J. "Using Data to Understand Residential Mobility and Neighborhood Change."
What Counts. N.p., n.d. Web. 17 Nov. 2015.
Foley, Hannah. Personal interview. 16 Nov. 2015.
"Google Maps." Google Maps. N.p., n.d. Web. 15 Nov. 2015.
Gill, John Freeman. "New Roots in Carroll Gardens." The New York Times. N.p., 11 Mar. 2014.
Web. 17 Nov. 2015.
Jonathonne. "Closings of Note: What's Surprising to You?" Web log post. BK to the Fullest.
N.p., 2 Nov. 2012. Web. 19 Nov. 2015.
"New York Geographic District #15." Great Schools! N.p., June 2015. Web. 17 Nov. 2015.
"NYC Zoning - Zoning Districts." NYC Zoning - Zoning Districts. Department of City Planning,
n.d. Web. 19 Nov. 2015.
"Real Estate Data for Carroll Gardens." Trulia. N.p., n.d. Web. 15 Nov. 2015.
"230 Union St, Brooklyn, NY 11231." Property Shark. N.p., n.d. Web. 16 Nov. 2015.
"230 Union Street, 1." 230 Union Street Unit 1 Brooklyn NY. Douglas Elliman, n.d. Web. 16
Nov. 2015.
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230 Union Street, Brooklyn, NY 11231 2015
United States of America. The City of New York. Department of Buildings. Property Profile
Overview. New York: City of New York, n.d. Building Information Systems. Web. 14
Nov. 2015.
United States of America. The City of New York. City Planning Commission.Zoning
Resolution; Article II: Residence District Regulations. New York: City of New York,
2014. Print.
United States of America. The City of New York. Department of Finance. N.p.: n.p., n.d. Office
of the City Register. Web. 15 Nov. 2015.
ZoLa: Zoning & Land Use. Computer software. Nyc.gov. NYC Planning, n.d. Web. 13 Nov.
2015.
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