Readers might recall a year and a half ago the glee with which I reported that Brooklyn Law School sold a number of its buildings for triple their assessed values. It’s unusual that I can discuss legal education and land values at the same time, so when the opportunity presents, I pounce like a lion.
Yesterday, the New York Daily News contributed a sequel to the story: BLS plans to sell a “prime Brooklyn Heights” building, the 39-unit 2 Pierrepont Street. The sale hasn’t occurred yet, but the figure being thrown around behind the scenes, according to the article, is $30 million.
…Which shouldn’t be at all surprising. As former Brooklynite, I can tell you that Brooklyn Heights is absolutely gorgeous. Catastrophically under-built given its proximity to lower Manhattan, but absolutely gorgeous.
As one might expect, the assessed value of the 2 Pierrepont St. parcel is a laughable $3.88 million, even though BLS paid just $2.2 million to acquire it back in the 1980s. Thus, the alleged asking price is nearly 8 times the assessed value, strongly implying that the property is absurdly under-assessed. Given the location’s value, the article suggests the building will either be torn down or transformed into condos. Those BLS students never realized how good they had it, and they’ll probably never live in such an expensive neighborhood again.
As with last year’s post, the joke is on New York City. Because BLS is a nonprofit it can play land speculator while only being asked to pay $10,000 to the city after lopping off its full bill for “faculty and student housing.” Hopefully NYC will get more from 2 Pierrepont Street’s successors. The law school, though, is cashing in.
Appendix: 2 Pierrepont Street’s assessment and tax bill:
Notice of Property Value–2 Pierrepont St
When it comes to real estate investment schemes, Crooklyn has nothing on the Art Institute of San Francisco. Oh wait…I guess Crooklyn has yet to be sued by multiple governmental agencies. So they got that. Must be all the lobbying that butterface, Crooklyn lobbyist does.