☞ PROTECT: Harlem Brownstones

Brokers in Harlem were all saying the same thing about buying in Harlem back in 2004: "You cannot get a shell in Harlem for
less than 1 million!" What did a "shell" of a brownstone mean, and what was the relevance of the million-dollar price tag? At the time, the average Manhattan apartment was priced at one million, so it was quite interesting to see the comparison of the two.

The photo above provides a general idea of what a shell brownstone would look like. Because the neighborhood had so many landlords that could not pay their property taxes, many of these brownstones were left to the elements for decades. The city took over and sold them for almost nothing in the 90's. Rumor even had it that the government unloaded many for less than what one would pay for a month's rent today. The other shells that were left started to sell in the low 100K-200K range in about 1999-2000.

Shell brownstones needed a lot of work, but the low cost started to attract many who were tired of living in cramped studios
or one bedrooms in other parts of the city. The shells often were missing ceilings (small trees can be found in some) and some have had antique vandals come in and ripped out all of the lights, plaster and woodwork, including the stair parts. Depending on the type of renovation, another 300k to 500k would be needed to rehab the situation.

This quickly caught on and the desire to move into Harlem expanded beyond the historic districts of Mount Morris and Hamilton Heights. Brokers traditionally only sold in these neighborhoods since they were landmarked and preserved of their integrity. By 2005, the demand was so high, prices tripled and quadrupled within months until the one million shell standard was reached.

Fast forward to 2009 and the market has changed for the better. In the economic downtrend, many were fearful that this might not bode well for uptown. Actually, I would think the opposite for the brownstone market since shells are about 20% less now, so about 800k (asking starts at 890K) can get you in. Another drop of 20% can really start attracting the next wave of self starters.

Remember that the neighborhoods that keep the history of the brownstones tend to be the more valued neighborhoods in the long run. Historic neighborhoods, such as the West Village and Cobble Hill in Brooklyn, have brownstone values of 5-12 million.