Developer Pushes New Vision for Prospect Heights

While Bruce Ratner's plans to develop the Atlantic Yards may be on hold, another developer is aiming to jump-start a nearby area of Prospect Heights.

Dubbed Hello Living, 32-year-old Eli Karp's development consists of eight buildings spread across two blocks, where residents of the 106 units will share amenities that include a gym, pool, children's play room, business center, screening room, and game room.

Mr. Karp said he sees the project as a force for change in a neighborhood dotted with vacant lots and abandoned houses. "I had to create my own neighborhood," he said, adding that he had originally envisioned six buildings on Pacific Street before adding two more a block away on Dean Street.

Of the eight buildings, two have been on the market since April 2007, with sales proceeding at a decent clip. The Madison and the Hudson, situated on Pacific Street between Washington and Grand avenues, have sold 20 of their combined 25 units, most within the range of $350,000 to $550,000. A third building, the Sydney, went on the market last week.

For the remaining five units at the Madison and the Hudson, mostly two- and three-bedrooms, the prices range between $700,000 and $1.3 million. Prices have been cut to help spur sales, with a 1,230-square-foot three-bedroom in the Hudson, for example, reduced to $849,000 from $900,000, according to real estate Web site StreetEasy. The only unit whose price hasn't been lowered is a $1.3 million three-bedroom at Madison — Mr. Karp said he had received a $1.1 million offer but was holding out for more. "I think that sponsors, when they're smart, they respond to where the market is if they want to sell their product," Brendan Aguayo of Aguayo and Huebener, a real estate broker in Park Slope that is handling sales at the development, said. The remaining five buildings, which Mr. Karp said he expects to be complete by the end of this year, feature mostly studios and one-bedrooms with prices ranging between $350,000 and $500,000. Costs are comparable to nearby Park Slope, where the average condo is asking $640,000, according to Corcoran's year-end report on Brooklyn.

Mr. Karp had envisioned lower-priced apartments, but was later convinced that luxury details such as double-high ceilings and custom appliances were essential. Other developers who took lower-end routes are having a tougher time in the current market, he said.

"If I would build cheaper, it would cost me a little bit cheaper, but I would be stuck with it, like other developers are — they can't sell," he said.

Mr. Karp was awarded a 25-year tax abatement on the buildings, which helped him include the luxury amenities while also keeping prices relatively in line with the neighborhood.

While the buildings are close to cultural attractions such as Prospect Park, the Brooklyn Museum, and the Botanic Gardens, the area for the most part lacks the upscale grocery stores and clothing boutiques one can find in neighboring Park Slope.

The chairman of the Prospect Heights Neighborhood Development Council, Gib Veconi, said he is hopeful this project will help spur retail on Washington Avenue, making the streets friendlier and safer at night.

Already the area "has proven it can support luxury housing," Mr. Veconi said, pointing out the successful Newswalk project. Developer Shaya Boymelgreen bought the former Daily News printing plant in 2001 and turned it into 174 loft-style condos.

The majority of the buyers at Mr. Karp's development are Brooklyn residents who are interested in remaining in the area. "You're investing in the ground floor of a neighborhood," Mr. Aguayo said.

The target buyers are primarily young professionals and first-time homeowners, he said. Even with credit and mortgage offers tightening up, Mr. Aguayo hasn't seen an appreciable difference in how buyers are reacting to the development. "The only difference is people are taking a little longer, seeing more product. I think in general they're more educated buyers," he said.

Mr. Karp said he is bullish on the project, and will keep one apartment in each building to rent out as an investment.

"I believe that everything is going to double within the next few years," he said.