Brooklyn nabes expect real estate boom with Barclays Center

When you think about Brooklyn real estate, Williamsburg, Park Slope and the downtown district - the borough's hottest and priciest areas - are probably the first neighborhoods that come to mind.

But with the opening of a new arena in seven months, other nabes may be rising to the top - even if it comes at a price.

The buzz surrounding Barclays Center in Prospect Heights is expected to attract an onslaught of investment to the area and turn the nearby neighborhoods into some of the most sought-after ZIP codes in the city, real estate experts said.

"Crown Heights, Bed-Stuy, Bushwick and Sunset Park are on the verge of exploding," said Jamella Swift, senior associate broker at Citi Habitats. "Once the stadium opens, the domino effect from Fort Greene, Park Slope and Prospect Heights will carry over to the adjacent neighborhoods."

And developers are looking to make over these areas, said Andrew Barrocas, CEO of realty firm MNS.

"Anytime a large financial investment [like the arena] is made in an area, retailers and restaurants are drawn [there] along with developers," Barrocas said.

Swift said Crown Heights, Bed-Stuy, Clinton Hill and Bushwick are fertile ground for new residential projects, since they have smaller brownstone, limestone and loft buildings that could be converted into boutique condominiums.

But a major venue could "Manhattanize" the borough, Swift added, and potentially ruin the slower pace and more serene way of life that attracts residents there.

Housing prices could also be impacted, Barrocas said, since many of the neighborhoods around the arena are some of the last bastions of affordability in the city.

"People will begin investing in the area surrounding the new center, and when that happens, we can expect a rise in prices," he added. "It won't just be home values that will go up. Rental prices will increase as well."

Reports showed home prices were down 1.1% in New York City last November compared to the prior month, while rentals were up in the fourth quarter of 2011.

But the appetite for the new developments is there: In Bed-Stuy, a luxury condo at 315 Gates Ave. is selling out, and units at 111 Monroe St. are going fast, Barrocas said.

Michael Slattery, senior vice president of research for the Real Estate Board of New York, said it's hard to stop progress.

"Visitors [to the arena] will boost economic activity, and the capital investment and the creation of new businesses will have a spillover effect on housing," he said.

(with Erik Ortiz)

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