Brooklyn, which is considered ground zero of New York City's gentrification and luxury real estate boom, has a $2.9 million penthouse on the market. The price tag is fairly reasonable by Big Apple standards, and may come as a surprise — until you consider the neighborhood where it's listed.
Thanks to its location on Brighton Beach, along the Coney Island peninsula, the four-bedroom, 3½-bath penthouse with a fireplace listed by Douglas Elliman boasts impressive oceanfront views, something most properties in Brooklyn's hot real estate market can't match.
The area's demographics, which 2010 Census data shows as being at the lower end of the city's income range and skewed heavily toward Eastern European immigrants – may make it an unlikely choice for a nearly $3 million home. Yet if the real estate trends of the past few years are any indication, the home to the legendary amusement park and boardwalk could be Brooklyn's next neighborhood to undergo a development boom.
Take for instance the Ocean Dreams project, a 21-story, 425-unit apartment complex, which is set to open in the summer of 2019. If owner and real estate developer John Catsimatidis has his way, Ocean Dreams is just the beginning: He recently told The New York Times in an interview that he's "itching" to plant more properties on the beachfront land he owns.
"Demand for projects like Ocean Dreams will be strong, from not only millennials but from nostalgic baby boomers that enjoyed Coney Island during its heyday in the '50s and '60s," said John Boyd, a management consultant and owner of the The Boyd Co., a corporate selection site.
"Look for strong demand to also come from Russian investors and the Russian community that has gravitated to the Coney Island environs in recent years," he added. "Coney Island redevelopment could not come at a better time."