Real Estate

Investor Pulls Out Of Ditmas Park After Company Can’t Land Houses, Sells Home At 777 Rugby Road

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777 Rugby Road

After spending $1,055,000 on a Victorian at 777 Rugby Road in May 2013, the Australian financial advisory firm Dixon is leaving Ditmas Park because the company said it couldn’t purchase the approximately 20 homes it had aimed to buy, according to Brownstoner.

Brownstoner calls the sale “unexpected,” and Alan Dixon, the managing director and chief executive officer for Dixon Advisory USA, said:

We really love Ditmas Park and were hoping to pick up a good selection of houses, at least 20 plus in the area. Unfortunately, we were outbid on a large number of houses and were unsuccessful in getting any other houses in this location. As such, it is not efficient for our fund to keep just the one house in the area and we are best to look to sell it to the open market. We no longer think it is possible to get an economic size parcel of properties in the location so we want to sell this one.

777 Rugby Road 2

Now, as Brownstoner reported, Halstead Property’s Ban Leow is selling the 777 Rugby Road home for $1,350,000. Other Rugby homes have topped the $2 million mark recently, including a home at 100 Rugby Road late last month. The neighborhood’s most expensive sale to date was the $2.2 million spent on the home at 145 Rugby Road.

Photos via Halstead Property.

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15 COMMENTS

  1. Good, question- what was the big parcel for a housing development? Is that even possible!? Is the area landmarked?

  2. Yeah, what the heck? Why would an Australian company want to stockpile houses in DP? This question should be asked, even if it cannot yet be answered, in the original report.

  3. They’re just typical investor d-bags. Buy up a couple dozen properties, essentially capturing the market in the neighborhood, drive up prices through an artificially constricted supply (of an already highly restricted supply)…. then WHAM-O, you have rich investors and real estate agents with big commission checks! Every one is happy (ya know, other than the actual community).

    Ahhh…. humanity!

    Hey, the De Beers mining cartel has been doing this with diamonds for over a century.

  4. No, not landmarked. It’s right on the other side of the train tracks from fiske terrace/midwood park landmarks. I doubt it was for development or they would have kept it. I think they wanted to obtain a stockpile of homes because they saw increased demand and then essentially have the only inventory to sell at a large profit.

  5. I’m pretty sure they wanted to run a rental property fund in Ditmas Park. Nothing about taking advantage so much as that they believed the homes have intrinsic value and wanted to generate rental income from them while they increase in value.

  6. From what I hear, Dixon does a very good job of renovating historic homes while also preserving their character as much as possible. They’re far better than the typical flipper who will replace original detail with shoddy new construction.

  7. I’m not going to shed any tears of a foreign investment company not getting their way in my neighborhood.

  8. Dixon has destroyed the market for normal buyers in Bed Stuy by sweeping in and paying record prices all over the area. They then do top of the line renovations and rent them out at amazingly inflated rents (further imperiling the housing market for normal area people), primarily to expats with rent being paid, all or in part, by their companies. Glad they couldn’t do the same here!

  9. That area’s zoning doesn’t permit anything more than what’s there now – detached single-family. In fact most of the homes are too large, tall, and have narrower yards than the zoning requires. So keeping what is legally grandfathered puts you ahead of what you could build on an empty lot. These guys buy properties and rent them out. They decided they couldn’t acquire enough properties in the area to make their business model work -apparently they need certain economies of scale.

  10. According to their website, they started buying in Jersey City and other parts of Hudson County at the bottom of the market and are now stockpiling properties throughout the metro area, including Brooklyn; they seem to have managed to commodify houses and “leverage” the bubble as an investment asset:

    The US Masters Residential Property Fund has been established to give
    Australian investors, particularly self managed super fund (SMSF)
    trustees, the opportunity to gain exposure to a diversified portfolio of
    US-based residential property assets.

    This is the first Australian listed property trust with a primary
    strategy of investing in direct US residential property. Attractive US
    property valuations combined with the high Australian dollar provide a
    unique opportunity for investors.

    More here on their half-billion-dollar heap of residential assets (or, as we used to call them, “homes”):

    http://www.dixon.com.au/news/news-article/05-03-14/dixon%27s-us-fund-tops-500m

  11. Sorry to nitpick, but I don’t think you can really compare the different “Rugby homes”. 100 Rugby Road isn’t even in the same neighborhood as 777 Rugby. I would expect those homes in PPS to cost more than West Midwood

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