137 Clifton Place — The Most Expensive Brooklyn Home in Contract Last Week

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The most expensive Brooklyn home to go into contract last week was the townhouse at 137 Clifton Place, in Bed-Stuy on the border of Clinton Hill.

The seller bought it in an off-market deal from the estate of Debra Harris in November 2020 for just $1.114M. In September 1989, Debra bought the house with three other family members. While we don’t see a record of the price they paid, we can see they took out two loans for this purchase: a 10-year mortgage with a bank for $93,750 at 10.5% interest and a subordinate 10-year mortgage with the seller for $40,000 and an interest rate of 11%. (Making today’s rates look great, by comparison!) By October 1990, Debra and William Harris were the only owners (William passed away in 1992).

Not knowing how much the Harris’s paid for the house makes analyzing their investment tricky. It may have been more or less than the $133,750 they took out in mortgages (it’s possible they paid less for the home and used the additional money for improvements; it’s also possible they paid more than this amount when taking into account a possible downpayment). That all said, if we call the number $133,750, then they increased their investment by over 8️⃣ times that with a profit of $980,250 (itself being over 7 times what they originally paid)! In terms of yearly returns, this represents an average yearly return of 7.07% in each of the 31 years between when they bought and sold the house. Not bad, but I can’t help but wonder if the Harris’s might have done better if they listed the house for sale. The current owner seems to think so!

Just 6 weeks after buying the home off market for $1.114M, the current owner placed it on the market for $1.799M! Pictures from that listing seem to indicate he didn’t do much to improve its condition prior to listing it for sale. 7 months and $200K+ in price cuts later, he took it off the market.

In May 2023, he put it back on the market after an extensive gut renovation. This time, the asking price was $3.895M! After a couple price cuts, it went into contract last week asking $3.699M.

The house is 4,200 sq ft with 5 beds and 5.5 baths and is set up as an owner’s triplex over a 1 bed, 2 bath rental unit.