The real issue with 280 Hicks was its physical condition. Many negative reports by commentators on various blogs obviously focused on the superficial. They saw a lot of clutter and there was water-damaged plaster on ceilings and walls on the 2nd floor. However, in my opinion, it is structurally sound. It has massive wood beams. The ones that were visible all appeared to be solid.

This carriage house was obviously built to carry a lot of weight on the 2nd floor where hay bales and food would have been stored. Built to hold a lot of weight, it is an extremely solid structure, which is probably true of many carriage houses.

Also worthy of note is the fact that the ceiling heights are impressive for a carriage house. I measured and found the first floor ceiling to be 11 1/2 feet and the 2nd floor ceiling to be 10 1/2 feet, both of which are comparable to townhouses in the area. The high ceilings give a feeling of volume to the spaces of this house.

Finally I would note that there is a massive skylight in the 2nd story rear that was used as an artist’s studio. The famous abstract painter Esteban Vincente lived at 280 Hicks between 1942-1946. Standing in that room, I could easily imagine him painting and canvases covering the walls and floors. (see 1942-1946 in: http://tinyurl.com/2ug4rhg )

I agree with Milton. This house is a gem. Someone with an eye for value ended up buying it at auction on Tuesday.

I agree that the key and major issue is the condition of the property. It would make sense for a buyer to have an engineer thoroughly inspect the property, which is normal procedure for the purchase of any house. However, it is impossible to have an engineer inspect 280 Hicks because the Administrator does not allow access to all parts of the house. As I noted, only a small corridor within the interior is accessable. They do not allow access to the roof, cellar, or rear of house (for inspection of the rear wall). If the key issue is in fact the condition of the house, then not having a professional opinion of such is a major impediment for a purchaser and this increases the risk. I agree that the property has great potential, but the real question is not just the condition of the property, but the pricing.

To put it into market terms, if the risks are higher than normal, then the price should be lower than normal. This simple principle was illustrated at the last auction when the house did not attract any bidders for the-then minimum $2 million. Does the $200,000 reduction compensate for the risk inherent in purchasing this property? That is the big question for an interested buyer. If a full engineer’s report were available, then the risk could be quantified and a rational decision could be made. In the absence of such a report, it is all guess work — a guess that will cost a minimum of $1.8 million!

As for Brooklynites being accustomed to renovating old homes, how about people who have never done so before? For the individual buyer, it is a daunting learn-as-you-go experience that is filled with risk and, of course, potential reward. Milton, although you state that a C of O can be obtained, the real issue is whether or not that would trigger an increase in the assessment for property tax purposes. As I mentioned before, a change in assessment could trigger a substantial increase in property taxes from the current $12,500 per year to over $30,000. The net present value of the approximate $20,000 yearly increase is substantial.

The last sentence of page 4 merely says that the Administrator merely has to return the deposit if it can not convey title. However, conveyance of title is not the same as conveyance of a clean chain of title. Only a title company can insure the purchaser against unexpected problems with title. Titles have been conveyed in the past and problems have arisen after the fact. That is what owner’s title insurance is for.

As for the C of O, as I stated, there is no C of O, which you concur. My question is what effect that will have when a buyer renovates the property and creates a residential unit. Whenever the C of O changes or if a C of O is established (in this case), the property is re-assessed and the property taxes go up accordingly. I’ve seen this happen. Homes paying $10,000 per year in taxes have been re-assess after a change in C of O and the new level was over $30,000.

Suffice it to say that these were not the best viewing conditions of a house that requires serious and careful inspection.

Plus the “successful” bidder not only buys the property “as is” physical condition without recourse to an engineer’s report, but also with all problems with title if there are any. Is there any time to do a proper title search *before* the auction? No. As the contract specifies, the highest bidder agrees to buy the property with all existing title restrictions, easements, covenants, liens, etc etc. This is not a problem in a normal sale because all such problems with title have to be resolved *before* a buyer would close on the property. However, the contract for this house specifies that the buyer has no ability to pull out of the deal even if problems with title are discovered. As they say: caveat emptor. Buyer beware!

That said, the property itself obviously has good potential. I wonder if the firehouse causes a lot of noise? Does anybody know? I often hear the fire trucks blasting their sirens when they exit the firehouse, which is just three doors down from 280 Hicks.