Greenpoint is definitely a neighborhood that's evolving.

Brooklyn's Greenpoint neighborhood is a culturally rich community with much to offer to both its residents and visitors.

The name "Green Point" is derived from two of its physical aspects. "Green" comes from its original use as farmland and "Point" from its geographic location as the northernmost portion of Brooklyn. Many Brooklyn residents know it affectionately as "The Top of the Pickle."

Today, Greenpoint is undergoing a renaissance. A massive rezoning that took place in May 2005 has transformed most of the waterfront and many of its upland blocks into a thriving community. Much of what was once warehouse and factory space is being converted and redeveloped for residential use. This rezoning, combined with the cultural richness of the neighborhood, have led all facets of the local real estate market to prosper. Development, industrial, retail and residential properties are achieving prices unmatched in the neighborhood's history.

Since 2003, the average price per buildable square foot for development property in Greenpoint has appreciated 400%. Residentially-zoned commercial properties that lie west of McGuinness Boulevard in northern Greenpoint and surrounding McCarren Park in southern Greenpoint make for ideal development sites. Views of Manhattan and high density zoning designations offer developers a unique opportunity to maximize their profits in a quickly gentrifying area. The shear volume of available sites offers endless opportunities for development.

On the forefront of these developments west of McGuinness Boulevard is 110 Green Street, which lies in the special mixed-use district that was rezoned in 2005. Construction is already underway for over 130,000 square feet of residential condominium space designed by high-end architects Meltzer/Mandl. Also on Green Street is the Glass House condominiums, completed in 2006. The largest development site to sell since the rezoning is 2 Huron Street on the East River, purchased by United Homes for just under $85 million in June 2006. McCarren Park to the south has its fair share of projects as well. The Aurora at 30 Bayard Street features 51 units and is already over 80% sold. The Icon at 58 Bayard Street has 58. All together there are more than 300 units that are either currently available or currently being built on or in close proximity to McCarren Park.

Fueling this development is the expanding population of the neighborhood. Greenpoint's virtual lack of crime makes it a very desirable place to live and raise a family. It has also experienced a spillover from Williamsburg's artistic community. Proximity to Manhattan and Queens also make it an ideal neighborhood for businesses. The fact that Greenpoint has a rapidly growing population only further increases the demand for commercially zoned property within close proximity to where most of the development is taking place. In some M-zoned areas, including the blocks directly west of McCarren Park, I expect to see commercial development, not excluding hotels, private schools and even retail.

Retail in Greenpoint is as strong as it has ever been. To supplement the influx of new residents, retail has shifted from primarily mom and pop shops and 99 Cent stores to national tenants and trendy restaurants. Manhattan Avenue, Greenpoint's primary retail corridor, is achieving rents up to $75 per square foot. In fact, 2006 saw a record for the highest price paid for a mixed-use property in Greenpoint. 615 Manhattan Avenue sold for $985,000, or $456.02 per square foot. Capitalization rates are likely to fall as more national tenants enter the market and owners are presented with stabile, dependable corporations to fill their vacancies. As more development occurs west of Manhattan Avenue, closer to the East River, Franklin Street and West Street will see increases in retail rents. Mixed-use properties that lie outside of these corridors are achieving cap rates of 7.5% to 8.5%. These figures represent the strength of the local market as well as the faith of buyers in that market. Investors are also willing to trade higher returns on their investments for dependability in residential investment properties.

Development and improved retail has encouraged more students, professionals and families to move to the Greenpoint area. The proximity to Williamsburg and Long Island City also makes Greenpoint a viable place to live. In just a few short years, multifamily buildings went from selling at 7x gross rent multiples to anywhere from 10x to 12x GRMs. The rezoning made much of this possible, as prior to its inception, many now thriving residential blocks were not optimal for living.

Greenpoint has become and will remain one of Brooklyn's most premiere neighborhoods.

Despite recent skepticism in the development market, building continues. As more properties are upgraded all other facets of the market including industrial, retail and residential investment are following suit. Greenpoint's historical and cultural uniqueness, along with 2005's rezoning, can be attributed to this. As the waterfront is built we can expect so see more changes. Greenpoint is more than just Williamsburg's neighbor to the north.

BY PHILIP KLAN, BROKER, MASSEY KNAKAL REALTY SERVICES