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The industrial waterfront of Mott Haven near the Third Avenue Bridge has given the neighborhood much of its newfound chic: many artists have moved here escaping the impossibly high loft rents in Manhattan and Brooklyn.
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If you're looking for loft space, there are several established "live/work" buildings. Perhaps the most well-known is the Clock Tower (a former piano factory) where rents average somewhere under $2,000.
Otherwise, you may want to look into renting a brownstone, where rents have been hovering around NYC circa ten years ago.