185 York Street Buyers Still Waiting to Move In

A soon-to-be tenant of 185 York Street, the Vinegar Hill condo building that sold out quickly, reports that the building has yet to receive its Certificate of Occupancy. She went into contract over the summer but has not been able to close because of the lack of a C of O. According to her, “way back in August/September I was told there was an issue with the standpipe which resulted in a failed inspection. It was corrected, but getting re-inspected has been an issue… we hope to have the C of O by the end of “this” month – [the broker] has said that every month since September. Curious to know if other buyers have similar issues or more info.” A broker here tells us that they are going through the last of the inspections and anticipate closings to begin in February or March. The sixteen available units, priced from $375,000 to $845,000, all went into contract at or above asking. Any other buyers out there who are going through the same thing as our tipster?
Vinegar Hill Condos at 185 York Sell out Fast [Brownstoner]

13 Comment

  • The exact same thing- BUT WORSE! Been in contract for over a year, while other buyers in my building have been in contract for nearly 2 years. As some buyers back out of their contracts due to the multiple delays, their units are selling for $50-$70k more than the original contracts.
    The buyers were recently told that we should prepare for closing, that we should have the C of O within weeks and to “contact our mortgage brokers.” We all locked our loans and ordered appraisals only to be told a week later that; the building failed some unknown inspection, the national grid had to tear up the street in front of the building to do work to the gas lines and we again are at a stand still. There has to be some laws protecting the buyers! This is beyond the normal realm of new construction issues.

  • what an ugly building.

  • Ahh, the perils of buying new construction. I wonder how many problems you will have with the building once you finally move in.

  • Brklngirl, are you also waiting to get into 659 Bergen?
    Message me privately.

    To comment further, I’m waiting to move into a building that’s been on pause for 2 years. From the very beginning, the owner Boaz Gilad has been telling buyers that they’re 3 months away from closing. As a year past and buyers got heated, he began passing on the message monthly that we are in the final stages of inspections, but 6 months have gone by since that game has started and we’re still waiting. The incredible way they can lie with straight faces is a testament to the degree in which they care about you, or don’t, at all.
    I wish the tipster luck getting into her place! Use the DOB website for insight into your building. And don’t trust anything relayed to you from the building owner because he just wants you off his back, and doesn’t think of you as a person.

  • they should make a building code for vinegar hill since it is surrounded by so much ugliness. just sayin’.

  • Im in this exact situation @ this building down to the T… Hopefully the other buyers see this and we can share info on this…

  • The sponsor has stopped work to delay closing- going in for two and a half years. The sponsor is the listing condos at current market prices as buyers drop out because of the wait. The DOB list a few open items that can be fixed in a week, but if the sponsor passes inspection and gets a certificate of occupancy it will have to go into closing on contracts (at 2012 prices). The sponsor may delay work for another year to push out more in contract buyers, allowing new buyers to come in and pay more at the current market price

  • The sponsor of 185 York is intentionally delaying a condo unit closing in Vinegar Hill, Brooklyn.

    Purchasers of a residential condominium unit may obtain damages for an alleged intentional delay in completing their unit. Most sponsors, of course, want to close quickly but the purchasers of 185 York allege that the seller did not have a construction loan to pay down and was unhappy with the price set forth in the original purchase agreement. After much back and forth, the seller has still not closed after two and a half years.

    The sponsor of 185 York is intentionally delaying completion of a project to try to force the buyers to exercise their right to terminate the now below-market contract.

    The buyers signed the contract in July of 2012 when the units were virtually complete. The sales agents advised that the unit was “finished” and that a temporary certificate of occupancy was “imminent” permitting a closing “very soon,” perhaps as early as July of 2012. However, evidence showed that work had slowed. The sponsor quickly advised that construction was a “few weeks behind” and predicting a mid February 2013 closing. With no closing by April of 2013, the purchasers started writing complaint letters. The TCO has not been issued by October 2014 and the sale has not been closed. But in the meantime the purchaser’s interest rate on their financing had increased causing plaintiff to consider suing for damages including those arising due to the higher rate and for interim living costs. During this period the sponsor has offered to let the purchaser rescind his contract. The offering plan for the building estimated a closing on or about July 20, 2012 but various disclosures in the plan warned of the possibility of delay, although the plan required the sponsor to proceed “diligently and expeditiously to complete construction.”

    We assume that the allegations that the sponsor intentionally delayed the closing are true. Since there was an intentional delay in work at the condo to obtain a permanent certificate of occupancy, the buyers can claim for additional living costs for the past two or more years. Its obvious that the seller of 185 York has committed an intentional breach of contract by failing to diligently pursue completion and closing of the units, although damages may be limited.

  • I am also a patient (?) 185 York contract holder. This whole situation is so ridiculous. I cannot see how anyone can win unless, of course, we all back out and give him a windfall to re-list at 40% more. It is so frustrating that we seem to have no recourse to get him to deliver on the contracts we have signed. Every attorney we talk to says, ‘fat chance’. Sadly with all the lack of homes in the city, the odds are stacked against buyers and renters. In this building alone there are 16 empty apartments which have been so, unnecessarily, for nearly three years. What a system. I am sure that this is not the only building in this situation.

  • Four years later, and buyers of 185 York street are still waiting for the sponsor to obtain a certificate of occupancy. The department of buildings is waiting for the sponsor to pay a $4,000 fine for illegal occupancy. The rental security officer hired by the sponsor was allowing people to stay in the unoccupied apartments. The DOB found out a year ago and fined the sponsor. However, the sponsor knows that once the fine is paid, a certificate of occupancy will be issued, and they will have to close on the condo at 2012 prices. The sponsor made a financial decision in 2012 to hold out on closing so that buyers would drop out of contract, allowing the sponsor to relist the apartments (current market prices are much higher than what is in contract). So it makes a lot of financial sense for the sponsor to wait it out even longer. The Sponsor is Michael Mchugh CEO of Continental Home Loan, the Developer is George Georgiadis, EKS construction