Half Sold, 99 Gold Throws in the Towel, Goes Rental

If you haven't closed yet, does that mean that they won't let you close, or will you still have to close and remain a lonely owner in a rental building? Do they lose their deposit?

Posted by: Anonymous at April 26, 2007 8:58 AM

Funny, a few months ago when I commented on another DUMBO thread that the area didn't have the amenities yet to appeal to many people, some DUMBO residents jumped all over me.

The developers in that area need to help along the commercial development too, in order to make their condo developments pay off.

Posted by: Anonymous at April 26, 2007 9:10 AM

I think we'll be seeing more and more of this. As more inventory comes on the market more will go rental and you will start to see more price drops.

Posted by: Anonymous at April 26, 2007 9:20 AM

Strange economics going on here. Things aren't selling yet prices are rising. Any economists around to 'spain?

Posted by: Anonymous at April 26, 2007 9:37 AM

Financially, it may be more profitable for the developer to switch to a rental and try a condo conversion down the road. However, if the developer wanted to just get his capital out of the project, I for one would have considered a second-rate location and poorly designed apartments at a price point that reflected that. Just for the record....

Posted by: Anonymous at April 26, 2007 9:37 AM

Well, at least you're getting deposits back. I guess it's a (sucky) lesson learned.

Posted by: Anonymous at April 26, 2007 9:52 AM

I am a contract holder.

The HK Management could have rented unsold units, and let the contracts stand like other condo buildings have done. Could have done partial condo/rental.

Unbelievable that we have not been notified yet, our money is tied up for god knows how long with no interest, and they are renting already. Really sleazy! Stay away from HK managment and TDG.

There's gotta be some accountability, "good faith", protection for the small buyer. The Deveoper's Group can say what ever they want to sell and has no merit, and HK Management does whatever they want because they have big powerful lawyers and knows how to manipulate the system.

Posted by: Anonymous at April 26, 2007 9:52 AM

The Developers Group has been losing sales in lots of buildings lately. They lost 46 Lefferts to Corcoran and 167 Prospect Park SW to A&H I think (can't remember). Now this. Seems they can't sell those overpriced units in shoddy buildings in bad locations. Shocker.

Posted by: Anonymous at April 26, 2007 9:56 AM

This is one of the reasons I'd be very, very wary of buying new construction before it's up and running - even if it means I have to miss out on some opportunities. The offering plans for these things spell out in very clear detail how little protection a buyer when they hand over their deposit. The only real hedge you have is to wait until the thing is up and running and get a sense of how its operating at that point.
Unfortunate for the buyers at 99 Gold but likely best in the end. Given their experiences to date, sounds like they'd have lots of problems once they moved in and then tried getting developer to deal with all the problems that accompany any new building.

Posted by: Anonymous at April 26, 2007 10:00 AM

Did they ever try to cut prices?

Posted by: Anonymous at April 26, 2007 10:01 AM

The buyers that are getting their money back should ask to rent the apartments they were going to buy. Seems like a win win. It's the same piece of property. And, I'm sure the rent will be less than the mortgage and maintenance would have been.

Posted by: Anonymous at April 26, 2007 10:14 AM

so only those with money can rent anyway - so whats the fuss with those who own? - its not like they are renting to people who are going to trash the place

Posted by: Anonymous at April 26, 2007 11:15 AM

Bob at 11:46, it's hardly an isolated case. 133 Water also turned rental. A few developments in Manhattan became hotels or abandoned residential conversions. I believe we will see more of these late 2007 and on.

Posted by: Anonymous at April 26, 2007 11:53 AM

Goes to show, greed-fueled ugliness just doesn't sell.

Posted by: Anonymous at April 26, 2007 12:20 PM

The Developers Group chose a cheapo builder (ironically with the name "Superior") for a place of theirs I lived in for a year on N7 in williamsbrug. Everything had to be re-done - the windows leaked, the skirting board didn't meet the floor and half the doors had to be re-hung. On top of that the sewage pump in the basement constantly broke and the place smelled awful one week in every four. The finish is superficially good - but examine it very closely before you sign on the line.

Posted by: Anonymous at April 26, 2007 1:53 PM

The Developers Group is a real estate agency--not developers themselves. Maybe they need a new name so that people don’t confuse the two. I have dealt with sleazy brokers from TDG and honest brokers from TDG…I wonder of the ratio is that different from other firms, or if it seems worse because of the sleazy developers that hire them to sell a cheap product. I would imagine that it would be the Developer’s (Kay org) legal responsibility to contact buyers—but a call from TDG would have been courteous.

Posted by: Anonymous at April 26, 2007 2:02 PM

Glad to hear that the buyers are getting their down payments (plus interest?) back—but think about the agents who worked the open houses every weekend for a year only not to get paid for all of their time. That really sucks for them

Posted by: Anonymous at April 26, 2007 2:12 PM

Well if you look at 12.46's comment it looks like you could train a monkey to do what that agent did there, i.e. open the lock on the door of the apartment.

Posted by: Anonymous at April 26, 2007 3:11 PM

Buyers have expenses - lawyers fees and loan fees, some have sold their places already thinking they were moving in. It's messy and upsetting

HK Managment or Kay Organization is scum!

Posted by: Anonymous at April 26, 2007 3:46 PM

babs:

I know exactly which TDG agent you are talking about - she is truly terrible. I am a contract holder, and at one point I had to go above her head and tell her bosses that I refused to have any more interaction with her. Just awful.

Posted by: Anonymous at April 26, 2007 5:01 PM

3:11--The point I was trying to make here was that there are agents from TDG who have worked an entire year on the project who will see no compensation. When was the last time that you worked nights and weekends above and beyond for an entire year and didn't get paid for it? There are two sides to every story.

Posted by: Anonymous at April 26, 2007 5:22 PM

NO.
TDG is getting nothing.

Posted by: Anonymous at April 26, 2007 5:35 PM

If the agents are getting nothing, they have to blame their employer for signing such a great deal for them. Time to update your resume?

Posted by: Anonymous at April 26, 2007 6:34 PM

Told you so. Having lived through many cycles of the real estate market, this
was a given two years ago.Although I have only been posting for two weeks. Couldn't help but find your ideas stilted. If you build,
they will come, is no longer true.
The stock market is doing well, hope that will plump things. Tell me again why
you buy in Brooklyn,if you can have better
for the same price in the city.
If you work at home, why Brooklyn.
For the Schools,for the shopping, I think not.

It has always been the case that the best units go first. People with a little bit of money and a little bit of credit often negotiate a better deal
in the inital buy it off the blueprint
submarket. Again, less and less of this, unless it is ultra-lux. There are no
ultra-lux buildings in Brooklyn.
You have to live somewhere,so why not
Brooklyn. The noise factor around
all the construction is detrimental to most.

Posted by: Anonymous at April 27, 2007 8:18 AM

Do the tiniest amount of research before you tell us about the deveopers group. The
Marketing Group is a different entity, you know that right? Thank goodness you are all real estate barons because, well, you all seem deficient. What do you do for a living again?
I won't defend or explain an entity that
I don't own, but I would get my facts right before I started typing, posting
OLD SCHOOL

Posted by: Anonymous at April 27, 2007 8:31 AM

99 Gold was original a rental project and then they decided to put them on the market as condos. I don't know why the contract holders didn't bother to do their research before signing. All they had to do was Google 99 Gold and they would have known what they were getting into. Many people warned them of the dangers of buying through the Developers Group, of buying from HK/Kay Org, of buying in such a questionable location. That block is in the Farragut neighborhood not Vinegar Hill.

Posted by: Anonymous at April 27, 2007 11:37 AM