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February 19, 2009

Bankruptcy Forces Sale of Viridian

The Viridian, Magic Johnson's foray into condo development in Greenpoint, has hit a wall. After hitting the market in September of last year, the 130-unit project went rental in December. Now, reports Curbed, the developer has declared bankruptcy and the entire building is on the chopping block for $65 million, or an average of $500,000 per apartment. Marcus & Millichap has the listing. GMAP

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Comments

Mission Control, where waiting for the launch of The What's rant.....

10, 9, 8, 7....

Posted by: benson at February 19, 2009 10:19 AM

Skittles, skittles, skittles, skittles, skittles, skittles, skittles....

Of course if the doormen were unionized all of this would have been prevented. :)

Posted by: daveinbedstuy at February 19, 2009 10:24 AM

Does it have fireplaces?

Posted by: dittoburg at February 19, 2009 10:30 AM

Given the trajectory, this place could be a fireplace soon.

Posted by: SnarkSlope at February 19, 2009 10:40 AM

Is Magic Johnson an Asshat What? Serious question...

Posted by: wasder at February 19, 2009 10:42 AM

I don't know how much Magic Johnson has to do with this project, really. The property owner 110 Green Street Development LLC that just filed for bankruptcy is registered at 1303 53rd Street in Brooklyn. You think Magic makes it out there much?

Posted by: DarkStar at February 19, 2009 11:22 AM

Greenpoint?

Posted by: East New York at February 19, 2009 11:28 AM

hey, its still brooklyn..

Posted by: dittoburg at February 19, 2009 11:31 AM

what does this mean for the condo owners? any lawyers out there? the developer's bank gets hosed, not the condo owners, right? now does the bank actually own the unsold units, and pay the common charges for them? I think that's the case.

then, would the bank have the incentive to sell them off in a fire sale, and will prospective buyers be able to get a mortgage to buy in a bankrupt development?

This sitch is going to play out over and over in the next few years -- I want to know what kind of hair is on some of these condo bargains.

Posted by: joe_the_bummer at February 19, 2009 11:33 AM

no mortgaes for these units until the property is sold to someone solvent. Even then, many lenders will be reluctant to bother with a place that had this history.

Posted by: daveinbedstuy at February 19, 2009 11:38 AM

so dibs, what's likely? some rental company buys the building? would they un-condo-ize it somehow?

Posted by: joe_the_bummer at February 19, 2009 11:44 AM

Some buyer does a deal with a mortgage company and sells them with the mortgage company. Not sure how feasible that is in this environment.

Very bad situation.

Posted by: daveinbedstuy at February 19, 2009 11:49 AM

dude I am really concerned about condos -- we discussed it a week or two ago I think. I guess at some price you gain the interest of companies that buy buildings and rent the units (obviously there are plenty), so the building won't literally be torn down, but the price/rent ratio has to make sense for that, and they need bank financing too.

Posted by: joe_the_bummer at February 19, 2009 11:56 AM

"the price/rent ratio has to make sense"

...and $500,000/unit is not the price that makes sense.

Posted by: altervoce at February 19, 2009 12:00 PM

looks nice. what's a 1br rent for?

Posted by: edgeland at February 19, 2009 12:42 PM

"Is Magic Johnson an Asshat What? Serious question..."

Him and the rest of the Assheads who sucked down the Kool-Aid!

Note: The major developers are running out of money!! If you was a dumb Asshat who brought Pre/New construction, you get a I-Beam shoved up your ass...

The What (Forte is serving Skittles)

Someday this war is gonna end...

Posted by: Return of The What at February 19, 2009 3:16 PM

If it talks like an asshat, walks like an asshat and goes broke like an asshat ...

Posted by: cgwatcher at February 19, 2009 4:08 PM

CQwatcher, do you know a lot of people that aren't going broke right now? My 401k is worth nothing, and my townhouse in Clinton Hill is the only asset I have that isn't worth 50% of what I paid for it. It's the only thing that isn't a veritable junk bond now.

Posted by: DarkStar at February 19, 2009 6:10 PM

"Forte is serving Skittles"

Glow-in-the-dark skittles.

***Bid half off peak comps***

Posted by: Brownstones Half Off at February 19, 2009 8:16 PM

"my townhouse in Clinton Hill is the only asset I have that isn't worth 50% of what I paid for it"

Yet.

***Bid half off peak comps***

Posted by: Brownstones Half Off at February 19, 2009 8:25 PM