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May 29, 2009

Burg's Warehouse 11 Seeking a Savior

warehouse%2011%205-28.jpgCurbed found the Massey Knakal listing for Williamsburg's mammoth Warehouse 11, the failed Karl Fischer-designed condo. The development's lender has started foreclosure proceedings against its builder, and Curbed notes the bank is still owed a whopping $50,766,000. On the bright (?) side, "if taken rental [the property] could expect to generate around $4.1 million in gross annual income." GMAP




Posted by Gabby at 10:45 AM | Comments (12)
Categories: Condos, Williamsburg

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Took a peek inside the ground floor windows of these the other day. they look really small and cheap. might make good rentals, but can't see how anyone would have actually purchased these (especially at the prices they were charging).

and 4.1 million gross annual rental income? That means the avg rental price on the 120 units would have to be close to 2,800 per month - I think that's optimistic at best.

Posted by: dirty_hipster at May 29, 2009 11:36 AM

actually, the projected rents seem pretty reasonable to me. We were projecting upwards to $45-$50 per square foot about a year and a half ago for this area. MK is projecting $30-$40 per square foot (a little north of $2000 for a 1-BR). Makes sense to me. The curious thing here is that at face value the note would sell at a 12+ gross rent multiplier. Not even close to reality. This thing is going to trade for cents on the dollar! North Fork (now capital one) financed a bunch of crappy projects in the burg and now it is time for them to take a bath.

Posted by: king of the burg at May 29, 2009 1:51 PM

This is on the oil field, isn't it?

Posted by: Heather at May 29, 2009 2:04 PM

I would think that any contamination would have to be abated before construction began.

Posted by: king of the burg at May 29, 2009 2:12 PM

If they do fill these up, and Northside piers, and the Edge and all 100 other projects, they already sardines-in-a-can L train is going to have to go Dehli-style with half the passengers on the roof or holding onto the back, briefcase in one hand. Might not work with the tunnels though.

Posted by: dittoburg at May 29, 2009 2:35 PM

"already sardines-in-a-can L train is going to have to go Dehli-style with half the passengers on the roof or holding onto the back, briefcase in one hand. Might not work with the tunnels though."

Am I the only one who thinks the L train isn't that bad? I got on at Lorimer this morning at 8:45 and got a seat.

Posted by: dirty_hipster at May 29, 2009 3:08 PM

Capital One is looking to sell the loan, anyone has a clue on what's the "right" price?

Posted by: bk8 at May 29, 2009 3:13 PM

The L train is much improved since they implemented the new computer system. That being said, dittoburg is right, once all these units come on line, it might get a little tight.

Posted by: king of the burg at May 29, 2009 4:42 PM

The "right" price? hard to say. I wouldn't be surprised if it goes for 60 to 70 cents on the dollar.

Posted by: king of the burg at May 29, 2009 4:44 PM

Whats the impact for those already in contract?

Posted by: MotoGP at May 29, 2009 5:15 PM

DH, good for you. I actually moved out of Williamsburg because the morning commute was driving me and my wife nuts. My blood pressure is 10 points lower nowadays.

Posted by: dittoburg at May 29, 2009 5:57 PM

It will suck to live here by July 2009, as trucks will be detoured off Kent ave & up and down both sides of these condos.
http://www.nyc.gov/html/dot/downloads/pdf/kent_ave.pdf

Posted by: sosnowski at June 10, 2009 7:51 PM

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