Will 525 Clinton Avenue Really Go Affordable?

The ship may have sailed (or at least be sailing) as far as turning the Forte into affordable housing, but Assemblyman Hakeem Jeffries hasn't given up on turning another luxury development in the area into shelter for the non-wealthy. In an interview with WNYC yesterday, he reiterated his interest in 525 Clinton Avenue, which some of you might remember more for the worker who was killed during its construction than for its sales success. "525 Clinton presents one of the best opportunities to create affordable housing," Jeffries tells WNYC. While the move might seem to make sense on the surface (better to have some people living there than none), it's still a tough sell to convince a bank (which is now the not-so-proud owner of the 13-story building) to voluntarily take a massive haircut. "The reality is a significant amount of principal will have to be shaved off of the loan and the interest rate is going to have to change," says Jeffries. If the Forte relaunch proves that luxury units in the area can find buyers at $500 a foot, it's hard to see why a bank would take less from an affordable deal.
From Construction Fatality to Stalled Development [WNYC]
Affordable Rebirth for The Collection 525? [Curbed]
The Ghosts of 525 Clinton [Brownstoner] GMAP
525 Clinton Avenue One Step Closer To Sales [Brownstoner]
Development Watch: 525 Clinton Avenue [Brownstoner]
525 Clinton Avenue Looking Good [Brownstoner]
525 Clinton Gets Its Glass On [Brownstoner]
Tower Rising at 525 Clinton Avenue [Brownstoner]

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Comments

to make 525 affordable not only would you haircut down way below 500 a foot you'd also have to deal with operating costs
doorman building, floor to ceiling windows etc. these buildngs are not designed to be operated cheaply although it is very energy efficient glass i am told....

more like supportive housing with on site staff than conventional affordable

Posted by: BK realestate veteran at November 25, 2009 9:20 AM

what does hakeem jeffries know about affordable housing?

dick

he works in one of the most dysfunctional legislative bodies in the entire country.

figure out how to run the state first cuz.

Posted by: friend_or_foe at November 25, 2009 9:57 AM

"If the Forte relaunch proves that luxury units in the area can find buyers at $500 a foot, it's hard to see why a bank would take less from an affordable deal."

I agree. Through FHA, before it all comes crashing down, we taxpayers can still help banks offload their Ponzi paper at $500/foot. As for the unsuspecting sheep that will pay this much for Forte, let alone 525, Vaseline will soon sell out.

***Bid half off peak comps***

Posted by: Brownstones Half Off at November 25, 2009 10:40 AM

BHO - how far off of 1/2 off peak comps is $500 a sq ft????

Posted by: fsrg at November 25, 2009 11:43 AM

About 50 percent high, fsrq. I expect bottom footage between 300 and 400 bucks.

***Bid half off peak comps***

Posted by: Brownstones Half Off at November 25, 2009 12:06 PM