Problems Continue at 659 Bergen

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    Buyers at 659 Bergen Street (or at least the people that have signed contracts and hope to be buyers) continue to be stalled in their efforts to close on their apartments and finally occupy their homes. Many of these deals were signed in 2011 and buyers have been waiting over a year to get in. A tipster tells us that the developer of the Prospect Heights project, Boaz Gilad, has been saying that they will get the Certificate of Occupancy soon for well over a year now but it has yet to happen. On January 11, the realtor marketing the units, Aguayo Huebener, sent signers an email indicating that the building had passed all inspections and that they should start scheduling their own inspections and prepare for closing. Unfortunately, it turns out, the building had one more inspection to go. A few weeks later the building failed its gas system inspection on nine separate points. The realtor then forwarded questions from the signers to Gilad and emailed them his responses (which the tipster provided to us). He complained that the inspector with the buildings department (which he calls the plumbing department) “decided he wants to check all the plumbing again, and ALTHOUGH it was approved, he didn’t like the hot water system. We have no power to stop him from failing us…” The building failed the inspection primarily due to the venting of hot water heaters.

    Several frustrated buyers have reported to DOB that somebody (the tipster says Gilad himself) has actually moved into the building despite the lack of a C of O. Several complaints (here, here and here) have been filed with the DOB on this point and though inspectors have visited the building they have been unable to gain access and therefore no action has been taken. The gas inspector also noted in his report that he was unable to access the fifth floor, the unit that is allegedly being occupied. In addition to all of this, our tipster says a few signers have been allowed to backed out of their contracts–but not to flip them for current market values. Instead, the units have been getting relisted for quite a bit more than the original asking price and our tipster says some have gone back into contract. For example, our tipster tells us, and Street Easy appears to confirm, that Unit 2D went into contract when the asking price was $369,000 in 2011 and was in contract again in December when the asking price was $449,000. Our tipster says it went into contract for $460,000.

    Gilad is out of town and could not be reached for comment, however a representative from the marketer’s firm did say that the developer very much wants to obtain the C of O and close on the sales, that he is trying hard to make that happen and that there is no advantage to not closing on the properties. See a picture of the top unit with the lights on after the jump.
    Buyers in Limbo at Prospect Heights Building [Brownstoner]

    The top unit at night with lights on and some furniture visible.

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