Half Sold, 99 Gold Throws in the Towel, Goes Rental
Less than three weeks after 133 Water Street went rental (how’s that going, by the way?), another new (well, sorta new by this point) building, 99 Gold Street, has decided to pack it in. The decision at 99 Gold is more surprising and messy, given that roughly half of the 88 units were already in…
Less than three weeks after 133 Water Street went rental (how’s that going, by the way?), another new (well, sorta new by this point) building, 99 Gold Street, has decided to pack it in. The decision at 99 Gold is more surprising and messy, given that roughly half of the 88 units were already in contract; one theory bandied about on local blog DumboNYC yesterday was that all the good stuff had been taken but The Developers Group just couldn’t give away the bottom half of the barrell. As of yesterday afternoon, many of those in contract hadn’t been contacted yet so rumor ruled the day. Clearly those who’ve had money tied up for months and incurred professional fees in the process thus far ain’t gonna be pleased; it’s also debatable whether some of them may have missed an uptick in the market since going into contract last year. Then again, there’s no shortage of condos coming on the market, though we suspect many of these folks will be priced out of buying in Dumbo and end up in Downtown Brooklyn at places like Belltel, Forte and Oro.
99 Gold Withdrawing Offering Plan, Turning to Rentals [Dumbo NYC]
99 Gold [The Developers Group] GMAP
99 Gold: Wassssuuuuppppp [Brownstoner]
99 Gold (Finally) Hits the Market [Brownstoner]
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.
Isn’t it the sign of a downturn when buildings are turning to rentals? The Times had an article a few months ago about this happening in other markets outside of New York, such as D.C. Is this just an isolated case?
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
The rental listings are up on the aptsandlofts site. It looks like one bedrooms are starting at $2900.
How much are they renting for?
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.
9:52, your deposits should be bearing interest. In fact, I think that the developer is required by law to put the deposits in not just an escrow account, but an interest-bearing escrow account. And they are required to pay you that interest.
Also, would you prefer partial condo/partial rental? I think when it comes time to sell, you’d find it harder to find a buyer for a condo in a partially rented building.
Did they ever try to cut prices?
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.