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]
The Developers Group has been losing sales in lots of buildings lately. They lost 46 Lefferts to Corcoran and 167 Prospect Park SW to A&H I think (can’t remember). Now this. Seems they can’t sell those overpriced units in shoddy buildings in bad locations. Shocker.
I am a contract holder.
The HK Management could have rented unsold units, and let the contracts stand like other condo buildings have done. Could have done partial condo/rental.
Unbelievable that we have not been notified yet, our money is tied up for god knows how long with no interest, and they are renting already. Really sleazy! Stay away from HK managment and TDG.
There’s gotta be some accountability, “good faith”, protection for the small buyer. The Deveoper’s Group can say what ever they want to sell and has no merit, and HK Management does whatever they want because they have big powerful lawyers and knows how to manipulate the system.
Well, at least you’re getting deposits back. I guess it’s a (sucky) lesson learned.
Financially, it may be more profitable for the developer to switch to a rental and try a condo conversion down the road. However, if the developer wanted to just get his capital out of the project, I for one would have considered a second-rate location and poorly designed apartments at a price point that reflected that. Just for the record….
Strange economics going on here. Things aren’t selling yet prices are rising. Any economists around to ‘spain?
I’m a contract holder in the building, and here’s the story: those of us who have signed contracts and made down payments are waiting for the developer, HK Management, to officially abandon the plan (which involves filing paperwork with the NY Attorney General). Then we’ll be officially notified and get our deposits back. Though we haven’t received official letters, we have confirmed this with the Developers Group and HK’s lawyers.
We were pretty shocked, but probably shouldn’t have been. Through this whole nightmare TDG and HK were shady, incompetent, and terrible at selling units in the building. And as many of you noted, this building didn’t exactly sell itself. Even so, it appealed to people (like me) who thought it was a beautiful renovation in an interesting, unique area of the city with a lot of potential.
Warning: STAY AWAY from The Developers Group and HK! Or at least be prepared for a big disappointment.
I think we’ll be seeing more and more of this. As more inventory comes on the market more will go rental and you will start to see more price drops.
Funny, a few months ago when I commented on another DUMBO thread that the area didn’t have the amenities yet to appeal to many people, some DUMBO residents jumped all over me.
The developers in that area need to help along the commercial development too, in order to make their condo developments pay off.
If you haven’t closed yet, does that mean that they won’t let you close, or will you still have to close and remain a lonely owner in a rental building? Do they lose their deposit?