Is 4th Avenue Losing Its Lustre?
Is the condo building frenzy on 4th Avenue grinding to a halt? A couple of weeks ago we found out that a would-be developer on 4th Avenue between 8th and 9th streets had decided to sell off his property along with the approved plans for a glassy condo he planned to build. And now we’ve…
Is the condo building frenzy on 4th Avenue grinding to a halt? A couple of weeks ago we found out that a would-be developer on 4th Avenue between 8th and 9th streets had decided to sell off his property along with the approved plans for a glassy condo he planned to build. And now we’ve learned that another development site just a block away is also on the market. Massey Knakal has a listing for 426 4th Avenue that includes plans for the building shown above. The 50-by-60-foot lot (see photo on jump) is going for $3.75 million; according to Property Shark, it sold for $500,000 a few years ago. So what gives? Why are these guys bailing on their projects? Is 4th Avenue looking like a shakier bet than it did a couple of years ago?
4th Avenue Glassy Condo Site Asking Almost $10 Million GMAP P*Shark
4th Avenue Condos: The Next Generation? [Brownstoner]
let me get this straight. owner timed the market perfectly, which at least demonstrates that he is shrewd. but not greedy. no siree. just give him his 3.25mn and he will be happy. he will just leave the rest of those sweet, sweet profits in this super hot market on the table so those REALLY greedy developers can take it. everyone hates to make too much money… and banks must be tightening construction underwriting standards for the same reason…
dumbasses.
@12:11
Carry coals to Newcastle: To do something that is obviously superfluous; Newcastle is a city in northeast England where coal is mined: “Karen wanted to give Dad a magazine subscription for his birthday, but I said that would be like carrying coals to Newcastle, since he already has fifteen or twenty subscriptions.â€
from: http://www.bartleby.com/59/4/carrycoalsto.html
People buy and sell properties in hot areas all the time. The “lost luster” issue would only come up if there is no buyer.
Coals to Newcastle?
no construction financing, market slowdown, worse to come. Triple threat!
Take a look around at the sheer number of condos still available or soon to be available. The entire Forte building is almost ready — yet it remains mostly unsold. Even the jewel in the crown, 1 hanson, sales have stalled. Crummy condos on eight lane highway 4th ave backed by toxic gowanus area are just not going to attract bids even if builder could get the finance.
My guess is that the small time developers are having trouble getting construction financing these days. Many lending institutions are insisting that the project be seen to work on paper as a rental before they will lend money. Not sure this would work for most developments in our area if their sites were recently acquired. This was true before the sub-prime mess though.
The developer would make just as much without building .
this seems pretty much standard fare to me. Many development sites get flipped two or three times before they get built. These sites are being marketed at well above $200 per sf. That is not the sign of a slowdown. That’s someone taking a big profit for doing a little work.
“Why are these guys bailing on their projects?”
After three years, Novo is still unfinished and only half-sold. Crest is also unfinished and not sold out. Then there is the unfinishsed “Olive Garden” building and The Argyle that is only now getting a rather late start.
Does the phrase “coals to Newcastle” have any resonance here?