Downtown Shocker: Catsimatidis Puts Myrtle Build on Hold!
Buried deep in this week’s New York Magazine cover story entitled “The Stench of ’89” is this bombshell: Billionaire and likely mayoral candidate John Catsimatidis, whose Red Apple Group is developing a two-block complex on Myrtle Avenue in Brooklyn, is putting the brakes on the project until the lending situation shakes itself out. Holy moly!…
Buried deep in this week’s New York Magazine cover story entitled “The Stench of ’89” is this bombshell:
Billionaire and likely mayoral candidate John Catsimatidis, whose Red Apple Group is developing a two-block complex on Myrtle Avenue in Brooklyn, is putting the brakes on the project until the lending situation shakes itself out.
Holy moly! At least the two neighboring projects—BFC’s condo project at 150 Myrtle and Avalon Bay’s rental development at 157 Myrtle—appear to be proceeding at full speed. Think there will be other announcements like this in the Downtown area in the coming weeks?
The Stench of ’89 [New York Magazine]
Thanks for clarifying 10:40. Yes that is certainly a bit of an inconvenience.
There is major turmoil in the credit markets. All commercial and construction lending has come to a halt. Atlantic Yards may not be built. The government is losing tax revenue from falling house prices and less consumer spending. If this happens government can’t give subsidies to developers. In the coming weeks this issue will pick up steam. Developers would rather walk away now than get hurt down the road.
The What (See Electric Shock Therapy Works)
Someday this war is gonna end……
Company Default Risk Rises as U.S., Japan, U.K. Signal Slowdown
http://www.bloomberg.com/apps/news?pid=20601087&sid=av9IHuIMMM84&refer=home
10:28, Catsimatidis tore down all the local shopping, including the supermarket, laundry and “pharmacy” (or whatever you call those chain general merchandise stores). It was one thing to deal with this for a couple years until the new buildings up and tenanted with new stores. But if the residents of the developments are going to be without retail for — let’s say five years based on some recent reports on the state of the market — that is a disaster.
Here’s hoping the looming 421a expiration induces developers to move forward and get foundations in by June, stoking the glut and bringing housing prices down to affordable levels.
Remember, if a project does not have a foundation in by that time, bye bye tax benefits. That means owners of development sites will have to sell them for less to make up the difference. But if you already overpaid for the land, you’re hosed.
why disaster for Ingersoll and Whitman?
Hey, the big picture is all well and good, but this is a disaster locally for the residents of Ingersoll and Whitman. I know the road to riches is paved with other people’s money, but is The Big Cat really reliant on lenders to get this project done?
More likely IMO, he’s taken the temperature of the market and decided not to bring hundreds of apartments on-line in a glut. Or else, his lack of experience with residential development is proving to be a liability, or both.
what is the area around 150 myrtle like ?
i submitted an application and i am curios
as to if it is a decent spot
I think they should turn it into a park, a little Ft Greene pk.
Would you guys please hold off until The What can unload his vitriol?