Developers Bend Rules and Screw Buyers
We’re supposed to be focusing on other things this week, but wanted to make sure everyone saw Sunday’s article about the C of O quagmire that the buyers of new condos on Spencer Street between Willoughby and Dekalb in Bed Stuy are now in. While this is a disaster for the purchasers who are the…
We’re supposed to be focusing on other things this week, but wanted to make sure everyone saw Sunday’s article about the C of O quagmire that the buyers of new condos on Spencer Street between Willoughby and Dekalb in Bed Stuy are now in. While this is a disaster for the purchasers who are the unwitting victims, we’re glad to see that developers are getting called to task for pulling a bait-and-switch tactic that we drew attention to back in July.
In our post on the South 3rd Street development in Williamsburg, we described how developers will apply to build extra square footage on the premise that it will be used to serve a community purpose (like housing for a religious or educational institution) and then when the project is built the community group will mysteriously not need the space anymore and the developer will sell it on the open market. This has been particularly prevalent in Williamsburg and its environs but obviously it has been happening elsewhere as well.
In this particular case, the villains are a group of developers including Mendel Brach, Moshe Oknin and Moshe Roth and their accomplice is architect Henry Radusky (who has won everyone’s respect and admiration with his pillaging of the South Slope). So now the buyers, who were able to close and get mortgages when the buildings received temporary C of O’s, are stuck in the strange position of being unable to sell their units because the DOB won’t grant permanent C of O’s. Personally, we think the developers should be forced to reimburse everyone for the purchase price plus other incurred expenses and hardship. Then they should be tried criminally. What scum bags.
Do people know of other specific incidents of developers pulling this crap? Let’s out them if we can. Maybe the papers will pick it up.
Caught in the Twilight Zone [NY Times]
South 3rd Street Development [Brownstoner]
More Trouble at Radusky Site [Brownstoner]
Work Officially Stopped on 15th Street [Brownstoner]
Does anybody know if the DOB refusing to grant C of Os is the cause of the delays in the closing date for the Kent on 970 Kent Ave?
Is the Kent a Mendel Brach, Moshe Oknin and Moshe Roth development?
Any information would be appreciated, as buyers are being told by The Developers Group that the prolonged closing is due to the time it is taking to get the building’s elevator inspected.
Having bought an apt. through the developers group was and cont’s to be the worst nightmare.
They sold the apt’s and here is how it went down, you walked in, saw an apt(model) so far so good then you went to a central area and paid 100$ to secure that no one else could see that apt for the next 24hrs. Within the next 24 hours they wanted a commitment letter from a selected mortgage firm that assured them that you could in fact afford this apt. You then were sent a contract to be signed within I believe 7 days of recieving it(the contract was sent to a lawyer not you). The lawyer got the contract, the meeting with the lawyer was 15mins. long and the money was put down (10%). Only later to find out that the developers gave themselves 12 months from January 1,2005(when they thought they would begin closings) to return any money put down. The scam began the moment you walked into the door, this happened last July/August for us, even earlier for others. The developers group agents/ and progect manager are never available, never return calls, dont return emails and never have any information that is truthful.
First the Kent Bld was to close in January, then April, which quickly became June, its now almost October and still no answers.
They are shady, the practices are unprofessional
My advice is to get out in January 1, 2006 when the building still isnt finished and walk away knowing never trust the developers group again.
The building hasnt passed any of its inspections, they have lists of violations…
If others want to know the truth it is readily available, and dont believe for one second that you will close this year, the space looks like a shelter, no elevator, no common areas are done, good luck.
Yea, I bet Developers Group bought units to flip and now they are stuck with them for the time being. As for that woman who called the DoB and the Times, God bless her! I think we need to see how or if these religious organizations have profited from using their name to gain bonuses for developers. Why not take the buildings back for low income housing, say for people who already live in the neighborhood. Why not put those new eminent domain laws to work!
“Most of us have real jobs and will profit from the market if ALL of YOU don’t cause us any more DELAYS!!”
Buyer beware.
Please note that brokers from the Developers Group have also purchased in the Spencer and that they might be posting on here…
Changing subject slightly, a check shows that the Lofts on DeKalb project is somehow sponsored by Congregation Zichron Yitzchok. Possibly similar situation? Anyone going into a new dev needs to do rigorous due dilligence, and assume anything the realtor says is a lie.
HUH??
Thank you Brownstoner for this place to learn and find out information.
The New York Times did not tell the whole story, they left out the background history that lets you see why the actions of the architect, Radusky, is more than just a bureaucratic snafu.
Do I feel sorry for you? I used to. You sound like some one who just bought a fake designer handbag on canal st. and got busted in mid transaction. I just want to be left alone to enjoy my purchase What about those poor sweet children at the Beth Chana School For Girls? I think you own THEIR condos. Working all day long on their studies, only to be denied a long, hot, soak in YOUR 9th floor Jacuzzi tub. Shame on you!
What about everyone else who has to live in your towering shadow? What about the fact that you live in five “separate’ towers so you don’t have to provide any off street parking? Do you deserve to profit from your great land grab? You must be high on Bugaboo fumes! I say off with your heads! Let’s take down the offending stories and let this be a cautionary tale to all developers in the future. We shall call it “GETTIN’ RADUSKYIED”
I love this blog. I fianlly have a place to vent. I almost bought a condo, well a commercial condo in DUMBO from the developers group about a year ago. The girl told me it was just a technicallity about the “commercial” status of the condo’s and that all the purchasers intended to live there. I was completely freaked out about the prospect of ever tryin to sell my place with this “commercial” label hanging over my place. I felt like they were being very unethical and backed away immediatly. Interesting to hear they are involved in another building with fradulent doings. I would be very wary about buying anything through them. I eventually bought at 53 Boerum Place through Corcoran.