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]
Brownstoner, chumming the water has become your new profession. Your blog has gone to hell in a hand basket. I use to get good information here. Now you’re just another media hype source. Too bad.
As for the Spencer, myself and the vast majority here are very happy. A lot happier when the CofO is finalized of course.
It should be pointed out that we (the buyers) were not mislead in any way. My broker with the Developers Group has been great although there is a manager assigned to our building who is so full of herself it’s a wonder the agents can tolerate her and is responsible for perpetuating the aggravation of the buyers here. She’s been a rude alarmist which has been mentioned by more than one of my neighbors. I witnessed her attitude when my broker tried to ask questions. If I had to guess we’re dealing with another failed actress.
Of course we’re all a bit upset over the situation. Did the developer use a loophole, could be. Did the Developers Group mislead anyone – not that I can hear or see. Does the NYTimes or any other news source tell the whole story – hell no! duh! Sensationalism sells papers…and blogs. In fact, I think one of the tdg agents bought a place here.
AnonWB, do you have a real job? The League of Extraordinary Gentleman could round up quite a few new recruits from this bunch.
NEWS FLASH – NO ONE has gotten screwed! Everyone stands to make a profit if they so desire and the developer has said from the beginning they would let anyone out of their contract that wanted out.
You all should really brush up on the business side of RE before you spew. You’ll quickly realize the developer has very little control when the bureaucratic process starts.
There is one new owner that has been to blame for the most recent delays…to blame for the NYTimes article…she has caused us all the pain by not being patient at the end of the process which after hounding left the DOB no other course but to go through some more redtape before finalizing the buildings. I think the manager from the Developers Group is responsible for this “activist” by acting like a b*tch toward her instead of sharing information like a human being and empathizing with the situation. Again, I’ve witnessed her antics.
The developer has taken a hit because his orginal contracter skipped town with a job half done. Developers fault? New contractor has been amazing. This was the original and bulk of the delay. The rest is media hype.
The majority of the real owners in this situation don’t appreciate Ms.Thang there seeking her 5mins of fame. Most of us have real jobs and will profit from the market if ALL of YOU don’t cause us any more DELAYS!!
Hey, if you read it in the NYTimes it must be gospel! Right!? How many Spencer owners are commenting here with real information.
Brownstoned,er whatever – what exactly is your real expertise?
Greedy developers, hungry for strictly kosher sub-sandwiches are forcing other less desirable fast food businesses like Rauls Secondhand Ice-cream ‘n Beef Palace to go out of business or start catering to the needs of the” bearded” developers. Said Raul, ” I just bought a Radusky built condo in Bed Sty with an interest only mortgage. I don’t have any extra cash to change my menu. Maybe I could have kept my rent stabilized apartment, if it wasn’t for the white yuppie scum driving the prices up.and forcing me to pay free market prices.
OK Eric, here go: #85. You’re welcome.
“it invites all the following classic tangents that you know will get played out til this thread hits…oh 85 comments or so.”
We managed to stay pretty much on message and only discuss greedy developers. Unless I missed some of the classic code words for Hasidic Jews (or Blimpie’s), I think we managed to stay away from the rest of your list:
“Rent Stabilization Laws
Hasidic Jews
Yuppies
Gentrification
Housing Bubble
Greedy Developers
I don’t know how Blimpie’s is going to get thrown in there but someone give their best shot!”
NOW, I think this horse is dead. (Blimpie’s reference?)
As it looks more and more likely that the south slope will get it’s down zoning to R6B, take notice how developers, in their panic to get their foundations poured, will sacrifice anything or anyone. I expect to see a lot of caskets going south as the ‘accidents’ start piling up.
I agree about the developers group’s listings. It seems that they are masters at marketing crap. Buyers of their listings always end up in a lawsuit of some sort.
“I see supply and demand fail in the hands of those who attempt to use it as a substitute to a system of ethics and morals.”
Ethics and morals are unrelated to economics. The former is how you would like the world to function. The latter is how it actually functions.
Tomorrow’s story…
Mrs. B finds out that the entire cast of “The L Word” will be using the brownstone next door to film upcoming season’s pool scenes. Mr. B installs Live Stoner Blog Cam. Hilarity ensues.
Mr. B got a lot of mileage out of this one post..how to top it tommorow?
“Simple supply and demand is pretty basic. I’m not sure where you have seen supply and demand fail.”
I see supply and demand fail in the hands of those who attempt to use it as a substitute to a system of ethics and morals.