Jeff Levine: 'Cockeyed Optimist'
The Times ran an interview with Jeff Levine this weekend in which the developer of Williamsburg’s Edge, a self-described “cockeyed optimist,” talks about the present market’s challenges. Levine says lack of financing is the biggest barrier to recovery these days but that he thinks New York, last to the downturn party, will also make one…
The Times ran an interview with Jeff Levine this weekend in which the developer of Williamsburg’s Edge, a self-described “cockeyed optimist,” talks about the present market’s challenges. Levine says lack of financing is the biggest barrier to recovery these days but that he thinks New York, last to the downturn party, will also make one of the quickest exits. More interesting: Levine says Phase 2 of the Edge is unlikely to be on the drawing board anytime soon because of lack of financing, and sales at Phase 1 of the development while marked by high points like the sale of a $5.25 million penthouse are basically stalled at the 20 percent mark. Nevertheless, unlike neighboring Northside Piers, he’s not dropping prices at the project: “We have not reduced prices at all. Obviously, if we have a willing partner who wants to buy a unit, we will work with them to facilitate their purchase whether that means we help with their closing costs or help them with their parking requirements.”
The 30-Minute Interview: Jeffrey E. Levine [NY Times]
Photo from The Real Deal.
…BUT, I would add that it is somewhat defeatist. The thought process seems to be:
1. I know I won’t sell at these prices.
2. But I know I won’t sell now if I cut the prices because no one is going to buy an under construction unit anyway.
3. So I might as well wait until construction is over to lower prices.
If all of these things are true, then sure, I agree that you might as well wait until you have something that will actually sell before going public with price cuts. But then what’s the point of being “on the market” to begin with? Why not wait until they are done before going on the market so you don’t have a bunch of aged listings sitting out there?
bjw – ok. Can’t argue with any of that.
lechacal, you’re missing the point. You can’t increase foot traffic at a construction site. Despite your “sunset” analogy, I’ve encountered far too many people who certainly do think they can talk the market in either direction. You’re saying that you would be very public about major price cuts at this stage in the game if you were Levine, but to me that just sounds like someone who can only benefit from that kind of action. You have to understand Levine’s position as well, and he has enough experience that I wouldn’t just dismiss his strategy so casually, even if I ultimately don’t have as much faith in it as he has.
Antidope – I just closed on a $100 million 20-story scraper in Jersey City. I took me 5 years to save up the downpayment though, I had to forgo Starbucks on weekdays. I’m gonna tart it up with some home depot kitchens and flip it.
I’ve already got it on the black market, more4less. Guess how much?
***Bid half off peak comps***
“you guys know so much more than big deverloper guy.”
No, only he knows the precise embedment of the I-beam.
“The rest of us just have (stupid) opinions.
Worth exactly what they cost to type.” – antidope
Are you sure it’s “anti”.
“And none of them were lookers.” – dittoburg
LOL.
***Bid half off peak comps***
Lechacal, if you haven’t trademarked you 1:04pm post, I would like to steal that material for my use – applicable to so many situations and individuals
“he thinks New York, last to the downturn party, will also make one of the quickest exits”
Gaming the contracts, current and prospective.
“Phase 2 of the Edge is unlikely to be on the drawing board anytime soon because of lack of financing, and sales at Phase 1 of the development”
Whoops! You were on a roll there, buddy. Why’d ya go and say that? You need to take notes from Whole Foods.
“stalled at the 20 percent mark”
Damn, there you go again! You gotta learn the art and science of opacity like the good folks over at Forte.
“if we have a willing partner who wants to buy a unit, we will work with them to facilitate their purchase — whether that means we help with their closing costs or help them with their parking requirements”
Oh please! YOU need help from your banks/investors/Obama, not us. And YOU need will power to trade in your fantasy for reality (price-sanding concessions aint penetratin’ shit).
***Bid half off peak comps***
There is no need to talk down the market. It’s like watching the sun set and making fun of people who think the process will just stop. I can sit on my back porch with a G&T in my hand and just watch the market go down.