More Trouble for CoHousing Group
Another curve in the road for the idealistic crew behind the Brooklyn CoHousing project, via The New York Times. Seems that the bank, already skittish lending to even experienced developers these days, is extra nervous about giving money to an experience group such as those trying to convert the South Slope warehouse into apartments with…
Another curve in the road for the idealistic crew behind the Brooklyn CoHousing project, via The New York Times. Seems that the bank, already skittish lending to even experienced developers these days, is extra nervous about giving money to an experience group such as those trying to convert the South Slope warehouse into apartments with communal living facilities. Instead of closing with $1 million down, as they originally thought, they now need more like twice that amount.
Member of Brooklyn Cohousing here..
For our account of current financing options, see http://www.brooklyncohousing.org/financing.shtml
Unlike what the article says, our troubles have nothing to do with the type of building we’re creating. The fact that we have 16 committed qualified buyers for a building not yet under construction in this market is very attractive to lenders. But the traditional banking rules now say 100% is required. So we just have to grow fast enough to make the traditional model work, or we have to choose one of the many alternative financing options available to us (at higher cost). Either way, we have options.
–K.
Grand Army, would you loan out money in a recession, when things have a much greater chance of failing? Probably not.
Say what you want about banks. However, it seems pretty reasonable to price some risk into this transaction–if for no other reason than the novelty of it.
I dont think banks gave out big loans for hippie communes either.
Banks are futilly trying to absorb past bad bets gone awry, grand army. It’s not a recession, it’s a depression.
***Bid half off peak comps***
grand army is so right
banks lend too much then too little
surprise surprise
This makes me see red. The taxpayers bailed out the banks last time I checked, but now the banks are dragging out the recession by continuing to squeeze credit. They can’t have it both ways!
Why not shop a long term lease (5 to 10 years?) agreement/CofO on some industrial space until market comes back? Maybe rent-to-own.
***Bid half off peak comps***