The Epitaph of Epitaphs for Williamsburg's Boom
It’s tough to know where to start with the New York mag story on the rise and dizzying fall of Williamsburg’s condo boom, which casts the neighborhood as “New York’s version of the collapsing exurban ‘boomburgs’ in Florida and Arizona.” Is it the detail that the developers of the Steelworks Lofts, who paid $26.5 million…
It’s tough to know where to start with the New York mag story on the rise and dizzying fall of Williamsburg’s condo boom, which casts the neighborhood as “New York’s version of the collapsing exurban ‘boomburgs’ in Florida and Arizona.” Is it the detail that the developers of the Steelworks Lofts, who paid $26.5 million for their condo-to-be a couple years ago, are considering turning their building into a youth hostel? No, perhaps it’s the news that potential buyers for the failed (and mostly constructed) Warehouse 11 project are coming up with offers “closer to $30 million than the $50 million owed” to the bank by its developers. There’s too much in it to fully blurb, but here are some of the choicest bits:
- David Maundrell, president of Aptsandlofts.com, estimates that 2,818 new Burg apartments will have hit the market by the end of this year, with another 2,766 projected by the end of next year. Also, Maundrell tools around town in a $120K Maserati bought with condo-sales dough.
- Even though Williamsburg developers are having a lot of trouble selling the units they do have, they’re still bemoaning the repeal of the 421-a tax abatement that would have allowed them to build even more units.
- Before she died, Jane Jacobs wrote a letter to the mayor saying the Williamsburg rezoning that put the wheels in motion for the condo explosion appeared to be a particularly risky move: Even the presumed beneficiaries of this misuse of governmental powers, the developers and financiers of luxury towers, may not benefit, she wrote. Misused environments are not good long-term economic bets.
There’s a great deal more of note in the article, which is well worth a read.
The Billyburg Bust [New York]
Pic by krzysztof.poluchowicz.
fsrq, a well managed long-standing condo/co-op will have a reserve for many things. Also, they will have some schedule for the maintenance over a long term
A new development is more likely to have problems that are cropping up prematurely and unforeseen. I’m not saying they all will but a lot of these were done by relatively inexperienced developers cutting corners. Also, these buildings will not have a reserve.
Do you understand my point now???
DH, that would only happen if you took over the super’s role as per the NYT article
fsrq, you sound very bitter!!!!
My point, frsg, is not that the owners won’t let anyone inspect, it’s that first time new condo owners don’t know enough, or think that it is important enough, to get an inspection. That is an ignorance that is not beneficial to either party, in the long run. That is not an indictment of new buildings, or a reason to get out the industrial sized Preparation H. Sheesh.
No DIBS because your calculation does not include a calculation that includes the capital risk in your purchase, nor does your simple little anecdote deal with the simple truth that for most of this decade excluding appreciation (and now even that is turning into depreciation) renting was far cheaper.
MM- trust me if you went to virtually every single developer in Williamsburg today and made your offer at asking contingent on an clean inspection – they’d be happy to let you do a rectal exam on their building – the fact that buyers have unrealistic expectations and act dumb is not a valid argument against new buildings.
So how far are rents going to drop in the neighborhood?
I’ve been seeing good deals on rentals in the condo turned rental buildings, but there seems no shortage of people moving into the unrenovated walkups/old houses.
if a new condo in the neighborhood being FREE is too much money – what are the chances of my landlord paying me to live in my current apt?
Do I need to go through the math again as to why buying my 2 family brownstone makes it much cheaper than renting a 1,600 sf two-bedroom two bath apartment with a deck???????
Unfortunately, frsg, most people don’t get inspections on new construction. They only see new and shiny, and never before lived in, and their brains turn to mush. Most people assume problems with an older house, so inspections are expected, but I would bet that a majority of new condo owners, especially those who are first time buyers, never even consider getting an inspection.