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….structuarl problems like fpoundation issues, curtain wall ptoblems, leaking roofs, falty plumbing, etc, etc, etc.
Of course those things happen (and guess what – they happen in older buildings too) – in fact any building with a flat roof will have leaks – guaranteed!
And yes they are expensive to repair, just like it costs a fortune for older buildings to maintain their facade (especially under 11/98), roofs, and massive HVAC plants. Essentially all buildings cost a fortune to maintain and anyone who buys an apt (new or old) not recognizing that is a fool – BUT at least the people buying today will spend less on the Apartment itself.
fsrq, thanks for clarifying things. As you know, there is not one voice though, the people who weren’t happy back then are generally a different group of souls from the people not happy now.
no ditto you got me backwards – I cheered the ‘bitter renters’ and have always said that buying back then (and today in most places) made little sense since renting was far cheaper. BUT I always said and continue to that this is not a “disaster” this is a blessing – better housing stick and lower costs – thats a win win in my book.
As for the destruction of the older housing – please…I am not saying it never happened but 95% of what was torn down (especially in Williamsburg and 4th ave) was pure crap – horrible tenement type housing that should have been destroyed years ago.
in 2006 everyone (almost) here was crying about affordability and rich developers getting richer, now we have rapidly plunging prices and poor developers and everyone (almost) is still crying – seems like people are never happy.
fsrq….structuarl problems like fpoundation issues, curtain wall ptoblems, leaking roofs, falty plumbing, etc, etc, etc.
You’ve never heard of these things occuring???
No, I’m not kidding. And, they tend to be very costly to remedy.
DIBS – structural problems – you mean like the building is going to fall down???? You are kidding right?
MM- yeah maybe your scenario might happen to a few – but frankly buyers buying when the market is ice cold, process are falling and the developer (or subsequent developer) is forced to allow extensive inspections as well as fix the problems (that are more obvious after the building has been sitting for a bit) before closing – will probably put subsequent purchasers in a better position than those that rushed in earlier with little or no due diligence available or practically permitted.
fsrq, many posters, myself included, predicted Williamsburg (not Brooklyn) was an oversupply-of-condos disaster waiting to happen. It wasn’t a prediction to the extent that word is associated with a crystal ball, it was a simple extrapolation. Far from patting ourselves on the back, many locals were pissed at the destruction of older low-rent properties for these shiny towers (not the ones pictured which were built on the derelict Eastern District terminal land). The finances weren’t the whole story either, the L-train was overcrowded back in 2004 (when I lived there) and people were complaing it could never withsatnd all these new commuters, as well as the local schools not cutting it.
We’re you one of the people using that now-disfavored term “bitter renters”?
Well, I can’t wait for the density obsessed among us to come out with their laser blasters. For a very long time we watched every square inch bought up, beautiful old builidngs torn down and poorly designed and constructed buildings thrown up in the blink of an eye. AY was touted as the “answer” to our problems of not enough housing ( meaning in fact, not enough luxury housing at high [prices). So now, with thousands of empty apartments that were overpriced to begin with, its a little hard to mourn over developer difficulties. We were long overdue for price corrections and I don’t doubt that most of these places will find occupants. But if they don’t, it will make me wonder about how much they were actually needed in the first place.
It is amazing how easy it is to spin things – the article (media in general) and all the posts here make it sound so bad, like this turn of events is bad news –
And then I love how all the posters here love to make it like ‘they predicted this…’ when they didnt….in fact in may ways they (like the out of context Jane Jacobs quote) predicted the opposite.
Go back circa 2006 and read all the posts here regarding the Williamsburg (and 4th Ave and Ft Greene) condo booms and actually look at what the “general consensus was” it certainly wasnt = if this keeps up, prices are going to fall and rents are going to come down and RE in these areas will become more affordable – and include amazing amenities to boot.
It was more like – Bloomberg is giving the city over to greedy developers who are going to get rich by gentrifying everyone out and prices are ever increasing because of all these ‘luxury buildings’ and 421a is a disgusting give away to developers who are in can’t lose RE- oh yeah and – all the new buildings are ugly, out-of-context and make like $hit.
So no – the Brownstoner-Brooklyian-etc. consensus did not predict the future – what predicted the future is economics – more supply=lower prices (or lower than otherwise would be). And so as all these developers get wiped out and stuff starts renting and selling at much lower prices, stop patting yourself on the back and start considering how we can utilize the natural laws of man like economics to improve out life (and lifestyles) here in NYC.
Personally, FREE would be too high a price for an apt in a building thrown together when the developer was facing bankruptcy. All the granite countertops, Toto toilets and Wolf ranges in the world aren’t going to mean diddly when the problems start. Those problems will be the apt owners’ problems, because the developers will be long gone, out of business and protected from lawsuits by bankruptcy laws. I would rather live in my NY Magazine mentioned, ungentrified Crown Heights, rather than pick my way down half abandoned streets with muddy empty lots, aborted construction and broken promises, on my way to an overburdened subway stop. I think some aspects of Williamsburg are fun and cool, but I can always visit, and then go home.