"Winning" HPD Lottery for the Toren
I “won” the lottery for an income restricted apt. at 150 Myrtle Ave in Brooklyn. http://www.torencondo.com/ We have a letter saying we can set up an appiontment for an interview and to bring in all of our paperwork etc. At first we were excited as I was hoping that this was going to be an…
I “won” the lottery for an income restricted apt. at 150 Myrtle Ave in Brooklyn.
http://www.torencondo.com/
We have a letter saying we can set up an appiontment for an interview and to bring in all of our paperwork etc. At first we were excited as I was hoping that this was going to be an opportunity to buy a great apartment at a good price, but the available apartments are all studios and one bedrooms which range in price from 420,000 to 330,000 and 720 sf to 400sf. All of the apartments are on lower floors and they have lower quality fixtures. When I look at the Toren/Halstead listings there are quite a few apartments that are listed as SOLD, but the sales price for the open market apts. is only ten percent more than for the lottery apts. I also think that the actual sales prices for the open market apts. is lower than is published.
http://www.halstead.com/developments_other.aspx?numb=65857
So I am very confused why I am expected to feel like I have a great opportunity here?
Is something wrong with this system, we were so excited at the prospect of winning the lottery, but now feel like it is a scam, with pressure to buy without seeing the apartment and at prices that appear very close to the market rate.
There are also restrictions on selling the apartments, you have to live in them for a certain number of years.
Am I missing something?
I’m also not crazy about the location or the prospect of living on a third floor facing Flatbush Ave.
Hopefully Real Estate will stay flat if not drop more, our savings will increase and we can actually buy something we (wife and 1.5 year old)love in a nice neighborhood in the next couple of years…Or am I missing a great opportunity here??
Dan you can also get in touch with me at biggiefish@hotmail.com
Here is my email: leiteashleigh@hotmail.com
Hi Dan, My husband and I are in.
We are currently in contract for a 2 bed/2 bath lottery apartment at the Toren. We won too.
Also, to clarify a few things for you. The affordable units are IDENTICAL to the market value units: identical in quality and construction-including all fixtures (sinks, tub, faucets, etc). The only difference is that your appliances will be in the elite stainless steel category instead of the pro line. After reviewing the offering plan, I actually went online and compared all of the appliances (fyi, each unit includes the washer/dryer) which was fun and informative. The only restriction with the Toren is that you can only sell to someone who falls within the income restricion. I’ve crunched my numbers to death, and my husband and I decided that we could definately make a good chunk of money if we play our cards right (again, we won a 2 bed so our deal is probably better). I also spent a great deal of time speaking with my lawyer (happy to recommend her if you need someone) evaluating the situation and she was super helpful and advised us to move forward. Of course, this is only a decision you guys can make. We also have a 1.5 year old daughter (would love to have lots of parents in the Toren! Pool dates, babysitting exchange!) so I understand the equation is more complicated.
My advice is to proceed. Get approved and then get your Offering Plan and have a lawyer check it out. Until you enter into contract and send in a check, you can pull out. Keep in mind too that you can always sell (never with a penalty)-you are not trapped which was a big plus for us.
Anyway, feel free to contact me personally if you want
Hey Dan, let’s keep in touch. I also just “won” the lottery and am wondering what to do. Did the Halstead agent mention how many people are waiting in line to buy these apartments? I’m a single woman, so I have less of a problem with the space issue but I still find the liquidity issue a bit hard to swallow.
600sf would be HUGE for a studio.
Most are in the 300-500 range.
600sf is pretty standard for a 1 bedroom. 750sf is considered spacious.
The average American home size is most likely on the decline for the coming years.
One bedroom at 600 s.f?? That’s a large studio. How is it that the size of the average American house has increased some 40% in the last 20 years and the size of the average apartment in NY has decreased by almost the same amount AND storage is replaced with extra bathrooms and w/d. (I like both, don’t get me wrong, but isn’t there a way to have both).
Re the resales: the income restriction is one point to consider, but there may also be a penalty (usually fairly modest) if you “have” to sell. Check the prospectus. You should also note how long after the closing date they provide for you that they STILL can close without penalty. It can be fairly long and your money is tied up during that time. It’s only after that point that you can break a contract without losing deposit.
Also to consider: by the time the building is finished, your 1.5 year old may be a 2.5 or 3 year old who probably needs a little room of her own. (Rather mommy and daddy need a room of their own, baby stuff doesn’t need to take over the remaining space). Good luck!
-Brine,
Thanks for your comments.
There is only one 1 bedroom apartment that is adequete space (706sf) the rest are 600sf.
This still might be too small for three people and no guarantee that it will available.
I did speak to the agent at Halstead who was helpful and honest. He also said that we can sell the apartment as soon as we like.
Agree that the amenities look very nice, but not sure if they are necessary for us. I would prefer space and location.
Still, part of me is tempted as it is a discounted price (albeit a small one). I think we might pursue further in order to make up our minds 100%.
Thanks to everyone who commented and please leave any other thoughts you can.
Dan
I know a little about this building …
The resale restriction is realted to income, not an absolute ban on sale. Prospective buyers must meet the same income eligibility guidelines you had to meet. The lottery units are on the first five floors, market rate units are in the tower portion. Kitchen appliance packages are different, othewise all units will feature same fixtures, floors, countertops, etc.
With any new construction, you will be going into contract before building completion, and without having seen the finsihed unit. For market rate places, this usually is a risk worth taking if you think the property will have appreciated by close. In this case as a lottery beneficiary, you have built in equity though the subsidy which lowers your risk greatly should prices fail to appreciate.
Regarding available units, some two beds were available but those were snapped up early. Those places had the biggest % of discount relative to the market units. The studios and 1 beds are definitely less of a bargain.
Regarding the “bargain” issue, it’s all relative. This isn’t a low income project. If it were, you and your family would likely not have qualified and you wouldn’t have the opportunity to live in a building of this type, full service, high amenities, etc. So no, the Toren lottery isn’t a case where you’ll get in the door for half off for for a super low price, what you do get is a discount on a nice building that isn’t available to the non lottery buyers.
Like other posters said, trust your instincts but just thought I’d clarify on a few points.
I think that the lottery for Toren is probably not as good of a deal as other lotteries, because I’ve heard sales there have been robust. You can oftentimes also count on market rate prices rising as more units sell (even in a declining market). If you don’t feel comfortable, I wouldn’t do it, but I do think Toren is probably the nicest new building being built in Brooklyn right now, aside for the Richard Meier one on Prospect Park.