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The sponsors of the condo 20 Bayard Street have filed for Chapter 11, according to a story in the Real Deal. The development, which was the priciest of the three Karl Fischer Row buildings overlooking McCarren Park, first showed signs of being on shaky financial ground when about half of its units were offered as rentals last winter. Sponsors North Development Group, which is led by Isaac Hager, owe upwards of $10 million to 50 different creditors, according to the bankruptcy filings. What will this mean for the people who bought there?
20 Bayard Condo Files for Chapter 11 [The Real Deal] GMAP
Photo by zachvs.


What's Your Take? Leave a Comment

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  1. “….this event is more or less irrelevant to current owners (and renters)”

    Total bullshit. Current owners are banking on equity for their net worth. Renters will now have more choices as this trend continues (lower comps, more denial, more rentals), let alone all the rental inventory coming on line. It’s the market, stupid (not you, fsrq, just making a point).

    But you’re right about my Schadenreude. I’ll try to chill (I tried to warn people).

    ***Bid half off peak comps***

  2. You can try to spin this positively all you want, but the buildings surrounding McCarren were built DURING the boom, and should have been able to capitalize on that. We are now finding out that one of the more prime buildings in the neighborhood is filing for Chapter 11.

    It’s significant psychologically…it would be like if we found out that 15 Central Park West were going bankrupt.

    This building was a symbol of the Williamsburg boom, and a place which SHOULD have sold out within a month if it were priced correctly.

    Again, if this place didn’t sell and they had to resort to renting, who else did that we don’t know about yet…?

  3. BHO;

    I’m glad that I had this “exchange” with you, because it serves as a semi-annual reality check for me, that check being that you are not interested in a debate. As always, any posts I might write only serve as material for your quips.

  4. I thought this building has actually been selling well. I believe that many of the sales were to Asian immigrants who made good and bought for their young adult children. Sad to see they are left holding the bag.

  5. BHO – I know you are in a Schadenfreude induced orgasm, but could you get a grip on yourself….this event is more or less irrelevant to current owners (and renters) – its a paper transaction – you are writing the bad debt off the books.
    There is no indication that anyone is or will dump the rentals onto the market, nor does this event actually make it anymore likely then if it didnt happen.

  6. “Personally I’d prefer lower prices without an apocalypse.”

    Sorry! No free lunch. Just like we wouldn’t have averted a deep recession after dot bomb and 9/11 without higher RE prices.

    ***Bid half off peak comps***

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