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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.


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  1. Joeingowanus;

    Perhaps I’m reading too much into what some folks above wrote, but there are a few posts about the owners getting screwed. Lower prices on resales doesn’t necessarily mean that the owners are screwed.

    Look at it this way: I live in a 5 year old condo, and the Sponsor is out of the scene (all units sold). Our resale prices have taken a hit of about 15%. So will the prices at this condo. So what?? Doesn’t mean the condo association itself is in trouble.

    You may say that this price decline means that some individual owners may be in trouble, due to their being underwater or their job situation. I would agree. How is that different from this Bayard situation??? Here you have a fully occupied building, in which an owner of one block of units is in trouble, and his units will be taken over by a bank.

    My point is, once again, that the Sponsor going belly up does not necessarily mean trouble for the condo association itself.

  2. “the remaining unsold (and some unfinished) condos all around McCarren should take note and price reasonably”

    No choice. The investors/banks are saying “fuck you pay me”. The only option for most is Chapter 11. Default the bad debt.

    “They went rental because they refused to lower the sale prices. It’s what I was writing about last week. The NYC syndrome: Sell high whether or not anyone is buying.”

    Yeah, I remember when you wrote that, Minard. NYC will look like Miami, Vegas and CALI soon enough. Hell, according to Gov. Paterson, we might even have IOU’s.

    This news makes my week.

    ***Bid half off peak comps***

  3. benson, i got all that. nobody in this thread mentioned anything about an apocalypse. i myself was thinking the same as you- LOWER PRICES.

    Personally I’d prefer lower prices without an apocalypse.

  4. Joeingowanus;

    Please read the article. The building is almost fully occupied, either through owners or renters.

    The defalut of the sponsor does not necessarily proten an apocolypse for the condo. Ownership of the rental units will now pass to the senior creditor (a bank, I presume) whose interest is in selling them off to pay off the loan (i.e they do not have the profit targets of the developer). This will result in lower prices (probably) and eventually clear the inventory.

    As far as the condo association: the development is over 50% sold, so they’ve passed that hurdle. It is highly likely that the bank that takes possession of these units will pay the common charges.

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