20 Bayard Goes Belly Up
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…
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.
fsrq – TODAY’s purchaser, by definition, hasn’t priced in anything! They are clueless unless they are getting half off peak comp or more on the price.
[dance dance dance…]
***Bid half off peak comps***
>>Okay here are 2 – historic low Interest Rates
Does not matter how low interest rates are if credit is unavailable. DOES NOT AT ALL!
>>and in NYC – record low Crime rates (especially in many of the boom neighborhoods)
Haven’t you heard of the city’s budget problems? Also, it is unclear whether low crime rates were a result or cause of high real estate prices.
Crime rates are always a lagging indicator. Bed stuy as an example is starting to see a rise in crimes committed. Just the other day, Mopar and another poster witnessed drive by shootings in their naighborhood.
“No shit it’s a guess. But it’s a damn educated one.
*Historic Price/Rent Ratio
*Historic Median Income Ratio
*Historic Average Inflation
*Case-Shiller’s ‘A History of Home Prices’ graph showing values at the peak, twice what they’re worth.
You name it.”
Okay here are 2 – historic low Interest Rates
and in NYC – record low Crime rates (especially in many of the boom neighborhoods)
and BTW – using most of the above metrics the RE market has been overvalued since ’03. (which I agree it was) – the point being is that long-term you can make some prediction; but you are predicting short-term price trends as facts, and using essentially non-events to bolster your claims – its nonsense.
Looks like I got to the party a little late today.
Yes BHO, Fannie Freddie want 75% in contract, other lenders do not have that rule but anything going to Fannie/Freddie need 75% unless they are holding those notes until they get to 75% and then the lender will sell them. Case in point is if they have a lender in the building like Wells etc..
And as to the definition of a mortgage.
The note creates a lien and the mortgage secures that lien to the property. So people are actually defaulting on their notes, it’s the mortgage that allows the bank to foreclose on the property.
Coops don’t have mortgage they have security instruments if anyone cares to know about Coops.
-Adam Dahill
🙂
>>So to sum it up. You can dance around here like you are some sort of Nostradamus, but this non-event foretells nothing NEW.
wrong, except BHO did foretell it!! You are the one who are *WRONG*, punk, and that is definitely not anything new!
“The income stream remains as long as the renters do.”
I was referring to the sponsor’s ability to use income stream exclusively to pay common charges, Prof. Eventually the assets will get liquidated. Eventually, building operation and maintenance will get tested. This, like most such cases we have read about in the Times recently or otherwise, will be a mess.
***Bid half off peak comps***
Benson, I am sick of you and your pathetic and constant attempt to pump up the Brooklyn real estate market. Give it a fcking break, ok? It is getting tiring. We know you own a condo in cityview and you are really “talking up your own book”. Have you and antidope not hurt enough people already?
You implied the market already priced in bankruptcies like this.
No I STATED that TODAY’s purchaser (if he/she has a clue – and even if not, any mortgagor would know) has to already know that the brooklyn condo market is weak, and that there are alot of developments/sponsors in trouble. So virtually ANY sale today already has that information in the price – this relatively minor event will have relatively no effect on TODAY’S market price which I will acknowledge is relatively hard to determine since there are relatively low amount of transactions.
So to sum it up. You can dance around here like you are some sort of Nostradamus, but this non-event foretells nothing NEW.
@fsrg: You did (mostly). A lot of other folks were way off base.
@BHO: If the new owners sell, prices will likely decrease because they will have bought the asset at a lower price and therefore don’t have to sell as high to see a profit. So yes, it is not good for local RE overall.
The income stream remains as long as the renters do. Lawyers’ fees are also administrative claims and get paid first. But those fees are going to be small compared to the prepetition debt. I’d bet they’d be smaller than the plumber’s claim, even.