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.
No no no, fsrq. You implied the market already priced in bankruptcies like this. Even if you meant only this case, it is representative of the market at large. It’s not priced in. Nothing is priced in until the market bottoms!
“I would never be so arrogant as to think my predictions as to future prices is anything more than a guess”
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.
***Bid half off peak comps***
YESS!!!!!!!
This is a great day! It is great to see 20 Bayard go bankrupt.
ANTIDOPE, you fcking perma bull, suck on it, mutha fcker!!!
Fcking perma bulls need to apologise to others for urging them to buy real estate during the boom. They contributed as much to this problem as the flippers and the brokers.
FCK YOU ANTIDOPE!! FCK YOU!!
Lipstick on a pig, Prof. This is not and cannot be good news for local RE.
“With half the building in rental, there is a substantial income stream from which to pay common charges.”
For how long, Prof? You said it yourself: the unscrewed existing owners will be there for a long time. And you don’t think the lawyers are going to get paid first?!
“the existing owners are screwed only if they were planning on flipping or are forced to sell because of external factors like job loss”
Then they’re screwed. The dream of living in or renting out a condo for the rest of your life is pure myth. Most will sell before “rebound”. Ouch!
***Bid half off peak comps***
Prof Rob –
Thanks – didnt I more or less say the same f’ing thing?
BHO – really? saying that the Chapter 11 filing is a relative “non-event”, is the same thing as saying the market has bottomed? I dont see how you can say that – especially since I also said the market may likely go lower AND unlike apparently you, I would never be so arrogant as to think my predictions as to future prices is anything more than a guess.
if.
it’s a small little word, but as important as it turns out.
if the market didn’t top in nyc until 2008, you might have appreciated 10% before falling back 15% (your eg). so 600k would be 660K on paper before reverting to 560k. negative but above water line.
if.
That is exactly what I’m saying. If you bought a condo in 2007 and paid $600,000, put 10% down, you owe the bank (roughly) %540,000. If you can only get $510,000 for the condo today, you are underwater.
The folks in the subject building can get only $0 for their units. That is more than underwater that is a complete wipeout and in their case, the bank has more to lose than the unit owner.
However this is not to say that if they hold on, some day, they will see their investment restored. It happens, I’m not a doom and gloomer.
that’s a legal technicality fsrq.
i wouldnt feel like i owned my place unless there were no mortgage.
“BHO–I like your underground railroad metaphor!”
Thanks, wasder.
“We knew all of this – it is ‘priced in’ already”
fsrq – you know Jack if you think that! That’s the equivalent of saying the market has bottomed.
“I feel confident I could get about what I paid for my place now.”
Can you repeat that, wasder? All I heard was bubbles. Just kiddin’ man! I know you’ll be alright and can take a shot every now and then. But seriously, after expenses, most buyers HAVE to be underwater right now (even if you bought 20 years ago, you still refinanced your debt back up to peak comps). We don’t see it because foreclosure here is very slow but it’s obvious that most people squeezed to get that home with a lot of leverage.
I thought I was done.
***Bid half off peak comps***
antidope – actually a mortgage means you are renting $ from the bank – not the RE. (the RE is the collateral)