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.
really minard? are you sure of your “everyone who bought with 10-20% dp in last 4 years is underwater” (excuse paraphrase)???
there was a tremendous run up in the last year before the bubble burst in nyc. i don’t think prices have adjusted more than 20% down, except in some parts of the condo market. relative to the rest of the country, there is not that much pain (yet?) in nyc.
it’s been at least a year since the market basically made a huge correction. it’s not even clear that anyone who bought this year would be underwater, perhaps not even the dreaded fha buyers. prices i see are (surprisingly) pretty flat in 2009. yes, perhaps the folks who bought in 07/08, but..
underwater does not mean delinquent or in default. yes, it could happen and would happen at a greater rate than homes wiht positive equity, but it is not the primary cause of foreclosure/delinquency.
at any rate, what miniscule percent of nyc housing stock turned over at the peak (07/08 vintage)???
If anyone thinks that dealing with a bank as a 50% owner is anything but a complete nightmare, that person is nuts.
Minard is correct. Our managing agent says that banks are no longer automatically paying maintenance for coops that are foreclosed or any charges for condos. There are tons of articles about condos in Miami where the lenders foreclosed and the are paying for mothing. The renters do not pay the condo association — only owners so the 50% owners are likley to foot 100% of all common charges for some time.
fsrq—if there is one thing true about BHO its that he is highly invested (read obsessed) with the notion that he has some form of clairvoyance about the future of the real estate market. IT is at once his most charming and delusional trait.
BHo – you really should relax, this is indicative of NOTHING NEW.
And that is the point, BHo you are dancing around here like we just found out that Dubai is built on sand or something –
We knew all of this – it is ‘priced in’ already….there are empty condos all over Brooklyn – there is no surprise here. If anything this could be a sign of ‘the end’ – i.e. people arent holding out for the rebound, they accept the status quo (and hence the Chapter 11 filing in this case).
will the market go lower – very possible, but frankly your – ‘The What’ like glee and pointing out every non-event as the beginning of the apocalypse is a bit silly.
Finally, as to your line:
“You’ll never see anything like 2003-2008 again for the rest of your life.”
I hope your right, but I hope you know that the SAME EXACT thing was said after the late 80’s RE bubble too. So in short – you (or I) have no f’ing idea what we are going to see in our lifetimes.
“NYS has one of the lowest percentage of people IN THE COUNTRY that are underwater”
…if that is so its only because there are so many renters in NYC.
Most everyone who bought a house, a co-op, or a condo with conventional financing and 10 to 20% down over the past four years is underwater today. The sales prices have dropped in all the boros, especially Manhattan. Its a mess out there right now.
“NYS has one of the lowest percentage of people IN THE COUNTRY that are underwater.”
Looks like we’re moving on up.
“benson, this is a condo where 50% of the owners are under water ”
Minard;
Aren’t you assuming this point??? NYS has one of the lowest percentage of people IN THE COUNTRY that are underwater.
benson, this is a condo where 50% of the owners are under water and the other 50% are filing for bankrupcy (the sponsor). How can that be a good thing?
The building will most likely recover, it is new and probably has nice views but the condo association faces some rough seas ahead especially if the re-organization hits speedbumps and the sponsor needs to pay his lawyers before his maintenance.