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.
Not sure why there would be a debate about why this would affect park slope or not.
People’s choice of building type(condo or brownstone) and neighborhood are directly related to price. Price isn’t the only consideration, but a damn big one.
The green building on the right is my favorite.
This will be the a great test of the “what happens in williamsburg must happen in Park Slope” debate. BHO has his eggs in the basket of market/neighborhood interconnection. Somehow I hold out some hope that the condo implosion, while doubtlessly destructive, will spare the single family/two family market the worst of its venom. But time will tell.
BHO–I like your underground railroad metaphor!
“Sorry! No free lunch. Just like we wouldn’t have averted a deep recession after dot bomb and 9/11 without higher RE prices.”
Hey, I didn’t say we weren’t f’d. Only that I’d prefer lower prices- MUCH lower actually- without an apocalypse.
With that said, I think there’s too much bad debt out there. We’re in lots of trouble.
“Seems to me that only owners who are forced to sell in the short-term are screwed.”
Nope. Once-in-a-lifetime boom/bust. You’ll never see anything like 2003-2008 again for the rest of your life. Not after inflation adjustments. By the time RE “rebounds” nominally, fresh bread will be $50/loaf.
“Why in the world would a bank skimp on these payments, and depress the value of the property they took over? The only case where I could see this happening is if the bank itself is in trouble.”
BINGO!
I think I’m done.
***Bid half of peak comps***
“quite shocked to see that almost everything up on the Union Street side now says ‘in contract'”
You’ll be even more shocked when you see how low they close for (if at all) and how they affect the Case-Shiller comps. I write this over and over: capitulation CANNOT happen without volume. Sales uptick at this stage of the cycle is not bullish news.
***Bid half off peak comps***
“Park Slope is a totally different animal.”
Damn! We almost had him! Better later than never.
***Bid half off peak comps***
Minard;
How do you claim that the common charges will be affected and therefore services cut?
The ownership of the Sponsor’s units will pass to the lead creditor: a bank. Why in the world would a bank skimp on these payments, and depress the value of the property they took over? The only case where I could see this happening is if the bank itself is in trouble. Is that what you are saying?
Be rude.
I agree with you. This is bad news for those who are highly-leveraged flippers. For those who put down plenty of equity, it’s less of a big deal. They’ve no doubt taken a hit, but if they can wait out the cycle they should be OK.
DH
Well, one would hope that our bankruptcy courts don’t allow themselves to be used in that way, that the entity is truly bankrupt.
“they bought at the top and so now they are totally underwater….this is not news”
Right. It was all over the sales literature. Look, fear drives markets with the same force as greed. For the rest of the collapse, the building now has the stigma of Chapter 11. Why? ’cause it was grossly overvalued. Guess what’s gonna happen next time a unit closes here…
They can play bankruptcy/foreclosure games all they want. But the fact of the matter is the market has tremendous downside. This affects EVERYBODY in either a good way or a bad way.
***Bid half off peak comps***