Luxury Rentals Abound
Developers of new rental buildings aren’t as squeezed as those who are trying to pawn off new condos, but they are still struggling. The New York Times reported over the weekend that among the 7,000 new rentals citywide, Brooklyn will see 3,500 new luxury units (including some that opened in late 2009). According to the…
Developers of new rental buildings aren’t as squeezed as those who are trying to pawn off new condos, but they are still struggling. The New York Times reported over the weekend that among the 7,000 new rentals citywide, Brooklyn will see 3,500 new luxury units (including some that opened in late 2009). According to the Times, rents in the city are down about 25 percent from the market’s height in 2008 and the vacancy rate is almost two percent, compared to one percent in 2006 and 2007. Given the glut of rentals, developers in Downtown Brooklyn and Williamsburg continue to court would-be luxury tenants with free rent, gym memberships and iPods, among other perks.
Buildings mentioned: Avalon Fort Greene, the 600-plus unit building along the Flatbush corridor; 60 Monitor, the 60-unit project in Williamsburg; 184 Kent, which began as a condo; 80 Dekalb, Forest City Ratner’s 36-story tower; Brooklyn Gold, the 512-unit condo-turned-rental; and Brooklyner, the looming 51-story building built by the Clarett Group. Avalon and Brooklyn Gold have experienced delayed move-in dates, but you knew about Gold already. And what happened to the strong starts?
I don’t agree with “Prices are high because demand is high and supply is low.” Prices are high because two idiots kept interest rates too low for too long and even the poorest of people became overnight millionares with easy credit. This is what cause New York home prices to go out of wack. The same can be said for Florida. When housing prices soar it is only good for the seller not for the renters or buyers who get shafted
Oh, and my 10:41 comment is a comment on defaults in general. This one is far more messy and has a lot of other side issues.
tybur6:
The problem is not real estate owners/developers per se, but several very wealthy families that have colluded over decades to support rent stabilization and restrictive zoning laws.
Prices are high because demand is high and supply is low.
A simple solution is to put a moratorium on all density restrictions until housing prices in New York City become at least somewhat similar to the national average. With any luck, we might even get to return to how it was even during the Depression – landlords had to compete even on style, not simply on size and amenities.
> or is ethics and corporations an oxymoron.
Did you notice how the times left out any information about how much rent that Tishman Speyer owes tenants because of fraudulent rent increases?
The article spins it like the failure is due to the market downturn and rent regulations, rather than greed and incompetence.
Of course, given that real estate ads are one of the few income streams still flowing into the NYT coffers, that comes as no surprise.
Pete, I really think it’s a moral/ethical issue only if they still have the ability to pay. If they don’t, they don’t. Can’t get blood from a stone.
This is also why God created the LLC.
any newpaper articles on the morality or ethics of a corporation defaulting on mortgage? or is ethics and corporations an oxymoron.
“And what happened to the strong starts?”
Same thing that happened to the Jets within a minute of halftime, yesterday. REALITY.
***Bid half off peak comps***
Kerboom! Tishman/Blackrock kaput! 63% off peak comp!
Posted by: Brownstones Half Off at January 25, 2010 10:06 AM
Do you have any idea how much money they actually LOST given the equity they put up???? Around $100MM each out of the $5.4B, chump change for each of them.
u can borrow my butterfly filter, if you like.