Clarett, Goldman Lose Control of Forte
Not everything Goldman Sachs touches turns to gold. A multi-million-dollar bet on the Fort Greene condo market appears to have backfired, with the Crain’s report yesterday that control of the Forté Condos at 230 Ashland Place would shift from Goldman, the 75 percent equity holder, and The Clarett Group, the developer, to the lender, Eurohypo…
Not everything Goldman Sachs touches turns to gold. A multi-million-dollar bet on the Fort Greene condo market appears to have backfired, with the Crain’s report yesterday that control of the Forté Condos at 230 Ashland Place would shift from Goldman, the 75 percent equity holder, and The Clarett Group, the developer, to the lender, Eurohypo Bank, which is into the project for $41 million. (Prudential Real Estate Investors also has a small equity stake.) Clarett is proud to have delivered such a beautiful, high quality property—on time and on budget—to enhance the skyline and contribute to the renaissance of downtown Brooklyn, the developer said, in a statement. Unfortunately, the sales market in Brooklyn has not been as strong as Forté itself. A last-ditch marketing makeover by The Developers Group in recent months as well as behind-the-scenes efforts to sell blocks of apartments apparently weren’t enough to save the equity investors, as the project was less than 40 percent sold after two years on the market. Clarett’s nearby project on Lawrence Street, the 51-story Brooklyner, is still expected to begin renting early next year.
Goldman Sachs’ Brooklyn Condo Bet Sours [Crain’s] GMAP
Not swimming at all, DIBS. I’m way up here above sea level.
I’ve been “short” stocks. Half off is fundamental (3 times income, 10 times rent, historic inflation, etc.).
***Bid half off peak comps***
Dave pull up a chart of historical PE’s on the REITs. They are trading at a 25 percent premium here. This is a slam dunk!
I think you’re swimming against the tide shorting real estate here, BHO. There are plenty of other things that are fundamental shorts…BA for one. GE probably as well.
IYR is the short Dave we are in at 41
BHO if you want to short something that you actually know nothing about, GE would be a better bet.
Stargazer, if I’m not mistaken buildings like this hire window washers as part of the regular maintenance of common spaces. Not sure how frequently they show up, though.
“This is pocket change for Goldman who reported on Aug 5 that they made more than $100MM in trading revenue per day on a record 46 separate days in 2Q.”
The new Enron.
***Bid half off peak comps***
“less than 40 percent sold”
Woooooooowwwwwwww! Sooner or later the truth will always come out.
Forente’
***Bid half off peak comps***
FSRQ I should have typed better. GS ownes 75 % of the Forte not Brooklyner. Brooklyner is a no frills building and the studios will start at 1400. They were smart with this building and did not take the luxury route. Its going to be like the Normandie of brooklyn. The finishes are not high end and the sizes are avg.