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
> This will move in 2 seconds if prices drop down to $500/SF.
To who? All cash buyers? No financing, no sales, period. Game over. Forte = Fail.
DH, I agree with you. No my idea of a lifestyle but I am sure some people have done it. I don’t think Starbucks is offering heath insurance to part-timers anymore. They’re not doing to well as a company.
Dirty,
I agree in principal, but aside from all the giant racks in Brazilian bikinis (which rock), Miami Beach truly is soulless, as you like to say. And you can’t walk anywhere except a few tourist infest blocks of South Beach.
If prices fell further in Southern California, that’s the place to move. Miami Beach is perfect for anybody with limited mobility (retirees)or really lazy folks who are content sleeping on the beach all day getting high.
dick bove? are you serious? turn CNBC off and go buy some real research
Finishes in the Forte are actually pretty nice. The layouts are definitely a bit unconventional with all of those no-right angles, but I think that some people are probably into that. How many times have we heard people complain about people living in glass boxes. This is definitely not a glass box. The problem with Forte has always been that it’s been priced as if it were the nicest building in the nicest neighborhood and it’s clearly not. The proximity to the nevins street subway and to BAM is definitely a plus, but the immediate surrounding area still has a ways to go. This thing came out of the gate at around $800/SF which was nuts. It’s currently priced at about $650/SF – which is where it should have been 2 years ago. Those of you who think that a building of this quality with these views, finishes, a doorman, even on a “not totally there yet” stretch of fort greene will go for $350 are dreaming. Look around. Things in Park Slope and Prime Fort Green are still going for about $600-$700/SF and most of Prospect Heights is still going for $500-$600/SF. This will move in 2 seconds if prices drop down to $500/SF.
quote:
I have a perfectly amazing life, with a great job and live in an awesome building.
PLEASE D.I.A.F!
*rob*
sebb, Paulson & Co (not Hank, but the hedge fund) took giant poositions in a whole bunch of names in 2Q, They are the 4th largest holder in BAC now. Heebner did as well.
DIBS: I agree with you on Goldman going to 200. Dick Bove said BAC goes to 45 banks have a lot of upside.
Sometimes I wonder why people are so obsessed with living here. Sell your 2 million dollar brownstone – buy a nice 1 bedroom in Miami for 80K and retire. Work parttime at starbucks for health insurance and hang out on the beach all day. That’s sounds alot better than schlepping your ass on a crowded sweaty train to push paper for 30 more years, while you spend your weekends unclogging your tenants toilet and changing lightbulbs.