Goldman Following Through on Bed Stuy Housing
Goldman Sachs may be plowing some of the profits it made from the subprime crisis back into one of the Brooklyn neighborhoods hit hardest by the meltdown. Two years ago, we reported that Goldman was teaming up with BRP (the developer behind The Clermont and the Home for Old Ladies) to build an 84-unit project…
Goldman Sachs may be plowing some of the profits it made from the subprime crisis back into one of the Brooklyn neighborhoods hit hardest by the meltdown. Two years ago, we reported that Goldman was teaming up with BRP (the developer behind The Clermont and the Home for Old Ladies) to build an 84-unit project with lots of affordable housing on the site of a row of abandoned walk-ups on Fulton Street between Marcus Garvey Boulevard and Albany Avenue in Bed Stuy. (The group ponied up close to $10 million in late 2007 for the buildings and air rights that come with them.) Yesterday, the Bed-Stuy Blog reported that a construction fence has gone up in front of the buildings in anticipation of a controlled demolition with asbestos in place; the abatement is set to begin within the next few days. For more background analysis of Goldman’s Urban Investment Group, check out My Brooklyn Report. GMAP
Photo from Bed-Stuy Blog
hannible, if you’re not man enough to sit at the table at least fix me another martini.
Then quit bluffing DIBS by trying to get other suckers to join the pot!
DeLepp, in your opinion was Andrew Cuomo a dopey do-gooder or something more sinister? Not sure myself. I might have to run for NY Governor just to keep AC out.
dcb, the basic engineering was done by andrew cuomo when he was head of dept of housing, forcing fnma and freddie to buy any loans that were made by the mortgage bankers, all in the name of affordabe housing for those who couldn’t really afford it.
I’m greedy and I bought in bed Stuy and I’m quite happy with my mortgage, my LTV and my place at the poker table.
By the way you talk, you’d think Bed Stuy was part of Las vegas or Florida.
“All that crap was done at a very local level, by local banks.”
Just plain wrong. The basic financial engineering that made this possible was pioneered by the big investment bankers. Some local banks were front men. Some weren’t. The big banks pimped these products hard and made huge fees. That’s the history.
“Ever stop to think that it was just another level of greed?????”
Sure I did. There’s plenty of greed to go around. But Goldman had an army of PHD’s, the backing of the NY Fed and unlimited access to capital. The greedy guy who overbought in Bed Stuy because he wanted a place of his own to live in, was a chump who had no chance at this particular poker table.
“Tar and feather them all I say. The only bonus I would give them is a blindfold at the firing squad!”
Does that extend into the mailroom?
Are they completely demolishing these buildings, or doing a full scale rehab after asbestos removal?
It would be nice to see a rehab even if they end up adding a few levels. Seeing a revitalized Fulton Street will be great for Southern Bed-Stuy and Crown Heights.
“I’m the guy that got you that 2% ARM that is now resetting to 7%. Want to do something about it?”
I would also say blind greed on the homebuyer as well. It’s not like these weren’t supposed to reset at some point.