Mystery Downtown Development Going Affordable
The New York Post ran a story yesterday mentioning two luxury condo buildings in talks with the city to unload their unsold units as affordable housing. One building is in Harlem and the other in Downtown Brooklyn, according to the article, but officials cannot reveal where the properties are while negotiations are still occurring. Any…
The New York Post ran a story yesterday mentioning two luxury condo buildings in talks with the city to unload their unsold units as affordable housing. One building is in Harlem and the other in Downtown Brooklyn, according to the article, but officials cannot reveal where the properties are while negotiations are still occurring. Any guesses, readers? The article says that the city is in negotiations with “banks that have foreclosed on the properties,” and that the Brooklyn development is in Downtown. The leading guesses in the Forum are Forte and be@schermerhorn (above). What do you think?
City Dealing to Make Luxe Condos Cheaper [NY Post]
Long time lurker here…I feel really sad for anyone that bought into these buildings. They are so screwed and forget about re-financing. Seems to me the best option for those owners is to walk away from their mortgages, because they’re credit is finished anyway.
The risk on new versus existing is just different, I don’t see how it’s more risky to buy new when existing is riddled with fraud too. True in existing you buy into an established building, but there’s then you take on a whole set of other risks.
Posted by: bklyn_rntr at August 25, 2009 9:41 AM
There are a few things in your post that you really need to understand before you post like that!!!!
First, why is their credit “finished anyway?” Do you know what walking away from a mortgage does to your credit??
It doesn’t seem much different than those “luxury” developments that have an affordable housing component, like the Edge. One guy living there pays one third of the price that his next door neighbor does.
Its better to have homes with people in them than just sitting empty.
fsrg for the win.
” Moreover, they weirdly pulled all but one of their available listings from streeteasy – which seems either like they’re going rental or making some other big change.”
Word is the big Condo development are Covertly applying for Section 8 and other subsidies.
You see Jackasses this is the Dark Side of New York City! The Mutant Asset Bubble lured Suckers from everywhere to build up NYC tax base and overpay for inferior construction and now the whole thing is crashing down your heads.
Ask yourself one question- Will it better from here? My answer is no….
The What (Buh Bye)
Someday this war is gonna end..
” Moreover, they weirdly pulled all but one of their available listings from streeteasy – which seems either like they’re going rental or making some other big change.”
Word is the big Condo development are Covertly applying for Section 8 and other subsidies.
You see Jackasses this the Dark Side of New York City! The Mutant Asset Bubble lured Suckers from everywhere to build up NYC tax base and overpay for inferior construction and now the whole thing is crashing down your heads.
Ask yourself one question- Will it better from here? My answer is no….
The What (Buh Bye)
Someday this war is gonna end..
quote:
I think it’s kind of awesome. Almost wish they’d skip the “affordable” part and just move poorer-than-“affordable” people in there and then raise some of the projects.
newsflash: shuffling people from the projects and scattering them around the country has DESTROYED communities across america. once SUPER safe suburbs and towns are now cesspools with people afraid to leave their own houses because of a lack of police presence and lack of many people on the street. people run red lights because they are afraid to stop their car in many neighborhoods.
*rob*
It’s Be@, Forte is in Fort Greene.
I believe that the BE@Schmerhorn has not received its CO….Therefore, closings have not begun. Contract signers may have leverage if it is one of the buildings scheduled to go affordable.
The Forte is another matter altogether. Clarett surrendered to its lenders which includes Goldman Sachs. Coupled with the fact that the local assemblyman said out loud that the conversion to affordable was something that was desirable. The conversion to affordable (i.e. less than what they paid for) would be a sad outcome in the recent condo construction boom.
quote:
what is their definition of “affordable housing?” Will we see dramatic price drops at these properties – ie more than 25% or so?
it will be something mad ridiculous. like you have to make between 20 and 30 K and buy a place for 400K and your mortgage will be 95 percent of your income. what’s the point?
*rob*