On Dean Street, a Developer's Promises Go Bust

Should the new developer of a stalled condo in Crown Heights be expected to honor an agreement made by its original developer? That’s one of the questions at the heart of a Daily News story concerning Emmanuel and Elizabeth Obi, who sold their property at 816-18 Dean Street to a developer for $300,000 in 2004 and were promised either two of the building’s condos or $600,000 if the project wasn’t finished in two years. However, the development ended up in foreclosure, and its new builder says the Obis rejected a settlement offer that’s less than the $600,000 they were promised. The Obis originally purchased the property for $100,000 in 1998 and say they put $300,000 into renovating it before selling; they claim that their finances have been ruined because they haven’t gotten the money that they banked on: “All of our money was in that building. Those two condos would’ve been worth at least $500,000 each now – especially when the basketball stadium came around there. But now we have nothing.” Obviously it sounds like the Obis got a raw deal, but it would be interesting to know the amount of the settlement that they rejected.
Deadbeat Condo Developers Leave Brooklyn Pastor, Wife Out in the Cold [NY Daily News]