Renting 1 BBP: 'We Would Like Things to be Different'
This weekend’s cover story in the real estate section of the Times is about Brooklyn developers who have started renting units in their condos, with a focus on the hybrid-ization of One Brooklyn Bridge Park, where developer RAL recently began renting some of the unsold inventory. First, the stats: There have been 77 closings at…
This weekend’s cover story in the real estate section of the Times is about Brooklyn developers who have started renting units in their condos, with a focus on the hybrid-ization of One Brooklyn Bridge Park, where developer RAL recently began renting some of the unsold inventory. First, the stats: There have been 77 closings at the building and 26 other units are in contract, leaving 300-some-odd vacancies; for now, RAL is only renting 20 units, and five one-year leases have been inked. Then, there’s the commentary from RAL president Robert Levine, who says stuff like, “This building is not a rental building, it is a condominium,” and “We would like things to be different,” and “We had a vision and it turned out to be exactly what we wanted. And then the world fell apart.” (On this last quote, it’s worth noting that 1BBP went on sale almost a year and a half before “the world fell apart” last September.) Anyhow, the bigger questions the article addresses are, how much of a stigma is it for a condo to rent some units out, and to what extent—if at all—does it push down values? On the first question, an Elliman broker says, “if you start to rent 25 percent of the building or more, it takes on the flavor of a rental,” and on the second question, appraiser-guru Jonathan Miller says that “In the long run, there’s no impairment to value.”
Renters to the Rescue [NY Times]
Rentals, Price Cuts and Loan Extension at 1BBP [Brownstoner]
The real problem with a building that has more renters than owners comes when the renters are renting from the sponsor who winds up with an inordinate amount of control over the building and can drag his heels on building a reserve fund, doing major maintenance before it is a crisis, etc.
At 50% the other owners can outvote the sponsor, but the sponsor can always find ways to retaliate and you’d ideally avoid reaching that point. By buying a building where one person doesn’t have extraordinary voting power.
But, you all are the ones who balked when I said I was trying to help my landlord figure out the solution to our banging gate.
I believe the issue is not renting vs. owning. The core of the matter is that developments which initially planned on selling their entire inventory are forced to rent because of lack of interest. By default, that means the early buyers overpaid. Wouldn’t you be hostile?
“hmm who else can we drag into this?”
I think i saw A-Rod and kate hudson making out on Furman St on saturday night.
hmm who else can we drag into this?
I think thats was meant to say “James Tate, 44, who, along with his white Valise”
Entirely appropriate for a studio.
nice denton- Excellent example of the idiotic owner/renter debate. I guess when you buy, every roach, bedbug and fly packs up and leaves to find- of course- a renter.
“‘People were concerned,’ said James Tate, 44, who, along with his wife, Valisa, 39, paid $695,000 for a 1,100-square-foot studio.”
I don’t even know where to start. Buying a studio at 44/39 y.o.? For $695K? With 1,100 sq. ft. but no rooms? What is with this place?!?!
hahah. well a while back i became fascinated with bedbugs (never had them btw) but i was curious about them. i think that’s where i read that cockroach thing. when i said exterminator blogs i was just meaning websites about bedbugs and people blogging about their ongoing problems with bedbugs.
*rob*
Tiki Barber
Oprah Winfrey
Beyonce Knowles
Sarah Jessica Parker/Matthew Broderick
Kanye West (or did he close in Dumbo?)
…
The list grows like the inventory. What a bunch of fuckin’ idiots to fall for these headfakes!
***Bid half off peak comps***