Warehouse 11 Sales: Do or Die For Condo's Developer
Turns out that fire sale at Williamsburg’s Warehouse 11—which reportedly involved a whole mess of units going into contract for less than $600 a foot—was primarily stoked by lender pressure, according to an article in the Real Deal. The magazine reports that while “a spokesperson for Aptsandlofts.com said the price slashing is due to market…
Turns out that fire sale at Williamsburg’s Warehouse 11—which reportedly involved a whole mess of units going into contract for less than $600 a foot—was primarily stoked by lender pressure, according to an article in the Real Deal. The magazine reports that while “a spokesperson for Aptsandlofts.com said the price slashing is due to market conditions, but a source with knowledge of the situation said the fire sale marks an effort to ratchet up cash before a lender-imposed March 31 cut off date. Developer McCaren Park Mews LLC initially faced a Dec. 21, 2009 deadline to buy back the debt, according to bankruptcy filings. But, the developer had been ‘able to renegotiate terms with the bank,’ the spokesperson said, and extend the closing deadline to March.” The story says the building’s developer needs to come up with around $30 million to buy back the debt, which was originally around $50 million.
Warehouse 11 races against clock [The Real Deal]
Price Cuts Lead to Feeding Frenzy at Warehouse 11 [Brownstoner] GMAP
News Flash-
one mile radius search on property shark from Pacific st btwn Smith and Hoyt.
total # of condos 7638
total # scheduled for auction last year 1
total # in lis pendens today 1775 ( 23% )
HELP!!!!!
Where’s the door?
THE DOOR IS LOCKED
Die…die…die…die…(remember Tommy from Friday the 13th Part IV?)
“$30 million to buy back the debt, which was originally around $50 million”
-40% off. Capital One almost gets it. What’s on your balance sheet?
“‘You start at a reasonable number and move your way up,’ Mr. Maundrell said of prices.” – Times Article on Condos
What an idiot! “up” from reasonable right before capitulation? More like eventually DOWN from reasonable when the collapse overshoots through the intrinsic value floor. Who the hell is going to pay more than firesale prices as housing enters it’s second and more deadly dip? Yeah, I guess there are some FHA baseheads left. “Oh please oh please oh please…just gimme just one more overleveraged hit!”
***Bid half off peak comps***
Anyone know what might happen to the pricing if indeed the bank takes the property back? Higher, lower, the same? All new contracts are cancelled (seller contingency) and the property goes rental?
what a bunch of dummies. if they had priced this correctly from the beginning, then they wouldn’t be in this mess. it was so overpriced even at the height. really too bad, as it had a lot going for it.
hope they finish the building nicely and people move in.
i don’t think it’s necessarily any riskier than any other new and under 50/70% sold condo. in fact you could argue it’s less so. price has been adjusted to roughly new market price as evidenced by sales rate pickup. if the developer still doesn’t meet his cash call, then the bank is close to taking over with a relatively smooth transition.
risky would be signing and closing a contract at prices that hadn’t been chopped to create activity.
risk from soil oil contamination is perhaps a greater relative risk.
Do people signing contracts here know this do you think?
Seems awfully risky, especially when there are thousands of other condos for sale to choose from in the neighborhood.