Warehouse 11: Selling, But Developers May Still Be Screwed
Two articles came out yesterday that spotlighted the Williamsburg condo Warehouse 11 in very different ways. The first, in Crain’s, talked about how its fire-sale prices resulted in half of its units selling or going into contract very quickly, thus making it something of a post-boom success story. The other article, in The Real Deal,…
Two articles came out yesterday that spotlighted the Williamsburg condo Warehouse 11 in very different ways. The first, in Crain’s, talked about how its fire-sale prices resulted in half of its units selling or going into contract very quickly, thus making it something of a post-boom success story. The other article, in The Real Deal, digs deep into the legal wrangling that inspired the fire sale in the first place. The main takeaways are that a “U.S. Bankruptcy Court judge rejected on Friday a settlement agreement that would have extended until next month the deadline for the developers of Williamsburg’s Warehouse 11 to buy the property’s discounted debt from lender Capital One,” plus “Capital One alleged in court documents that the developers commenced sales without its approval, which would be required to close the sales.” The latter allegation, of course, could throw a serious wrench in the plans of all those new contract holders. The TRD story also details how the building’s developers are besieged by debts on a number of fronts.
Price Cuts Yield Condo Sales in Williamsburg [Crain’s]
Judge Rejects Warehouse 11 Extension [The Real Deal]
Warehouse 11 Sales: Do or Die For Condo’s Developer [Brownstoner]
Price Cuts Lead to Feeding Frenzy at Warehouse 11 [Brownstoner] GMAP
Photo from TRD.
Bernanke is finally coming to his senses. No more free money for homebuyers and low interest rates which what jacked up prices to unbearable levels.
Absolutely, Donald Brennan. See bankruptcy of 20 Bayard for relevant commentary.
http://tinyurl.com/yenq5um (also see history)
A bank blocked rental conversions so you know they would interfere with a potential collapse in contract prices. A collapse would happen – otherwise the developer would have sold out and not be “screwed”.
***Bid half off peak comps***
Donald, my guess is if the building files for ch 11, the building would then suggest a plan of reorganization that would have to be approved by the court, making my answer: maybe. Whatever the debtor thinks would work, as approved by the court, and not objected to by creditors, is what would happen in the event of a bankruptcy filing.
Lack of retail (or an otherwise well-resolved program) at the base of these new buildings is a huge problem. Walking by NV the other day, Berry Street is a blank wall (parking garage behind). Others have residences at the ground floor with huge windows and the ubiquitous ersatz window treatments. All of this might be great for development, but it’s horrible for the neighborhood. For an alternative vision of what an actual neighborhood could look like, take a look at North 3rd between Berry and Wythe.
http://thewgnews.com/2010/02/walking-the-walk-north-third-comes-alive/
http://www.brooklyn11211.com/archive/2010/02/north-third.html
crickets
Anyone know what happens if the developer files for bankruptcy? Does it freeze the sales effort until bankruptcy issue is resolved?
i don’t mean in the building in the area – on Driggs, N. 12th, Richardson, Havemeyer, Lorimer even, etc…
Maybe add’l retail/restaurants will pop up to handle the big influx of people.
it would be great if some of these developers did start adding retail to their ground floors. none have on roebling/bayard.
What a mess. What a fucking mess.
***Bid half off peak comps***
Wine lover – according to DOB, there is no retail in this project. And whether or not is the bank or the developer, someone will be selling units here.