Second Life For Be@Schermerhorn
Last we heard from be@schermerhorn (a couple of months ago), the 246-unit condo building in Downtown Brooklyn was forced to let its existing buyers out of contract, having failed to sell enough of the building; earlier in the year, the development finally cut prices but it was too little too late. Well, now those same…
Last we heard from be@schermerhorn (a couple of months ago), the 246-unit condo building in Downtown Brooklyn was forced to let its existing buyers out of contract, having failed to sell enough of the building; earlier in the year, the development finally cut prices but it was too little too late. Well, now those same buyers will be able to buy back in, presumably at much lower prices. It was reported yesterday that an Atlanta-based company called Jamestown Properties has purchased the mortgage on the property and plans to relaunch the sales effort under the management of the original developer, SDS Procida. Great news for the Downtown area if they can pull it off. If it’s priced to sell, we don’t see any reason why they can’t.
Brooklyn Condo Scooped Up by German Investors [WSJ]
Jamestown Invests in Troubled be@Schermerhorn [TRD]
Vultures Pick Off Downtown Brooklyn Condo [Curbed]
Be@Schermerhorn Hits Another Snag [Brownstoner]
Welcome to Downtown Brooklyn’s Hottest Pocket [NY Post]
The Be@Schermerhorn Price Cuts We’ve Been Waiting For [Brownstoner]
What’s Going On at Be@Schermerhorn? [Brownstoner]
Checking In On Be@Schermerhorn [Brownstoner] GMAP
Price Cuts at Be@Schermerhorn [Brownstoner]
Inside Be@Schermerhorn [Brownstoner]
No argument here about the problems with the FHA. If it’s kept afloat long enough, though, it will have an impact on the viability of sales in large condo buildings, which will lower sales prices for existing apartments as well.
“they could not sell this Ugly thing when times were good at 600 PSF. It should be a rental building”
Their sales office opened around the market crash last fall. They were never selling anything during the peak.
The location of the welfare center won’t make any difference on prices either. If people actually cared about that Warren St between Bond and Nevins would be a ghost town.
This is what they get for including the word “Biatch” in the name.
Also the largest welfare center in NYC is right across the street. That way it will be easier to pick up your foodstamps.
FHA loans is another Ponzi scheme, albeit directly taxpayer funded, on the verge of collapse because of the same risky lending of the recent past. They’re racking up a lot of defaults. The program won’t be around forever. So even if this development can exploit it while it lasts, it’ll only be short term. Resales will collapse the long term comps. Buyer beware.
***Bid half off peak comps***
FHA loans is another Ponzi scheme, albeit directly taxpayer funded, on the verge of collapse because of the same risky lending of the recent past. They’re racking up a lot of defaults. The program won’t be around forever. So even if this development can exploit it while it lasts, it’ll only be short term. Resales will collapse the long term comps. Buyer beware.
***Bid half off peak comps***
they could not sell this Ugly thing when times were good at 600 PSF. It should be a rental building
I wonder if the FHA’s change in condo lending rules will affect this project (and the other big condo projects downtown). http://bit.ly/2yZvxt
From calculatedrisk, a summary of the changes:
• Increase from 30 percent to 50 percent the number of units in a project that can be financed with FHA loans. FHA, however, will make exceptions, even allowing up to 100 percent, when buildings meet an additional set of more stringent criteria.
• Require at least 50 percent of units in a complex to be owner-occupied or sold to owners who plan to live in the units. Bank-owned units may be disqualified from the percentage calculation.
• Reduce a presale requirement in new construction to 30 percent, compared with 70 percent for loans from conventional lenders.
I think this will make it easier to get a loan in buildings that have been unable to sell anything for the past year. This, coupled with the new-found ability to lower prices due to the sale of the overall mortgage at a loss, will finally unlock all the looming inventory in new construction. Personally, I think that also means lower prices for existing apartments as buyers can now choose between much cheaper new construction or still overpriced old construction.
Sometimes I find BHO’s comments almost poetic … is that weird?
“Same old death transferred to another …” — that’s Tennyson, right?