The Top 20 Buildings Where Buyers Are Backing Out

interesting list, thanks for posting. it's kind of funny. some of the buildings that are in the worst shape wouldn't make that list because they didn't get that many into contract to begin with, or haven't started closing yet.

I still want to see the list of The 40 Good Buildings in New York. I've never been able to get my hands on it. Am I going to have to go on a microfiche hunt?

if you don't live in one of the 40, and you see the list, you must be destroyed.

I must be destroyed anyway.

I DEMAND A recount... POWERHOUSE is much higher on the list. Let me go call Ericho69...... ring ring ring.... ring ring ring.....ring ring ring......"Please note this number is no longer in service, we do not have any further information at this time." CLICK.

At one point I coveted the 505 but didn't want to wait until 2009 to move. Thank you God for steering me right.

Great find 30_yrs.

Special shout-out to Africa Israel for getting two properties on the list.

Surprised to see Brompton above 170 EEA. Not even sure Brompton makes a top 20 on a city-wide basis, but maybe the Deal wanted to get one from Related. District and One BBP wuz robbed being placed at 14 and 20(wtf?). Also Powerhouse, as w67 said.

alanhart - I haven't been able to find the article either, but here is the list if that helps

http://www.frontporchllc.com/2008/09/what-are-new-yorks-good-buildings/

This is interesting for various reasons.

Obviously, it shows that in a down market people will look to legal loopholes to try to get out of a contract, even if the claim is pretty flimsy (my guess is that are mostly bogus, involving immaterial issues at best, but I don't know anything a bout ILSA or the AG claims legal merits). Unless developers in lots of buildings were coincidentally materially sloppy or whatever, one would hope that these bogus suits would fail.

On the other hand, since I assume lawyers would not take a case like this on a contingency basis, quite a number of people are apparently under the impression it is worth the cost/risk to make the claim, so maybe they do have a decent chance.

This article was based on suits filed, so it doesn't cover something just as interesting: how many people are simply walking away, after having concluded that a legal dispute is too likely to fail to justify the cost.

Several different times there have been threads started by people agonizing over whether to close, but the outcome never gets reported back. Some of these people may have filed claims.

Thanks, sideline.

And, if that's your site, thanks Ali, and headsup: the site isn't rendering right in FF or IE.

.

This bit is too priceless to be left unhighlighted. From the entry for 75 Wall Street: "In addition, Prudential Douglas Elliman broker Hela Miodownik filed a claim in state court for return of her $111,000 deposit, claiming, in part, that she had an agreement that her unit would close only after the rest of the building had sold and the Andaz Hotel opened at the site. Her purchase was a "marketing tool" meant to entice foreign buyers she represented to buy in the building, she claimed in the lawsuit."

You really couldn't make this up if you tried. At least I couldn't.

I was once on a jury for a criminal case in which the defendant's terrible attorney claimed that his client marched the victim out of his W. 10th Street to a nearby ATM, at gunpoint, for "services rendered"!!!

But at least that defendant wasn't a shady crook or ho, as this plaintiff sounds to be.

How about a list of developments where there are no buyers. For example, The Lucida on E85 looks to have apts filled, but they are the rentals the developer has retained and not part of the offering (floors 5 to 8). The higher floors are a ghost town. Perfect example of the apt dweller choosing between rent v. buy. This market screams RENT! in new developments that are over priced.

while interesting this list is a bit flawed. if a building consisting of 100 units had 10 in contract and 5 walked away and filed a dispute the building would show up at a 5% walk/dispute rate.

my, my, times have changed.

my, my, have times changed.

Another question..when these bogus sutis fail (hopefully....im an old fashioned binding contract kinda human) , will these people then close or not?....

I wish there was a thread for people to post who have actually walked,,and where..We seem to only get the agonizing thinking about it threads...

"since I assume lawyers would not take a case like this on a contingency basis"

I wouldn't be so sure about that: lately I've seen a few small RE firms take horrible cases on contingency. I'm involved in one right now where the attorney "guaranteed a win" (which I NEVER heard any attorney of mine do EVER in 3 decades of litigation), and the Judge has told this same firm numerous times that they really have no case and should settle the matter..... for the past 2 1/2 years.

"while interesting this list is a bit flawed. if a building consisting of 100 units had 10 in contract and 5 walked away and filed a dispute the building would show up at a 5% walk/dispute rate."

i agree you need 2 metrics: not just the percentage of units in the building which are walking away, but the percentage which were in contract which are walking away. If you had 2 100 unit buildings and one had 25 units in contract and 24 walked away, and another had 90 units in contract an 25 walked away, you really wouldn't get the right picture from just the one metric.

____________________

David Goldsmith
DG Neary Realty

Alan: that is my site -- I honestly haven't updated in about nine months since I've been working for moneywatch ... but will fix.

It's worth noting that the temporary FHA change dropping the presale requirement to 30 percent might be followed by some lenders, which would help the new dev. market a lot.

http://bit.ly/5ZEbIh

ali r.
"Ask the Agent" on CBS Moneywatch

Naive buyer's question: To what extent is this about the market and to what extent about quality? 80/20? 90/10? 50/50?

92/8..

There may be a kernel of legitimate complaint in more than 8 cases per 100, but I am factoring out non-material issues.

a little surprised william beaver did not have more

Wow....looks like this struck a nerve.

When one first reads this article it sounds like these buildings are in financial trouble that will not be resolved. I actually looked at an apartment at the Soho Mews this past weekend at an Open House. It troubles me to see them on the list and chases me away cause in this tough market,...who needs the extra headaches (for the record - we didn't love he apartment anyway).

But when I do a little more digging....I see a quote from the developer of Soho Mews:"

"We had seven AG disputes, and we won six of them and the other one was dismissed," said the developer, Al Laboz, adding that he expects to win the court case as well. "Frankly, the reason why these disputes were started is, the people signed their contract at the height of the market and the market has dropped, and they refused to close."

Isn't it true that now buyers are trying to litigate for their bad timing and bad decisions. Can you imagine the backlash if the Real Estate market went up 20% and the developers wanted to increase the price of apartments in contract!!?

Anyone know the status of Chelsea Enclave or the Tribeca Fiarchild?

Dispute #'s for 1bbp are way too low... Of the 95 units cited as under contract pre-Mar 08 (when the offering plan was made effective), 53 closed in the 11+ months that have elapsed since the TCOs were issued. Also the total # of units was reduced by combined units to 438 so you're talking about at least 10% of total units 'in dispute' and 85 total closings recorded (ie, <20% occupied).

Chelsea Enclave did not have that many buyers back out as it didnt started selling until after Lehman death.

I wish there was a thread for people to post who have actually walked,,and where

jim: I have a friend who walked away from her 10% deposit on a 2 bedroom at The Harrison. She bought a comp. 2 bd at 200 WEA for 20% lower (one of the apts that Columbia U sold) than the price at The Harrison and is still disputing her downpayment at The Harrison. Either way, she is ahead. And happy.

apt, that would be a great thread...
start it!