After our attorney had thoroughly reviewed the seller’s (sponsor's) purchase agreement for 475 Sterling, he highly recommended that we not go any further, as the agreement is heavily slanted in the favor of the sponsor, with little to no protection of the buyer’s down payment, as well as multiple references to “Time of the Essence,” which ultimately protects the sponsor. Our attorney also said that in some cases he has applied a statement to the agreement stating that the buyer has decided to go through with the purchase anyway against his recommendations; however, he said that this purchase agreement is so unfair and unjust to the buyer that he would drop us as a client, and we would need to seek new representation, if we decided to proceed with this purchase. We have decided to let this one pass.
Condesi, thanks for the posting. I have been curious about the terms of the contract, as I have noticed that prospective buyers appear to be going in and out of contract and I was not sure why.It would be a shame to loose such a hefty down-payment too. If 23 sales are required in order for home owners to move in, it might take longer than 1Q before anyone can realistically call this home.
On another note, they seem like really nice units, but the sponsor is not being extremely flexible with the pricing either. Has anyone had luck with negotiating pricing?
Why would anyone even consider buying there when you have 530 Saint Johns Place just a few blocks away!! Its one of the best new developments out there (yes, I bought one of the apartments!)
AnnReal, it is a very nice building which offers more space than 530 Saint Johns. However, 530 Saint Johns has some great amenenities not offered here, so it ends up being a trade-off. I just believe the builder needs to offer better incentives to really see strong movement here.
My husband and I are signing our contract this week. I am not sure why condesi's attorney didn't like the contract, but our very experienced Manhattan real estate attorney has not come up with any deal breaker issues. CPC Resources is the for profit division of the Community Preservation Corporation which has been doing not-for-profit business in the tri-state area for nearly forty years, CPC Resources has been doing work in the tri-state for over ten. They're not exactly a fly by night company on their way to the Cayman Islands. Also, I am not convinced that Chase Bank would get involved in a crooked deal, and they are one of the preferred lenders. The development is pitched at middle income households, so do not have the luxury features that some people have come to expect in new developments in this part of Brooklyn. Quite frankly, we'd rather do our own decorating. I don't know of any other development in NYC where you can get a parking place for $25,000. We're looking forward to living there, and expect to be there in June or July.
To update, my husband and I signed our contract today. Our attorney was very happy with this property. He said that the price, location and features were excellent. He didn't have any worries about what was in the contract or in the offering plan, and he spends his life reading offering plans.
I'm relieved to have found this blog. I was inspired by yesterday's Real Estate section in the NYTimes. I went into contract last October and was told Feb/March for closing. As of 3 wks ago, I was told July/August. Then two weeks ago I was told end of August. My lawyer has told me now to expect the Fall. I'm essentially getting 3 different answers from different parties. I'm not sure who to believe. I did learn something interesting and perhaps encouraging about the developer; the developer is building yet another building across the street...that is, the side where the hair salon is located. It will be to the left of the salon. Why start a new bldg when the other isn't finished I ask. But, I'm hoping this means it is a "reputable" group in the end. Has anyone heard anything more recent about the closing date timelines?
There are a couple of issues involved in closing. First, the building has to get a permanent certificate of occupancy from the NYC Buildings department. You can monitor the progress on this on the Building Information System (see www.nyc.gov/buildings). Secondly, the developer has to establish that the condo is viable by selling more than half the units (23/45), to date there are 21 units in contract. It has been a couple of months since the last unit went into contract. The developer only recently listed the first floor units. Currently there are 24 units listed as available on the www.ahbrooklyn.com and www.475Sterling.com websites. They are a little more up to date than Street Easy.
My husband and I were hoping to move in this Summer, but we are resigned the fact that it may be November or later. The offering plan has some mention of November being the date the developer has to close by, but the plan also allows the developer some leeway to extend that date.
BTW CPC Resources Inc. is reputable, however, they are starting construction on a second condo across the street so that they can claim the tax abatements which are only available for condos that are under construction by June 30, 2008 (I think that's the date). CPC Resources Inc. is the for profit subsidiary of the Community Preservation Corporation that is a not-for-profit that rehabs neighborhoods around the tri-state area.
Matthew- Not a good sign with just 50% sold and the last unit sold several months ago. If you have a contingency I would do everything in this market to get out or risk losing a lot of money. Just an opinion.
DCO - real estate is a long term investment. The NYC real estate market is experiencing one of its cyclical downturns which will last two to three years at most. With the way oil prices are going residential property that is close to public transportation will suffer less price weakening than property that is a long way from public transportation. My view is that this development represents extremely good value for money because it is in an area that is rapidly gentrifying, is close to Prospect Park, reasonably close to the 5th Ave restaurant precinct, has easy access to the 2, 3, 4 and 5 subways and the shuttle to the C train. 475 Sterling place also offers the best price per square foot of any development I have seen, and the parking spaces are a steal at $25,000 - other nearby developments are charging double that price.
The closing notices have finally gone out for this building, which has also received a 25 year tax abatement. Timing has turned out well for those who can get finance, the interest rates now are very low.
with the downturn in the economy and the inevitable increase in crime that will follow in this neighborhood, i don't expect the remaining units to sell anytime soon. when they start offering the units at 40 cents on the dollar, i will buy.
A&H has built several nice-looking developments in questionable areas...
475 Sterling, too (though close enough to interesting and pretty areas) is in the skid row (SORRY--I don't mean to be judgmental)! Once they get rid of those vacant body shops, the area should look better. Also, how do people feel about the school(?)/playground right behind the bldg., facing the balconies? Anyone concerned about the noise potential? Given these issues, I don't think price improvements per se would necessarily prompt people to buy there.
I feel bad for the people who bought in A&H's other developments at the peak of the market... Suite 16 and Dean St. developments were interesting enough, I suppose, but VUE is a complete cookie-cutter, and they are all in up and coming (wink, wink) areas...
i think i looked here -- bathrooms and kitchens were really junky. the guy showing it basically admitted that we'd be paying for the size/2brs and not the finishes. combined with the area, i think we were in and out in about 6 minutes.
I have read several hundred purchase agreememts for sponsor deals over the past ten years as a real estate attorney and did not find the purchase agreement for this building materially more burdensome than any other. Nearly all of the sponsor deals are slanted in favor of the seller. I represent two purchasers in this building and closed a deal there earlier this week. You should also know that the sponsor's attorneys are not unreasonable, while many attorneys who represent sponsors can be...
After our attorney had thoroughly reviewed the seller’s (sponsor's) purchase agreement for 475 Sterling, he highly recommended that we not go any further, as the agreement is heavily slanted in the favor of the sponsor, with little to no protection of the buyer’s down payment, as well as multiple references to “Time of the Essence,” which ultimately protects the sponsor. Our attorney also said that in some cases he has applied a statement to the agreement stating that the buyer has decided to go through with the purchase anyway against his recommendations; however, he said that this purchase agreement is so unfair and unjust to the buyer that he would drop us as a client, and we would need to seek new representation, if we decided to proceed with this purchase. We have decided to let this one pass.
Condesi, thanks for the posting. I have been curious about the terms of the contract, as I have noticed that prospective buyers appear to be going in and out of contract and I was not sure why.It would be a shame to loose such a hefty down-payment too. If 23 sales are required in order for home owners to move in, it might take longer than 1Q before anyone can realistically call this home.
On another note, they seem like really nice units, but the sponsor is not being extremely flexible with the pricing either. Has anyone had luck with negotiating pricing?
Why would anyone even consider buying there when you have 530 Saint Johns Place just a few blocks away!! Its one of the best new developments out there (yes, I bought one of the apartments!)
AnnReal, it is a very nice building which offers more space than 530 Saint Johns. However, 530 Saint Johns has some great amenenities not offered here, so it ends up being a trade-off. I just believe the builder needs to offer better incentives to really see strong movement here.
My husband and I are signing our contract this week. I am not sure why condesi's attorney didn't like the contract, but our very experienced Manhattan real estate attorney has not come up with any deal breaker issues. CPC Resources is the for profit division of the Community Preservation Corporation which has been doing not-for-profit business in the tri-state area for nearly forty years, CPC Resources has been doing work in the tri-state for over ten. They're not exactly a fly by night company on their way to the Cayman Islands. Also, I am not convinced that Chase Bank would get involved in a crooked deal, and they are one of the preferred lenders. The development is pitched at middle income households, so do not have the luxury features that some people have come to expect in new developments in this part of Brooklyn. Quite frankly, we'd rather do our own decorating. I don't know of any other development in NYC where you can get a parking place for $25,000. We're looking forward to living there, and expect to be there in June or July.
To update, my husband and I signed our contract today. Our attorney was very happy with this property. He said that the price, location and features were excellent. He didn't have any worries about what was in the contract or in the offering plan, and he spends his life reading offering plans.
I'm relieved to have found this blog. I was inspired by yesterday's Real Estate section in the NYTimes. I went into contract last October and was told Feb/March for closing. As of 3 wks ago, I was told July/August. Then two weeks ago I was told end of August. My lawyer has told me now to expect the Fall. I'm essentially getting 3 different answers from different parties. I'm not sure who to believe. I did learn something interesting and perhaps encouraging about the developer; the developer is building yet another building across the street...that is, the side where the hair salon is located. It will be to the left of the salon. Why start a new bldg when the other isn't finished I ask. But, I'm hoping this means it is a "reputable" group in the end. Has anyone heard anything more recent about the closing date timelines?
There are a couple of issues involved in closing. First, the building has to get a permanent certificate of occupancy from the NYC Buildings department. You can monitor the progress on this on the Building Information System (see www.nyc.gov/buildings). Secondly, the developer has to establish that the condo is viable by selling more than half the units (23/45), to date there are 21 units in contract. It has been a couple of months since the last unit went into contract. The developer only recently listed the first floor units. Currently there are 24 units listed as available on the www.ahbrooklyn.com and www.475Sterling.com websites. They are a little more up to date than Street Easy.
My husband and I were hoping to move in this Summer, but we are resigned the fact that it may be November or later. The offering plan has some mention of November being the date the developer has to close by, but the plan also allows the developer some leeway to extend that date.
BTW CPC Resources Inc. is reputable, however, they are starting construction on a second condo across the street so that they can claim the tax abatements which are only available for condos that are under construction by June 30, 2008 (I think that's the date). CPC Resources Inc. is the for profit subsidiary of the Community Preservation Corporation that is a not-for-profit that rehabs neighborhoods around the tri-state area.
Matthew- Not a good sign with just 50% sold and the last unit sold several months ago. If you have a contingency I would do everything in this market to get out or risk losing a lot of money. Just an opinion.
DCO - real estate is a long term investment. The NYC real estate market is experiencing one of its cyclical downturns which will last two to three years at most. With the way oil prices are going residential property that is close to public transportation will suffer less price weakening than property that is a long way from public transportation. My view is that this development represents extremely good value for money because it is in an area that is rapidly gentrifying, is close to Prospect Park, reasonably close to the 5th Ave restaurant precinct, has easy access to the 2, 3, 4 and 5 subways and the shuttle to the C train. 475 Sterling place also offers the best price per square foot of any development I have seen, and the parking spaces are a steal at $25,000 - other nearby developments are charging double that price.
The closing notices have finally gone out for this building, which has also received a 25 year tax abatement. Timing has turned out well for those who can get finance, the interest rates now are very low.
with the downturn in the economy and the inevitable increase in crime that will follow in this neighborhood, i don't expect the remaining units to sell anytime soon. when they start offering the units at 40 cents on the dollar, i will buy.
I'd prefer to wait until 25 cents on the dollar. 40 cents on the dollar is overpaying, trevorF.
A&H has built several nice-looking developments in questionable areas...
475 Sterling, too (though close enough to interesting and pretty areas) is in the skid row (SORRY--I don't mean to be judgmental)! Once they get rid of those vacant body shops, the area should look better. Also, how do people feel about the school(?)/playground right behind the bldg., facing the balconies? Anyone concerned about the noise potential? Given these issues, I don't think price improvements per se would necessarily prompt people to buy there.
I feel bad for the people who bought in A&H's other developments at the peak of the market... Suite 16 and Dean St. developments were interesting enough, I suppose, but VUE is a complete cookie-cutter, and they are all in up and coming (wink, wink) areas...
i think i looked here -- bathrooms and kitchens were really junky. the guy showing it basically admitted that we'd be paying for the size/2brs and not the finishes. combined with the area, i think we were in and out in about 6 minutes.
I have read several hundred purchase agreememts for sponsor deals over the past ten years as a real estate attorney and did not find the purchase agreement for this building materially more burdensome than any other. Nearly all of the sponsor deals are slanted in favor of the seller. I represent two purchasers in this building and closed a deal there earlier this week. You should also know that the sponsor's attorneys are not unreasonable, while many attorneys who represent sponsors can be...
i am interested in this building. if any of the new owners could provide recent updates on this building that would be much appreciated. thanks!
You can follow the 475-ers here: http://www.i-neighbors.org/11238/475Sterling
what is i-neighbors? do people use it?