One Brooklyn Bridge Park

All I know is what I read in Curbed so I'm no expert, but it seems that the side of the building facing the bridge is really close and the construction of the actual park is slow and troubled.

http://curbed.com/archives/2008/01/11/brooklyn_bridge_park_ready_forpark_groceries.php

Maria_08--I have done business in the building (I am a broker) and the project is becoming a huge success. It is most definitely worth your time to check it out. I have proprietary information (floor plans, availablilty, pricing, etc.) and would be willing to share it with you.
917-295-4002. Justin

do you mean by success, behind on construction, literally inches from the highway and a park that may not receive the federal funds to be built?

Ummm . . none of that info is proprietary. You can get it all at http://www.onebrooklyn.com/ (no broker fee needed) :)

Actually...there are no broker fees in sales transactions for the purchaser; the seller pays the commission. And yes, you can find a lot of great info at onebrooklyn.com but that information is limited to what the developer allows to be posted.

In regards to Northsider--the park will be built, it's just a matter of how long it will take. There are necessary funds to build it and those funds are coming from a bevy of sources, including homeowners, the developer, the city, and the state. The project is successful in many ways. One, the construction is top notch, union built with a lot of money spent on materials, finishes, and extras. The location is great, especially when one considers the other options for a condo purchase in Brooklyn Heights and in the PS 8 school district. The building has a lot of history, and future residents will be enjoying amazing amenities by living on an 80 acre park.

Obviously everyone has their own opinion--this is mine.

Who pays the broker? -- the sponsor.

Who negotiates with the sponsor -- the broker?

Who has 6% more leverage if the get the plans from the website and deal directly with the sponsor/marketing team -- the buyer.

Simple math -- you don't need a broker to buy new development. Their commissions come directly out of the sponsor's net.

Having negotiated condo purchases from Developers directly in the past, they have even told me that the % commission that sponsor would have paid to broker is exactly that which they are able to negotiate with me. If all the information is already there, why do you need a broker for 5 minutes worth of work to collect anywhere from 20K to 50K. That is what you could knock off the asking price since when you walk into the dev they know whether you are represented already or not.

Northsider and markznyc:

I can't wait to read the broker responses accusing you of perpetuating a "myth" However, I had the exact same experience when i bought in a new development last month. So what if the developers have priced in buyer brokers commissions into their pro formas and offering plans, if they don't have to pay them who do you think gets them? The pie doesn't get any bigger no matter how you slice it. So why on earth in this market wouldn't a developer share some of that extra profit with the brokerless buyer.

Bill--you are correct, the broker's commission is included to the developers pro forma years in advance when the they calculate their costs and expenses. They factor in the fee, which by the way is far below 6% in new development. Actually the developer pays only about 3% at most since they have an on site team who doesn't share in the commission.
Its too bad brokers get a terrible reputation, some of us actually do provide a service. Have you ever tried and search for a home? It is a lot of work, regardless of what you may think.

jmb-

I appreciate your candor and couldn't agree more, for buyers not willing/able to spend the time familiarizing themselves with the area and searching for properties on their own, brokers provide a very tangible benefit and spend a lot of time negotiating and helping buyers figure out the best move for them. But for those of us addicted to streeteasy and other listing sites, that don't mind picking up the phone and scheduling showings of properties of interest in the case of new developments/conversions or for sale by owner we can probably get some extra price concessions.

To get back on topic i checked out 1 brooklyn bridge park (i have an orange tote bag for my troubles) and i have to say for the prices they were asking that park should have been there already (which the last time i looked across the river is certainly not the case). I mean you have an annoying walk up a steep hill and there is nothing immediately in the vicinity of the building other than the highway and abondoned docks warehouses that might be torn down in 201X. And if you pay for those nice views of manhattan you can't really enjoy them because the windows are at some weird angle. The high ceilings give it a more open feeling but the apts are not large and they have columns and such in the middle of the living room. So i wouldn't get close to that place unless you love brooklyn heights and new construction (seems contradictory to me),
btw curtis martin backed out of that place.

I have a contract on an apt. here and know several people that want to look at the building too. The apartments have great kitchens and bathrooms and very high ceilings. I love the fact that you get a storage unit on your floor and a washer and dryer in the apt. I know the park will not be developed for a long time, but you are right on the edge of Brooklyn Heights which has a nice neighborhood feel. I hope they put a grocery store in the bldg. though. Also, I'm looking for someone to create a bedroom in my studio, a decorator, someone to make drapes, and reasonably priced soundproof windows, if anyone has any connections. Thanks!

This condo is very close to highway. Is it a big problem? Many people hate this fact?

dconiglio--two posters up, is correct. This is an interesting building, but like anything, with pros and cons. (I am in contract as well.)

Pros: The quality throughout the apartments is excellent. First rate fixtures, floors, kitchen cabinets and appliances and the ceilings are at least 12 or 13 feet. Lots of nice touches. The bath tubs are incredible. Great light. I think that most people would consider the building to be in Brooklyn Hts, not just near it. There are a ton of amenities in the building--half of which will not go used by most people. There's a lot of dead interior space far away from windows in the middle of each floor, hence the developers put a lot of shared spaces there and had room for storage cages to boot. The gym is supposed to look out into the harbor. Monthly parking should be plentiful. Yes, the park is looking iffy and even if it's built, it's probably unlikely to resemble the waterside xanadu that is currently planned. However, you figure if anything resembling a proper park gets built, your apartment's value should go up.

Cons: The Brooklyn side units are indeed close to the highway and mine is on that side. I thought long and hard about buying here. The windows are double-paned and when closed, the highway noise amounts to a white noise hum. I've lived in the village and in dumbo and I'll take this low hum over the noise from bars, people talking/smoking outside and the trains in dumbo any day. That said, when you open the windows, you can really hear the highway, but possible soot from the highway is more disconcerting to me. I checked on this by looking carefully at the windows--which seemed pretty clean, but who knows. A big problem is crossing Furman St. i think it's just a matter of time before someone is mowed over on this street while crossing to get to the building. Cars come whizzing by and there isn't a lot of visibility on Joralomon. BE CAREFUL! I timed the walk to the Henry St. station at 11 minutes, but I think walking to court st. will be faster. Some of the apartments have very small bedrooms--so small you'd have a hard time fitting a queen bed and a dresser. The spaces are highly programmed--like the architect knew exactly where he wanted you to put every stick of furniture in your apt.

Also a little concerning is the pace of sales in the building--which has trickled to a halt. The building is supposedly very close to getting a TCO after several delays, but 2/3 of the units are still unsold. I really don't know what the implications are to buyers, but that's worrisome. Also, the maintenance is pretty high. It's comparable to Manhattan and less than a dollar per foot per month, and okay while the tax abatement is in place, but after that....

All in all, I'm very happy with my purchase and look forward to living there. I'm crossing my fingers and hoping that there aren't any severe new building woes. I know someone who was an original buyer at the Gretsch and the had an awful time of it. If we can avoid that, no one gets killed crossing Furman, and the park ever gets built, it'll be great. Would like to hear what others think.

And I'm also looking for design help. Thanks

We are about to sign a contract there as well. I think it seems like a great place to live and a wonderful investment opportunity. Curious as to why you think the park is looking iffy. Also we were told by the broker that Furman was going to become a two way street with more lights. Do you think this is false?

I hadn't heard that about Furman St., but that would probably help. Visibility is still pretty bad both ways. I don't have any inside knowledge about the park being built or not. There's quite a few vitriolic posts on the various blogs and sites doubting that the park will ever be built. The plans have been around forever and some groups oppose the development plans for a variety of reasons. NYC seems to be having a hard time getting anything built these days. At any rate, it probably won't look like the plans on the developer's site--and tons of fine print that "actual park may vary."

Are you on the brooklyn side? What is the latest date they gave you on closings and first moves? I have been told May, but there have been a few delays and I'm doubtful. Any help would be appreciated.
thanks

Too far away.

we've been told first people moving in this May and most places will be done by end of summer with the exception of the town homes which will be done by december. I agree that the park may not immediately or ever resemble the park on their site but as long as it's green it'll be good. they are actually knocking down the sheds now so i beleive that it will actually proceed as planned at least through the first phase. i agree with you that as long as it resembles a park the value has gone up. it's nyc waterfront, a pretty rare thing. good luck with your move!

I signed a contract in september 2007 for a harbor facing apt. I am due to move in by August. I haven't regretted my decision one bit. Have you seen the finishes in these apartments?? Have you seen the craftsmanship, attention to detail, and quality of appliances and fixtures?? As an educated buyer you owe yourself to compare apples to apples. There is NOTHING even approaching this type of offering in brooklyn heigths. Several have said these are manhattan prices for brooklyn... where have you been looking? Do you know what $900/sq foot really gets you today in a new condo. (95th and york maybe, with view of a brick wall?) Come on have you seen these views?? Lastly the skeptics of the park who read the bshit blogs...have you noticed that the doomsayer blogs of a yr ago with 100 postings have now dwindled to barely 10.. gee I wonder if its because the park is actually being built? (take a look and see for yourself!!). Will these pimply real estate 'experts' writing from their mothers basements perhaps have moved on to the next NYC disaster scenario?? Picture what your view will be like in 4 short yrs. Beautiful park, freedom tower views (oh yeah remember that one??) I dont mind having a big mortgage, i just wanna be proud about where i go home. And 95th and york aint gonna do it for me

As I said above, I'm no expert on this development, and I hope that anyone who has purchased here gets their top-of-the-line appliances and finishes and is happy in their place. That said, I think someone just considering this building now would be wise to exercise caution.

To be on the market this long and have only 1/3 of 499 units sold while the market has worsened means the chance of price chops at some stage of sales is likely. Keep in mind the buying pool has shrunk to folks w/ 20% to put down, not just 10% as was the case when this and other condos were planned. If you've purchased and prices get cut by even 10%, you've lost half your equity, and will need a very long timeline to get it back.

As for the park, you're already paying for it. The ppsf was based on the assumption that it will be built, and sales were based around gorgeous renderings. A lousy park will be below expectations and less than what was promised (and paid for). Better-than-nothing doesn't really account for what was built in to the price. If you want to see an example, look at the renderings for Northside Piers, then visit East River State Park. It's basically grass and concrete. Yes, it's nice to be on the water, of course, but the views are of the projects on the FDR drive, and it's nothing like what was promised. The city budget is in terrible shape. A better-than-nothing-park may be the best that can be expected, and someone buying a resale will be looking at something much less impressive than the renderings the first wave of purchasers saw.

tenemental, I don't really have much of a personal interest in this building, but I feel like it might be fun to play devils advocate a bit. I can't comment much on the park. It does appear that work has finally begun and we will see what the end result is in the next year or two. But your comment regarding how long they have been on the market and the pace of sales is a little ignorant. These units went on sale in April of last year, so it has been one year on the market. If they have sold 1/3 of 499 units that means in one years time they have sold over 150 units!! That is probably a record for Brooklyn. Even by Manhattan standards that is incredibly good. Furthermore, the majority of these units have all been well over a million dollars. That is also probably a record for Brooklyn.

The mistake here is that they should have begun sales roughly a year earlier for a development of this size so that by the time people were going to be closing most units would already be spoken for. However, just because they they started sales fairly close to occupancy should not reflect on whether or not sales are successful. 150 units in one year is very good in any market.

hellothere, ignorant is a bit strong, no? Look at the quote from rdh2106, a buyer in the building: "Also a little concerning is the pace of sales in the building--which has trickled to a halt." I don't follow this building well enough to have bookmarked the articles, but I do recall reading that the pace of sales was very slow and below expectations. The mistake that you site is a big one. Like much Brooklyn new development, it's coming around too late to capitalize on the runup as well as the developers hoped, and now there is not only a softer market but tightened credit to deal with. If only a third sold in almost a year and now credit has tightened, the pace of sales has slowed and the market's turned down, how many years will it take to sell the rest? 3? 5? 150 units as an absolute number is one thing, the developers biting off more than they could chew market-wise is another. Again, what's the likelihood of price chops affecting people's equity?

Yes, "we'll see" about the park, but considering the state of the city's budget and the other recent Brooklyn park development I cited, it's a reasonable concern for potential buyers.

If I was one, I'd ask myself "How much will I enjoy living here, even if the park's not as good as promised?" and "How long is my time horizon?" Unless my answers were "very much" and "very long" I'd be very concerned.

Actually, there are 449 units--not 499--in the building and the super gets one of those. Also, I think that as in many new developments, not all of the units were released at the same time.

It may be that some price cuts are coming, but there have been quite a number of price increases over the sales period, so it may be that they need to come back down closer to where they started.

There's also a huge variety of apt. types and hence, a lot of variance in the type of value people might find in this building. There are 1000 sq. foot apts you can get for well under $700 per foot--so that's pretty good in Bk Hts, objectively speaking. Of course, this is where you need to decide if you can live with the hike to the subway, proximity to highway, etc.

Finally, about the park--I'm just one data point, but when I was deciding whether to buy, the park did not factor into my mental ppsf calculations. When people consider ppsf, I personally don't think they go so far as to calculate proximity to the park--so I disagree a bit with the "park has been priced in" logic to a certain extent. I actually think it's been priced into the common charges, which are a bit high for Brooklyn, but not for a building with comparable ammenities and servics. The Brooklyn Eagle ran a pair of articles last week about the park and indeed it seems something's happening. We'll see, I guess.

Whats the deal with this building? Things are happening on the park as evidenced by the demolition? It has sold 3 units in 2 months at the peak of spring selling season per streeteasy?

Would anyone who closes at this building please share some initial thoughts? Thanks!

has anyone moved in yet?

To chues and any others in contract, if you want to swap notes, you can email me at rdh2106@gmail.com

I would love to share thoughts.

Thanks

Whats the deal with parking? I hear that deeded spots are 150k??? Also besides the train is there a ferry one can walk to? Wasn't there a ferry stop nearby at one point? Any info would help.

I think parking starts around $130k - not cheap for sure but I there are around 130 spots available for nearly 450 units so given the scarcity of parking in Brooklyn Heights the sponsor is testing the supply/demand equation. There will be a rental garage with valet parking on the other side of the building so any possible buyer has to figure out whether the opportunity cost on a large chunk of cash is worth the convenience of self-park/easier access to building and locking in the bulk of their parking cost. The closest water taxi is currently Fulton Ferry landing, although the park plan includes several more and I think the BBPDC presentation earlier this week indicated that the dock for pier 6 is funded in the first phase (Fall 2009-Spring 2012)

Take $130k and put it in a savings account at 4%... thats $433 a month. You can easily find parking for that in Brooklyn, particularly the part nowhere near the subway....

I watched an interesting interview on the Stoler Report on 6/10/2008. Here is the link

http://www.stolerreport.com/

Robert Levine has a lot to say about Brooklyn Bridge Park and its surrounding area.

This development is the poster child for the sillyness of the real estate market.

LOL, junkintrunk. No offense to those who bought there, but really??? You plunked down three quarters of a million for a place where you can't open the window when the weather is nice? Oh brother that's not what I think of as habitable, but maybe that's just me.

Why do you need to open a window? Your walk to the location so far out of the way will be your outdoor time.

> have you noticed that the doomsayer blogs of a yr ago with 100 postings have
> now dwindled to barely 10..

Isn't that because its a given now?

Most of the "tech is going to crash" blogs went away in 2000 once everyone pretty much understood that was happening....

Just saw a television advertisement for this. CNBC
Looked pretty good.

Wonder how those TV advertisements have been helping sales!

This building is so ugly. And the location is atrocious.

Now is the time to buy or catching a falling knife? LMBBAO.

Buy now or be priced out forever LOL.

ok, plenty of pros and cons.. any updated comments from those who have now been living there for up to 9 months or so now? if the developer is willing to lower prices some, thinking it could be a good opportunity now. though talk about sales slowing to a trickle.. they've still only sold ~30% of the 449 original units, which means about, er, zero in the last 11 months? what happens if they can't sell anymore?

why would anyone want to live that far away from transportation? i just don't think it is a sound use of one's money.

There was an article on Bloomberg news a couple of months ago where the developer was quoted as saying "we got killed!" by the market problems that started in the fall. You may have a problem getting a mortgage and also, if the units are not sold, they may be auctioned off in blocks to investors who may rent them out. The thing that I would worry about is having to pay higher maintenance to make up for all the unoccupied units.

There it is http://www.bloomberg.com/apps/news?pid=20601109&sid=aEWE_9YUNBkI&refer=home

Is it worthwhile to go to Brooklyn for this?

currenttime
22 minutes ago
ignore this person There was an article on Bloomberg news a couple of months ago where the developer was quoted as saying "we got killed!" by the market problems that started in the fall. You may have a problem getting a mortgage and also, if the units are not sold, they may be auctioned off in blocks to investors who may rent them out. The thing that I would worry about is having to pay higher maintenance to make up for all the unoccupied units.

Sponsor pays the maintenance for the unoccupied units, not the rest of the tenants.

for how long would the sponsor pay the maintenance for the unoccupied units? would they then presumably cut down on lots of the amenities? or simply auction off the units in blocks, as mentioned, presumably at highly discounted prices.. maybe we should wait for that..?

I have to figure this building is going to have some of the record decline comps when they sell th last of these. Just so, so overpriced.

What's the latest on this project, anyone? And the park...?

that Park will be under construction for at least 2 years. I am not sure who would drop this sort of money to live in a construction zone. It looks bad but maybe somebody that lives there can clarify

oh my lord, this is funny.

"Now is the time to buy or catching a falling knife? LMBBAO."

mutumbo, you certainly called this right.

And this one cracks me up...

"As an educated buyer you owe yourself to compare apples to apples. There is NOTHING even approaching this type of offering in brooklyn heigths. Several have said these are manhattan prices for brooklyn... where have you been looking? Do you know what $900/sq foot really gets you today in a new condo. (95th and york maybe, with view of a brick wall?) Come on have you seen these views?? Lastly the skeptics of the park who read the bshit blogs...have you noticed that the doomsayer blogs of a yr ago with 100 postings have now dwindled to barely 10.. gee I wonder if its because the park is actually being built? (take a look and see for yourself!!). Will these pimply real estate 'experts' writing from their mothers basements perhaps have moved on to the next NYC disaster scenario?? Picture what your view will be like in 4 short yrs. Beautiful park, freedom tower views (oh yeah remember that one??) I dont mind having a big mortgage, i just wanna be proud about where i go home. And 95th and york aint gonna do it for me"

I think they're going to put that on that guy's epitaph.

Hear hear, nyc10022!

I think a combination of greed, bad luck and incompetence have doomed the developer of this project. For starters he paid top dollar ($205m) for the building in 04, but then took over 4 years to get it built out. I know Rome wasn't built in a day, but... For seconds, he didn't start sales until early 07, raised prices aggressively early on and didn't reduce them enough or quickly enough after the market turned - as is visible in this thread there was a window in late 07 and first 3 Qs of 2008 when sales had stalled, the direction of the market was pretty clear but banks were still making jumbo loans at reasonable rates on developments with low sales. Meantime the sponsor lost sight of the 330 odd units he needed to move by giving misguided interviews and frivolous press releases rather than making deals. That window is now firmly shut and he's struggling to close even the units that were in contract. Toast.

looks like they were some 20-25% price cuts on a few of these units in the last couple of days. so much for not reducing prices.

This gets funnier every week!

"As an educated buyer you owe yourself to compare apples to apples. There is NOTHING even approaching this type of offering in brooklyn heigths. Several have said these are manhattan prices for brooklyn... where have you been looking? Do you know what $900/sq foot really gets you today in a new condo. (95th and york maybe, with view of a brick wall?) Come on have you seen these views?? Lastly the skeptics of the park who read the bshit blogs...have you noticed that the doomsayer blogs of a yr ago with 100 postings have now dwindled to barely 10.. gee I wonder if its because the park is actually being built? (take a look and see for yourself!!). Will these pimply real estate 'experts' writing from their mothers basements perhaps have moved on to the next NYC disaster scenario?? Picture what your view will be like in 4 short yrs. Beautiful park, freedom tower views (oh yeah remember that one??) I dont mind having a big mortgage, i just wanna be proud about where i go home. And 95th and york aint gonna do it for me"

It appears that though they did reduce prices on some units, they in turn increased common charges. yikes.

nyc10022 I hate to break it to you but 95th and york does not even exist! New to the city are we?

Touche samadams re 95th and york. (nyc1022 was quoting my post from a while back). I've been in NYC 13 yrs (of which 12 in manhattan) so I should have know better about the cross streets!
The fact is the points I made are largely playing out. Remember my time horizon was 4 yrs, not 4 months... Pier 1 and 6 will be finished by late this yr or early 2010. The middle piers (2 thru 5) are shovel ready even if they dont still have full funding. Anyone on the BH promendade the last 12 months can see a LOT is happening there. Re the freedom tower comments, meet you in 3 1/2 yrs, there might still be a hole in the ground there.. but despite our poltician's incompetence I will still take the other side of that bet.
Lastly: comments re maintenance are incorrect. Building just got J-51 tax abatement (15 yrs, not 10 like a 421) so monthly costs have gone DOWN sbstantially, not up. The developer got 2 yr extension on loan and is not a distressed seller.

A delusional buyer trying to make himself feel better because he overpaid by 40%.

THIS IS NOT BROOKLYN HEIGHTS. You need to cross the highway to get there.

Enjoy the asthma you'll get from the BQE in a few years.

we looked at the building. didn't mind the bqe much, but the really long hike to the subway was a deal breaker.

spieler-the common charges on many of the units has bave been increased by about 100/month. I'm not speaking of the RETax, I'm talking about the CC. My broker confirmed this.

> nyc10022 I hate to break it to you but 95th and york does not even exist! New to the city are we?

Uh, sam, I didn't say that... its from what I quoted that I said was funny!

> THIS IS NOT BROOKLYN HEIGHTS. You need to cross the highway to get there.

Basically agreed... it might technically hit the designation, but this is much more columbia heights to me than anything. Its a street cross from it (as oppposed to a highway underpass from BH).

lol

villager, your broker is wrong. I've lived there 1 yr, so I should know

Actually, my broker is correct. I found some old floor plans from when I visited the bldg a year ago with prices ,CC and RET noted. Those same unsold units have had CC increases of approx 100/month give or take a little depending upon size of the unit. He (my broker) confirmed these increases as of June of this year.

Units that are sold have had no such increases. The unsold ones, possibly. The tax abatement more than compensates for those anyway.

spieler do you like living there?

In this development.

You can buy a 3.5 room 1 bed with study for $488,000 at 1003 ft2 at 486 $/sq.ft with c/c $927 and RE $259 down from $845,000 peak.

or a 2 room studio for $325,000 at 589 sq.ft 551 $/sq.ft c/c $530 RE $148 down from $500,000 peak.

Does anyone think these represent good value as an investment.
What rents do you think are achievable.

Cheers

forget buying for rental investment now. the developer cannot even rent out the majority of the units they have available for rent +/or rent-to-buy.

yeah I agree with villager forget about trying to buy and rent it out. The Brooklyn rental market is being flooded with supply. Is the entire building finished?

Building is 100% finished, including all the common areas. We love living there. No bad surprises so far. I lived in a "prestigious" manhattan neighborhodd for yrs and this experience is far superior. The 10mn walk to the subway is a minor concession in our view for the experience/ views of living there as well as the potential of the park. I understand for some proximity to transportation / convenience is paramount, then this is not the building for you. But you aint gonna have these views on Livingston street. It's what makes a market I guess. Good luck.

thanks spieler I may try renting in the building to see if I like it before buying

> I lived in a "prestigious" manhattan neighborhodd for yrs and this experience is far superior.

Yes, who needs stores, unbroken sidewalks, and civilization!

Any new news or thoughts since the prices were slashed a few weeks ago? I have heard deals are being done and I am close myself. A apt that was once (overpriced) at 1.050 and now is $660k.

The word is that the bank has taken over and now has to approve all pricing. I was told this by one of the realtors showing the units. True?

Yes, I think that is true, though I am sure what the implications are. I offered $650 on an apartment which was once overpriced at 1.050. It took a few days for the broker to go to the bank and get approval and ultimately they would not allow developer to sell for less than $660 which is what I have a contract for.

Good luck Jocuru. I am about ready to make an offer myself. Interested to know if the $1050 had ever been reduced of if that was the original 2007 price. Sounds like you did well for yourself.

"We have a higher all cash offer"

"The bank won't let us take a bid below xxx"

Why do I think both of the above are different versions of the same broker technique (ie lying to buyers) to get a higher price.

yeah I am sure the banks are turning down buyers over 10 thousand bucks.

pinkpather- mine was the original offering prie of the 1.050. Love to hear more about your plans. I am to sign contract today.

I agree that the the broker is using the "bank won't approve" scam. The story changes by the week and am looking to make an informed decision. I am seeing some closing activity on the MLS which might be a good sign the price reductions have generated some interest.

"yeah I am sure the banks are turning down buyers over 10 thousand bucks."

If it means it'll result in a short sale, that's correct.

"If it means it'll result in a short sale, that's correct."

Incorrect. There is no mortgage on a never sold unit and therefore no chance of a short sale.

It is a new way for a broker to lie to you to get you to pay more.

Agree with Modern, there is no short sell here. I don't even know why the banks have a say as the developer claims that there is a 2 year loan extension and he is not in foreclosure. Perhaps the extension included some loan covenants. In reality all the bank wants is its money back.... they are not in the business of owning real estate.

the bank has no say in the pricing at one brooklyn they got a 2 year extension on the loan. I think you have been had

I was fed the same story: "The bank doesn't approve this price, so the contract can't be signed".

Then why did the developer offer that price in the first place? Bait-n-switch, or just ignorant?

"forget buying for rental investment now. the developer cannot even rent out the majority of the units they have available for rent +/or rent-to-buy."

The old real estate adage still applies: What's the fastest way to sell a home? Drop the price."

The developer "can" rent out the entire building if he wanted, if only he priced the units accordingly.

Went to look at some units recently, and found myself frustrated with the new selling agents. Seems that after the recent reductions, the developer now thinks prices should be raised on certain lines (no surprise -- the ones we were most interested in). Anyone else have a similar experience? Given this little bait-and-switch, we're likely to continue to take a wait-and-see approach.

Of course banks can and do have a say in the sales price. Construction loans typically include "reserve prices" for each unit, below which they cannot be sold without the bank's explicit approval. It's not exactly a short sale, but it's functionally the same. The broker may have been feeding you a yarn, but it's not implausible.

dumbomom- Weird. I just signed a contract- Asking price was $675k and I negotiated $660k (and my closing costs and common charges) I know that 27 units are in contract since the price slashes of 4 weeks ago so they may be getting cocky. But I am baffled- Are you offering less than asking and they are refusing or are they raising the prices from what they advertised on their site? When I was going thru this they seemed to basically stick to the new asking.

jocoru, how many months of common charges did they agree to pay?

i know people who bought there and they have not paid any CC to date

I feel sorry for the folks who bought before the crash.

villager, now that's interesting. Was that a concession to existing tenants in connection with the price drops or was that negotiated as part of recent transactions? Did the people you know negotiate that no CCs would be paid until the building reached a certain % occupancy or X numbers of months after closing? Any information you can provide would be very helpful as I am close to making an offer. Thanks.

I have friends who bought pre-construction so not a recent negotiation tactic. I will see if I can get in touch with them for details. It's probably a % sold thing, as you speculated.

Aloso have friends who bought more recently and they are not paying them either.

thanks villager. If you can share any additional info after speaking with your friends it would be much appreciated.

gatornyc, I got 6 months and then the transfer taxes paid. I could have done a year's common charges but the transfer taxes were better for me. I have heard that most people have not yet paid any common charges and developer is just paying them because it's easier and more enticing to potential buyers. Odd, though.....

thanks jocoru. Mind if I ask what apt line you are in contract for?

sure. Apt 525 (1206 sf, courtyard view, 1 br, plus den, 2br)- What are you looking at? Hope to meet you when we both move in!

Looking at two different 2bed, 2 baths both about 1430 sf. One has bridge/brooklyn/harbor view and the other is on the Brooklyn/BQE side. About $200,000 difference for almost identical square footage and the BQE side apt's floor plan works a little better for us so that's where we're leaning. The harbor/bridge view is tempting, but the view over Brooklyn is quite nice also.