One Rector Park

Nothing, it's a great development, particularly when you compare it (price-wise) with other BPC new construction such as The Riverhouse and The Verdesian. That %sold hurdle is quite a big one though - if we were writing your list above, bullet 1) would be in huge flashing lights. We're not really convinced that the pricing (although low, yes) is low enough to overcome the large number of units (we think around 70) that need to sell before anyone can move in here. And that's if you can get a mortgage...at an acceptable rate.

Here's a link to our write-up:

http://downtowny.blogspot.com/2009/04/cilf-of-week-333-rector-place-one.html

-DT

Don't forget about bpc land lease....there are extra fees involved..very high monthlies to cover "renting the land' be carefull consult a lawyer ...

I know, that bldg has been empty for the longest time, and I am wondering this myself... I know you don't want to hear some of these things, but here is my list of "WHY NOTs."

1. land lease = high current and future taxes.
2. land lease = unpredictabile.
3. land lease = affects the resale potential.
4. low % sold/occupied.
5. The South-facing units look into another development.
6. I, too, like BPC, but the lack of transportation (must walk from Wall Street/2,3,4,5--or WTC station on E) is a problem at night--and this is certainly a factor, I am sure.

I'd beg to differ. Having a few properties for resale/rent on South End and Rector, and what is available on the new development side of the spectrum, One Rector went 10% in contract since January when they officially opened for business -- I have a mortgage broker for my clients who works wonders. Their price points are competitive, and yes, down in BPC you have the PILOT charges -- you pick your battles.

nycresidences, with what are you disagreeing?

Do you mean to say it's not a land lease, or are you saying that land-lease buildings are just as desirable as onw-land buildings in terms of resale? Or, maybe you mean 10% sold (or whatever the actual number might be) is not a concern in this economic climate? Or, maybe there is a transportation option I am not aware of? I am curious.

is the land lease at this dev any different (i.e. worse) than all the other BPC developments? To me it seems similar.

No, as far as we understand, the land lease is the same. The carrying costs at one rector actually seem a little lower than some of the older buildings that we've seen in BPC - one rector seems to run at a little less than $2/sq ft total (CC + tax) and many buildings in the same area are well over $2.

http://downtowny.blogspot.com/2009/04/cilf-of-week-333-rector-place-one.html

-DT

Just in case anyone is interested and is as anal as me, there are in fact 3 different charges that bpc buildings have to pay:

1. A fee to pay for the park upkeep, park staff, garbage disposal, staff etc.
2. PILOT (payments in lieu of taxes) because this is city land but is controlled by the BPCA which is a state controlled entity. So the city is payed the equivalent of RE taxes from the PILOT.
3. Ground rent - which is what most people are referring to when they talk about land leases. Ground rents for some of the earliest condos were up for renewal recently and the proposed hikes were massive. I think the BPCA agreed to phase the increase in over a number of years to lessen the immediate impact.

All 3 of the above have typically been included in the common charges of BPC condos but it looks like they are separating the PILOT out for one rector place for clarity.

divvie - great info! I think I recall One Rector Park telling us that they were able to negotiate a pretty decent ground rent.

http://downtowny.blogspot.com

I too looked at this building and it looks pretty nice. I just think they need to come down in price before I bite. ~850psf for inward facing units, and ~950psf for outward facing units. That seems cheap compared to recent history, but we all know we are in a different market now. It's hard to figure out what the right price should be. I wonder if they'll eventually have to cut prices to get to their 50% hurdle. When did they begin conversion? Financing for these types of projects usually mature in 5 years after all their extension options are exercised...

thanks for the info, very helpful as expected. I think Im going to pull the trigger on this one assuming I get a decent price. Wish me luck !

Cool desflurane - let us know how things go! How worried are you about the whole 50% sold thing for such a large building? Will the building return your deposit if they don't hit 50% sold by a certain date?

-DT

http://downtowny.blogspot.com

Desflurane, can you report back with your experience?

But, still, the monthlies will be WAAAAAY too high to justify buying, in my opinion. I saw it earlier this week and the finishes are nice but adequate at best, and I can think of several downtown new constructions/conversions that offer comparable luxury/amenities at much lower monthly carrying costs (i.e., the unit prices may seem higher but the monthlies are significantly, SIGNIFICANTLY lower). Plus, they haven't really sold a substantial number of units, which is a problem in this climate.

Finally, I thought they were about to reneg/renew the land lease terms in BPC soon...which could make the monthlies even steeper...

BPC is lovely, and this bldg. is nice. But I don't like this much uncertainly happening at the same time when purchasing.

nyc212-which ones are you referring to?

Before buying in BPC (or anywhere else for that matter), get a copy of the FINANCIALS of the building. Without that, you are just at the mercy of the sellers!! Everything is in print...including future increases in common charges/negotiated landlease with Battery Park City Authority.
The lowest common charges/landlease building in BPC is Liberty House, that's a fact.

do your homework on the developer

Haven't pulled the trigger just yet. Still debating...any more opinions about the monthlies? I realize they are pretty high, maybe too high for my tastes. The unit I am looking at is, as downtownster said, <$2/sq ft. Still pretty painful when you look at it (~$2500/mo!!). Really on the fence about this aspect. I'm happy with the price and the terms we negotiated but I am stuck at this.
I'm sure there will be plenty of opinions to the negative. I am looking for reasons (if any) why these monthlies make sense. One I can think of is that they are priced into the unit...$850/sq ft is still hard to beat anywhere below 96th st.

Desflurane, the CC/Tax is still running a little high compared to to the Milford run buildings in BPC, partially due to the size of 333 Rector. It is comparable Riverhouse/Visionaire/Millenium when you strip out the buydown program. I would really get some detail on the charges as the estimates could turn out to be false. When will there land lease be up for renewal, 2011 like most buildings? Will it jump like the others? Milford buildings will rise an average of $300 per month depending on the size of the unit. Take a look at 225 Rector, besides its many problems, a recent broadsheet article pointed out that they estimated the charges for the building to be 30% too low regardless of the current receivorship situation. I would ask myself, what if this building is 50% sold 12 months from today, will there be an extra burden on the current residents for maintenance--it happened in the 90s to some of the BPC buidlings like the Regatta and Cove Club; now sellers are offering to pay about half of the common charges for 2 yrs, they are about double a Mildford bldg. 333 is saying their prices will go up by the fall as they sell units, but do you really think prices should revert to the upside, if you are undecided, why not wait, you can get a 6 month or 1 yr lease downtown as a test. Check prices in the area back in 2005/2006, $850 is the lowest in BPC for a condo conversion, but who says the other bldgs shouldn't be there as well. Look at the listings at 30 West St, prices at 777sq feet on a 875 sq foot park view unit, but the carrying costs are about $1700 and will balloon after the buydown in 2011. I tried to calculate prices that made me indifferent to higher carrying costs, but with a 4.5% mortgage or actually no mortgage in the current market, it doesn't make sense to pay more on a monthly basis in cash, always better to stuff it into a mortgage long term, case in point, look at all of the buildings listed in BPC besides 200, 380 and 377.

thanks Logic, extremely helpful.

I should note that 200, 380 and 377 don't have free pools, storage or gyms, so that does factor in slightly depending on how you view those amenities, oh and when I said case in point, I was trying to highlight the price/sq ft they are getting given the higher carrying costs, they probably paid less, but they def. are not getting the upside either at 600+ or 700+ per foot and they def. sit longer on the market, but as others will say, each bldg is different as well as each apartment, view, amenities, etc..

One more thing some of the other posters left as a potential negative, read up on the contribution that Cooper Square Realty made to 225 Rector on Curbed, I have heard they do a good job managing other bldgs, but it appears they screwed up in that case, funneling tax payments into the general fund, which were squandered and they are seeking further payments from the owners; if true, def. a warning of management

I've heard nightmares from Cooper Square Realty/Management. I know 3 developments that they have taken over in the past 3 years and created royal messes. They are being thrown out of the 2 condo developments already and legal action will most likely start against them for multiple mismanagement mistakes that cost the buildings hundreds of thousands. The other development is a coop and they have enriched the board to such degree, that the board is doing everything in their power to keep them around for a little long, at least until the next elections.

desflurane - how much do you want to live in BPC? Basically, all of the buildings in that area are going to have phenomenally high carrying costs - some are better than others (One Rector tells us that they negotiated a low ground rent for example) but most are going to be in the neighborhood of $2/sq ft which only makes sense to pay if you REALLY love Battery Park. There are also all of these ongoing land lease negotiations that pose further issues:

http://downtowny.blogspot.com/2009/04/battery-park-landlease-snafus.html

In most of the buildings that are being mentioned here (e.g. the Milstein buildings, 21 South End Ave etc.) you can actually rent a 1BR for around the $2500 carrying costs that you are thinking about paying at One Rector. I'm not sure it necessarily makes sense to throw an entire 1BR of rent (in the same neighborhood, maybe even in the same building that you are living in) down the toilet every month. We like BPC though too...so always a tough trade-off there while prices remain (waaay) too high.

http://downtowny.blogspot.com

Love BPC. It's totally beautiful and many of the developments are amazing--but the only way I'd considered living there would be rentals.

Owning in such an uncertain location may not make financial sense to me. Others, of course, may be okay w/ such ambiguous situations, but I am not...which probably exlains the lower property values there. Land lease is usually a bad idea, although the arrangement they have is probably better than other land-lease arrangements (because it's not a for-profit entity they are dealing w/ and they do have obligations to the public).

Contrary to what they told you, the sales office has been open and showing units since September of last year. I know this because I was corresponding with the sales agents there and saw an apartment back in October 08. They're telling everyone now that they opened a couple of months ago but in reality, that's when they dropped their prices after not even getting so much as a sniff at the $1000-1100 price per sq. foot they originally wanted. As for them being 10% sold, my understanding is that it's closer to 8%. To put things further into perspective, they've been telling prospective buyers that they've been 10% sold since the beginning of the year which means that units arent exactly flying off the shelves. Their traffic is up a bit but people still arent pulling the trigger further illustrating the point that their prices, while lower, are still not in line with the market. Considering they dropped their prices by 20%, their a 10-15% adjustment away from moving their units. They just havent come to grips with it yet.

cap1277 is dead on, I visited in fall '08 as well and again later on. Also, how many units would they need to sell before they receive a temp. C.O. to close, assuming you arr paying all cash given current mortgage rules; why put down 10% if you have to wait another 6 months or longer, desflurane did they give you any assurance that you could easily get a deposit back if closing goes beyond a certain period.

a) One "dirty little secret" of BPC is that all the ground leases are not the same. They were to some extent individually negotiated with the developers of the individual parcels. For example, someone mentioned the lower charges of the Milford properties: you want to know the real reason why? Milford knew that they intended to hold onto a significant number of units ON PURPOSE to rent out. So they negotiated a ground lease which led to long term lower ground rent. Other developers who intended to sell all the units and be out of the projects front loaded the leases with initial lower rents in return for larger increases, because they wouldn't be holding units when those larger increases kicked in.

b) "All 3 of the above have typically been included in the common charges of BPC condos but it looks like they are separating the PILOT out for one rector place for clarity."

Second dirty little secret: the buildings take full responsibility for collecting PILOT and turning it over to the city. This is very different than the usual case where the city collects RE Taxes directly from the unit owner (or from their lender, who usually collects the RE Tax and pays it because RE Tax comes in front of their "first" lien and if someone doesn't pay their RE Taxes the lender can get screwed). Anyway, if an owner defaults on their common charge and PILOT payments, the condominium MUST report this formally to the BPC authority "on the record". If they don't and the unit gets foreclosed on, the Condo remains on the hook for the PILOT payment which SHOULD have been made by the unit owner. I don't know what's happening NOW, but I know historically the managing agents of BPC buildings failed to do the proper reporting and got nailed for fairly high $ amounts as a result. The only reason I know this is when I bought a unit at 21 South End ( The Regatta ) and had the Condo kicking and screaming about trying to have us pay the PILOT because THEY had carried it, but since it was part of the COMMON CHARGES, and COMMON CHARGES get wipes out in a first mortgage foreclosure, the Condo was on the hook.

This is a TOTAL guess, but perhaps One Rector has figured out a way (or negotiated it into their ground lease?) to circumvent this situation by breaking the PILOT out and not having it be part of the Common Charges.

Pilot, cc and ground rent are provided seperately for each unit.

What if I was ok with price, not happy but accept the cc, taxes as cost of bpc living plus decent amenities AND they were willing to return deposit if 50% are not sold in a specified amount of time. Then what would y'all think?

That sounds pretty fair to me.

Did you get details about their particular ground lease? Does it step up after a short amount of time?
The other thing I was worry about when I went to look at the building was some of the amenities seemed wasteful. Like the personal trainer coming in for select hours to work at the gym, and the bartender at the common lounge. I was afraid that stuff like that would just get more and more expensive later on.

But if you are happy with the price you negotiated, and feel that the price takes most of your concerns into account, and you like the unit and building, I think you can go for it knowing that your deposit is refundable. Not like it would be earning a lot of interest in the bank otherwise... How long are you giving them to reach 50%?

Ran the numbers with a few friends "in the business". They were sufficiently impressed to go see it in person and are now seriously considering it for themselves. The ground lease does step up but insignificantly. I'm happy with contingencies for getting deposit back. The monthlies are steep but just slightly more than moving to NJ (the only other option for me in getting an apt this size at this price). The price is right and I prefer to wait before I move since I have to sell to buy. The truth is nobody knows what is going to happen to the market but right here right now the unit is much more apartment than I ever expected to own in Manhattan. They sold a few units I was interested in while I was debating so I thought best to move now. With the economy finding its legs and Manhattan still the center of the world (even without wall street) I'm happy with my purchase. Thanks for all the input peoples!

Desflurane......you HAVE TO READ IN DETAIL the OFFERING PLAN for any building in BPC, including this one. They can tell you whatever they want...until you actually see it for yourself (or have an attorney read it) you don't know anything about the landlease and future monthly increases (which could be high).
I will give you an example, I live in the Millennium (30 West St, next to the Ritz Carlton Hotel) a few streets south from where you are looking. There was an empty lot behind my building and the city zoned it for a women's museum or school. It is all clearly spelled out in the Offering Plan for my building including the height that it could potentially go to. Many people bought west facing view apts for very high prices (either never having read the Offering Plan or totally ignoring it - as one person had said to me "the city takes forever to make decisions"). Well....surprise....the city is now in the process of building a very large (the first GREEN school in NYC) elementary/intermediate school!!! It has totally REMOVED the western water views of so many apts that it makes me sad when I see it!! I'm sure it came as a shock to some owners....therefore, make sure you see a copy of the OFFERING PLAN for any building you are buying into. Good luck!! By the way, BPC is a fabulous place to live....

prada, thanks. I spent an afternoon looking at the textbook-size offering plan as did my lawyer and while there were some issues, they were ones we could live with. The ground rent issue was there..it will go up inevitably and the rate of increase is not extraordinary. I saw a few units in your building esp one 2bdr with the view of the school you are speaking of...tragic. I'm glad you enjoy BPC as much as I hope to.

Heard a sign is posted to inquire about rentals in the building. This is sooner than I expected.

Desflurane....if you don't buy at 333 Rector Place, I have an apt I am planning on selling right next door at 377 Rector Place. This is a Liberty building with the lowest common charges in BPC, no surprises here. The apt.is 814sf, 19 floor...2 bedrooms, one bath with east, west and south views (harbor and Statue of Liberty). Custom kitchen with subzero, Bosch dishwasher, granite counters and floor, custom white european cabinets. I can give you more details if you are interested.

My bad on the rent sign, that was 225 Rector, I went off a friend, but they were mistaken

Prada, I would be interested in your unit. Email me details at jman1124 @ yahoo . com.

I just got a note from them, saying "Special pricing if you are pre-qualified for mortgage and you come w/ an agent." Why the heck would they specifically ask for agent involvement? Networking efforts?

Good question - can you send the note to us? downtownyblog@gmail.com

http://downtowny.blogspot.com

Sounds like the full page ad they have in this weeks NY Mag. Not sure what the incentive is but it states "broker preferred. Just curious anyone else considering this building. Seems like prices are coming down another notch.

Im in. Love the bldg, love the location, love the price, monthlies acceptable hope they can sell 50%.

Cool, congrats. I'm still thinking about it, but it is a nice building. What % off ask were you able to negotiate if you don't me asking. Email me at jman1124 @ yahoo . com if you don't mind.

awesome desflurane - what did you determine to be the % in contract over there? We'd heard around 8-10% - is that still accurate? Were you able to get a contingency to return your deposit within a certain time should the 50% threshold not be met? Also, is it still 50%? Are you impacted at all by the new 70% guidelines?

-DT

http://downtowny.blogspot.com

desflurane - congrats! i am also looking at the building. would you mind sharing the terms with me. you can email me at fashionnista@aim.com. after reading this discussion, i'm a bit reluctant. i;d be happy to hear some sound advise who just went through the process. looking to hear from you.

Downtownster--sorry for the delayed response. Didn't see this thread until it came back up... Anyhow, I'll look and forward, but I am not really sure where it is...

Yes, I think most of us really LOVE the bldg (albeit they have too many units for my taste), the surrounding areas, and the park setting--w/ the exception of the carrying costs (incl, the land-lease terms).

I just went to see some units there, and I noticed a few things (the last time I saw it, I wasn't really paying much attention). First, although the bldg. is new, the exterior and some common areas somehow look deteriorated... In particular, the beige finish along the base of the bldg. is showing some premature aging.

Also, the units I saw had low ceilings, and they were somewhat cookie cutter-ish/less than interesting. I am not sure if this problem was unique to the units/floors I saw, but it would be a pity if the developer opted for low ceilings for the entire bldg.

Finishwise, this bldg. reminded me a lot of 20 Pine in style and quality. It's nice, but I am not sure if their dark kitchen cabinets might be going against the recent stylistic trend to go lighter and inconspicuous. Of course it is up to individual taste, but the dark-finish kitchen was more popular 3 to 5 years ago, I feel. Also, the marble bath looked a bit dated to me--somewhat like a Vegas hotel room.

Oh, also, the units I saw had combined monthlies in the $2,300 to $2,500 range... I understand about the taxes, but I feel that the cc is too high given the large number of units (and the bldg. comes w/ some of the "useless" amenities discussed in another thread--such as the library, screening room/bar, business center, concierge/persnal assistant, movie rental, etc.--yet their gym is VERY basic...a bit disappointing).

It is certainly a nice bldg., but it isn't a compelling choice in my opinion.

nyc212 - no probs. Agree with you on the amenities. That bar is even supposed to have a bartender Wed-Sat, which is completely insane. Did they tell you what the "special pricing" was?

-DT

http://downtowny.blogspot.com

I called the sales office and they said that the "special pricing" was a rumor; the result of a misunderstanding from an ad they placed recently. They said that their prices are already reduced, and they expect to raise prices once they are over 50% sold. BTW, they said the 50% hurdle is imposed by the lenders, and varies depending on the lender. They said it's 50% for BofA or Wells, but 70% with Chase.

The explanation I got when I visited was that they were encouraging the visitor to bring agents, so as to spread the word. She said she was certain that agents would be impressed with the bldg. once they visit, and they were giving the buyers a token of their appreciation through discounted pricing for the outreach effort. Of course, I was told I would be given the same discount if I were to make an offer.

Unlike most new developments, I wasn't given/shown the price list. They'd ask you what you are interested in (size, price, and particulars like floor preferences, outdoor space, etc.), then they'd sneak a peek at their portfolio and direct us. So I don't really know how much the units were supposed to be "retail," since I only heard the discounted pricing.

I've done extensive analyses on buying apts in BPC since my family is considering moving there. I've visited the building and would consider buying if prices come down dramatically.
Pros:
1 - Gut renovated, you are using everything for the first time
2 - Larger than normal one bedrooms
3 - Most units have large balconies

Cons:
1 - Uncertainty of closing leading to timing of mortgage being uncertain. Mortgage rates should go up next year (they already went up since 2 months ago by about 1%).
2 - Price per square foot about 10-15% too high even after factoring the renovations.
3 - Bad views the side of the building facing into another building. Most other apts in BPC have breath taking views.
4 - Side with better (not breath taking) view, very overpriced
5 - Tiny gym for amount of units in building
6 - All the ground lease issues mentioned above

These apartments are quite nice and the location is excellent (but given lack of views, not ideal). I agree with all the posts above, however, that the pricing just still isn't appropriate in this market. We are in the middle of the worst recession in 75 years and with rising unemployment, very few people will agree to take on monthly charges in excess of $4500 for some of the larger apartments. Additionally, there is signficant risk of very high mortgage rates by the time this building actually closes - which I'm told will be well into 2010. Waiting to see where prices go on this building - hopefully the developer realizes soon where the market really is.

You could wait and see like many people on this board but I pulled the trigger for the reasons above. There is definitely a correction in place market-wide but if you look at the comps in the area I think you'll find that these units are reasonable. The supply/demand forces are still at play here: the last plot of develop-able land in BPC is going rental (limited supply) and bonuses this year are expected to be way larger than last (demand). Simplistic, I agree, but for my time horizon I find it hard to believe I'll lose on the deal. It's a great building, steps from the water, nice finishes, close to new school, WTC etc. etc.. My first choice went quick and the choice units have been moving since. Speculation on mortgage rates is useless, they actually went down recently. Unemployment is getting worse nationwide but its wall street that drives this market.

i still believe desflurane pulled the trigger a little bit early. i put in a bid 2 months ago at about 30% below asking and the brokers blew me off and didn't even counter. they recently gave me a counter offer going down a mere 5% probably hoping we can meet somewhere in the middle at around 15%. come close to the latter part of the year when they're still not selling units i think they can easily be had for 20% and lower. better yet come early next year and wall st bonuses kick in and only 30% of the people are getting $500k bonuses or higher compared to last yr (albeit higher in $) they may have to come down 35%. i think patience in this economy will make you money...

btw - i dont know where you got your info but bonuses are NOT going to be higher than last yr for 95% of wall sters. the 5% who will make more will be making $3mil+ bonuses so those people arent interested in bpc condos. the majority who made $500k-$3 last year and getting less than half and ALL are still afraid of layoffs so relying on wall st $ to jump start the bpc condo market is way off...

Sometimes I think the bears on this board need relax a little. I think prices are still a little high too, but there's no need to criticize someone's decision or make him/her feel bad about his purchase. If you like the place, can afford it and are living in it, then go for it. I'm hoping to buy sometime this year or next, and I'd hate to make the biggest purchase of my life, only to have everyone tell me how much I overpaid.

Feel free to state your case if you're bearish (as I am), but no need to say "so and so" jumped the gun and got ripped off. Sheesh.

@desflurane: Congrats on your purchase. I like the building. What was your bidding experience like? Were they open to negotiating?

halo212....some very rich people live in BPC...most of them in penthouse apts!

thanks apt_hunter for defending the purchase but I feel quite good about the transaction regardless. The bidding went ok, I would have preferred a larger concession on price (duh) but am satisfied with the overall deal. They are open within reason. 35% on top of the 20% they already cut to be in line with market is just silly...that's outerborough pricing, but good luck with that halo.

Regarding bonuses, even if the mathematically odd numbers halo threw out were true it would translate into increased demand in Manhattan real estate yoy which is a good thing for the market overall. One of the articles I cited:

http://online.wsj.com/article/SB124649352055183157.html

desflurane - i hope this question does not offend you in any way as it is not my intention but may i ask why you would be the first 5-10% to buy into a new development when the market is on its way down or at least not coming back up for a while? my thinking to hold back a while was to 1) hope the price comes down another 20% or so 2) see if there is any hope i will be able to close within 12 months when it becomes 50% sold. i did not want to put the 10% down and basically either 1) wait while they did not come down in price and apts werent moving or 2) see the pats selling at a higher discount than i had received.

Most buyers of BPC were foreigners. Foreigners were part of the reason why the real estate market rocketed the past few years. They're not in play right now.

As for wall street bonuses, true, the few that are getting it will be getting good nubmers but think about how few are actually getting it.

Mortgage rates did go down in the last month but they will go up in 2010. No doubt.

There are very rich people living in the penthouses, but you cant count of penthouses bringing you to the 50% mark.

Maybe all of us who would be interested in purchasing a unit if prices came down should get together and propose something to the developers. Its in our interest to get to the 50% mark if we buy.

now that's an idea! i think we should definitely pool our sources and get this going.

ellesa....
I've lived in BPC for 16 yrs as an owner and all the people I know that own are Americans. The foreigners rented.
That said, it seems the foreigners are buying now...a record price set in my building recently $3,400,000 CASH purchase from a Russian!
Are you kidding 50% downfall....that didn't even happen after 9/11 to this area!!

"Are you kidding 50% downfall....that didn't even happen after 9/11 to this area!!"

actually, a 50% downfall overall doesn't seem too unreasonable. it seems 1 rector park already slashed 20% before these new list prices and are now offering 5-10% on top of that. now approaching the slow season and them being NOWHERE close to the 50% sold mark they'll come down further. and some even say we're only half way there to the bottom of RE market so a 50% from peak downfall is not just possible it's pretty darn probable in my opinion...

comps at the Millenium towr

14B
03/02/2007
Previous Sale recorded for $(insiders only)
02/12/2009
Listed in StreetEasy by Herald Group at $1,635,000.
02/26/2009
Price decreased by 9% to $1,489,000.
03/24/2009
Price decreased by 9% to $1,349,000.

3E
05/07/2007
Previous Sale recorded for $(insiders only)
01/29/2009
Listed in StreetEasy by Stribling at $1,990,000.
03/20/2009
Price decreased by 10% to $1,790,000.
05/12/2009
Price decreased by 5% to $1,695,000.
07/07/2009
Price decreased by 4% to $1,635,000.

@ellesa & @fashionista: That sounds like a good idea! I'd be up for that.

apt_hunter, fashionista, lets do it! I know 2 other people who would be interested in the building if prices went down at a minimum of 20%. Doesnt hurt to try.

Anyone else interested???

halo212 I agree we are not near bottom. I've been looking at a few other apts that are decently priced with amazing views. They're still sitting around, not flying off the shelf.

count me in too. if i can get 25% off list i'm def IN! hoonik@gmail.com

thanks halo212
apt_hunter and fashionista, would you also provide your email addresses so we can start discussing our game plan. My email is ellesa127@gmail.com.

I'm in too!

I've been to see this building a few times in the last two months. The units are impressive for the money but I've also been put off by the 50% sold problem. I am close to moving on one particular unit and I'd be in for whatever collective bargaining we can get. Two birds here, closer to 50% and price reduction...can't go wrong!

email me at: sales@6dollarmillionz.com

i am in the process of a purchase there and they were amenable to a 90 day out clause as well as outside closing dates should the 50% not be met, so the deposit is not in danger. the 50% hurdle was my only hang up, and they really are amenible to making you comfortable. If that is your only issue, i would say talk to them about it...

here is mine design@m2fco.com.

jman1124@yahoo.com

LoveBPC, would you provide your email address?

I would be interested as well. I've been looking at this building for awhile and could pull the trigger if the price is right. Could I be looped in? nf8370@hotmail.com.

apt_hunter, fashionista, ellesa,

Am I too late to join the pool? Any update?

Hi Mook,
Would you give me ur email address and I'll add you to the email group. Thanks!

test

Content with the current terms of sale and have decided not to wait for the group to organize and am going it alone. Let us know how it goes though.

dr doom, if you don't mind our asking, what % off asking did you receive? thank you

Hello everyone! I just listed my one bedroom apartment at the Cove Club in BPC. My price is very competitive and I am willing to negotiate. If interested please email me at Risktaker476@aol.com. I would be happy to provide additional info!

Thanks!

- Eric

Any updates on the building? Still 10% sold? Any price reductions? Any info appreciated.

Any of you BPC experts have a guestimate on how much a 2br would rent for....if this building ends up going % rental?

I am also interested in this building. I went to an open house a few months ago and was interested, except the tax estimates. I scrolled through this thread quickly so bear with me if there are repeat questions.

-Any idea how many units are in contract?
-Those of you that bought here, what were your motivating factors?
-Any concerns with the foreclosed property across the street?
-Any luck with the group negotiation? Too late to get in?
-Have prices dropped?

Thinking about making an offer and any information would be helpful. Thanks.

I noticed the bldg has gone dark the last few weeks with mail stuffed under the door. I also didn't see the advertising billboard out front and they seemed to have pulled many of their ads offline. Any updates?

They are putting sales on hold temporarily and dropping prices.

http://curbed.com/archives/2009/09/18/new_battery_park_city_condo_conversion_takes_a_time_out.php

Any word on how much the prices are dropping?

grecian, I walked by the bldg. often, and it seems completely dead--no one appears to have been there in a long while. I don't think sales is happening, which means that no one can really answer your question...

We're one of the dozen that have bought and are anxiously awaiting for them to get to the 50% threshold. This is great news they're reducing prices so maybe things will speed up.

Won't know for a couple weeks how low they're going. Check out this article:

http://campaign.constantcontact.com/render?v=001idSyURbXubfAJpdovCGhpmbkSIzxGWd_oG0DiAFvcDb-TSnvUuMuqF-JoqoLHtMveLkjLeDY1W49KtSu0-GcgAnmVCuQ8QyWnk_SgWu4hlE%3D

would consider it if, despite the high maitenance/taxes, they cut the current price to half.

You will have alot of problems waiting for them to get to the 50% threshold....banks will not give mortgages unless 50% SOLD.
You need ALL CASH buyers to get you there. They may eventually go rental and I hope the people that bought get their deposits back.

They don't need 50% SOLD, they need 50% committed buyers, which can be buyers that are financing. Cash buyers just get to move in sooner.

The committed buyers have to have mortgages....banks are not providing mortgages for these properties....big problems. The developer would have to own a bank to help this situation.
I certainly wish you well.

Well we DID get a mortgage through Wells, one of their preferred lenders. There's no issue getting a mortgage, just waiting to close till they get to 50%. We have a clause that we can get our deposit back if they don't get to 50% within 1 year of our commitment contact. We really like this builiding & location so hope it doesn't come to that.

Prada-not sure what your angle is here but you don't seem to have all the facts. Cocinera is correct in that 50% of the units have to be "in contract" in order for most banks to be willing to lend. We want this anyway because it's not good to live in an empty building. Cash buyers can move in after they get a Cert of occupancy which I believe is 15% sold.
Their preferred lenders are issuing commitments if you qualify financially. So at least you have that.
So like Cocinera said if you signed a contract had a clause included about getting a mortgage and or to 50% sold you would be protected.

Still waiting for revised pricing. Any news on this?

I saw a long-time real estate broker in BPC yesterday and he just shook his head when I asked about this property. I also live in the area and will post anything new that I hear regarding this building.

I don't have any "angle", just sad to see in BPC. We already have a disaster up the street at 225 Rector Place.

This one is finished. Who closes a sales office for more than a month to re-price? The develpor is simply negotiating out of personal guarantees. It will be seized by the bank and converted to a rental within six months.

Really? Is this conjecture or based on fact?

Walked by today...everything is closed down.
I asked next door at 377 Rector Place if they knew anything and all they said was that delivery men stop once in a while at their desk with deliveries and they just tell them they can't accept anything for that building.
Real shame.....

Look at the purcahse price combined with costs of renovation and interest carrying costs for the last two years and next two years, they have to sell at $925-$950 per square foot to break even. They can't move these units at $1000. The sales office has been closed for more than a month - do the math.

Ok another bad sign...phone calls not being returned and emails bouncing back. My guess is that prada and bpcliving were right after all. Timing is everything I guess. Anybody who is in contract have any news to share? Are deposits being returned?

No news here. Same as you grecian. No response from sales office probably because they are still closed. A bit disconcerting all the chatter about the building going rental. It's too bad if that's the case as it is a nice building. My guess is they won't hit the deadline for all of us who have outside closing dates. They'd have to drop prices considerably to hit the 50% mark by summer 2010. Any news from others who are in contract would be appreciated.

Don't you see a trend here?

By the way not retruning phone calls and not communicating with those that have put down deposits, is a very, very bad sign, not to mention bad business behavior.