Warehouse 11 and implications for pricing in Wburg

I wonder if any of the reported bidders fell for the "special incentives" for buying "all-cash". Or if people really believe they have to sign within a week because they think they'll miss out on sponsor paying transfer taxes. Bullshit baffles brains...

next marketing tactic on deck is....show a lot of units "in contract"(offers accepted) on friday or early next week. Then they will slowly become available again over the course of the next 2 weeks.
As Jim pointed out your not buying a used chevy blazer but an apartment. The whole "introductory pricing" baloney is meant to create a false sense of urgency, salesmanship 101.

posted on this thread 8 days ago. the number of accepted offers has been claimed to be 25-40. that was quite an open house!

Dane: House hunting is a very emotional activity. It's easy to be seduced by a shiny new building. But in this economic environment, it's even more important to check one's emotions at the door. The best thing about the internet and blogs such as Streeteasy is that potential buyers now have access to valuable information. Unfortunately, once a building develops a negative online reputation such as W11's (largely based on facts), it's almost impossible to erase it. Smart buyers will do an internet search before buying - unless you plan to live there forever, resale will be a challenge especially with such a reputation.

I considered W11 when I first started looking at Williamsburg in 2008. I could not get past the oil issues (membrane?).

Compare the quality amongst the various developments. I think you will conclude that there are better alternatives with better reputations. You may be able to negotiate the price down on a more expensive unit in another building. And if you still prefer W11, it won't hurt to wait a few months to get a better sense of real sales and activity. Right now, you're getting the "You better get in now. We've sold 95% of the units. You're going to lose out" broker pitch.

Continue to do your due diligence. You have time. Good luck.

BillyRes, good advice. Prob. the best example of a solid building w/ great reputation is the one your are/were in contract for. I take it they're keeping deals above $650 psf to maximize yield from current contract holders. Curious to know how you feel that will play out?

Nevermind. I take it you are still in contract and involved in litigation with the developer to get deposit back. Best of luck.

Getting a lot of generic comments here guys... Every building post has the marketing 101 talk, we all know this. Lets focus on the issues guys. So far I listed 3, lets see if they truly are issues.

BillyRes, I know you had issues with the oil and the membrane. So far I see a map saying there was no oil there and a letter from a company saying everything is clear. I agree it is worth looking deeper into, but lets talk details.

At an open house right after this building first opened, I made a little Freudian slip,
and referred to it as WD-40. The broker was not amused

Dane: Here is the response I received from the EPA. According to the trail, I sent an inquiry on 6/23/08 and I received a response on 7/708. The correspondence is a bit dated, but there may be some contact information that may be useful for follow up. Hope this helps.

Good Afternoon Mr. XXX,

Thank you for contacting the U. S. Environmental Protection Agency
(EPA) to inquire if the EPA is monitoring new developments and
associated oil spills in the various construction projects in the
Williamsburg section in Brooklyn, NY and how they may impact the
health of the residents.

Your e-mail below was forwarded to this Office on June 23 for
response.

The monitoring of new housing developments is usually done by local
building officials. In NYC, the NYC Department of Buildings permits
new buildings and monitors construction to assure they meet
applicable codes. You can contact the NYC Department of Buildings to
inquire about the building permit and construction conditions at the
Berry Street site.

Web page: http://www.nyc.gov/html/dob/html/contact/contact.shtml

Phone Numbers:
|Brooklyn Borough Office
|210 Joralemon St., 8th Fl.
|Brooklyn, NY 11201 |

|Borough Commissioner: (718) 802-3677 & (718) 802-3676 |
|Borough Manager: (718) 802-3635 |
|Customer Service: (718) 802-3675 |

When an oil spill occurs at construction sites, the NYC Department of
Environmental Protection (NYSDEP) and the NY State Department of
Environmental Conservation (NYSDEC) monitor the cleanup of such
spills.

From the available newspaper articles that you and other concerned
citizens e-mailed us, the Site you are referring to is the
construction of a new seven floor rental building at 40 Berry Street.
New plans for the building were filed on April 23, 2008 and according
to an article, the development will require significant amount of
demolition for which permits have been issued. From these articles,
it appears that the oil spill occurred during the removal of the
numerous underground storage oil tanks.

The Berry Street oil spill is being monitored by the New York State
Department of Environmental Conservation’s Region 2 Office in Long
Island City. For information, please call Mr. Steve Sangesland at
718-482-6753.

For any health related questions, please contact the NYC Department
of Health via their “311” number.

If you have any questions after contacting local and state officials,
please feel free to call on our toll-free line (1-888-283-7626).

Have a nice day,

George H. Zachos
Accelerated Cleanup and Stabilization Manager and Regional Public
Liaison (formerly Ombudsman)

Web Inquiry

From "idaemon.rtpnc.epa.gov"

Delivered Date 06/23/2008 01:42 PM

Subject (174134212) WWW Comments For EPA Region 2

COMMENTS_OF_REQUESTOR
I will be a future resident of Williamsburg in Brooklyn, NY. Current
residents and future ones like myself are concerned about the oil tanks
and leaks throughout the neighborhood. Is the EPA monitoring the new
developments in this area? Just recently, someone posted oil leaks at
the new construction site in Williamsburg located at N. 12th Street and
Berry. Here is a link with suspected leaks
http://curbed.com/archives/2008/06/23/berry_street_oil_pit_looking_great_in_the_burg.php#reader_comments.I
understand this was a problem during the construction of another
development in the area Warehouse Eleven betwee Driggs and Roebling on
N. 11th. I'm very concerned how this may impact the health of current
and future residents. Can you please provide me with some information to
understand how the EPA is monitoring this activity. Thank you. I look
forward to hearing from you.
EMAIL_OF_REQUESTOR
XXXXX
NAME_OF_REQUESTOR
XXXXX
ORG_OF_REQUESTOR

submit2
Send Comment
------------------------------------------------
WARNING NOTICE
This electronic mail originated from a federal government
computer system of the United States Environmental
Protection Agency (EPA). Unauthorized access or use
of this EPA system may subject violators to criminal,
civil and/or administrative action. For official
purposes, law enforcement and other authorized personnel
may monitor, record, read, copy and disclose all
information which an EPA system processes. Any person's
access or use, authorized and unauthorized, of this EPA
system to send electronic mail constitutes consent to these
terms.

Dane, I saw Warehouse 11 for the first time in either April or May of 2009, not more than a couple weeks at most before the building went under. Brad Phillips, lead broker or whatever at aptsandlofts took me around the building himself and said, I quote, "we are over 40% sold." Three weeks later I see that there are about 10 or 15 deposits they have to give back - UNDER 10% of the building was actually sold. Wish I could get a source for this but it's late and I'm close enough with the estimate.

Point being, BROKERS LIE. Lie through their teeth. And with a building like that where only 30% of the units are going to be publicly posted at any one time and the sale sheets won't include all 120 either, it's very, very easy for them to fudge this number and lull people into a false sense of security.

Think about it - do you REALLY believe that they have offers on 40 UNITS? They don't.

BillyRes said it well and truth be told, I know where you're coming from. It's very easy to be seduced by it all. Truth of the matter is that it remains a truly bad investment if I really am right about your personal and financial situation. It's a terrible risk. If you can't afford on the Northside, I'd look at East Williamsburg or Flatbush or something. Your money will get you more and your investment will be safer over time.

NOT WORTH THE RISK. PERIOD. END OF STORY.

A prediction of exactly what would take place 8 days before your open house is a "generic comment"?
Keap looking at the number of accepted offers.

wburgbuyer, totally get where you are coming from and I take your advice seriously. I've had 16 people contact me, 6 of which I have met in person that have offers out in this building. Maybe they don't have 40, but there is interest in this building. I'm hoping everything works out for this building, then I get a great place for a hell of a deal, but I won't be blinded by a good deal and I plan to research carefully with everyone's help.

I have an email out to the inspector, waiting to hear back about checking out the basement. Thanks for posting the correspondence about the oil BillyRes, very helpful. I'm glad to hear that the oil was from tankers that were stored there and not oil rising from who knows where. I would assume that the amount of oil underneath, if there is any, would be much more limited and not as big of an issue.

Any other bldgs have "membranes" underneath them? not that i've heard. that means its a unique problem, not something you have to deal with in other bldgs. ditto to some of the other high-risk issues being spelled out.

http://www.riverkeeper.org/campaigns/stop-polluters/contaminated-sites/newtown/

Setting aside the benzine in the air and water in the pipes, lets talk membranes. Condoms are scientifically proven to offer 95% protection from mysterious STDs (who knows how they're transmitted or where they came from, they just are). Would you have sex with someone with STDs given that wearing a protective membrane is 95% safe? I wouldn't, but I suspect that there are plenty who would. More problems down the road if say you get herpes and you're trying to get some by explaining to them that you're on special medication, have had no more outbreaks and wearing a condom is 95% safe. You better still have a lot more going for you than the other hotties in the bar.

Freewilly: Things that make you go "hmmm". I'm somewhat jealous that I didn't think of that analogy.

BillyRes - I figured the point has been so hammered to death that I'd take a different tact ;)

Dane and anyone else involved - Though you may not agree with our comments, it can pay to stay open-minded and use StreetEasy as a resource for relevant experience, uncovering additional concerns and to get an unbiased detached view of things. What would be most helpful to you to ask are specific questions, for example, regarding what people have seen with regards to common charge break down (are utilities included in other buildings, what that implies etc...). If you're posting to defend what appears to be an unwarranted position, don't be surprised that you'll attract honest feedback that may seem harsh and people suspecting you to be a broker or a plant. Don't take it personally. Cheers!

Dane - When Aptsandlofts says they are 40% sold they are referring to what has been sold relative to what they have made available for sale. It has nothing to do with the number of units in the building. If they try to tell you a percentage ask then how many apts in the building are available and see their reaction. They pulled this crap two years ago also.

"I'm glad to hear that the oil was from tankers that were stored there and not oil rising from who knows where."

I would re-read the email BillyRes attached - oil from tankers was for 34-40 Berry. The source of oil for w11 is like you said rising from who knows where. If I were involved, I would follow-up with the email links provided, on the off-chance that the EPA knows.

Freewilly have you inspected the budget? I just looked at my plan and my attorney says there is nothing to concern him on the figures. He also noted to me that there is an extra 10% built in the budget to cover for reserves and defferred costs if any. Have you ever heard of that ?

Willams34 - I don't have the offering plan. 10% initial reserves strikes me as low for a 122 unit building that will take a while if it gets filled, but I'm not knowledgeable of the comps. Anybody know what initial reserves were for other new developments?

My attorney said that most new buildings he sees has no reserves so i was encouraged by 10%

Williams34 your attorney is a MORON if most of the offering plans he sees have no reserve fund in them! Get a new lawyer, seriously!!!!

wburgbuyer No, most NEW projects don't have a reserve fund unless they are FHA approved. Check you facts before you start calling people a moron.

Thank you Exrenter. I did some research and its not required by the attorney general. In fact 80% of the condos in manhattan have no reserve fund in their budget. I just signed my contract. I did a walkthrough of the building and saw no visible signs of concern. I was also given documentation as to the concerns on the oil found at inception of construction. I am satsified and think I have enough facts to make my decision. Good luck top the rest of you

I am a 1st time home buyer looking to stay close to Manhattan. I have looked into LIC- way too expensive, Greenpoint- okaaay apartments, but I rather be by the L train than have to take 2 trains to work, Sunnyside- don't want a co-op, Dumbo-might as well look in Manhattan, Astoria- not a great market for condos and "East Williamsburg"- which I feel is a bit danagerous still..everything I've seen is either
1)around the same prices or more than Warehouse 11
2) with very high common charges
3) finishes that are not my taste or cheaper than the Warehouse 11 finishes,
4)or in an undesirable location.
I don't love the hipsters, but it won't stop me from moving into the area. The location isn't bad at all- right by the park, near the L train or a bus(I don't mind the bus!)I have inquired about the oil spill. If the Offering Plan states that the Dept of Buildings has confirmed that the area was excavataed, tested and completely cleaned..wouldn"t that be ok enough to NOT worry?

If after you have taken all the information on this thread and researched it, and still feel ok with going through, I guess we respond differently to the same old information. So there's nothing to argue except to say congrats on your decisions and best of luck.

dnr1998 thats my feelings

Just consider that crooks wrote the Offering Plan and you would be a fool to believe anything in it that you don't check out yourself. I am telling you to be sure to have a very good lawyer read every single page. Then take a list of questions to the developers.

I went to the open house Sunday and was interested enough to go back earlier this week to see specific units. The floors in some of the units are pretty scratched up (if you go to another floor other than the show floor.) There was some deep scratches that I dont think a sanding could ever polish away., and they felt as if they were warped/sloping too. The type of flooring I don't think was meant to be sanded too many times as it did not seem to be thicker wood. Still debating though as pricing is amazing, but worried about stability of developer guy as well as reputation of the building for resale.

I initially went to see Warehouse 11 last Saturday. Since I liked what I saw, I went to see it again yesterday night. Last night, I tried opening the door to the juliette balcony of the 1 bedroom model apartment and the entire door came off. I also noticed that there are a few cracked windows and some scratches on the wood floorings. After reading this forum and my revisit to W11, I am now hesistant about going through with the accepted offer.

I also have been told that 66 units were sold so far and they have been selling like hot cakes. I had some concerns on the monthly maintenaces going up due to unoccupied apartments. The sales agent said that the monthly maintenace is set and will not increase for a few years. Based on building's bad reputation, I will take this comment with a grain of salt.

Apologies if I missed this in earlier conversations. Is there a minimum occupancy rate/"apts in contact" in order for us to close and move in by March?

new condos typically have no reserve funds

How could we verify there are really 66 units sold? Can we ask the agent to show you all the contracts signed?

Also notice the pressure of water from the shower in the bathroom, they are really low, I am not sure if that could be fixed. That should not happen in a new building.

The maintenance will increase but not by a lot since the developer needs to pay the maintenance also for the vacant units.

"Also notice the pressure of water from the shower in the bathroom, they are really low, I am not sure if that could be fixed. That should not happen in a new building."

I believe this is a code issue - water pressure can't surpass a certain level, so there's a restrictor valve in the shower heads, which can easily be removed. That's exactly what happened in my building, and the water pressure is great. But check this out more thoroughly here, for sure.

"The maintenance will increase but not by a lot since the developer needs to pay the maintenance also for the vacant units."

Until they sell out - then you might see pretty big increases if you want a new management company, etc.

dont want to bash this development (that seems to be taken care of already) but the wood paneling painted silver in the kitchen areas was really pretty cheesy. also i think that the "free" parking adds $60/month to your maintenance and possibly more when the tax kicks in. also, a little worried about the march closing, but it seems like most of the units are finished.

that being said, they are priced better than most units in the area, but that could just mean that most units in the area are grossly overpriced.

i can see why someone would want to buy in this building though.

I can tell you exactly how many units are "sold" in the building....zero.."sold" means closed..i'm sure the apts and lofts people said 66 units have "offers accepted" or are "in contract"...to claim they have already received signed contracts back on 66 units sounds quite dubious..how many units show as "in contract" on SE?

SeaHawk, good observations. I didnt get a chance to test the water pressure when viewing the apartments earlier this week. I do not believe the sales agent when they say that 66 units have been sold. Given high unemployment and tight restrictions from banks on mortgage lending, I'm sure 66 units sold since last Thursday is a bit of a stretch from the truth. However, the prices to these apartments are attractive.

Are the builders liable on fixing up the floors, windows, water pressure prior to handing you the apartment? I suppose this should be all written out in the contract..

househunters,

Well it definitely needs more than 75% signed contract before the banks are willing to lend you money. It is required by Fannie Mae and Freddic Mac. The banks, after they give you the loan, immediately sell it to the government. All they want to gain is the adminstration fees instead of the loan interest.
My fear is that the agent could just throw you a number and make you feel comfortable that there are so many people buying the condos. What it turns out is only a few people buying them.

Once you signed the contract, you are on the hook. Well, there are no standards to say what water pressure is good and I can guarantee you that the sponsor would not fix up everything to your satisfacation. They would not even allow this kind of wording in the contract.

Seahawk I have already spoken with my bank and they will lend to 50%. Ive been in the market for some time now and have learned that pretty thoroughly..It depends on what bank your using. As for being on the hook. I covered myself with a mortgage contingency which means If I cant get a loan, I get my money back. My attorney helped me with that.

Reply to Househunter:
You tried opening the door to the balcony and it completly came off?????
Just so u know I was there at the open house and opened that same balcony door these are european style windows which have a "Tilt and Turn option" so the door you pulled didn't actully CAME OFF it opened torwrds you! That's how suppose to work!

Willams34,

What bank do you use? I have BofA and Wells Fargo told me 75% is the threshold. HSBC says 90%.
Mortgage Contingency is a must I agreed.

Willibuyer - I went to see W11 apartments twice and been through multiple apartments. For apartment 3L(the Model 1 bedroom), the balcony door actually CAME OFF completely..I kid you not. I'm sure its a simple fix though and might be just a simple hinge issue.

williams34- Make sure your mortgage contingency does not expire 40 days after you sign the contract like most. Hopefully your lawyer did not use a boiler plate mortgage contingency and you are covered. Remember you are dealing with crooks that have already stolen all of the appliances and filed bankrupty once.

Just noticed they did a price reduction on four units. Anyone proceeding with contracts here? Seems peculiar that they would do a price reduction after 66 units went "in contract"??

I visited the building last week.

I was really impressed with apt 2A (832 sq ft), a one bedroom which can also be turned into quite a large loft.

However, the floor was not leveled! Does that make sense to anyone? I mean I heard some bad stuff about the building but isn't making sure the floor is leveled throughout the apt one of the most important things the builder should take care of???

This is bothering to me and I'm sure it will bother whoever buys or rents this apt. my question is: how much of a discount can I get for that, or can it be fixed by the construction crew before I move in? (and can it be guaranteed in the contract)

Seahawk, who at bofa told you it was 75%? Its 50% in-contract that we require before we can close but investor units are not included. Sunny.hong@bankofamerica.com

WBfirsttime,

I saw the same unit. I is not that big of a fix. It happens some times when you lay new floor. If you can get the apt at a reduced price it is worth the cost of correcting the floor.

If the floor has a problem it can be fixed. What about the rest of the building that sat for a year with no one looking after it. Are you going to fix all the other problems also?

One sales agent had already contacted me about a price reduction on a one bedroom unit. If 66 apartments are actually "in contract", why would they reduce the price? I am almost positive they are lying to us about 66 apartments being "in contract" but I can't blame them as these are typical real estate agent sales tactics.

I do like the apartments that I saw during the open house. However, I still feel it is too risky to buy into this new condo building until they fix the floors, water pressure, etc. and when we actually see buyers close and start moving into these apartments in the March timeframe..

How can you check to see how many contacts are out?

When the offering plan is declared effective W11 has to show a list of all apartments in contract as well as the buyers of each of those apartments. That is when you can tell if they are being truthful. Until then you can ask to see a list and if they will not show you you can make your own conclusion.

When is the offering plan available though?

As far as uneven floors go, it depends on how the building was built. If these floors were poured concrete, then here's what happened - the concrete is poured into a wooden frame that is built over the surface area of the entire floor of the building. In other words, each floor is one piece of concrete. Concrete floors come out uneven if the carpenter built the frame uneven to begin with. The concrete gets poured and sets as such. No concrete floor is perfectly level after the initial step, however. When it's time to lay the hardwood floor over the concrete ( I assume this is the case in this building ), a leveling agent is poured over the floor which fills in the low areas and essentially creates a level surface for your wood flooring. Like anything else, if the leveling process is done quick/cheap, then the floors don't come out even. Sometimes the concrete is poured so bad that no amount of leveling agent can do the job, however. The national standard for concrete floors ( and therefore any flooring that gets put on top of them ) is roughly a maximum of a 1/4 inch deviation over 10 feet. I ended up not closing on a unit because of this very issue.

They have to give you an Offering Plan before you sign a contract. It has to be available now.

Does anyone know what happened to the first round of buyers that bought into W11 prior to their bankruptcy?

How long did it take for these buyers to get their deposit back? Is it possible the developers can run off with your deposit money?

It took about 4 months to get deposits back after Bank One started foreclosure. The money is in escrow so it it not easy for the developer to get the money unless the law firm is in it with them.

why still no listings that say "in contract"...we all heard 30+ on the night of the open house and that number climbed to 66 according to info on this board(quote from a&l salesperson)...yet we still see 0 on SE?

Aptandlofts claimed they had 30 sales or more in the first month of sales 2 years ago. Turns out that after more than a year of sales they never had more than 10 or 11 contracts. Stay away from this place.

There is a definitely a quota that Warehouse 11 is trying to make by end of March. Is it to sell 70% of the apartments? If that is the case, that is very unlikely. During this time, I am sure that it's hard to find qualified buyers. Unemployment is still very high and many banks are requiring most people to place a 20-25% down payment at minimum.

I went to the open house again this past weekend was told that all 3rd and 5th floor 1 bedroom apartments are now in contract/sold. I find this hard to believe...

Househunter: you wanted to buy a 1 bed room on 3rd and 5ht floor and they wouldn't sell it to you to keep up some kind of front that they sold more apartments then they have. Can I get what your smoking?

And by the way the min is 10-15% down

I was close to signing a contract at warehouse11 because of the below-market pricing for the area, but after doing a lot of research and reading the comments on SE, I decided against it. For those of you who are potential buyers or already in-contract, consider these facts:

1> the developers Isack Rosenburg and Yitzchok Schwartz both filed for Chap 11 bankruptcy in July 2009
2> they have a lawsuit against them from their bank Capital One
3> inspection reports from a potential buyer show serous water damage and corrosion in the basement
4> Common charges are way too low for the amenities promised (doorman, gym, common roof, etc)
5> And this is the best part, Rosenburg pleaded GUILTY to bankruptcy fraud in 1999 in connection with stealing millions from an insurance company.

http://articles.orlandosentinel.com/1999-10-30/business/9910290630_1_rosenberg-national-heritage-bankruptcy-fraud

So yes, it's possible that the developers will adhere to the Condo Offering Plan and fix the existing problems, but it's also unlikely. At least one is an admitted criminal and the other (Schwartz), well he's just involved with scamming the health-care system:

http://www.villagevoice.com/2008-05-13/news/home-alone-mdash-with-medicaid-fraudsters/

seems like sound logic and good judgement to me
i hope other prospective buyers do similar DD as you did

I am glad to see at least one person make a good decision. By the way aptsandlofts offering plan requires them to list any convictions, injunctions or judgments of any of the pricipals. I doubt they did that. It is a serious violation if they did not and will come back to haunt them. Look on page 69 of the AG form for new construction

http://www.ag.ny.gov/bureaus/real_estate_finance/pdfs/part20.pdf

I was about to jump ship on my contract-out at another place, which happened to coincide with the first week of the re-opening of w11. But after going back for a second visit, the conditions of the other floors were horrible. I was skeptical about the developer and whether he would follow through with the punchlist to bring the apartment back to a decent condition.. so I decided no too.

Do most other condos update SE though? Perhaps Warehouse 11 is choosing not to update SE although I would think it would be in their best interest to update the website.

http://curbed.com/archives/2010/02/10/as_the_warehouse_turns.php

http://therealdeal.com/newyork/articles/bankruptcy-judge-rejects-warehouse-11-developers%E2%80%99-extension-capital-one-says-developers-sold-units-without-permission

This proves aptsandlofts are as crooked as the developers
They had no permission to be selling apts at W11

This is puzzling news. I thought there must have some arrangement with Capitol One. .......

They did have an arrangement. Sell as many as they can and run. The law firm with the deposits, aptsandlofts and the developer are in it together. Good luck getting back any deposits.

I take it back. Brad Pitt and Clooney were more elegant than Schwartz and Rosenberg. But maybe I should wait to see how the story develops in a few weeks.

As i posted awhile back on this thread I would simply question the amount of actual units "in contract".
I find it interesting that many people stated their interest after the open house(on SE) but none of the 60+ contract holders have commented on this thread. Wouldn't you expect there to be a few "in contract" folks to be exchanging info here?

David Maundrell has a bigger mouth than Al Sharpton. As I also posted before they sold 10 or 11 apartments in 2 years the first time around and they want us to believe they have sold 60 in three weeks this time.

And by the way his mouth will come in handy for him when he is in Rikers

This explains they were being shady and they werent posting the apartments that are "in contract" on SE. According to the article, they werent suppose to be selling these apartments in the first place! These developers are involved all kinds of trouble - insurance fraud, health care scams, looting...
I just feel horrible for the buyers who put down deposits already. Potential Buyers beware and stay clear away from warehouse 11.

Renegotiation between Capital One and the developers comes through.

http://www.nypost.com/p/news/local/brooklyn/warehouse_let_make_deal_oq9QayHOlykvt9sbflZpII

contract holders are not posting here because there is a private group which is passing its own information around. If you are a purchaser, you can join:

http://streeteasy.com/nyc/talk/discussion/18510-warehouse-11-buyers-group

As for the recent (and not so recent) problems, they are cause for grave concern and no one can be sure of anything, esp. when the owners are proven crooks.

xx

W-11 reneged on my accepted offer, and changed the terms of the agreement mid-stream. Probably best not to do business with known crooks.

"W-11 reneged on my accepted offer, and changed the terms of the agreement mid-stream."

What happened? Is it selling well?

just stopping by to check in. this is a long movie...

any updates on this building?

I just caught this article! It looks very possitive torwrads the developer
http://www.brooklynpaper.com/stories/33/14/33_14_as_wbwarhouse11.html

Here's a reality check. They took out 50.7mm from the bank. Given the shoddy construction, I'm not so sure how much of that they really used up/kept for themselves, but let's give them the benefit of the doubt and say they used it all up. At 144,000 sq ft gross, that's $236/sq ft per unit sold that would go back to paying the bank for the new lowered debt of $34mm. And they're still gonna sell units for over $600/sq ft.

The developers lost a lot of money on this deal to try to make it work and buyers far from getting fleeced, are getting a great deal. Sure.

freewilly, they also needed to buy the land, so that's another expense, although I have no clue how expensive that might have been, maybe around 100 psf?

I hear they paid above market since the land was oil rich.

Are they doing closings yet?

Does anyone know anything about the current status of the project at 95 Bedford? If this building get build by the Karl Fisher group it will be 8 stories tall and significantly block the view of Manhattan. It is zoned for up to 14 stories. If someone else buys this lot and builds to 14 stories, the Manhattan view will be nonexistent. Anyone have any predictions for what will happen at this lot?

Why do you think they have been trying to sell these so fast. 95 has been a done deal for a while.

nyc2009, if the "these" to which you're referring are units in a building, you would be wrong.
There is no building at 95 Bedford. Just a big, ugly, mud and vermin filled hole in the ground.

No, why do you think W11 is trying to unload their apartments so fast. The know about 95 Bedford.

What do they "know" about it, nyc2009? Enlighten us, please.

that is is going to be built. Are you enlightened now bj?

Please. You're aware it's planned as a rental building, right? As much of a disaster as Warehouse 11 has been, it's shown no signs of going rental, especially since closings have now begun. If you have a point to make, it's best to spell it out rather than post this stuff. You prognosticate a lot of doom for some Williamsburg condos, but we have yet to see any of that come to fruition (still waiting for the Edge to go bankrupt, or at least slash prices by 50% across the board).

be patient

people keep saying "shoddy construction". Can anyone give real proof of this? I'm looking for an engieers report, etc.

bjw2103- As I told you, the bottom is now falling out from under the Edge.

nyc2009, no, you said the Edge was bankrupt and that deals were being done at 50% off or more. Don't turn price cuts on some units into the story you want to hear.

I said the Edge will be bankrupt or rental at best. They will drop prices by 50% or they will sell nothing. Remember when they said they would never lower prices. The first cut is never as much as the 2nd.

Anyone knows the status of the environmental work? apparently the spill case is closed, but wasn't some oil seeping in from off-site?