why is oro not selling?

Bad value.

recently slashed price, no?

location, location, location . . . and it has none.

Youre right Oro is probably around 40 something % sold but remember its a 300 unit building so theyd have to sell 30 units to get 10% increase in sales. However, they were smart in obtaining FHA approval which will certainly open up the pool of buyers. And with the right prices, I think units will move...slowly. I was involved with the project from day 1 at the peak of the market but things really stalled and it seems to have picked up interest over the last couple of months. sunny.hong@bankofamerica.com

I would guess that Forte sucked up all the buyers in the area for the time being to some degree as well

to Rose associates. I am good with it (of course) but I am getting crazy about it...why did you guys priced the best line (F) cheaper than (A) line and relatively cheaper than the others? I guess the other will be slashed afternwards but still does not make too much sense to me. anybody else has an answer?

and now with FHA falling apart they have less of a chance of selling.

FHA falling apart? thought oro is approved.

Why is Oro not selling?

Are you serious?

The cheapest apartment is $366,000 and is smaller than most college dorms. AND it's in Downtown Brooklyn.

THAT's why it's not selling.

have to agree w/ Matt on that one

Indeed. Just one neighborhood over, this is what you get for roughly the same price:

http://www.corcoran.com/property/listing.aspx?Region=NYC&listingid=1527237

major north flatbush glut. All those towers and new development, in an area NEXT TO the projects, far from any decent retail or food.

In a crappy market, this is the stuff that gets hit worst.

I see at least 1 or 2 units move in every week recently. You see more lights in the building at night. So do avalon and toren.

bkapt: are they renters moving in every week? Same with Avalon and Toren?

Only Avalon is for rental, as far as i know. My point was that I can feel there are a lot of people moving into these three buildings recently.

yeah, i kinda see it too!

I agree. Compared to just a few months ago, there are a lot more occupied apartments. It'd be great if everything sold out tomorrow, but move-ins do seem to be happening.

> I see at least 1 or 2 units move in every week recently

A couple more years, and they might actually fill the building!

not if they go for 30% off sale...@ 500 /sqft

yeah Avalon has over 600 units. So if they can get a couple a week they should be filled up in 6 years or so. That is is nobody moves out!

Avalon will be fully rented once the building is completed. The demand for that building is very strong.

I'm really interested in an Oro apt myself. Did a comp between Oro and Toren last weekend and I like the layouts and views from Oro much more. Toren has some nice woodwork but there is no real lobby and the amenities aren't yet fit for public viewing so it's hard to compare to the very nice common areas at the Oro.

I'm still struggling to come up with a fair bid though. The building is nice but the uncertainty of the market and the location has me very wary....

I like the layout in Oro better too, didn't even go to Toren in person. Near 50% sold may not be good, but it doesn't require 100% sold to cover the cost of the building, I don't know what's the magic number though, maybe that's why the developler is more patient.

bkapt, what do u think is fair?

5% off ask? 10%? 25%? 40%?

Oro is not 50% sold. 92 units sold, out of 303. That's 30%, for you innumerate people out there. 10 of these sold since they cut prices by 25%, and 1 in contract as best as one can assess. The other 82 are early buyers who paid dearly for the Koolaid.
Rose Associates is continuing Douglas Elliman's most excellent tactics, hoping obfuscation will drive them to find another 210 dumb buyers. The entire point of a site like Streeteasy is to make it harder for people to walk like little lambs to the slaughterhouse.
To answer your question about the fair price, you need to consider how hard it will be to resell, the high transaction costs, and make sure thatthe total cost is no higher than renting over the period of time you plan to occupy the apartment. That's assuming you buy low enough that you can get out at the same price.

I guess we will see in the next two months how many pats really went into contract. Rose Associates, IF you did sign 45 contracts you would be much better off to have them on streeteasy. opacity no longer pays...

well..this is just another example of a development that is in denial or bluffing or has patient (reality denying) lenders....how long can so many of these developments go on like this.....apparently...long

dewyagi,

what kind of apartment are you looking for? I believe there are more room to negotiate for 2 bedroom units, since it's more difficult to sell in general, compared to 1 bedroom or studio.

Including those who are in contracts, if you are the last few buyer to help them reach 50%, you can definitely ask more disccounts. My friend got a very good deal in other building because the developler needed him to reach 50%.

You can also ask them to cover closing costs, such as transfer tax, attorney fee, free W/D, etc. Other then mortgage, these are immediate out-of-pocket money. Good luck!

The last 2 bedroom sold for 755k 3 weeks ago You can rent a high-floor F line (in fact the very same 31F if you believe the ad copy) for $3,500, so in essence those last purchasers overpaid by $150k as of now. If rents go down to $3,000, they'll be paying even more for the privilege of owning. It's completely irrational in this case, as high-rise new developments are a dime a dozen in that area.

Well it is the SAME apartment so whoever bought it, it bought it to rent it(for now). Hopefully they priced it expecting to break even. Rents at avalon and brooklyner are cheaper but these building are of lower quality (that's my opinion). Dekalb prices are higher for now (above 4000) and I think the building is much better quality than brooklyner and avalon. Also, 23F rented around 3500 I believe. With the current mortgage rate (say 5.4%) and 20% down, after tax benefits the monthly payment is around 3500 (just plug it in the mortgage calclulator and do not include CC which is roughly what the tax benefit gives you back). I would expect rents to be 3000-3500 so they might lose a bit in the short term. I guess time will tell if they overpaid but I am not sure the rent-to-buy ratios are that crazy!

All cash is the only way anyone is buying right now..

There are no tax benefits when it's not your primary residence.

that was just to compare buy vs rent for that specific example and discuss the 3500 price. Concerning their transaction, I hope they priced it to (at least) break even at the posted price, otherwise...

I walked, and they let me. I asked for a little over 10% off current asking...

This is insane.

surprising, given the deal that have happened for far. 33F was sold at 740000 and the original price was 1.065! was it a high floor unit?

and just saw 34F at 745,000!