A group of 15 buyers at the Trump SoHo Hotel Condominium New York is suing groups and individuals behind the project, contending that they inflated sales figures in the first year and a half of marketing the project. According to the complaint, which was filed in Federal District Court in Manhattan on Monday, representatives of Trump SoHo said the project was %u201C30, 40, 50, 60 percent or more... [more]
A group of 15 buyers at the Trump SoHo Hotel Condominium New York is suing groups and individuals behind the project, contending that they inflated sales figures in the first year and a half of marketing the project.
According to the complaint, which was filed in Federal District Court in Manhattan on Monday, representatives of Trump SoHo said the project was %u201C30, 40, 50, 60 percent or more sold%u201D %u2014 both in individual sales pitches and statements to the press %u2014 but after the offering plan became effective in May, buyers learned that just over 15 percent of the building, 62 of the 391 units, had been sold.
http://www.nytimes.com/2010/08/03/nyregion/03trump.html?ref=nyregion
Could this mean that real estate agents will hereafter have to tell the truth?
HEAVEN HELP US!
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Response by spinnaker1
about 16 years ago
Posts: 1670
Member since: Jan 2008
Are developers required to have a certain % of development in pre sale at various stages of construction in order to secure financing or is it pretty much a free for all here? In Canada a developer can't even break ground without xx% of the ENTIRE development pre sold, and it's not a small number.
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Response by jonwarner15
about 16 years ago
Posts: 9
Member since: Jul 2010
Perhaps this is a great fit for the buyers who after all had to be a special breed of "investor" to even consider condo hotels. Sure they did well like at 1 Central Park West because they were in the market the right time over the right ten year period. But that historical period is over and unlikely to come back. These are neither a great place to live, a bargain compared to a hotel, or a good place to park money.
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Response by apt23
about 16 years ago
Posts: 2041
Member since: Jul 2009
SE has only 13 units closed. No contracts. So that is more than 100% of purchasers. Can anyone get in on this lawsuit? If so count me in. I think there needs to be more transparency in all condo sales. I think developers are careful not to lie about the 50% threshold that bankers will accept, but they are very loose with the numbers. The Rushmore brokers lied to me about units closed and lied about the existing lawsuit. If developers are held accountable for accurate info --as they should be--due to this lawsuit, it may not affect existing buildings (unless more lawsuits pop up) but will certainly affect marketing of future projects.
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Response by gcondo
about 16 years ago
Posts: 1111
Member since: Feb 2009
I believe the 15 buyers have not closed yet -
fwiw - I was lied to as well, on so many fronts - but a different building.
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Response by gcondo
about 16 years ago
Posts: 1111
Member since: Feb 2009
spinnaker - no, that was not a requirement back when this all mattered. It might be now though - depends on lenders, right?
Also, I think the main problem with condo developments is basically an understaffed and unwilling AG's office to ensure that sponsors are not lying and misrepresenting in their offering plans and sales & marketing.
So many people have been hurt by this. In an up market, nobody really knows or feels the pain - but now, major issues!
Are developers required to have a certain % of development in pre sale at various stages of construction in order to secure financing or is it pretty much a free for all here? In Canada a developer can't even break ground without xx% of the ENTIRE development pre sold, and it's not a small number.
Perhaps this is a great fit for the buyers who after all had to be a special breed of "investor" to even consider condo hotels. Sure they did well like at 1 Central Park West because they were in the market the right time over the right ten year period. But that historical period is over and unlikely to come back. These are neither a great place to live, a bargain compared to a hotel, or a good place to park money.
SE has only 13 units closed. No contracts. So that is more than 100% of purchasers. Can anyone get in on this lawsuit? If so count me in. I think there needs to be more transparency in all condo sales. I think developers are careful not to lie about the 50% threshold that bankers will accept, but they are very loose with the numbers. The Rushmore brokers lied to me about units closed and lied about the existing lawsuit. If developers are held accountable for accurate info --as they should be--due to this lawsuit, it may not affect existing buildings (unless more lawsuits pop up) but will certainly affect marketing of future projects.
I believe the 15 buyers have not closed yet -
fwiw - I was lied to as well, on so many fronts - but a different building.
spinnaker - no, that was not a requirement back when this all mattered. It might be now though - depends on lenders, right?
Also, I think the main problem with condo developments is basically an understaffed and unwilling AG's office to ensure that sponsors are not lying and misrepresenting in their offering plans and sales & marketing.
So many people have been hurt by this. In an up market, nobody really knows or feels the pain - but now, major issues!