Apthorp Sale at 390 West End Avenue #PHO

Wow, seriously?? How did this happen?

Jusging by the lack of photos, I'd say this would require $25,000 in renovations, so not such a great deal after all.

lol

Looks like a purchase by a distressed asset fund. Might be a regulated rental where the listing anticipated deregulation/vacancy, but the sponsor couldn't dislodge the tenant. I tried to check the condo declaration on ACRIS, but couldn't load it.

I read on another blog that this was not an inside sale to a tenant but rather sold to a "friend" of the sponsor. LLC used to hide the identity of the purchaser.

Maybe I should send an unsolicited offer to buy at $420k ;-)

10/14/2009 Listed in StreetEasy, already in contract, by Prudential Elliman at $2,559,420.

07/29/2010 Listing sold.
07/29/2010 Sale recorded for $417,177.

Is it kosher to sell at this price to sponsor's friend, assuming that's what occurred?

dwell: I'm not aware of any barrier to non-arm's-length sales, except that, in principle, they shouldn't count toward declaring the condo effective. Even that restriction is pretty weak, because the AG doesn't seem to apply much scrutiny unless an interested party challenges the legitimacy of the sales.

realestatejunkie, I'll pay $421k. ;-)

I offer $416 and a big bucket of sidecars. Plus a note telling the owners what wonderful people they are, and how we have that in common. That'll tip them over to my side.

A bucket of sidecars will tip almost anyone over.

Dwell -- If the sponsor owned the building debt free then it would be Kosher for them to sell the units to whomever they wanted and at whatever price they wanted. As the Sponsor does indeed have debt, and likely investors as well, a sweetheart deal to a friend could constitute fraud.

A bucket of sidecars, eh? Sounds like a good business strategy.

REJunkie: Assuming the loan docs were halfway decent, couldn't the lender block an egregious sale by simply refusing to release the relevant part of the lien?

Fraudulent conveyance anyone? Bkptcy's version of a clawback (from the dead the mighty hand of justice will godsmack all the lemmings)

Considering the bank has a lien against all of the debtor's assets, the bank would have had to approve the sale.

There could be significant tax issues -- transfer tax -- depending what basis is used. Fair market will need to be established.

Lender most likely approved the sale but I would venture to guess the sponsor represented the transaction as being at "arms length", which may not have been the case.

More news...

Attorney general is taking a look at their recent loan modification.

http://online.wsj.com/article/SB10001424052748704557704575437964057778810.html?mod=googlenews_wsj