Sponsor giveaways

Toll Brothers was running a number of deals across some of their properties. 91 Leonard, I believe for the month of July they were paying three years of carrying charges and taxes.

30, I think I saw 5 years for 3 beds for 1 Manhattan Square. When did they change to 10y?

With initial sponsor control period for some (most?) of these places, how much latitude does the sponsor have to decrease the size of their future obligation by adjusting the budget for a given building?

And for gauging the market clearing price, this kind of thing (when part of a contract that makes it through closing) has to also make subsequent comp pricing that much harder, no?

I am mostly seeing discounts off the ask and/or coverage of taxes and fees. A lot of time the sales gallery person will hint that there is wiggle room in the price; and in some cases, they will flat out tell you 10% or 15% when you press for a hard number. Besides 1 Manhattan Square , the Atelier, and the Toll Brothers, I am not seeing any published discounts/schemes.

For some like 432 Park Avenue, it is obvious from recorded sales that every thing traded 20 percent below ridiculous ask if not more. For market clearing price, I always look at Toll Brothers. So 91 Leonard basically taking 5-6 percent cut from ask to move.

Skyline condominium in LIC is also offerings 3 and 6% credits at closing for some units.

With more new development inventory coming in the Fall, I will be curious how long developers can keep this balancing act up especially those that are not well capitalized.

300,
I thought this was noted in the 1 Manhattan Sq thread, but
https://www.boweryboogie.com/2019/04/desperate-extell-offers-to-waive-up-to-10-years-of-common-charges-at-one-manhattan-square/

Has missed that. Thank you.

Is the entity who's going to pay for 10-year's common charge an LLC? Can they just take the money and dissolve next year so they don't need to pay for the buyer any more?

Anton, i always wondered. or does the sponsor puts the funds in an escrow like a reserve fund.

itesfai, I think so, but such account might not require fully front loaded, so there must be room for them to navigate the loopholes