Greenpoint

karlchad, condos do have boards (generally called condo associations, but same thing), and in new development, enough of the units (including parking, etc.) will have to have been sold for the owners to form one (and until then, the sponsors run the show, so to speak). Generally, it's somewhere around 75-80% of all units, but check your offering plan to be sure. The plan will likely also tell you about how the rentals will affect maintenance charges, or you could check with your attorney. My understanding is that the sponsor is still responsible for unsold units that are converted to rentals, but this may not be the case in every building.

As for Greenpoint itself, I like it, especially the area around Franklin St. It's quiet and feels like a real neighborhood. The G train gets a bit of a bad rap, and it's by no means a great, super-reliable train, but it's not that bad if you work in midtown (transfer to the E or V and it's actually pretty quick). I don't know much about the Viridian - I run by Green St often, but haven't actually checked it out otherwise. I'm guessing it's one of the most expensive properties in the area, but it could turn out quite nicely. Good luck!

If part of the building has been converted I would wait. This is a clear sign that the project is not moving. Why would you buy, in a building, that is already exhibiting financial problems. What % of those units have not sold. I would read this a a red flag and be very careful. What happens, if the rents don't cover the developers costs, and is forced in to bankruptcy. I would walk away.

Worst case scenario-

I buy the condo and the developer is forced into bankruptcy.... what happens? do i lose my place? maintenances sky rockets to cover the empty apts?

BTW, I don't think a $400K unit should be renting for $2700. The rent should be lower than the mortgage payment, and those numbers would not make that happen. Just as an example, in my condo building a unit that would sell for $1.2M is on the market for $3900 and is not renting. That would mean a $1.2M unit in your development would go for $8000+. Not sure what all that means to you, but may mean something about the overall state of the development.

I have toured the Viridian, and the units are really nice, but the bedrooms are a little on the small side. The amenities are great. There is even a parking garage and a zen lily pond! It is also located in a great area.

Karl, be careful with any shoot-from-the-hip advice. If you really like the place and can confirm that they are getting $2700 rent on their comparable apartments, then $350k-$375k seems like a very good price. As starfish said, the price and rent numbers actually seem off. You also should check on the percentage of units sold compared to the percentage that will be rentals. The next year in real estate may be difficult, but if you have a 3 year time horizon and the numbers otherwise look good, it could be a good purchase.

Not to pick a fight, LICComment, but three years is nowhere close to the time horizon needed for new development. Assuming %5 in transaction costs on the way in and a 6% broker fee on the way out, he'll need 11% appreciation just to break even. Then there are all the issues of it not being shiny and new to the resale buyer, and the tax abatement being closer to expiration... Even the oft-quoted 5 year time horizon seems short to me in new construction in this market (obviously the Viridian is feeling the effects of this market pretty strongly if the developers are willing to negotiate 15% below ask and there's a partial rental conversion).

Not sure karlchad was specifically referring to the Viridian as the actual condo he was bidding on, but $350k for a brand new 1BR in that area is a very attractive deal, I think. 20% off is impressive for new development, even in Greenpoint. But if you can get an even better deal, keep pushing obviously. I agree with tenemental here - in this market, you're probably looking at holding on for 7+ years for it to be a "good" purchase. I'm also skeptical of the $2700 rent. I think you *might* see that by the time your abatement would run out, at which point I believe Greenpoint will look pretty different, and perhaps become as attractive as more expensive areas already are. If you can pay $2700 per month for a 1BR, I don't think most people would gravitate towards Greenpoint, when they can get something similar in several Manhattan neighborhoods or even Williamsburg.