Leviev Developer in trouble: 20 Pine and 111 Fulton/60 Ann (Distrit)

They aren't cheap enough. These developers need to cut a good 25% to even get some bites. Nobody is paying that much anymore of a marginal neighborhood

Herein lies the problem:

"Leviev-Boymelgreen planned to convert the building, occupied by Chase Manhattan Bank into 408 condominiums for financiers, especially singles and young couples, who wanted to live adjacent to their jobs."

Those people don't exist anymore, and they're never coming back. The stock market can (and will) return to 14,000, but there will be no "financiers" as there had been in the past.

Jwalkin - Yes - I saw that same article on Globes. Those figures cited are from the audited financials of Leviev's company, Africa Israel. I did a little more digging on ACRIS for sales at 20 Pine St. Although the construction is completed, they have only closed on about 235 apts. It looks like the pace of closings have slowed dramatically as of the end of October. That financial report shows 324 apts. in contract at March 31, before closings commenenced. What happened to the difference of 89 apts? Could these people have walked or have the apts not yet been completed?
I heard they started closing at the District. That same audit report indicates that they sold 87 apts. at March 31. Meanwhile, the District reported over 75% sold on April 4th, which would be 123 apts. Here is the link: http://www.downtownexpress.com/de_257/mixeduse.html
Meanwhile, no listings of in contract apts appear on StreetEasy. Sounds like they are trying to hide something.

Also, for District, the $3.4mm penthouse has not been sold. Plus, many of the other penthouses are still on the market. More lies.

Interesting that they only closed on 235 apartments... because nearly 75 are for rent.

nyc10022 - where are you seeing that 75 units are for rent at the District? thanks.

jwalkin - those rentals are at 20 Pine. I friend told me that 20 Pine has cut prices by 25% on the last Sponsor owned apts, reducing prices to well under $800 sf at a much nicer bldg. with beautiful open space views, some of the NYSE. He said this clearly undercuts the $1,000 sf + pricing at the District with views of a parking garage. You definitely made a smart move walking away. A District studio apt. has already been put up for resale. I suspect pricing at the District and the Financial District will head much lower and your 10% loss will look like chump change.

bg4884 - thanks. if the cuts are currently at 25% it really is better to walk away, as i can always buy at a later point...and most likely for less (including the sunk cost of the deposit).