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Assemblyman Hakeem Jeffries says that there are 65 condominium developments in Brooklyn which are "either financially troubled or on the verge of distress". He said, "There was an irrational exuberance of construction in the area these past few years," and Crain's reports that he's "in the early stages of approaching developers and banks behind some of these properties with a proposal to convert the unsold units into affordable housing." (Apparently it's unrelated to the city's own from-foreclosed- to-affordable-housing push.) The Local has a list of the developments; Curbed notices, "There's some shockers on there, including the blockbuster One Hanson Place conversion." Possibly related: Prices were cut on the remaining units at One Hanson Place ("One of the biggest was a 23 percent price reduction on a 1,500-sf, 2-bed, which went from $1,222,431 to $945,000").
"Irrational Exuberance": 65 Brooklyn Condos In/Near Trouble
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I wonder how much Jeffries received from the developers to bail them out. Why don't we just buy free one-way ticket out of the city for them instead of bailing them out with our money? Stop inferring and let the real estate market correct itself.
Where are the town haller with their shouts of "nazi unamerican socialists" when they are really needed here?
I wonder what's the longest a building has been vacant due to market/economy decline? I know one building was empty for 5 years before the city came in with plans to make affordable housing available.
ha ha! eat it developer bitches.
It really makes me feel more like a loser when their idea of "affordable" is still beyond my ability to afford.
Buy now or be priced out forever!
When developers think they can just remodel property in a nice neighborhood and start jacking up the prices because its a "nice" or upcoming neighborhood it is no surprise that they can't sell it now. Timing is a one factor they didn't consider very well.
Let these developments fail and go into forclosure, just like everyone else. It is outrageous that any taxpayer dollars will be used to bailout these developments when single homeowners are not also afforded this privilege.
I would agree, however the foreclosure process can go on for years. In the meantime, the neighborhood is stuck with an unfinished, abandoned building attracting garbage, vermin, criminals and squatters you don't want anywhere near you.
Since there's a serious housing shortage, good local government should be creatively resolving problems.
Commercial foreclosure don't occur slowly. It should be foreclosed and the Banks will sell immediately to recoup some of its losses. DON'T BAIL OUT BLOOMBERG AND QUINN'S FRIENDS.
When the market is overwhelmed with foreclosed properties and falling prices, banks DO NOT WANT TO FORECLOSE. To foreclose and get the title is an expense and liability. They would like to make a deal, but credit is hard to come by, confidence is down and not enough people have the money to make deal.
Just look around and see the abandoned construction projects. Do you think people are running to the bank with cash to snap them up and finish them?
.
let them fail, they will bring down prices for everyone. These stupid "affordable" programs make housing affordable for a few, but they prop up prices for everyone else. Why provide a few lucky people with cheap housing when you can allow the market to correct and bring down prices for everyone. The main driving force behind this is to bail out Bloomberg and Quinn's developers' buddies.
"One of the biggest was a 23 percent price reduction on a 1,500-sf, 2-bed, which went from $1,222,431 to $945,000."
Holy Shit! Now I can't afford it by ONLY $600,000.
Let 'em go under. Real estate has always been boom-bust so why the concern over a few projects that overshot the market? Auction them off and get that 1 bedroom at One Hanson back on the market for $400k.
The real estate market is a total joke that goes beyond mere supply and demand and into the realm of fantasy. This is Brooklyn we're talking about not Manhattan. And even in Manhattan people are paying outrageous prices for apartments in upper Manhattan -- places where there are gunshots in the night to accompany the people playing bongos and congas all night long. I know it might be customary in the old country to be loud and obnoxious while biting the heads off of chickens as part of a "religion" but in America you watch the clock and shut the fuck up when people are trying to sleep.
Studio rentals for $1200 or...and I'm in.
This is fantastic news for every renter out there. That is until the city rents them out to the poor.
There has been "irrational exuberance" all over the city, not just Brooklyn.