From The Real Deal:Two real estate investors filed a lawsuit seeking at least $390 million from developer Related Companies claiming the firm misled them when it partnered with the pair to buy the Far Rockaway affordable housing complex Ocean Park Apartments in 2005. Investors David Workman and B. Tuckey Devlin, partners in an entity called DB Development, claim Related induced them into partnering with it, but then used the deal for its own political advantage. The individuals claim Related and its subsidiary Related Apartment Preservation, assured them that if they bought the complex together, it would remove the 602-unit property at 125 Beach 17th Street from the Mitchell-Lama affordable housing program and convert it to market-rate apartments or condominiums. Such a move could have netted $200 million in profits, the suit filed in New York State Supreme Court Tuesday says. But it never happened and the property has been maintained as an affordable complex.
4 comments:
I'm glad their efforts failed. That's what those developers get for being so greedy. Now suck it up and move on. Leave affordable Mitchell-Lama housing alone.
The asshole developers should have learned from Tishman Speyer's failure at Peter Cooper Village & Stuyvesant Town. It doesn't pay to greedy and wicked. NYC is over saturated with 'luxury' buildings.
Are these people fools? Who would pay market rents to live in a post-Soviet tower in the middle of one of the worst ghettos in NYC?
Good for them - SUCK IT UP!!! Like the rest of us always have to.
Pfffffft...
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