Monday, August 31, 2009

Central Brooklyn condos in the crapper

From Crain's:

Sixty-five residential buildings in central Brooklyn are financially troubled, on the verge of distress or struggling to sell out remaining units, according to a recent survey conducted by Democratic Assemblyman Hakeem Jeffries.

These properties are market-rate residential buildings at least four stories high located in the neighborhoods of Fort Greene, Clinton Hill, Prospect Heights, Crown Heights and Bedford–Stuyvesant. Many are luxury developments in different stages of completion. Some projects are completed and unoccupied, some are stalled and others are occupied but not sold out. Some of the projects’ developers are also defaulting on their construction loans, said Mr. Jeffries.

Mr. Jeffries conducted the survey of new developments in the five Brooklyn neighborhoods he represents as part of his efforts to promote the creation of affordable housing. He is 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.

1 comment:

Anonymous said...

"Market-Priced" is code for overpriced. If you truly price to the market, your buildings will always be filled. New York didn't suddenly de-populate. The reality is that landlords like to see prices go up, but they are inflexible and unrealistic when things don't go their way.

Rather than take a lower rent for a year or two while the economy recovers they would rather keep their buildings vacant until squatters move in instead.