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Brooklyn, NY - Overdevelopment Leaves Hundreds Of Apartments Vacant |
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Greenpoint-Williamsburg Waterfront Rezoning
Then there are hundreds more being built.
"A recent study shows 5,200 luxury apartments are set to hit the market by 2010," explained David Amsden, contributing editor for New York Magazine. "So what's going to happen to those apartments is a big question on a lot of people's minds right now."
The question is especially nagging for developers who started constructing high-end condominium buildings when the real estate market was at its height. Then the economy slowed down, financing fell through, construction loans disappeared.
Some projects cannot be completed. Many that are done cannot get the buyers.
Developers are looking to sell their condos as soon as possible and so they're offering plenty of incentives.
On the Williamsburg waterfront, Northside Piers will absorb a buyer's mortgage payments for an entire year, as well as the common charges and real estate taxes. At 150 Berry Street, there are open houses every Saturday and Sunday, a mortgage broker on site, and the developer has cut prices about 15 percent to sell the last seven of the 40 units here.
"We've of course lowered the price to be more competitive," said Mike Morton, owner of development company the Morton Group. "We've offered no closing costs."
The problem is not unique to Williamsburg, luxury condos sitting empty are found throughout the borough. This one is in Clinton Hill. Assemblyman Hakeem Jeffries did a study and found that 66 buildings in his district alone are either under construction, partially vacant or completely vacant.
"We have an opportunity in the midst of this recession, with all of these luxury condominium buildings, to be able to do something to address the affordable housing crisis," Jeffries said.
Jeffries has launched an initiative called Project Reclaim to provide tax breaks and re-financing options for developers to turn their apartments into rentals for the working middle class. Jeffries has a meeting scheduled with state housing finance agency officials later this week to work on the details, in hopes of making these neighborhoods habitable.
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Read Comments (17) — Post Yours »
1
Jul 19, 2009 at 09:35 PM Charlie Hall Says:
We have similar problems here in the Bronx. Developers misjudged the market, and are left with huge numbers of unsold condominiums in mostly-empty buildings.
2
Jul 19, 2009 at 10:51 PM Anonymous Says:
yet in the frum communities they still rip off the tenants with outrageous rents that tenants can not afford to pay only the ones who have section 8 its a disgrace.
3
Jul 19, 2009 at 10:17 PM anon Says:
Does this mean the end too the homeless era?
4
Jul 19, 2009 at 10:13 PM Use Your Head Says:
This "affordable housing" garbage is just the usual self-serving politicians looking to get attention by "doing something for the people". We don't need tax breaks for developers to make this housing affordable - THE MARKET IS ALREADY DOING IT AUTOMATICALLY. Prices are coming down. That makes the housing more affordable. If no one can afford it yet, the prices will keep coming down. If the government steps in and forces it to be artificially more affordable, that will simply make OTHER housing MORE EXPENSIVE.
These are very very very basic economic laws.
5
Jul 19, 2009 at 10:59 PM anonomiss Says:
ur just a sore loser
6
Jul 19, 2009 at 09:50 PM ...the checkbook Says:
well, i guess prices will come down
7
Jul 19, 2009 at 11:42 PM Anonymous Says:
why cant a bunch of frum chevra band together and buy up a huge condo @ normal prices???
8
Jul 19, 2009 at 11:11 PM willy boy Says:
This people are in the wrong area they should build in willy or BP half the size and half nice and will still sell for whatever they want.... Its crazy time to stop this... There is other great and nice places to move to
9
Jul 20, 2009 at 12:22 AM Anonymous Says:
“ yet in the frum communities they still rip off the tenants with outrageous rents that tenants can not afford to pay only the ones who have section 8 its a disgrace. ”
These people who own these places need money just as much as the renter. Stop thinking about your self. Selfish person.
10
Jul 20, 2009 at 06:19 AM Charlie Hall Says:
“ This "affordable housing" garbage is just the usual self-serving politicians looking to get attention by "doing something for the people". We don't need tax breaks for developers to make this housing affordable - THE MARKET IS ALREADY DOING IT AUTOMATICALLY. Prices are coming down. That makes the housing more affordable. If no one can afford it yet, the prices will keep coming down. If the government steps in and forces it to be artificially more affordable, that will simply make OTHER housing MORE EXPENSIVE.
These are very very very basic economic laws. ”
The prices have not been coming down in my neighborhood. The developers have chosen to let the buildings remain empty.
11
Jul 20, 2009 at 05:18 AM Anonymous Says:
Not that every smart aleck has to be responded to, but just a little common sense.
When a developer buys a piece of property and tries to build a bldg, he has to make profit in order for the project to be succesful. If that is not acheived either by cost of construction or by other incentives, tax wise or whatever, the project does not make sene to be built. So if the prices come down, projects won't be developed and whatever is out there will only go up, because of supply and demand. If you want to move to other places, you certainly can, but understand that you'll also be having to find a job locally, which if there are any, you'll be paid a lot less. Or in the alternative you'll have to commute to wherever that job may be, and spent the time and money to get there so you've just lost whatever benefit you have in moving someplace else. So to the geniouss' out here who claim that the market is adjusting by itself, think what you're saying. A developer needs all the help he can get in todays environment be it from the banks or tax incentives or energy or pricing. Without that you will end up sooner or later paying more for whatever already exists.
12
Jul 20, 2009 at 10:01 AM Anonymous Says:
“ These people who own these places need money just as much as the renter. Stop thinking about your self. Selfish person. ”
yea right thats why the same people who rented out the same apartments 10 years ago for 1000 less need to raise it "for the market price.." when half of them already paid up the mortgage and the renter is selfish? should i expose out in the open ale shmei dreis vus di echte selfish machen? in ver es halt nisht mit di geeneive shticklech mitchet zich take
13
Jul 20, 2009 at 09:50 AM bp boy Says:
“ This people are in the wrong area they should build in willy or BP half the size and half nice and will still sell for whatever they want.... Its crazy time to stop this... There is other great and nice places to move to ”
where to monsey? monroe? lakewood?its all the same .you need a good cheder girl school look what happend in bayswater
14
Jul 20, 2009 at 09:33 AM Use Your Head Says:
“ Not that every smart aleck has to be responded to, but just a little common sense.
When a developer buys a piece of property and tries to build a bldg, he has to make profit in order for the project to be succesful. If that is not acheived either by cost of construction or by other incentives, tax wise or whatever, the project does not make sene to be built. So if the prices come down, projects won't be developed and whatever is out there will only go up, because of supply and demand. If you want to move to other places, you certainly can, but understand that you'll also be having to find a job locally, which if there are any, you'll be paid a lot less. Or in the alternative you'll have to commute to wherever that job may be, and spent the time and money to get there so you've just lost whatever benefit you have in moving someplace else. So to the geniouss' out here who claim that the market is adjusting by itself, think what you're saying. A developer needs all the help he can get in todays environment be it from the banks or tax incentives or energy or pricing. Without that you will end up sooner or later paying more for whatever already exists. ”
The only logical explanation for the nonsense above is that the author is himself a developer. Your statements are completely ridiculous! When markets turn, many developers find themselves in hot water and lose big. Real estate development is a high-stakes game.
15
Jul 20, 2009 at 11:28 AM Anonymous Says:
“ This people are in the wrong area they should build in willy or BP half the size and half nice and will still sell for whatever they want.... Its crazy time to stop this... There is other great and nice places to move to ”
they are in willy! you call urself a willy boy drive down kent avenue along the water there are numerous vacant sites!
16
Jul 20, 2009 at 03:18 PM Anonymous Says:
“ We have similar problems here in the Bronx. Developers misjudged the market, and are left with huge numbers of unsold condominiums in mostly-empty buildings. ”
who wants to live in the bronx ... Its a zoo .... meshuuuga
17
Jul 20, 2009 at 03:00 PM Anonymous Says:
According to a Department of Buildings count there are 362 stalled construction sites in the five boroughs, and surprise, they're not all in Williamsburg