New York, NY – Inventory of Apartments Stuck for Developers Leviev and Boymelgreen, in Wake of Financial Crisis

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    \"District\", at 60 Ann Street in Lower Manhattan

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    New York, NY – Apartment sales by Israeli developers in New York have ground to a complete halt, according to a study by “Globes” on sales data by two leading Israeli developers in the city – Lev Leviev and Shaya Boymelgreen.

    The largest project of Africa-Israel and Boymelgreen Developers LLC joint venture, Leviev Boymelgreen, is 20 Pine Street, in Manhattan. The 38-storey building in the heart of the financial district was bought in late 2004. Leviev Boymelgreen planned to convert the building, occupied by Chase Manhattan Bank into 408 condominiums for financiers, especially the singles and young couples among them, who wanted to live adjacent to their jobs. Four years later, when Leviev and Boymelgreen dissolved their partnership, and divided up its properties. However, whereas 319 apartments in the project were sold by the end of 2007, only five were sold during the first quarter of 2008, the last figures that Africa-Israel provided in its financial reports.

    Since then, the developers have not been able to move the remaining 20% of the apartments in the project, nearly three years after beginning the marketing in January 2006. According to “Street Easy”, 58 apartments at 20 Pine Street were still unsold by July 2008, just before the financial meltdown, and there is no demand at all. Although five contracts are being negotiated, the process has already lasted seven months.

    The situation is even worse for Africa-Israel’s project at 111 Fulton Street, Manhattan, held through Africa-Israel Properties Development USA. In the financial report for the second quarter, Africa-Israel reported that it had sold 87 of the 163 condominiums in this project, 11 of which were sold during the first quarter, since beginning marketing in May 2007. However, “Street Easy” reports that, since April, no sales have been made at all, and some condominiums have been taken off the market. 24 condominiums have been waiting for buyers for months to no avail.

    The asking price at another Africa-Israel project, known as the “District”, at 60 Ann Street in Lower Manhattan, has dropped to $11,850 per square meter. Condominiums in this project are now going for $625,000 to $3.4 million, but there have been no buyers since the beginning of the year.

    Boymelgreen also has problems across the East River. Boymelgreen Developers’ Novo project at 343 Fourth Avenue in Park Slope, Brooklyn, has 113 apartments on 12 floors. Boymelgreen bought the lot in 2002, and obtained an occupancy license for the project in June 2008. The license infuriated local residents, because he did not meet his promise to renovate a nearby park used by the building’s residents.

    The most recent sales in the Novo project were in a month ago, and most of the apartments have been sold – but at substantial discounts on the original asking prices. Nine apartments are now being offered for between $499,000 and $905,000, but most were sold at a discount of 5-10% for an average price of $7,350 per square meter. Some apartments have been on the market for over a year. The price for a top-floor apartment was reduced from $1.05 million in June to $920,000 in August, but has still not yet found a buyer.


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    13 Comments
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    ubet
    ubet
    15 years ago

    Isnt Boymlgreen the owner of LibertyPoint bank? I heard he has tons of real estate all over NYC. I was hoping that he wouldnt be effected by the downfall of real estate, but I guess nobody is immune. Just goes to show Hashem is THE BOSS!

    BP Citizen
    BP Citizen
    15 years ago

    It’s interesting how the human mind will understand the concept of property values appreciating, but is having trouble to comprehend that property values are now declining, personally I hope property values will go back to 2003-2004 levels they have reached the sky in those years, and then started forming the bubble.
    Every single one of us, has the right to own a property, property ownership is not just for the wealthy.

    I’m 30 years old, and would like to purchase a property for myself with a 30 year mortgage, so I can retire when I’m 60 and be rent free….

    Anonymous
    Anonymous
    15 years ago

    and if we ever forget who runs the world, Hashem reminds us!

    Anonymous
    Anonymous
    15 years ago

    It is very sad that so many yidden are so hurt by the economic crisis, but it is even sadder to see so much ignorance amongst people in this country in understand the simple historically proven rules of property values.

    elter zeide
    elter zeide
    15 years ago

    #3. most likly it will fall lower than 2003 level.

    monseyer
    monseyer
    15 years ago

    same with Fisher; a very famous and rich investor from Israel, who purchased a 19 million $ lot in Monsey (Bates-Horton) and invested millions to build it all up, for apartments for “heimish yidden”. They are beautifully built up, but mostly standing empty. there are no buyers. it looks scary.

    They also have a huge competition from a smiler project in Spring Valley, (Widman Ct.) But the (pupa) investors on that place had those vacant lot for years, so its not such a loss for them, and it attracts more people, because it is more in the area.

    Anonymous
    Anonymous
    15 years ago

    Most of the developers are not even trying to sell the condo’s cheaper and get as much as they can,
    It might be 2 reasons
    1) Because even for cheaper there are NO buyers. And if there is already a buyer, in these days mostly can NOT get a mortgage and they have to breach the contract.(So they are loosing time/money)

    2) Because the rent is still high enough that it pays for the developer to rent it for a wile and hope that the price will go up and the credit crunch will ease. So they are just buying time instead of loosing it all, BUT this is only good for these developers that are able to get a regular loan and get rid of the big fat interest construction loan, because most times the rent can NOT cover the interest of the construction loan,
    Der bashefer zull uphiten if you can not do 1 of the 2 things, you are in big trouble.

    I think we can say that about 25% to 30% of the jewish population in New York and New Jersey are in the housing industry,(mortgage brokers, property brokers, rental Broker, developers, contractors, and all type of subs, like framing plumbing trimming,Etc.) in the last couple of years you could of build a whole big project with hiemish jewish subcontractors only. and with this matzev 50% of the people will have to look for new jobs.
    Zull Der Eibishter Helfen.

    Anonymous
    Anonymous
    15 years ago

    Most of the developers are not even trying to sell the condo’s cheaper and get as much as they can,
    It might be 2 reasons
    1) Because even for cheaper there are NO buyers. And if there is already a buyer, in these days mostly can NOT get a mortgage and they have to breach the contract.(So they are loosing time/money)

    2) Because the rent is still high enough that it pays for the developer to rent it for a wile and hope that the price will go up and the credit crunch will ease. So they are just buying time instead of loosing it all, BUT this is only good for these developers that are able to get a regular loan and get rid of the big fat interest construction loan, because most times the rent can NOT cover the interest of the construction loan,
    Der bashefer zull uphiten if you can not do 1 of the 2 things, you are in big trouble.

    I think we can say that about 25% to 30% of the jewish population in New York and New Jersey are in the housing industry,(mortgage brokers, property brokers, rental Broker, developers, contractors, and all type of subs, like framing plumbing trimming,Etc.) in the last couple of years you could of build a whole big project with hiemish jewish subcontractors only. and with this matzev 50% of the people will have to look for new jobs.
    Zull Der Eibishter Helfen.

    Anonymous
    Anonymous
    15 years ago

    when you are in Boro Park on a Sunday afternoon on 13th ave, you sure don’t feel like there is an economic crisis???? BH i guess it hasn’t hit yet.

    Anonymous
    Anonymous
    15 years ago

    To #11
    The recession is only coming after the Credit Crunch, which is resulting the housing crises, and if all the yiden that are in the housing industry are suffering it can chas veshulem hit 13th Ave very fast, the tzeduka organizations are feeling it already very much.