Giant DUMBO Headache for Sale

1.

That was my apartment until a week ago. Same price we were going to pay. Yes, we were promised deep discounts, but then promptly ignored. The Boymelgreen rep stopped returning our calls around December. Prior to that it was, "Just one more month! Maybe two. OK, once this amendment gets filed, one more month!"

I think the scenario is pretty obvious. At the end of the day, a windowless apartment that you'll never move into isn't worth much, even if you got a great price per square foot. I hope it works out for everyone else.

2.

There are two other problems with the unit.

The "Study" has been fitted with "permanent" shelving around the room, so as to make it conform to its non-bedroom status, the closet has also been removed and replaced with shelving.

But the bigger issue is the tax abatement status. Basically, its unlikely they will get their J51 abatement, the rezoning of the one bedroom units to studios causes not enough bedrooms in the development to qualify. The taxes on unit 203 went up around $750 without the abatement.

How are you going to resell a unit in brooklyn with those kind of taxes?

3.

buyers in that bldg will never be allowed to move in.

4.

why won't buyers be allowed to move in?

there's obviously some story behind this and i'd love to know it!

interesting about the tax abatement status changing.

looks like walentas really stuck it to boymelgreen. nothing like the passover spirit...

5.

The better question #2 is why would anyone, even with an abatement, buy a condo where you know that at some point in the not so distant future taxes will go up so much. I think that a good portion of the condos that are being sold now with abatements will see their values fall because taxes will increase by huge amounts. Some owners will also have touble paying their tax bill.

6.

#5 i would not classify 10-15 year tax abatements as "not so distant future".

what i am curious about is the possible 421a reform this fall, any thoughts as to how it will effect building under construction that have not applied?

7.

#5 - I live in another dumbo building and we are waiting for our tax abatement to kick in. It isn't very high without the abatement at all. I still like people should stear clear of 57 front, which is a shame because it would have been a nice buidling.

8.

people have been in contract since january '05. do they have a closing date yet? No! my guess is they move in for december given walentas interference and amendments that still need approval.

9.

Bottom line is, resale would be a nightmare, even with DUMBO's current inflation. And, this is the lowest price unit in this line.

There was a rumor that they were going to combine units to make less studio apartments in order to get the tax abatement. I don't see how this is possible with so many people still in contract for existing units. It kind of seems like Boymelgreen is hoping this whole mess will just go away.

10.

Every time I read about the travails of the poor owners of 57 Front, I thank my lucky stars - it was one of very few buildings available in Dumbo when I started my househunt last January, and I would have seriously considered it if any apartments had been left in my price range! At the time, only two apartments were unsold - a studio with a weird long skinny room off to one side and a rather pricey one-bedroom which may have been in that disputed line.

Even before all these issues came up, that 1BR apt only got light through the corner window in the living room; the then-bedroom was pretty close to pitch black even on a sunny afternoon, and it was priced at well over $800K. Plus, the small number of apartments and high amenities led to comparatively high common charges, and if they don't get the tax abatement I could easily see these now-studios end up with carrying charges of well over $1500/month, not counting mortgage.

With all the problems in this building these apartments are no bargain at their current prices, and now there are plenty more choices (Beacon Tower, J Condo, 70 Washington, etc.). It amazes me that any of the owners have held their ground, since any lawsuits are sure to become a burden after they take residence and form a board. Hopefully all of them were offered a chance to get their money back and are staying only by choice?

11.

eeeck, you're referring to the 04 line, and i (like set speed) was referring to the 03 line. The higher floors of both lines have city views. Both lines are affected by the easement issue.

12.

It is very obvious that jennie is a hurt and bitter ex-apartment 'owner' at 57 front. Jennie...it's time to move on, get a life, spend more time with your husband, and stop ranting about your horrible traumatic experience with NY real estate and the 'evil' Boymelgreen.

13.

It is very obvious that jennie is a hurt and bitter ex-apartment 'owner' at 57 front. Jennie...it's time to move on, get a life, spend more time with your husband, and stop ranting about your horrible traumatic experience with NY real estate and the 'evil' Boymelgreen.

14.

oops

15.

oops..........just kidding

16.

I actually wanted to thank jennie for providing some real-world intel on this hot subject; under the circumstances I think you've kept your cool to a surprising degree! Sure, there are greater tragedies in the world today but to have a huge sum of money tied up and not know where you're going to be living for over a year is still pretty stressful for anyone.

17.

Jennie made a very vague and fair statement regarding the transaction that occurred here. My guess is "tired of jennie" is a broker or Boymelgreen employee. It seems Jennie wasn't making any point (other than wishing others well), than stating facts.

Its interesting to me that people are "tired of Jennie" but not "tired of Bryan" who gave a much more disaproving statement about the transaction.

I will be interested to see if/when these close, and, what they end up flipping them for in the next couple of years.

I just cant see sinking all of that money into interest, maintainance, and taxes (all out of pocket costs) when you can rent for that amount and invest eleswhere.

I am not an anti-realestate troll, however, with this market being so inflated you have to really weigh the cost/benefits of renting vs purchasing. Especially if you are smart about your money with other investments.

18.

I'm currently in contract for a new development and the wait is torture, so I can only imagine what the 57 Front buyers are going through. If I had to wait a year, only to find out that my closing was delayed for almost another year... I think I would go nuts. The purchase and wait are somewhat emotional(you've been fantasizing about what to do with your place, how much you love the neighborhood...) it's not so easy to walk away.

I feel for you Jennie... I hope you find another place that you love soon...

19.

I feel for you too, jennie. You just backed the wrong horse. If you and brian didn't have the wisdom or cojones to make the right choice, why should we feel bad for you. It's new york....survival of the fittest.

20.

People,

There is no reason to get so personal here! This is a real estate blog and the purpose should be to exchange information not to say mean things about whoever has posted. New York real estate can be a mean, and often dishonest world and bad things happen to nice, smart people all the time. OFten sll that separates those who have been scr##ed from those who have not, is luck.

21.

M,

thanks, your post is right on.

22.

honestly, i keep telling people to stop feeling sorry for me. real estate in this town is a risky business. this whole affair was a learning experience for me. i truly believe that this was not meant to be for me and my husband, and i really hope it works out for the other buyers at 57 front.

i don't blame anyone, though my lawyer says boymelgreen knew exactly what they were doing, and cutting corners. i don't know about all that. end of the day, the deal is shitty and i had to move on.

23.

#19, if 70 Wash is full of people like you, then THAT's a shitty deal.