Stalled FiDi developments bounce back, but not all the way

From left: Michael Shvo, 20 Pine Street and 25 Broad StreetStalled condominium developments that suffered during the recession are now
being revived in the Financial District. However, as the neighborhood emerges
from the downturn, the new developments are falling short of previous
expectations, in terms of pricing and design, the Wall Street Journal reported.
The new owners of William Beaver House, for instance, are slashing condo
prices, while the creditors of The Setai Wall Street are selling their defaulted
loan, to help closings resume. The lenders to 25 Broad Street are foreclosing on the
property, paving the way for converting it to rentals. “People in the
Financial District got a little over-ambitious, both in terms of prices and
concepts,” said Frederick Peters, president of Warburg Realty. He noted
that some developers became so obsessed with luxury amenities that they lost
site of such basics as floor plans. But other troubled developments, including two
buildings developed by Africa Israel USA, are doing better. At 20 Pine Street, the
former JPMorgan Chase building, more than 90 percent of the 406 condos are either
closed or in contract, according to Lori Ordover, a consultant to the
developer. Africa Israel’s other project, the District on Fulton Street, recently sold the last of
its 163 condo units, she added. Africa Israel has also brought in Warburg for
20 Pine, to replace broker Michael Shvo. Shvo said his relationship with the 20
Pine developers ended on a previously agreed-upon date, and that he sold condos
there at record prices. [WSJ]