The Real Deal New York

Buyers at the Edge want refunds, claim sponsor violated ILSA

December 02, 2010 06:12PM


From left: Adam Leitman Bailey, the Edge and its developer, Jeffrey Levine of Douglaston Development
At least nine apartment buyers, represented by attorney Adam Leitman Bailey, are now trying to back out of their contracts at the Edge, a 575-unit condominium at 22 North 6th Street on the Williamsburg waterfront. Bailey, who just won a similar case at the Brompton on the Upper East Side, is using the Interstate Land Sales Full Disclosure Act to fight for his clients, Curbed first reported.

“Our client purchasers at the Edge are entitled to a full refund of their deposit and to rescission of their purchase agreements,” Bailey said in a statement. He noted that since the agreements “do not contain a description of the property in recordable form,” they are in violation of ILSA. Bailey accused the sponsor of “materially and deceptively [altering] the budget and services represented in the offering plan” for the first year of operation. “A number of our clients want to still purchase in the building but the developer’s attorney refuses to participate in any meaningful discussions,” Bailey added.

If the sponsor doesn’t comply, the buyers — who claim they’re entitled to the return of their deposits, which range from $79,000 to $143,750 — are threatening to sue. “It is not reasonable to expect a well-run building in New York City to not incur these types of costs,” the buyers’ letter to the sponsor said. 

The developer, Jeffrey Levine’s Douglaston Development said the allegations were “baseless and without merit,” and were just an attempt to extract concessions. “The Edge provides the highest level of service and amenities, and already has closed 88 units with more than 100 additional homes scheduled to close,” Douglaston said in a statement. “We pride ourselves in constructing first-class buildings and providing first-class service to our residents.” TRD

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