Warehouse 11

A U.S. Bankruptcy Court judge rejected on Friday a settlement agreement
that would have extended until next month the deadline for the
developers of Williamsburg’s Warehouse 11 to buy the property’s
discounted debt from lender Capital One. Under the original agreement, which still stands unless an appeal next
week is successful, the developers had until Dec. 21 to find an outside
investor who would purchase the $50.8 million note at an undisclosed
discount. Otherwise, Capital One could resume shopping it to an outside
party. The 120-unit condominium at North 11th and Roebling streets appears to
be the most valuable asset one of the developers, Isack Rosenberg, has
an interest in out of at least six under siege by 10 creditors in
Brooklyn’s bankruptcy court. Rosenberg had hoped to use any profits from selling the condos toward
settling his other debts, which have as collateral a lumberyard and
adjacent warehouse on Kent Avenue; the rental portion of Olive Park in
Williamsburg; a banquet hall on Flushing Avenue; and a home renovations
center in Boro Park. [more]

From left: 360 Smith Street, 73 Pineapple Street, 303 East 51st Street, Beekman Tower and 189 Schermerhorn Street

From the February issue:Hundreds of dormant construction sites still dot the city, but a
handful of these beleaguered projects are finally seeing new life –
even if it’s not what was once dreamed of for the location. Those that
have seen some type of resolution were able to do so by selling off
their debt at steep discounts, slimming their construction costs or
setting their sights way lower.
This month, The Real Deal tracked down 20 stalled projects
that have seen some type of resolution within the past several months
(see chart after the jump).  [more] [more]

David Maundrell, founder and president of Aptsandlofts.com, and Warehouse 11 at 214 North 11th Street

It may be a race against the clock at Warehouse 11, the Karl Fischer-designed condominium at 214 North 11th Street in Williamsburg, where nearly 60 contracts have been signed in the last two weeks, at less than $600 per square foot, according to Apartmentsandlofts.com, which is handling sales for the building. A spokesperson for Apartmentsandlofts.com said the price slashing is due to market conditions, but a source with knowledge of the situation said the fire sale marks an effort to ratchet up cash before a lender-imposed March 31 cut off date. Developer McCaren Park Mews LLC initially faced a Dec. 21, 2009 deadline to buy back the debt, according to bankruptcy filings. But, the developer had been “able to renegotiate terms with the bank,” the spokesperson said, and extend the closing deadline to March. The offering plan attorney, Abe Lowy, confirmed that there was a deadline extension on a bank-developer agreement but would not elaborate on the terms of the agreement. [more]

The year 2009 was a trying time to be a real estate broker, developer or investor, but it never lacked for news. In the aftermath of the financial crisis, the industry watched in awe — and sometimes horror — as residential sales ground to a virtual halt, condo projects stopped in their tracks, office rents shrank and retail stores disappeared. Buyers at buildings like 22 Renwick sued to get out of their contracts, and some were granted the opportunity to back out of their contracts. Meanwhile, an amazing cast of characters — from Kent Swig to Harry Macklowe to Lev Leviev — publicly fought for survival. There were also glimmers of hope, from the opening of the High Line in June to the expansion of Halstead Property into Connecticut to the sale of Former Lehman Brothers CEO Dick Fuld’s sale 16-room co-op apartment at 640 Park Avenue for $25.87 million, almost $5 million more than he bought it for two years ago. Click here to see The Real Deal staff’s picks for the stories that most altered the New York City real estate landscape in 2009. [more]

The rules of the game have changed for an investor to obtain mortgage
financing, according to the majority of the 12 lenders who participated
at the New York Real Estate Summit I hosted last month. Forget deals with project rent growth assumptions; the only way a bank
or insurance company is going to lend money is with hard facts.
Transactions must show the hard realities of today. Gino Martocci, a senior vice president at M&T Bank, made a comment
that was echoed by all of the traditional lenders on the panel: “We are
lending to our best customers, customers who have worked with the bank
for years, who have a strong financial statement and the capability to
support a loan even in the worst of times.” Wendy Silverstein, executive vice president at Vornado Realty Trust,
noted: “The larger the loan size, the harder it is to get it financed.” [more]