Jamestown invests in SDS Procida's troubled be@Schermerhorn
November 11, 2009 02:00PM By Amy Tennery
Matt Bronfman, COO of Jamestown Properties and be@Schermerhorn
The building, which is between Smith and Hoyt streets, will definitely be going condo, not rental, according to the spokesperson, despite speculation otherwise. The Real Deal reported in its November issue that the condo's sales figures were lagging, while other media outlets reported this month that the development was 90 percent vacant.
"We are committed to the Brooklyn market," Matt Bronfman, COO of Jamestown Properties, said in a statement released today. "We believe our ability as a highly liquid investment company, coupled with the seasoned market knowledge of SDS Procida, will deliver a successful project."
The two parties involved have agreed to not publicly discuss the financial details of the mortgage purchase, according to a shared spokesperson for Jamestown and SDS Procida. Jamestown reportedly leapt at the opportunity to invest in the Schermerhorn development, the spokesperson said, and is "looking for more opportunities like this" for future investment.
In the statement released today, Louis Greco, a principal with SDS Procida, said that he was delighted to resume development on the project.
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Comments
Anonymous
This is going to be comedic. I love when out of town players come to NYC and spent their money. More times than not they go home empty handed.
Comment #1 Posted By: Anonymous 11/11/09
Anonymous
this will work out fine....he will look like a genius snagging this at the right time
Comment #2 Posted By: Anonymous 11/11/09
Anonymous
I wonder which downtown condo building will be snagged next?
Comment #3 Posted By: Anonymous 11/11/09
Anonymous
#1 - This is SPIN. They are already in-town. In fact they already own this project. This is not a genius distressed investment, this is Jamestown kicking in a boat load of extra cash to protect their already over-levered investment. They may make it out ok but they have not pulled a rabbit out of a hat here. Another lesson in why you should ALWAYS trust what you read on the internet.
Comment #4 Posted By: Anonymous 11/11/09
Anonymous
Have to get CASH from somewhere-Banks are not lending it, particularly on development in a over saturated BK market. Still Hedging- NEVER GOING TO LEARN- Better rework projections for a rental project, fill it, default on mortgage and this property will be on market in 3 years at 50% discount. Then I BUY!
Comment #5 Posted By: Anonymous 11/12/09
Anonymous
Most developers are suffering, smart move to sell to bigger fish who can deal with the heat in this market. This is not a first class building and the location is average. They will sell the condos at discount rates or rent them out. The prices were too high for this market, remember location always sells and this was not the case.
Comment #6 Posted By: Anonymous 11/12/09
Anonymous
Jamestown is not new to NYC - they have several class A office properties. In fact, they sold some assets at the peak so I'd say they are pretty savvy
Comment #7 Posted By: Anonymous 11/13/09