Williamsburg developer holds out for buyers
February 10, 2009 04:40PM By Jovana Rizzo
The Edge
The Northside Piers condominium is slashing prices to bring in buyers and clear out excess inventory, but another Williamsburg waterfront developer is holding out.
"You don't bid against yourself," developer Jeff Levine told The Real Deal after the Brooklyn Real Estate Roundtable today, saying that even though he has not sold that many units at the Edge since Lehman Brothers collapsed, he has no intention of lowering prices or adding incentives like rent-to-own, as the Northside Piers has done. Prices at the 575-unit Edge, which is made up of two buildings at 34 North 7th Street and 22 North 6th Street, are about $900 per square foot.
Levine said earlier today at the roundtable, held at the Brooklyn Historical Society, that he expects the market to turn up by the time the Edge is completed in the fourth quarter of this year, and that is when people will start buying again.
Not all roundtable attendees were so optimistic, however. Michael O'Brien, CEO and director of industrial sales and leasing at M.C. O'Brien, said he thinks it will take four years for the market to improve.
Both Levine and Don Capoccia, developer of the Toren in Downtown Brooklyn, said that while people are more hesitant about buying, the important thing is that potential buyers are still out looking. Both developers said they had strong showings at open houses last weekend with between 20 and 30 people, and both have partnered with lenders Wells Fargo and Chase Home Mortgages to assist potential buyers with financing.
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Comments
Anonymous
Hey Jeff, please let me know what magical event will occur in the fourth quarter of this year that will suddenly compel people to buy overpriced condos in Brooklyn again. Pray tell.
Comment #1 Posted By: Anonymous 02/10/09
Anonymous
wow what a serious case of delusion.
Comment #2 Posted By: Anonymous 02/10/09
Anonymous
They are beautiful buildings and right on the water with great views. He can definitely lower his price by half per foot. I am sure he will have wholesale buyers sweeping up properties.
Comment #3 Posted By: Anonymous 02/10/09
Anonymous
I happened to attend the Brooklyn Roundtable and listened intently to developers speaking their mind! Unfortunately reality has yet to sink into these peoples minds and follow the realistic approach taken by toll brothers this morning by SLASHING PRICES....!
Comment #4 Posted By: Anonymous 02/10/09
Anonymous
Different developers have different breaking points. His loan will run out. He will slice like everyone else.
Comment #5 Posted By: Anonymous 02/10/09
Anonymous
Toll Bros. are a public traded company and have to support the bottom line to shareholders. They are making a necessary move and they most likely will entertain offers to make a sale. As for Jeff Levine, he must have deep pockets to hold his top price. Buyers (so few) will start to look at coming back to Manhattan as prices continue to soften. They will leave Brooklyn behind and the Edge.
Comment #6 Posted By: Anonymous 02/10/09
Anonymous
toll brothers ! - SHORT THE STOCK !
Comment #7 Posted By: Anonymous 02/10/09
Anonymous
whats the average contruction/bridge loan for these projects ? 5 years ? Either the Edge will slash prices or the next owner- the bank- will . Im waiting to buy from the bank
Comment #8 Posted By: Anonymous 02/11/09
Anonymous
He's just shooing the reporter away. He'll lower prices. He just can't drop the prices on all of his properties simultaneously- it undermines his own position if he does. That's what "you just don't bid against yourself" means.
Comment #9 Posted By: Anonymous 02/11/09
Anonymous
if he does not slash prices he will have to wait for Northside Piers to sell their lower priced units before he can start selling any of his. or maybe he is just attempting to price fix the Wburg market.
Comment #10 Posted By: Anonymous 02/11/09
Anonymous
Anyone familiar with the EDGE knows that its head and shoulders above any other residential property out there. The amenities, views and finishes at the EDGE are attracting what buyers are out there who are looking seriously. The one thing that can be said, however, is that Manhattan's brokerage community thinks the East River is really the Atlantic Ocean. Unfortunately, they rarely want to venture forth. The retail component is awesome. Yes, timing is everything, but making arm-chair comments, like those above, is only wishful thinking on the part of a small group. Jeffrey Levine is a smart guy with a stellar reputation. And he has "brass balls."
Comment #11 Posted By: Anonymous 02/12/09
Anonymous
To Mr. Levine: There is always the option of renting the units to Section 8 and other city programs. Good luck with $900/sq ft!
Comment #12 Posted By: Anonymous 02/15/09
Anonymous
I want to snort what he is snorting. Levine said earlier today at the roundtable, held at the Brooklyn Historical Society, that he expects the market to turn up by the time the Edge is completed in the fourth quarter of this year, and that is when people will start buying again.
Comment #13 Posted By: Anonymous 03/06/09
Anonymous
I spoke to the people at the Edge office a few times and keep getting different answers concerning how many units were actually sold. So many of the larger condo developments in Williamsburg have gone rental. Its a really big chance to take if considering buying one of these over priced units. I heard they have an iron clad non-refundable deposit return that they plan on enforcing. Its pretty sad with the economy the way it is, that so many peoples financial situations have changed and will be screwed out of their deposits. I hope the Edge can sleep at night.
Comment #14 Posted By: Anonymous 02/07/10