Warehouse 11 races against clock
January 29, 2010 06:45PM By Amy Tennery
David Maundrell, founder and president of Aptsandlofts.com, and Warehouse 11 at 214 North 11th Street
A spokesperson for Aptsandlofts.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.
Last year, the total debt was approximately $50 million, bankruptcy filings show. Capital One, which holds the note on the building, is willing to accept a reduced price, according to the documents. The source says that the bank is willing to sell the note for around $30 million since offers are coming in around that price. Capital One was not immediately available for comment.
The 120-unit condominium hit the market in November 2007 with asking prices of $770 per square foot, according to the Apartmentsandlofts.com spokesperson, but only 30 percent, or 36 units, were in contract before foreclosure proceedings began in early 2009.
About six or seven months ago, Capital One, reportedly kicked off the foreclosure process and Massey Knakal Realty Services began marketing the note. Robert Knakal, chairman of Massey Knakal, was not immediately available for comment.
Sales at Warehouse 11 resumed two weeks ago, after the building was taken off the market in January 2009 because sales were slow, the Apartmentsandlofts.com spokesperson said.
"Apartmentsandlofts.com's re-launch of sales at Warehouse 11 this month has generated an enormous amount of interest and multiple offers averaging nearly $600 [per square foot]," according to a statement from David Maundrell, Apartmentsandlofts' president and founder.
In addition to the discounted prices, the building is covering real property transfer taxes for buyers signing contracts within three business days after an offer is accepted, the Apartmentsandlofts.com spokesperson said.
With additional reporting provided by Adam Pincus.
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Comments
Anonymous
Cookie cutter at a low price is well worth it! Grab em' up!
Comment #1 Posted By: Anonymous 01/29/10
Anonymous
whatever's left on deadline day goes rental. Welcome to the new reality.
Comment #2 Posted By: Anonymous 01/29/10
Anonymous
I am quite frankly stunned by these projects. Having grown up in the neighborhood only to leave for the bulk of the 90s, to come back again during this ridiculous time, I am amused and saddened for the sucker. Also, the design makes no sense for the area, all of these dumb cookie cutter, on the cheap made buildings. Karl Fischer's name is a smoke screen and irrelevant anyways, because some of us Know the area around 11th is heavily polluted. And fairly near the cancer cluster just north of it. Oil Building, no kidding... the fools. What a gamble in high heels.
Comment #3 Posted By: Anonymous 01/29/10
Anonymous
Price slashing is due to market conditions? Then why are the rest of this company's projects not priced the same? It's clear that these units have been reduced because they have to be. I feel bad for anyone buying here. I feel even worse for the hard working sales agents who will likely not get paid.
Comment #4 Posted By: Anonymous 01/29/10
Anonymous
You got to be in it to win it! Risk always involved on bargins, but the upside is greater then down. I see minimum risk here. Over 60 contracts signed in two weeks! I'll take my chances with those odds any day. Buy, Buy, Buy!
Comment #5 Posted By: Anonymous 01/29/10
Matthew
I came upon this article randomly..thank god it allows me as a buyer of this building credibility coming from Tribeca and seeing a project that is well made with quality product and most of all, location! I’m sure there will be pros & cons considering in our world some like the impression of having the last word, however, those that write anything negative must have dealt with past frustrations that do not justify the present
Comment #6 Posted By: Matthew 01/29/10
Anonymous
#5 - you gotta be kidding me! Actually, not being in it is often winning, like, say, the last 3 years. But you're a broker so you know that.... Matthew: please rewrite your post in english. Thanks.
Comment #7 Posted By: Anonymous 01/29/10
Anonymous
#7-Not a broker, but I wish I was selling at this prices! Actually looking to buy there. Seeing a place over the weekend. I'll let you know how it goes. Last 3 years (when they started) was the high, now the low. Any person with business sense knows that NOW is the time to buy. Numbers don't lie, you can rent the place out for the mortage if you do the math and research per square foot. That's in this economy, imagine in 4-5 years.........
Comment #8 Posted By: Anonymous 01/29/10
Anonymous
This is completely insane. NYS condo laws need to change. We need to improve lender disclosure requirements.
Comment #9 Posted By: Anonymous 01/30/10
Anonymous
Who says now is the low? We could be years and years from a low. No one can predict the future.
Comment #10 Posted By: Anonymous 01/30/10
Anonymous
If prices have barely started to adjust across the country then that means that even if NYC is always late to the downturn, things couldn't possibly go any lower than $500 per foot. I think $500 a foot is a good start for W'burg and in some developments possibly 10% less, but I can't imagine any lower. Warehouse 11 is not an impressive development and if they can move that many units, that's a good sign for places like the Edge and One Brooklyn.
Comment #11 Posted By: Anonymous 01/30/10
Anonymous
#11 The article says they are selling blended at $600 psf. SO WHT ARE YOU TALKING ABOUT?
Comment #12 Posted By: Anonymous 01/30/10
Anonymous
All of you should re-read comment #3...Do you want to live next to or IN a Cancer cluster? Pollution is not a selling point where I stand. Stop with the stupidity please. This project is NOT quality (Yes, I checked it our, as I do all developments...) and is NOT in a good area...but HEY, IT'S CHEAP! Fools! Buy now and you deserve what you get in the future. THERE ARE BETTER DEALS OUT THERE!!!! This is relatively cheap for MANY reasons!
Comment #13 Posted By: Anonymous 01/30/10
Anonymous
This building is mentioned in tomorrow's (1/31) Times real estate article.
Comment #14 Posted By: Anonymous 01/30/10
Anonymous
I wonder how much the developer is paying the broker for this b.s.?
Comment #15 Posted By: Anonymous 01/30/10
Anonymous
Cancer Stick Anyone?
Comment #16 Posted By: Anonymous 01/30/10
Anonymous
Its interesting to watch how brokers from other projects that R really pissed at w11 for brining down prices! Therefore these brokers will scream anything it come under their tongue, I was visiting the building last week all I can say is that I am impressed!
Comment #17 Posted By: Anonymous 01/30/10
Anonymous
Knakal unavailable ? Now that's a story !
Comment #18 Posted By: Anonymous 01/31/10
Anonymous
@18 don't hate on knakal
Comment #19 Posted By: Anonymous 01/31/10
Anonymous
Good job Real Deal for scooping this story long before the NYT did. You guys rock.
Comment #20 Posted By: Anonymous 01/31/10
Ashton
They think they know Brooklyn? So funny. I guess that's why Warehouse11 was so successful the first time around!
Comment #21 Posted By: Ashton 01/31/10
Anonymous
Went to the open house and loved it! The building needs some finishing touches, but nothing serious. Noticed prices slightly higher then from the grand re-opening, but nothing drastic. I'm assuming that's due to it being half sold (in contract). With that and them applying from FHA in the months to come, I see minimal risk. I'm making an offer tomorrow (hopefully they accept). How could you not want to live in a building 3 blocks from the subway, around the corner of McCarren Park and with a yoga garden in your back yard! LOL. Oh, I researched this whole cancer stick/oil spill. Bottom line they hit a already leaking pipe and DEP came, cleaned it up, tested the entire area and gave it there stamp of approval. How many developments do you know were tested and cleared to that extent? It's all public record, see for yourself.
Comment #22 Posted By: Anonymous 01/31/10
Anonymous
Williamsburg is not so hip anymore. Get real!...the real price for the neighborhood which is gentrifying $350 per sf. I passed by the location the other day and it looks deserted.
Comment #23 Posted By: Anonymous 01/31/10
Anonymous
Did this developer steal appliances from the building during the construction halt? I heard there is an article making that claim. Does anyone have it? Also heard that the structure was left open to the elements for months and that that is a very bad sign. Is that true? Any of you brokers posting here know anything about that (that you will be honest and open enough to share)? Thanks.
Comment #24 Posted By: Anonymous 01/31/10
Anonymous
knakal is more overexposed than trump. if he wouldnt speak to a reporter its cuz he cant crow about himself. this "note sale" is like 87% of his listings unsold.
Comment #25 Posted By: Anonymous 02/01/10
stoneface
anybody have info (GOOD/BAD) on M- Knakal representing a mixed use seller ( 3 fam+office/store)
Comment #26 Posted By: stoneface 02/01/10
Anonymous
Having looked for months and bought a unit here, i would love to see where the "better deals" are for nearly 700 square foot one bedrooms in a building with a gym, 24/hour concierge, rooftop deck, etc. for less than 400K. Yes, it didn't selll at market inflated prices in 2007 but now with more realistic prices and having researching the oil spill (clean-up and inspection docs are provided with the offering) I'm not worri
Comment #27 Posted By: Anonymous 02/01/10
Anonymous
Having looked for months and bought a unit here, i would love to see where the "better deals" are for nearly 700 square foot one bedrooms in a building with a gym, 24/hour concierge, rooftop deck, etc. for less than 400K. Yes, it didn't selll at market inflated prices in 2007 but now with more realistic prices and having researching the oil spill (clean-up and inspection docs are provided with the offering) I'm not worried
Comment #28 Posted By: Anonymous 02/01/10
Anonymous
Does anyone think the common charges in this building are estimated too low? $315 a month for a 1bedroom with heat,hot water,gas, doorman, 2 elevators and fitness center in a 120 unit building. It seems to low. What should it be?
Comment #29 Posted By: Anonymous 02/01/10
Anonymous
StoneFace: for superior service at MK call Mr Knakal directly at 212-696-2500 and he will assign your business to the agent best qualified to service it.
Comment #30 Posted By: Anonymous 02/01/10
Anonymous
29- I was thinking the same, but the 2 beds are paying around $500 or so. A doorman gets paid the same amount whether it's a 10, 60 or 120 unit building. The common area's would need one or two extra at most. So basically the maintenance crew would work, unlike other developments, LOL.
Comment #31 Posted By: Anonymous 02/02/10
Purchaser
I'm puchasing a unit in Warehouse 11 and had these concerns as well. The common charges are reviewed and approved by the Budget Certification Company and the Attorney General of NYS. They had them add a 10% reserve into the budget which most buildings don’t have. Don't take it the wrong way, but most of us (all) are not experts at budgets and costs of operating a 120 unit building so you got to realize that. As for the mold, as a precaution since it was a big concern, the sponsor has warrantied the property against any issues pertaining to mold. There has been and is no water in the basement. Bottom line is go look for yourself, before you believe what other people write (I did). I don't think there would be 60 or so contracts signed if that were the case (to include myself). Hope this helped.
Comment #32 Posted By: Purchaser 02/03/10
Anonymous
if they have a 10% reserve in the budget then why are they requiring all buyers to pay $1000+ into a condo operating fund!?!?
Comment #33 Posted By: Anonymous 02/05/10
Anonymous
Is anyone aware that Ross Weinstein, managing partner at Union Square Mortgage, also works for aptsandlofts? Union Square Mortgage is the sponsor's only approved mortgage lender for Warehouse 11. Am I the only person who realizes this disturbing conflict of interest?
Comment #34 Posted By: Anonymous 02/22/10
Anonymous
Warehouse 11 -- Caveat Emptor (let the buyer beware!)
Comment #35 Posted By: Anonymous 02/22/10
Anonymous
I signed for a contract in that building and now after i gave 40K deposit i cant close because they are not ready i am really worried what will happen with my money Their lawyer issued a closing note 30 days after i notified my landlord that i am leaving they notofied me that i cant close, can i sue them?
Comment #36 Posted By: Anonymous 05/06/10