The Real Deal New York

Warehouse 11 races against clock

By Amy Tennery | January 29, 2010 06:46PM

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 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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