Prices slashed at William Beaver House

January 07, 2011 09:26AM

Developer Tamir Sapir and the William Beaver House

The distressed sale of the unsold apartments in William Beaver House — a 47-story Andre Balazs-designed condominium in the Financial District that was just bailed out by the CIM Group — has led to a sharp drop in asking prices and refunds for potential buyers, the Wall Street Journal reported. CIM took control of 209 unsold units at the William Street condo and has now filed an amendment to the offering plan cutting combined asking prices by $91.8 million. CIM also indicated they might rent out some or all of the units, as The Real Deal reported. The filing highlights how distress can sometimes lead to lower prices and the possibility of new opportunities for buyers. In this case, CIM purchased $66 million in debt at a discount from a fund controlled by the Blackstone Group. It then took title to the unsold units as part of a deal in which it helped bail out Tamir Sapir, developer of William Beaver House. Asking prices on many units are being cut by 21.5 percent, according to documents filed with the attorney general. [WSJ]