Luxury condo project in Sag Harbor close to obtaining financing

September 30, 2011 04:02PM

Cape Advisors could be able to secure funding for its condominium project at the Bulova Watchcase Factory in Sag Harbor within the next two weeks, the Sag Harbor Express reported.

In addition, the Sag Harbor Village Planning Board has allowed changes to the 2008 plan for the project that was already approved.

The changes include an amendment Cape Advisors’ payment schedule of over $2.5 million to the Sag Harbor Community Housing Trust for the provision of on-site affordable housing. Craig Wood, founder of Cape Advisors, had requested that his firm be able to make payments to the trust in equal increments following the closing sale of each of the 65 units within the condo project.

While board members were hesitant to undercut the creation of the housing trust fund, they did not want to put the Bulova project at risk. Last month, Wood said that after failing to find financing for the project for over two years, changing the affordable housing payment schedule was crucial to move the project forward.

Under the planning board’s resolution, Cape Advisors will be prohibited from transferring each unit’s certificate of occupancy to the new homeowners without making payment. Additionally, the housing money will now be protected by a covenant, which will GO with the land should the firm sell the property, until the full $2.5 million has been paid to the trust.

The Bulova Watchcase Factory restoration and redevelopment project calls for a 65-unit luxury apartment building to be erected in the historic factory building, plus the construction of seven townhouses, which will contain 16 of the total units. A recreation center, with indoor pool, and an underground parking facility is also planned for the project, which cost nearly $100 million to complete. [Sag Harbor Express]