Dwightchase, Other/Just Looking in 11225

What happens if a condo developer is unable to sell all/most of the units?

Asked by Dwightchase, 11225 Mon Jan 26, 2009

What happens to the unfortunate few that did buy early?

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3
David Rogoff…, , Brooklyn, NY
Wed Feb 24, 2010
Dwight,

Financial institutions will have different lending guidelines for condos. Usually a miminum of 51% of the units must be sold before they will lend.

Developers will rent or rent or offer rent with option to buy for units that remain unsold. Some examples of this can be found on Emmons Avenue in Sheepshead Bay.

Bonnie Chernin & David Rogoff
Coldwell Banker Mid Plaza Real Estate
Cell: 917-593-4068
E-mail: david@BestHomesInBrooklyn.com
0 votes
Elaine Cooper, Agent, Brooklyn, NY
Mon Jan 26, 2009
If a condo developer is unable to sell enough units quickly enough to cover their construction costs, they will often convert the unsold apartments (or the entire development) into rental units. For example, The new development at 375 Myrtle Avenue in Fort Greene sold very few units so it converted to a rental. Go here for more info --> http://www.brownstoner.com/brownstoner/archives/2008/10/the_…
0 votes
Everett Perry, Agent, Fresh Meadows, NY
Mon Jan 26, 2009
Essentially, he just became a landlord

if he cant sell then the condo developer can rent them out until he market improves. This will be common place in overbuilt area like Williamsburg, Brooklyn. The developers specing on the $1000 a sq/ft "luxury" construction and now proud owners of "luxury" rental units.
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