Bubble Wrap: April 2009

Developers press on with big plans

While other developers may be scrapping their projects, Crains reports on Two Trees Management and their ambitious plans in Hell’s Kitchen and DUMBO. With plenty of cash, and expectations to push through zoning changes, David and Jed Walentas could continue their run of successful developments.

It’s also not the first time the Walentases defied common wisdom. To date, they have sunk more than $100 million into the Clinton Park project, which they predict will be a cash cow for them for years to come. In fact, they are off to a surprisingly good start. Last year, Mercedes-Benz agreed to take 330,000 square feet of space in the roughly 1.2 million-square-foot building. Lining up the loans to construct the building may be harder, though.

The Madoff effect: Brokers get creative to unload property after the scam

In this month’s issue of The Real Deal, sellers and brokers get creative with the techniques they are using to sell property. Among the strategies explored are: sealed bid auctions, short-term rentals, and ditching exclusive contracts.

In the new market, developers in particular found that the first round of incentives they offered to buyers — things like free closing costs, gift certificates, and ‘price protection’ programs — did little to assuage uncertainty. Brokers say that gimmicks don’t work and that good, well-priced properties are now the only gold standard.

Local experts weigh in on market

The Bergen Record invites 3 local experts to comment on the real estate market for the local towns they cover. With so much happening on a national level, buyers and sellers alike are unsure of where the marketing is going, and holding out on making any moves.

“The market is very price-sensitive now, buyers today are looking for value and are worried to overpay,” she said. “Larger inventories give buyers more to choose from, so if they can purchase a house in better condition for that same price, they will.”

To serious buyers, O’Connor suggests they hurry, before the market bottoms out.

Curbed Roundtable: April State O' the Market Report

Curbed has a roundup of the latest market reports that were released this morning. The one thing the reports all have in common is that sales are down drastically, about 50%.

The market appears to be in a holding pattern, with buyers waiting on huge discounts, sellers reluctant to massacre prices, and no deals getting done as a result. Something’s gotta give.