Jasper: New Condo

I went to the opening event yesterday... it was AWESOME! The model apartment is amazing, kitchen appliances are all high end, and the bathroom fixtures are lavish.

lavish... broker alert. condobuyer, btw, did you happen to notice that it is right next to a homeless drop off center?

Jenny, perhaps "lavish" is too generous. I did hear about the homeless center, which is definitely a negative. I'm also looking at www.twenty9th.com. Curious... which is a better buy... Jasper or Twenty9th?

jasper website...can it get any more annoying ?

Pretty annoying and uninformative like most condo websites.

"A sanctuary within a retreat" indeed.

Homeless drop off center? I used to walk past that site every day for years and never even noticed it. Now that you mention it, I know what you are talking about, but were I interested in the Jasper (and I'm not), I wouldn't give it a second thought.

has anyone looked at the jasper here? how would you characterize the pricing and what would you say are good comps?

I meant to reply to this original thread when it started as I went to see the Jasper when it opened and was really excited by it. However...

I was really sold on this before I went however my overall impression having been is pretty neutral. It was all down to the small things really that let the building down in my opinion. For example the show apartment really should be the best possible example of what an apartment at Jasper will be like. The bathroom has a marble worktop and lava stone walls. That's really nice, don't get me wrong, but what's with the fixtures? So you have the lava stone wall, which has the toilet against it, and the wall has this lovely textured grey colour and yet at the top is a white ventilation slot which looks like it's been stuck on. Why isn't this at the very least built into the wall and flush with the stone? Why is it white? Surely it should be grey. The same thing applies to the light switches for the bathroom which look to have been stuck on as well. I know these are minor niggles but the whole sales concept is about the quality of the products used and the finish. Why are they using cheap fixtures here and why is it so badly fitted? The bathroom as a whole felt cold and uninviting and was ruined by the fixtures. The living room is nice however, and the open plan kitchen is probably the best feature in the apartment and comes with some quality components. Again, there are white light switches on a brown wall which stand out and spoil it a bit for me. The windows also are white and I just wasn't a fan of them. Its not that I have something against white, but why are they not made of a nice wood or something? It's unusual that the windows open out fully though - generally a rare feature in Manhattan. For the most part it feels to me that they are just throwing money at the project by using expensive materials for the main features, hiring someone else to put it together, and hoping it all works out. They seem to be ignoring the small details. For example when I visited, at the open, there was no picture of what the rooftop would look like. I don't want to take the chance of buying in an apartment which, for the moment, seems to be ignoring the finer points. Pricing wise it seems competitive with what is around and if they do manage to pull it off then it could be an amazing building but for the moment there is too much of a risk for me that they just can't make it as polished as their website.

I also looked at 29th Park Madison. Jasper, which is only 3 blocks away was around $100-200 per sq. ft cheaper when I was looking. I'm concerned about the kitchen in this development though - I think the fridge may look dated VERY quickly (clean, stainless steel will not date) and I'm also concerned about the oven. I know these are minor niggles but everywhere else has a proper oven and yet they have a stove and some convection/microwave contraption. This could turn some people off. The lobby also seems a bit odd - whats with the bookcases everywhere? It's a little random. I would like to have seen a cleaner, more minimalist lobby instead - they still seemed undecided as to how it was going to look when I spoke with them. The building as a whole is fairly solid but doesn't blow me away however I feel it doesn't have the risks associated with the poor finishing the in the Jasper. As for the location I walked past the building a few weeks ago (it's actually all built) and the building does look a little dull and I wasn't a massive fan of the street.

So I've decided not to buy in either and I am a relatively keen buyer and I really can't emphasise enough how ready I was to buy in the Jasper before I went. 29th is okay but I just can't see it appreciating that much more although Jasper could do well but I think there is a greater risk it misses the mark and you're stuck with a dud.

mightyginger: Thanks for your comments... very informative and insightful.

Jasper all sold out?
Streeteasy update email to me about availablity gives "off the market"/"no longer available", but not "under contract"

There are still apartments available but the ones listed on Street Easy have gone into contract already. My husband and I went into contract on an apt in this building and it is now listed as "no longer available". We looked at many buildings and feel that this one offers a great layout, nice amenities, convenient location and has the aesthetics we like without being too modern. We also feel that this neighborhood is blossoming at rapid speed.

AptSeeker, my wife and I also purchased an apt in Jasper. We're looking forward to moving in and meeting our new neighbors.

we are thiiis close to deciding on a 1BR in this building. but can't seem to pull the trigger because of all the bear stearns and other bad news that we keep hearing about. the thought of buying this unit, and then having prices soften 10% before we even move in makes me feel sick.

FYI, the homeless drop-off center. after reading about it, we both independently went SEARCHING on the block and couldn't find the place. in the end, once we discovered where it was, we were both very surprised that we couldn't sniff it out even when we were so keen on looking for it. bottom line: i don't think the homeless thing is a big deal. didn't even notice it.

does anyone know how many units this building has in total???

My understanding... 80 apartments & 18 floors.

the web site for the building describes it as "chic ..."

need we say any more?

my favorite bad web site however is http://www.100west18.com/

check out the "loading" like my Commodore 64 ... totally ruins the advanced technology they try to portray with the iPod dock, woohoo.

they plan to close the outpatient clinic next door

I went to the Jasper. Their website & booklet are all Photoshop. To me it didn't seem worth the prices.

sticky, you clearly haven't been to the sales office. the model 2BR that you can walk through is quite faithful to their glossies. say what you will about the neighborhood, but the units themselves are actually pretty nice. we got in at $1050/sqft. i'm wondering what people are buying for now...

why would you pay to live in a converted building next to a homeless shelter? i guess the standards are that low for NYC real estate.

the site absolutely sucks.

I don't love the neighborhood.

nyc10022, for once, we actually agree.

Luciato I think you'll find people are still paying $1050/sqft. I had one of their sales team phone me the other week at work. I was a little surprised to be getting the call as first as I saw the place 10 months ago (as you can see from my above post) and wondered why they were calling. Basically they still have inventory to go and must be phoning everyone on their list to see if they still had interest. They are pricing between 1000-1200/sqft but she said they were basically looking to get rid of inventory and would look at offers. Tells it's own story really. A lot of developers are now looking to offload inventory and there are a lot of properties priced in the $1m-$3m range which aren't shifting.

Yeah that area isn't exactly fabulous. I didn't notice the homeless shelter but it just seemed like a kinda isolated area without much reastaurants/shops/transportation.

And to the people who defend the booklet, I'm sorry but it's all sleek Photoshop & design. Sure the finishings are nice but they don't GLOW!

Sticky - the subway is on the corner, 34th st bus 2 blocks away, lex bus down the block and madison up the block. The transportation is one thing that is great. There is a dearth of good restaurants but more are opening every month in the Madison Park area. On 3rd and 32nd you have to supermarkets - Gristedes and Food Emporium. You don't have fancy clothing stores. Herald Square is an easy walk but not fancy

sticky, the area does suck. they've done a really good job of making the building and the area more glamorous than it really is. clever marketing ploy, but anyone who's been there admit that the area is mediocre at best.

Even if the area wasn't considered bad, it isn't a good area - it isn't a residential area

I dont think it's a BAD area per se, even with the shelter ... but it's not worth the bucks they're asking.

I walked past the Jasper Friday night around 10:30PM. I don't really have a problem with the homeless center but what's actually worse is that on the other side of the building is the service area of the huge office tower that's on the corner. There were literally mountains of garbage bags out on the street waiting to be collected. So essentially the Jasper is sandwiched between a homeless center on one side and the ass-end of a building on the other side. Nice.

that's more the point iMom, it isn't a residential area

That's what I said when I first joined Streeteasy.com (and am now stuck with my name). I walk by that office building 2x a day and they seem to be one of the few buildings that can't keep their garbage in bags. It is often scattered all over the ground. If 311 accepted picture messages, I would have sent in numerous complaints over my commuting days.

that area is horrendous. but seriously, NYC needs to control its garbage problems. Seeing garbage bags all over the city is really disgusting. You can walk for miles in Chicago and barely see any garbage bags on street corners.

have they stop construction? updates anyone?

Also interested in the status of this building. 'Mightyginger', I also received a call about a month ago after I visited the sales office back in March. Did not probe as much though as the only units I was interested in were 'sold' at prices I would not consider. I am not making this comment because it is not worth the price relative to others in this range, I just am not ready to spend this much but live in the neighborhood and was curious on progress.

jasper dead! money back!

jasper defaulted. how long will it take to get money back? is there an organized group of buyers?

Rofl.

http://www.nytimes.com/2008/11/30/realestate/30deal2.html?_r=1&ref=realestate

November 30, 2008
Big Deal
A Condo Checks Out, a Hotel Checks In
By JOSH BARBANEL

THE Jasper on East 32nd Street, which has dark wood paneling and a huge fireplace in the lobby, promised an “unexpected blend of warmth and chic style,” according to its Web site. But the condominium was in an unexpected place: a converted prewar office building on a commercial block in Murray Hill.

And for a time, the project, designed by Ishmael Leyva, attracted a steady stream of buyers drawn by the fine finishes, stylish pool and large fitness room, and prices below those in many other Manhattan neighborhoods.

“What market slowdown?” gushed a newspaper account a year ago, announcing that contracts had been signed on 27 of the 80 apartments within three weeks.

But with the economy faltering, sales at the project, at 114 East 32nd Street, between Park and Lexington Avenues, sputtered to a halt in the last few months, after a total of 43 apartments had gone into contract.

Last week, the developers, facing both an uncertain market and the need to provide several million dollars in new capital to cover cost overruns, decided to pull the plug on the condominium, and return the deposits of would-be buyers.

Harry Jeremias, the founder of the Harch Group and the project’s lead developer, said he had come to an agreement with a European investment fund to convert the 18-story building into a 200-room boutique hotel, to open in about a year.

The new plans, he said, will keep many of the features of the condominium, including the name Jasper, much of the lobby, the pool, the Peruvian walnut floors and the custom-made Waterworks fixtures. He said the current investors would retain a minority interest in the property.

As a result, Mr. Jeremias said, the cost of converting the building to a hotel would come in well below the cost of building a similar hotel, though hotel occupancy and profits are likely to falter in the near future.

“We had a great product out there and a branding that was incredible,” he said. “Nobody anticipated the market taking such a dramatic shift. So now we will roll with it.”

Shaun Osher, the founder and head of Core Group Marketing, which has been selling the Jasper apartments, said he had begun calling buyers to let them know that the condominium had been canceled and offering to help them find other apartments, although the change had not yet been filed with the attorney general’s office as of last week.

Mr. Jeremias said that until now, only two buyers had sought to back out of contracts — one had been transferred overseas, and the other was a former employee of Bear Stearns, which collapsed in September.

Now, he said, while buyers may be frustrated about losing a “beautiful project,” many will also be relieved of the uncertainty of finding a mortgage and completing a purchase in the current market.

When things go wrong in Manhattan, “there is a Plan B and a Plan C,” Mr. Jeremias said. “In a lot of different markets throughout the country, they don’t have a Plan B or a Plan C.”

"Shaun Osher, the founder and head of Core Group Marketing, which has been selling the Jasper apartments, said he had begun calling buyers to let them know that the condominium had been canceled and offering to help them find other apartments, although the change had not yet been filed with the attorney general’s office as of last week."

Anyone with actual knowledge of either this project or new developments generally know how much $ Core Group gets out of this?

Shaun Osher is trying to make more money for himself and his brokers by getting broker's fee on relocation of Jasper's buyers.He has not decided if he represents the developer or the buyer. Is it a conflict? he does not care...

have any of you that bought in jasper been contacted by anyone about when we get our deposits back? i haven't heard a THING yet.

Why would you ask on Streeteasy? Shouldn't you and your attorney be in contact with the developer and the developer's attorney?

Luciato, our attorney demanded the deposit back on two separate occasions. The other side's attorney (Hillary) has not responded. You should now submit a request to the AG office. (my next step). Streeteasy is a good network to find out updates let's ignore the nasty comments by others.

007: is it possible that you recommend an attorney for me? i'm not sure i want to stay with my current attorney.

mine is not a star and I have to be aggressive in managing him. wait till the end of January. in the meantime, ask him to draft a letter to the AG stating the facts that they publicly abandoned the plan (nytimes, emails to lawyers,responses to demands of deposits etc) end the letter should add that you are aware of others who are also sending letters to the AG so he will have one lawyer assigned to this issue in Albany. My letter will go out next week.

Have any owners heard anything since Thanksgiving about timing of deposits being returned?

have anyone file with the AG?

following filing with the AG and after AG response, you must ask for action and permission to rescind the contract. I filed with AG and awaiting the response Also call the media 7 on your side etc.

Hi, do any of you who have filed already have the following information. The File Number and the name of the reviewing attorney assigned at the AG’s Office to this Offering Plan? We want to get our paper work submitted quickly to try and get this process moving.

Hi, as another owner who has been trying to get my deposit back - at the AG office, Sandy Hagan has been very helpful
212 267 9244

notfunny, that number is a fax machine or something -- do you have a different number?

FYI, Hillary is no longer employed at that law firm, which explains why there is no response.

just had a long talk with my lawyer, who has been in touch with people in the know. though we are all under the impression that the jasper project is dead (due to the NYT article, etc.), apparently, the sponsor has not officially declared the project dead, so there is really nothing we can do at this point until the sponsor calls it dead. apparently, there is really nothing that the AG can do in forcing a person to call their own project dead. we are to sit tight.

however a new york times story about the developer who holds our money would expose this developer who lives comfortably in Monsey NY with his expensive cars and life style while we get no interest and lose many opportunities. How about suing him as a group?

depending on cost, i would consider a class-action (?) suit.

the only saving grace for me personally is that if i had the money, i am fairly risk averse at this point and would have it sitting in cash anyway. though i'd be getting a higher interest rate than what it's getting in escrow, essentially, my opportunity cost on the locked-up funds is fairly low. i also have a back-out clause for 12/31/2009, for what that's worth.

Back-out applies to everyone and relates to offering plan amendments. How many buyers can we organize for legal action? is it only the two of us? maybe we can start by identifying the group?
What happened to the lawyer in charge of the escrow- Hillary? why did she leave? anyone?

Just received this e-mail from my lawyer:
I had a closing at Starr Associates and spoke with Alan Starr. He has
received revised instructions from the Sponsor and expects to file an
amendment with the AG's office by early next week and if approval is
given, rescindment forms are to be sent and after received, check should
issue. Estimates around mid-Feb. He also said that he had heard from
the AG's office about complaints being received.

ah! this is very good news. just the fact that we have some definite word on the matter makes me feel better. thanks, notfunny!

this just sold today, how is Jasper defaulted?

http://www.streeteasy.com/nyc/sale/182231-condo-114-east-32nd-street-kips-bay-new-york

wait nvm i read it wrong haha

crossing my fingers and waiting. thanks notfunny- keep us posted.

NYTimes real estate section has mention of Jasper. Hidden on page two toward the end of the article headed "New Team Takes Manhattan House"

Harry Jeremias is referenced.

wow that's pretty big news as far as i'm concerned. thanks cliff702. here is the link and relevant text:

http://www.nytimes.com/2009/02/01/realestate/01deal2.html?scp=1&sq=%22New%20Team%20Takes%20Manhattan%20House%22&st=cse

Sometimes when troubled projects are fixed, they don’t stay fixed. In November, the developer of the Jasper, an 80-unit condo conversion on East 32nd Street, said it would be turned into a hotel. But deposits were not immediately returned to buyers and they began to worry. Last week the developer, Harry Jeremias, said that although he had signed a contract with a European investment group to convert the project to a hotel, the check had never arrived. Now, he said, the condo might yet be completed. An amendment to the condo plan, due late last week, would allow buyers to back out of their contracts. It also promised to provide new details on the condo or cancel it within 75 days.

007, what say you?

I have not received any amendment. The article claims that the amendment was filed late last week. I hope this will be the end of it. Please post immediately if and when you receive any communications from developer or lawyer.
My assessment is that the original bank was waiting for the hotel payment but since it was not received, they called the loan, put the developer in default which is a material change forcing the developer to file an amendment and give buyers the option to rescind. (please note that he stated in the article that he will try to redevelop as a condo- meaning he is shopping for an investor.Run away as fast as you can!

No doubt a shame that this development isn't continuing.

i understand that amendment number 9 terminating this project and finally returning our money is currently under review at the AG.This disturbing saga should end shortly.

It arrived! good luck to all

i got mine too, 007!

can i ask you something? is there any reason why anyone would NOT opt out of this contract, given that one could always come back to renegotiate at what i would imagine is a better price?

I agree. Everyone will opt out. Personaly, I do not believe he will develop the building as intended. Everything in the city is on sale and there are deals out there.

Think of it this way....if you got back every penny you put down, even if you didn't receive interest, you are better off than almost everyone who has had their money invested during that time. Congrats for dodging a huge bullet!

given the level of interest in financing new condo developments at this point...Jasper could end up as an annex of the homeless drop in center next door. They could use the space to expand much needed services and it would be a fitting epilouge to the "boom years".

AWESOME... you loser flippers... fate has dealt you a PASS... now come over to the dark side and wish this thing to go Rental. No effect on rental prices and aborted Condos come on market... OBTW... now that you can rent... you can back into a comparable "purchase" price... it's called imputed rent... look it up you lucky SOBs...

lol, yup iMom, that's exactly what we were saying to each other the other day. and plus, for us personally, we were actually a bit overextended with the original downpayment such that we had a fairly large portion of our liquid assets/savings locked up -- missed all the downside of the stock market! hey, earning +1% in the last year is up like 40% market adjusted! :)

Good for you luciato! On top of getting all your principal back, the RE market is considerable softer now than it was when you committed to the Jasper, so your money goes even further today! It's a win-win - a rare occurrence during these tough times. Congrats to you!

Hey Jasper buyers -- I'm a reporter writing an article about new construction that has had problems. If anyone wants to be quoted in my story, please email me at maxgrosstheauthor@gmail.com.

Whats up with this place?

rumors are that no hotel is happening (buyers did not deliver $$$) and therefore it is the banks will take over. I guess a rental is the only possibility. One would assume that the original developer did not have deep pockets and was over leveraged. Be careful with any of his other projects.

http://ny.therealdeal.com/articles/18915/elert

Jasper's fate uncertain as condo faces foreclosure

Developer Harry Jeremias is facing a foreclosure suit on the Jasper, the Ismael Levya-designed condominium conversion in Murray Hill, after defaulting on $83 million in loans and failing to complete the sale of the property to European investors.

Petra Capital Management on Monday filed to have the New York State Supreme Court appoint a temporary receiver for the 80-unit building at 114 East 32nd Street. The move comes just one month after the real estate fund filed to foreclose on the condo.

According to records filed with the Department of Finance, Jeremias, founder of the Harch Group and president of PHH Realty, originally acquired the former office building from Parklex Associates in May 2006 for $53 million. Jeremias, through a subsidiary firm called Morgan 32 Holding, borrowed $93.75 million from Petra Mortgage Capital in February 2007.

Jeremias and his two business partners at PHH, Henry Orlinsky of Teaneck, N.J., and Francisco Pujol of San Juan, Puerto Rico, took out personal guarantees to secure the loan for the project developed by PHH and Harch. Core Marketing Group was hired as the exclusive sales and marketing agent for the project.

As The Real Deal previously reported, the Jasper opened to great fanfare, with the developer claiming more than 40 contract signings in the first several months of sales and hosting a week-long open house in May 2008, which included free food from local Murray Hill restaurants, like Blue Smoke and Dos Caminos.

Prices ranged from $795,000 for a 591 square foot studio to $2.9 million for a 1,594-square-foot, three-bedroom unit, according to Streeteasy.com.

By November 2008, however, the New York Times reported that the conversion was halted, citing slow sales and millions of dollars in cost overruns. Harch Group announced that a European investment group would convert the building into a boutique hotel and that buyers would receive their deposits back. However, the deal with the European investors later fell through as well.

"I guess what you should say is the ultimate fate of the project lies with the bank now," said Shaun Osher, CEO of Core Group Marketing, the project's marketer. "I think the bank still feels that the best and highest use for this project will be as a condominium, not as a rental."

Jeremias is still moving forward with plans for the Renwick, a 44-unit condominium at 15 Renwick Street in Soho.

Hey! So, a landlord that my boyfriend and i have been talking to claims to own an apartment in this building. I'm assuming that this isn't possible based on this conversation. Any help??

impossible.

does anyone know how many units were in contract before this apt went bust? only 4 as se indicates or 40 as CORE group claimed? i'd be curious to know...

also, at what point did it go bust? were the closing letters yet received?
it take it no, since the building is listed as unfinished?

don't believe anything on streeteasy re: jasper inventory. i think the last i remember hearing, about 50% were in contract before bust.

it's a dead story. there's really nothing more to ask.

from this angle, yes. but i'm trying to determine the history of CORE marketing to develop a pattern to apply to stories that aren't dead..

o yes core is horrible. core is known to pitch clients on high value in this market and failing to deliver on that value. just take a look at their site. they are totally delusional on value advising clients to not price ahead of the market. prices remain high and they don't sell their units. they advise their clients to rent their properties in the current environment and wait until the market picks up to sell. this is the pattern i currently see regarding core.

as for the core and jasper, one word: whores... as for fredrik eklund, two words: ultimate whore!

This product makes no sense. My take is that the original idea was smartly designed apt wiht small foot print appealing to those who could not afford a more expansive unit. Now that prices have contracted the original idea makes less sense. Given the choice most would take a conventionally designed apt. Counter-argument anyone? This is just an opinion....