Chelsea Stratus Price Cuts

masterd: about 10 weeks ago

thanks skid123. I hope you'll reconsider the stratus when the dust settles.

skid123: about 10 weeks ago

btw - masterd, my atty tells me that "several clients" of his that were in the stratus have walked... i'd be a bit concerned about cutting of svcs, but hopefully we're not at that stage. I do hope i'm wrong on this b/c it means bad things for manhattan in general over the next few years, but it had to be done... fingers crossed for you guys. who knows? maybe i'll be back in 6 months...

MMAfia: about 10 weeks ago

skid123, what your did was very tough to do, but it was the right thing to do.

emotions aside, when you look back at this 5-10 years from now, you will smile and say, dang, that was a smart move I made back then.

masterd: about 10 weeks ago

skid, I live in the Stratus. Many of us have closed as you can see on streeteasy. Over half the building are occupied now. I heard there had been a number of defaults but more buyers came on board in the last few months. There were officially 2 sponsor units left. I guess that number just went up by at least 1 now. I'm sorry you had to forfeit your full 10%, but good luck to you..

stevejhx: about 10 weeks ago

"i think they're in denial a little bit"

A little bit?

skid123: about 10 weeks ago

walked from an A-line unit. tried negotiating, they weren't interested. offering to delay my closing a few months, but that wouldn't have helped me. i think they're in denial a little bit... the mkt looks to be set to crumble (like it is in London, another supposedly "bulletproof" real estate mkt). The salvation might continue to be the collapse of the dollar, which is likely to continue after the events of this week... Whatever... if anyone else is able to get anything out of them or has a similar experience, i'd appreciate the color knowing i'm not alone.

mrsbuffet: about 11 weeks ago

I am curious about the stratus, too - especially watching the amount of rentals that come onto the market. Do these new owners really think the rental market now will tolerate 8K a month for 1100 square feet plus pay a broker fee? Hmmmm....

masterd: about 11 weeks ago

skid123, which unit did you just walk away from? did you try negotiating?

skid123: about 11 weeks ago

3 of the top 5 paying (large) firms in the city are out of business. the other two are on the ropes. i can't believe more people aren't walking away from their deposits. its only 10%! I just did...

uwcider: about 3 months ago

Charleston ... people who buy in that area deserve what they get

mmm33: about 3 months ago

They want to keep control of board for various reasons-they do not want residents to form an association and get organized. Charleston is all sold out, every sale has been closed and commercial units are sold.Historically there have been numerous instances of residents filing lawsuits against sponsor after getting control of board.Typically residents want to get the building inspected in detail by an engineering firm . But again LCOR is just managing the development and every part of construction was outsourced, so not sure why they want control. Maybe they have nothing better to do in this RE market

In Charleston Super's Unit does not come with a terrace.

masterd: about 3 months ago

The super's unit described in the Chelsea Stratus offering plan is a 2bed/2bath unit with a terrace area of 323 sqft on the third floor. The terrace is partitioned from the common garden and is consistent with the terrace layouts in the adjacent units. Again, I'm surprised that the Charleston document is different. But I do agree that it's too generous for a super's unit.

masterd: about 3 months ago

The Chelsea Stratus offering plan states "not later than 30 days following the second anniversary of the First Closing..." I'm surprised that it's different for the Charleston. LCOR has also sold the retail space of the Stratus last month, so they would have no vested interest in the building after the last closing this year. I wonder if they even want to control the board for up to 2 years.

mmm33: about 3 months ago

Stratus/Charleston docs should be similar-all appliances are same, layouts are similar etc and same morons from LCOR are managing the building, same legal team, same managing agent....
There is a common element terrace which is classified as "Outdoor Recreation" in front of the gym. Super's unit does not come with any terrace per the offering memorandum. LCOR has decided to give half of the common terrace to the Super by putting a partition in the middle of the terrace. It took me a while to find the "law" and am complaining to the NY Attorney General's office. LCOR was sent a memo by residents expressing concern and they refuse to give the terrace back to the residents. The super also gets a 2BR, plus being new cons plenty of opportunity to make side cash. On top of all this the super claims the terrace was part of his contract(he does not have an employment cointract of any sort) when the residents asked him to leave the terrace

csn: about 3 months ago

masterd, it was in the Charleston "the fifth anniversary of the first closing of title to a residential unit" and would not be surprised if it was in the Chelsea Stratus also.

masterd: about 3 months ago

csn, which offering document were you refering to when you mentioned the 5 years of condo board control by the sponsor, the charleston, chelsea stratus, or both?

masterd: about 3 months ago

mmm33, is the 300sqft terrace connected to the super's unit and is it not documented in the offering plan? what legal actions if any are you and other residents taking to reclaim the common area?

mmm33: about 3 months ago

300SqFt terrace in Charleston. They will have to give that back to residents because per the NY Condo Act no common element can be taken away from residents

csn: about 3 months ago

mmm33, which common area is being taken for use by the Super? Unfortunately the control of the condo board is in the hands of the Sponsor, LCOR, for 5 years as per the offering statement. Not a good thing.

mmm33: about 3 months ago

Just be careful with LCOR regarding the punchlists and how they run the show.Keep copies of all the documentation and read the "New York Condominium Act" for your own benefit. They close faster than others but do leave the owner with a huge punchlist.Not so happy with them at Charleston, building is great but LCOR sucks. They are taking forever to finish punch lists, they are breaking laws by allocating a HUGE common terrace to the building Super, they do not want to leave the control of the condo board after selling off the building entirely.

speiser5: about 3 months ago

I'm scheduled to close in Oct, 37th floor.

singal: about 3 months ago

All the closings seem to be on schedule. 32nd floor condos are closing early next month, and 35+ floor condos are closing late next month.
Have any of the condos been appraised recently by the lenders?

skid123: about 3 months ago

thought this was interesting about the potential rescission right - don't know how applicable it would be here though. Anyone with a legal background have a comment on that? Also, hearing from multiple brokers that deposits are being forfeited here...am surprised listings aren't popping up. maybe the developer is trying to work with some of these people?
http://realestateqa.blogs.nytimes.com/2008/07/04/a-new-condominium-isnt-ready-on-time/

RM73: about 3 months ago

Kind of shocked that 14C would be in contract for $1.2 MM. Definitely seems high for this market.

lupus1: about 3 months ago

any idea what 14 c went for, thought 1500 pr sqft was a bit of an ask

masterd: about 3 months ago

btw, the resale for 14C seems to be successful
http://www.streeteasy.com/nyc/sale/316480-condo-101-west-24th-street-chelsea-manhattan

masterd: about 3 months ago

the broker reused an old rental listing for a 2bed/2bath unit for a new 1bed/1bath. Give her a call if you're interested.

lupus1: about 3 months ago

http://www.corcoran.com/property/listing.aspx?Region=NYC&listingid=1328043

not a good sign if correct.

skippy2222: about 3 months ago

kylewest, i think you are right and wrong at the same time. Definitely if areas are marginal and the economy is not growing then marginal areas probably will not upgrade. That is a big risk. And yes above all the new buildings on 6th, the area is not the best. But what about the area just below (3-4 blocks) and both to the west and east. I would say...not so bad, actually damn good. And to live in a new building on a high floor with great views, i think that it might be a reasonable place to live and invest in. Also, considering that there is really no competition in the chelsea marketplace for someone who wants a new condo high rise with floor to ceiling glass is it low risk? Maybe because of Stratus, with the other new rentals in the hood, gentrification of that area will occur quicker. Am I crazy or just optimistic?

kylewest: about 3 months ago

I thinkk as big a concern as problematic financials for the building's owners is the neighborhood itself. In a boom economy marginal areas become better sometimes, but in a stagnant, tentative, or down economic era, there just isn't going to be new investing and building and gentrification and upscaling of blah areas. The mid-upper 20's on 6th Avenue were never nice. They are grimy oold office buildings left over from the millinary (sp?) and fur and flower businesses that made the area home for a long time in generations gone by. Nothing about this area will help values of the new construction that went up there in the last 5 years. It is as kind of nowhere land and gritty as it ever was. Honestly, if one were to attempt to resell a unit at the Stratus, why on earth would anyone pay even MORE than the seller paid originally. This is a paradigm of the risks of buying into new condo construction in less than stellar areas in the past few years. I didn't get it, I don't get it, and I fear for the people who sunk all they had betting on the future value of these places. Let's not even get into expiring tax abatements and aging of the shiny finishes that were so nice when the units were new.

skid123: about 3 months ago

am concerned - if as previously posted - that if there are really as much as 30% speculators what is going to happen to maintenance costs/building services if some of those start defaulting. even if we haircut that by 50% - 15% unoccupied units seems very high.

i bought about a year ago, and the question i'm asking now is would i buy again right now? and if not, do i think by waiting around a year or so when wall st folks are throwing themselves off ledges that i'll get a better deal somewhere? as much as 10% better? hmmm...

masterd: about 4 months ago

fyi, there are only 2 sponsor units left at this time, both in the $2M range. There have been a few units defaulted as alex123 pointed out, but they've been snapped up by other buyers. There could be a few more to come, but if you don't jump on the opportunity or think the reduced prices are still too expensive, then it makes no difference to you.

MrCook: about 4 months ago

Nope :(

RM73: about 4 months ago

MrCook (or anyone else) - Any luck on renegotiating your purchase or getting developer/ broker to cover some of the closing costs?

MMAfia: about 4 months ago

daisy2006511, get that SPAM outta here.

MMAfia: about 4 months ago

BTW TwoFacedLiar, before you attempt to question my credibility, I do work in the Hedge Fund industry where professional speculation is one of the greatest sources of alpha.

I am not saying that one cannot be profitable by participating in speculative investing practices and strategies. Once can be EXTREMELY profitable, at the expense of increased risk and volatility.

I am saying that I question your assertion that speculation in VITAL for free markets to function.

daisy2006511: about 4 months ago

Comment was deleted by moderator.

MMAfia: about 4 months ago

TwoFacedLiar, please explain exactly how speculators are VITAL to free markets as you have posted.

If it is so VITAL to free markets, then please explain why the House just voted on June 26 to overwhelmingly (402 to 19) force the CFTC "to use all its authority, including the agency's emergency powers, to "curb immediately" the role of speculation in energy futures markets."?

http://uk.reuters.com/article/oilRpt/idUKN2638454220080626

And please don't post anything from people like Victor Niederhoffer or others like him in the same breadth of people like Hyman Minsky out of respect to the latter.

I'd like to hear your reason why the House just passed that bill to effectively CURB what you claim is so VITAL for free markets?

daisy2006511: about 4 months ago

Comment was deleted by moderator.

TwoFacedLiar: about 4 months ago

drg, absolutely wrong, and a complete misunderstanding of hedging and speculation.