The Curbed inbox bulges today with troubling reports from the new development world. If you know more about these project problems, let us know in the comments so we can move each story along. Onward!
1) Tribeca Summit [Tribeca]: A reader emails, "I wanted to ask you a question on 415 Greenwich (Tribeca Summit) which you've written a lot about. Are they facing major cost overruns? See this link to a document filed with the government by their lender. They are paying 25% to borrow money now! (and it looks like they had to refinance their previous lenders which typically means the previous lenders lost confidence in the developers). Based on my (limited) experience in real estate, that kind of a rate seems like a 'loan-to-own.' I know the project has been delayed several times, is their any risk the developer has exhausted his equity? And do you think there are any implications for quality of the building (need to cut corners, strip down common space/amenities, paper thin walls, etc)? Have you heard anything?"
2) The Link [Hell's Kitchen]: "There is talk of a protest by unit owners and potential unit owners of The Link (construction pic by Lofter1, right). Please refer to the thread on Wirednewyork which highlights The Link. There have been crazy delays, those who have closed are having their punch lists ignored, Elad Properties will not respond to phone calls and their attorneys will not even return phone calls to the property owners attorneys. Elad's attorney's have even sent out notices for walk throughs and closing that they now are rescinding!"
3) Lenox Grand [Harlem]: "I suggest people be careful before purchasing in The Lenox Grand at 381 Lenox Avenue. It seems the developer is running out of money and many of the amenities that were promised are not there. If you see the lobby now and what it was suppose to be it's not a pretty site. Also the stairwells are frightening. Notice the cheap carpeting in the hallways and also the tin can elevator, all signs point to a problem in the supposed boutique luxury building. We pulled out and are not buying there. I hope I am wrong because another beautiful building in the neighborhood would be wonderful."