This isn't the first time recently we've had something from buyers at a new Brooklyn condo that are wondering when the heck they're going to move in. Last week, we had word of a new blog set up by buyers at the Toll Brothers North8 Condo in the Burg. Before that was some drama about the Burg's Aqua. Developer Shaya Boymelgreen's slow moving 75 Smith doesn't have a blog (yet), but it does have a interesting email that dropped into our inbox yesterday. It raises more questions than it answers. In fact, it pretty much just raises questions, but they're very interesting ones:
In the interest of full disclosure I am a buyer in the building. There may be some controversy here. I was told today 3 closings occurred before the new year. This is surprising on many levels since it would seem that work continues on the building. What is more interesting is that these closings allow the developer (boymelgreen) to hold everyone to their contract. In the OM, there is a clause that stipulates a right to rescind the purchase agreement if no closings happen before 1/1/08. Hence, with 3 closings, everyone’s contract is still valid. As you dig through who closed on these units, it becomes more suspicious. I suspect it probably came from one cash buyer since I have yet to hear from counsel that there is a TCO. Without a TCO, only cash closings can occur (that is my understanding). What I do know as fact is that there are six units that were purchased under one contract (perhaps a flipper/investor/related party to boymelgreen). It would be interesting to ask the question who closed? How are they related/affiliated to boymel? What concessions were made?
Future buyers of boymel properties or new construction in general should now be concerned about them keeping one property in inventory to hold everyone to contracts that have been out there for years. Here is another precedent to further tip the buying process heavily in favor of developers and to further disenfranchise the buying public.
Anyone that knows more about the situation at the Smith, where move ins are actually expected soon, is invited to drop us an email at email@example.com or leave info in the comments section, below. Something gives us the feeling that this isn't the only Brooklyn buildings we'll be writing about in the context of move ins and testy buyers in '08.
· Checking In: Luxe + Pop + Some Progress at The Smith [Curbed]
· Checking In: Luxe + Pop + Windows at The Smith [Curbed]