Well, perhaps "tanking" is too strong a word and implies things like doom and/or gloom. Let's simply say that an article in Crain's (subscription only) implies that it faces what people in polite society might call a few challenges here and there. Let's cut to the chase. Since Northside Piers went rent-to-own, only one buyer has taken the offer, according to Crain's and "Like over a score of other builders that flocked to Williamsburg, Toll Bros. faces plummeting demand just as the number of units is soaring." Crain's totals up the originally planned waterfront units at 7,000 (including the massive Domino project). It also gets into incentives. For instance, "...builders throughout Williamsburg are offering to pay buyers' closing costs, typically 4% to 6% of the purchase price, or transfer tax, which totals 1.825% for a unit selling for $500,000 to $1 million. Plus, the PriceChopper Insurance plans we've noted already. Meanwhile, over at the Edge:
sales began strong in April but have tapered off drastically. The initial pace of five purchase contracts a week has slowed to one or two, according to Queens-based Douglaston Development. As of late October, Douglaston had sold only 110 apartments; it shelved plans for another 40-story tower. "We're continuing to have interested people come and kick the tires, but they're hesitant to pull the trigger," says Douglaston Chairman Jeffrey LevineOh, and no major retail tenants anywhere yet, either. Like we said, there would seem to be a few challenges here and there.
· Williamsburg waterfront vacancies soar [Crain's (subscription only)]