We've seen some adventurous buyers' incentives being kicked around by developers lately?in fact, we've already mentioned some today?but holy shnikey, Rockrose is taking a big step at its condo project on the Long Island City waterfront. The View, Rockrose's first condominium in its EastCoast collection of luxury buildings at "Queens West," was greeted by unprecedented levels of hype: Most expensive LIC building ever, most amazing views ever, most sick sales office ever, etc. It was, simply, the Jesuscondo of Long Island City. And it still may be, but get a load of this: Rockrose is offering the next batch of buyers a five-year money-back guarantee. Don't like life on the other side of the East River? On the fifth anniversary of the closing, Josh Barbanel reports, you'll have 90 days to return your apartment to Rockrose for 110% of the purchase price, minus closing costs, transfer taxes and legal fees. Jesus wept.
The offer, worked into an amendment to the offering plan approved last month, is extended to buyers who sign contracts before the sponsors declare the condominium plan effective, which means that less than 15% of the 18-story, 184-unit building has been sold. After the plan is declared effective, Rockrose may continue offering the buyback guarantee, or "rent some units and gradually sell them off as the market improves." The View potentially going mostly rental? Wow. Rockrose is also piling on some more incentives, including free parking for five years, a mortgage contingency clause and the possibility of five years of sponsor financing for purchase.
Here is how a Rockrose VP is spinning the buyback offer: "I believe in the product, I believe in the marketplace, I believe that value will increase and I am willing to put my money where my opinions are." Indeed, it is his money, kinda. The amendment states that "no bond or other security" has been furnished to back up the buyback offer. But hey, deep-pocketed Rockrose will still be around in five years and be able to pay up, right? As long as the Financial District has plenty of young sexy singles eager to pay large sums of money to live in cozy confines (so that their Axe body spray is more effective), there's no need to worry.
· A Buyback Guarantee [NYT]
· The View coverage [Curbed]
· The View [Official Site]