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Vultures Pick Off Downtown Brooklyn Condo Building

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The Wall Street Journal reports that be@Schermerhorn, the vacant 246-unit development that returned buyers' deposits and has recently topped all sorts of troubled-buildings lists, was bought by Jamestown Properties, an Atlanta-based firm backed by German investors. Said Jamestown's managing director, "We think some of the best opportunities right now are in distressed residential and hotel." What's not clear is the plan of action at 189 Schermerhorn Street. According to the item, the previous developer will continue to manage the property. So, business (or lack thereof) as usual? For now we'll just try to picture the building with a more Germanic influence. Like an oompah band in the lounge!
· Brooklyn Condo Scooped Up by German Investors, via Atlanta [WSJ]
· be@schermerhorn coverage [Curbed]

UPDATE: We just received a press release on the sale that sheds a bit more light on what's to come. It's going to be a big 2010!

BROOKLYN, NY (November 11, 2009) – Jamestown Properties has purchased the mortgage on “be@Schermerhorn,” located at 189 Schermerhorn in Downtown Brooklyn. The 246-unit condominium, developed and constructed by SDS Procida, is now scheduled for completion in early 2010. Construction and pre-sales ceased in June of this year at 189 Schermerhorn due to the financial restructuring of the project. Jamestown has stepped in and purchased the mortgage from the lenders to restart the project and see it through to completion. “We are committed to the Brooklyn market. We believe Schermerhorn is uniquely positioned in the neighborhood to deliver quality of life and value combined with immediate access to public transportation, the shops of Atlantic Avenue, and Brooklyn Heights’ culture,” said Matt Bronfman, COO of Jamestown Properties. “We believe our ability as a highly liquid investment company, coupled with the seasoned market knowledge of SDS Procida, will deliver a successful project and a successful community.”

In addition, Jamestown and SDS Procida are excited to put their contractors and subcontractors back to work at 189 Schermerhorn to complete construction on the project.

“We are extremely excited to resume development of be@Schermerhorn, downtown Brooklyn’s most promising development. Throughout changing market conditions, be@Schermerhorn continues to attract buyers who are searching for quality and value together with the attributes of this great location,” said Louis Greco of SDS Procida. “Many of our buyers have remained committed and anxiously await the opportunity to make 189 Schermerhorn their new home address. SDS Procida congratulates its partner, Jamestown Properties, for the continued commitment to downtown Brooklyn and be@Schermerhorn.”

In addition to refinancing the Schermerhorn project, Jamestown Properties is in the process of assembling an end-loan mortgage program for condo purchasers. Jamestown is committed to giving interested buyers a variety of competitive purchasing options. Sales and marketing are expected to re-launch in the first quarter of 2010.