UES Update: Georgica Shines
(L) Looking atGeorgica from SW, and (R) from the W- nice cantilever!
Granted today's market is no day at the beach, but things continue to move along at The Georgica Condominium on the Upper East Side. According to Rob Kaliner, from developer Ascend Group, the building is "on time, and on budget". Echoing the sentiments of Kenneth Horn (of Alchemy Properties and the Isis on 77th), Rob believes that in this market people want a product that is tangible. To that end, the developer is working overtime to get his model units in the building finished by the end of this month. On another optimistic note, the building which is 30% sold, has "seen an increase in traffic of 35% in the past few three to four weeks", according to Kaliner. The building is expecting it's first move-ins this August.
Nonsense!!! 30% sold is not 30% closed...these are just deposits.
ReplyDeleteWho in their right mind would pay such prices to live on noisy 85th and Second?
Kiddie bard galore and mediocre restaurants abound...not attractive in any way.
I love the finishes and I think the location is better than Lucida and Brompton, since it is not on 86st. What are the 2 bedroom priced at? How big?
ReplyDeleteThis building is nowhere near 30% sold. Last I checked, they had 4 out of 58 units in contract. That's about 7% sold, and they've been in the market for a year. Given Fannie Mae's new requirement that a building must be 70% CLOSED before they will buy a loan on a unit in a new condo development, I can't imagine that there will be a 5th contract signed in this building, new marketing efforts notwithstanding. This project is a developer default in the making. I wonder if iStar (the construction lender) will rent out the building or fire sale the units to recoup their investment?
ReplyDeleteAnon- I think you are using streeteasy for your numbers, which I don't believe to be accurate. Either way, it is an uphill climb in this market, no doubt.
ReplyDeleteI don't get the overhang across the two buildings on either side. It looks ungainly. And this is not a steel structured building, but poured concrete over rebar. Is this thing going to stay up?
ReplyDeleteThis building was 30% (conservatively) sold last July, probably mostly to Friends and Family who were expecting to flip apartments. You lost your bet of imports that the building would be 70% sold by November. Now if the F&F were using any equity for financing that has evaporated in any of their existing holdings, there will be an issue closing. Will F&F lose their deposits? Or just take the hit? The nightmare is just beginning for this building.
ReplyDeleteAnon- you got me on that one! Don't mind if the imports are purchased at happy hour (times are tough). You are right, though (I sure didn't forsee the whole Lehman debacle btw). I still have faith in the building and I love the finishes. There is limited available new condo product on the UES and if (ok maybe a big if) the market turns, these guys should be fine. But, with any and all condo closings right now, it is always a battle- appraisals, banks, re-negotiations, contract breaks- you name it.
ReplyDelete