An unfinished Williamsburg condominium development is getting a second chance to be completed, according to an article today at wsj.com by Joseph de Avila.
"New Jersey-based developer Urban American LLC has taken control of an unfinished 17,000-square-foot condo building at 170 North Fifth Street, according to property records," the article said, adding that "Urban American is one of many developers taking advantage of the recovery through a so-called loan-to-own strategy. These investors typically buy the debt on distressed properties and then work out deals with the owners to take control.
"Loan-to-own deals are becoming more widespread because banks are becoming more willing to sell troubled loans. Williamsburg, home to several stalled housing developments, has garnered attention from institutional investors and developers alike," the article said.
"The building's original developer, Brooklyn-based Lucky Boy Development, bought the development site at 170 N. Fifth St. for $2.6 million in 2005, according to property records. The company managed to complete about 70% of the work on the condo with about 17 units before stopping construction last year," the article said.
"We are going to finish construction on the building, and it will either be run as a rental or a for-sale project. We haven't made that determination yet," says Douglas F. Eisenberg, chief operating officer for Urban American.
"Urban American," the article continued acquired the debt on the very handsome "project in March, paying about 50 cents on the dollar for the loan of about $7.5 million made to Lucky Boy by the Bank of Smithtown, Mr. Eisenberg says. Urban American took control of the property in January."
Mr. Eisenberg says that Urban American's total cost comes to $8.7 million but didn't provide additional detail. Officials with Lucky Boy Development didn't respond to requests for comment. Bank of Smithtown, which was acquired last year by People's United Financial Inc., of Bridgeport, Conn., declined to comment.
Some of the biggest deals in Brooklyn last year were for distressed properties. "There is so much money that is looking for these deals," says Ofer Cohen, president and founder of commercial-brokerage firm Terra CRG. "They want in on the action."
Lucky Boy hired architecture firm Rothzeid Kaiserman Thomson & Bee to design the property on North Fifth, which was being marketing as the Williams.
"The growth of loans sales is good news for the city's struggling construction industry. Since February 2009, work has resumed on 195 projects in Brooklyn that were once stalled, according to the city's Department of Buildings. Of those projects, 44 have been completed." the article said.
"New Jersey-based developer Urban American LLC has taken control of an unfinished 17,000-square-foot condo building at 170 North Fifth Street, according to property records," the article said, adding that "Urban American is one of many developers taking advantage of the recovery through a so-called loan-to-own strategy. These investors typically buy the debt on distressed properties and then work out deals with the owners to take control.
"Loan-to-own deals are becoming more widespread because banks are becoming more willing to sell troubled loans. Williamsburg, home to several stalled housing developments, has garnered attention from institutional investors and developers alike," the article said.
"The building's original developer, Brooklyn-based Lucky Boy Development, bought the development site at 170 N. Fifth St. for $2.6 million in 2005, according to property records. The company managed to complete about 70% of the work on the condo with about 17 units before stopping construction last year," the article said.
"We are going to finish construction on the building, and it will either be run as a rental or a for-sale project. We haven't made that determination yet," says Douglas F. Eisenberg, chief operating officer for Urban American.
"Urban American," the article continued acquired the debt on the very handsome "project in March, paying about 50 cents on the dollar for the loan of about $7.5 million made to Lucky Boy by the Bank of Smithtown, Mr. Eisenberg says. Urban American took control of the property in January."
Mr. Eisenberg says that Urban American's total cost comes to $8.7 million but didn't provide additional detail. Officials with Lucky Boy Development didn't respond to requests for comment. Bank of Smithtown, which was acquired last year by People's United Financial Inc., of Bridgeport, Conn., declined to comment.
Some of the biggest deals in Brooklyn last year were for distressed properties. "There is so much money that is looking for these deals," says Ofer Cohen, president and founder of commercial-brokerage firm Terra CRG. "They want in on the action."
Lucky Boy hired architecture firm Rothzeid Kaiserman Thomson & Bee to design the property on North Fifth, which was being marketing as the Williams.
"The growth of loans sales is good news for the city's struggling construction industry. Since February 2009, work has resumed on 195 projects in Brooklyn that were once stalled, according to the city's Department of Buildings. Of those projects, 44 have been completed." the article said.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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