The condo project known as be@schermerhorn, 189 Schermerhorn in Downtown Brooklyn, opened for sales the week Lehman Brothers collapsed. Obviously few of its 242 or 246 units sold at the time.
According to Crain's, an investment group led by Jamestown Properties and including the original developer, bought the mortgage on the troubled property yesterday.
Crain's states, "Jamestown, which was already an equity investor in be@Schermerhorn, said it bought the mortgage at a deep discount, but declined to disclose specifics. A syndicate of four banks led by Wachovia Bank provided the $100 million loan for the project at 189 Schermerhorn St. SDS Procida, the developer of the property located, remains a partner."
It's a little unclear just how much they paid to buy their own mortgage loan. And that sale may not be recorded in the public record.
{One ridiculous line in the article: " Industry experts note that the key to the project's success will be the price of the studio to 2-bedroom units. " Says a whole lot doesn't it -especially as the bldg only has studios to 2's! so the key to success depends on the price of everything!}
One real fact is clear: Jamestown/SDS Procida now has pricing power. They have a reduced cost basis and thus they can bring prices down in order to meet the market or to take market share away from other projects.
189 Schermerhorn by 21elephants
According to Crain's, an investment group led by Jamestown Properties and including the original developer, bought the mortgage on the troubled property yesterday.
Crain's states, "Jamestown, which was already an equity investor in be@Schermerhorn, said it bought the mortgage at a deep discount, but declined to disclose specifics. A syndicate of four banks led by Wachovia Bank provided the $100 million loan for the project at 189 Schermerhorn St. SDS Procida, the developer of the property located, remains a partner."
It's a little unclear just how much they paid to buy their own mortgage loan. And that sale may not be recorded in the public record.
{One ridiculous line in the article: " Industry experts note that the key to the project's success will be the price of the studio to 2-bedroom units. " Says a whole lot doesn't it -especially as the bldg only has studios to 2's! so the key to success depends on the price of everything!}
One real fact is clear: Jamestown/SDS Procida now has pricing power. They have a reduced cost basis and thus they can bring prices down in order to meet the market or to take market share away from other projects.
189 Schermerhorn by 21elephants
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