Condo in Brooklyn NY too good to be true?

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lameguy
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Joined: Tue Sep 21, 2021 9:31 pm

Condo in Brooklyn NY too good to be true?

Post by lameguy »

I'm in the process of closing on a condo in Brooklyn, NY. Sunset Park specifically. The price is suspiciously cheap and my accepted offer was ~10% less than their asking price. I've been told it's a "1 bedroom price for a true 2 bedroom".

The condo has some strong pros:
  • The unit has all of the amenities/perks that we're looking for
  • The price is low enough that it could immediately be rented out for a little profit because current Brooklyn rents are quite high.
    It's a populated area near a hospital so rentals shouldn't be difficult
  • Inspection came up reasonably clean
  • The area is likely to go up in value (although the building is not in the best block, it has reasonable foot traffic)
  • My family has lived in the area for a very long time so I will likely be here for quite awhile as well and I'm very familiar with the area
But I am concerned about what risks I'm not seeing. Surely there's a catch here? It's been on the market for over 100 days but was completed sometime in 2019? Here are some risks I have mapped out:
  • I am the first buyer in the condo building and I am aware I may have trouble getting a loan
  • The seller/sponsor may have ideas about selling half of the building and renting out half which may reduce the value of my unit/the building.
  • There is a commercial space on the 1st floor. I've been told it could be converted into a doctors office or medical office. This could be a risk if it ends up hurting the building overall.
  • The seller/sponsor is able to control the Condo Board indefinitely so long as they retain ownership of 1 unit and the commercial space
I've done a lot of research that I could have to try to reduce these risks and figure out what I'm getting into:
  • The seller has 6 buildings or so that they've worked on in the past. In 2 buildings, the owner sold all of the units (either to family members or the general public). However in another, currently half of the building is sold, while the other half is rented.
  • In these other buildings it appears that most of the unit owners in are staying which implies that the building owner isn't terrible. However, the ones who are selling, seem to be selling after 4 years for very small or no increases over their own purchase price. In some cases, these sellers also loaned money from the original seller which seems very odd.
  • Even though I may be able to purchase this condo outright, I may not necessarily be able to sell the unit easily if I ever needed to. I can rent it as a condo, but this could trap some assets for awhile. Maybe even indefinitely depending on how the sponsor structures the building? I'm not afraid of renting it out but I would likely want a property manager or something
I'm kind of racking my brain over whether I'm getting tricked or whether I've found a diamond in the rough. I have the capital to purchase the unit outright with cash but I don't intend to. But even so I don't want to tie up my assets in a bad asset even if it's a pretty good condo for myself and my girlfriend.

Has anyone else been in this kind of situation?
Tavistock1
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Re: Condo in Brooklyn NY too good to be true?

Post by Tavistock1 »

lameguy wrote: Tue Sep 21, 2021 10:20 pm I'm in the process of closing on a condo in Brooklyn, NY. Sunset Park specifically. The price is suspiciously cheap and my accepted offer was ~10% less than their asking price. I've been told it's a "1 bedroom price for a true 2 bedroom".

The condo has some strong pros:
  • The unit has all of the amenities/perks that we're looking for
  • The price is low enough that it could immediately be rented out for a little profit because current Brooklyn rents are quite high.
    It's a populated area near a hospital so rentals shouldn't be difficult
  • Inspection came up reasonably clean
  • The area is likely to go up in value (although the building is not in the best block, it has reasonable foot traffic)
  • My family has lived in the area for a very long time so I will likely be here for quite awhile as well and I'm very familiar with the area
But I am concerned about what risks I'm not seeing. Surely there's a catch here? It's been on the market for over 100 days but was completed sometime in 2019? Here are some risks I have mapped out:
  • I am the first buyer in the condo building and I am aware I may have trouble getting a loan
  • The seller/sponsor may have ideas about selling half of the building and renting out half which may reduce the value of my unit/the building.
  • There is a commercial space on the 1st floor. I've been told it could be converted into a doctors office or medical office. This could be a risk if it ends up hurting the building overall.
  • The seller/sponsor is able to control the Condo Board indefinitely so long as they retain ownership of 1 unit and the commercial space
I've done a lot of research that I could have to try to reduce these risks and figure out what I'm getting into:
  • The seller has 6 buildings or so that they've worked on in the past. In 2 buildings, the owner sold all of the units (either to family members or the general public). However in another, currently half of the building is sold, while the other half is rented.
  • In these other buildings it appears that most of the unit owners in are staying which implies that the building owner isn't terrible. However, the ones who are selling, seem to be selling after 4 years for very small or no increases over their own purchase price. In some cases, these sellers also loaned money from the original seller which seems very odd.
  • Even though I may be able to purchase this condo outright, I may not necessarily be able to sell the unit easily if I ever needed to. I can rent it as a condo, but this could trap some assets for awhile. Maybe even indefinitely depending on how the sponsor structures the building? I'm not afraid of renting it out but I would likely want a property manager or something
I'm kind of racking my brain over whether I'm getting tricked or whether I've found a diamond in the rough. I have the capital to purchase the unit outright with cash but I don't intend to. But even so I don't want to tie up my assets in a bad asset even if it's a pretty good condo for myself and my girlfriend.

Has anyone else been in this kind of situation?
I’m not in the city so cannot comment on your exact situation. However ( long time, experienced realtor) I can say that in many new developments, the “first in” typically enjoy a discount against later purchases in the development. That said, the dynamics of what you’ve “researched” seem valid and hopefully you can get some better answers from city experts.
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quantAndHold
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Re: Condo in Brooklyn NY too good to be true?

Post by quantAndHold »

I'm not familiar with Brooklyn real estate practices, but...do you have a realtor? What do they say about these questions?
DarkHelmetII
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Re: Condo in Brooklyn NY too good to be true?

Post by DarkHelmetII »

lameguy wrote: Tue Sep 21, 2021 10:20 pm
  • The seller/sponsor is able to control the Condo Board indefinitely so long as they retain ownership of 1 unit and the commercial space
I too am not an expert nor do I know this particular market (as with other posters). Having said that, one thing I'd be concerned of is seller / sponsor's control of the board as you have stated. Among other things, condo fees might be unrealistically low. Now, for first 5 - 10 years this might not be a problem. But I have seen special assessments creep up around the 20-year mark - eventually the unfunded liabilities get out of hand. Right now the "condo board" has tremendous incentive to keep fees very low, perhaps artificially so, to attract more buyers.

To make this more actionable: maybe you plug-in a (hopefully) absurd year-over-year Condo fee increase into your calculations of 6 / 8 / 10% (or whatever your choose) and see if this is still a "diamond in the rough."
BrendanP
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Re: Condo in Brooklyn NY too good to be true?

Post by BrendanP »

Could provide more input if you provided a link to the Unit

This unit could be a loss leader for sure.
Is this building totally completed and have a COO?

We were interested in buying a new condo years ago but could not because it would take at least 6 months until enough units had been purchased so that it could be occupied.

I would recommend you ask for advice on StreetEasy.

There's a building near us that has had an entire 1st floor commercial space unrented for nearly ten years. What happens if they can't find a tenant?
BarbBrooklyn
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Re: Condo in Brooklyn NY too good to be true?

Post by BarbBrooklyn »

I can only relate this to my experience back in 2001.

I was recently divorced and located an apartment in what is now called Downtown Brooklyn (at the time there was no neighborhood here, just projects and LIU, which had built the development).

Everyone looked askance and said "you're buying WHERE?"

My attorney, a long time Brooklyn/Court Street legal maven told me this was a good deal. When I questioned buying the parking space that was an option for 15k (the apt was 189k, I think) he said to me "I've seen the plans for that part of Brooklyn. Buy the d@mn space".

The apt is now worth 4x purchase price from 20 years ago. There is NO parking in DWTN BKLYN for love or money.

And Trader Joe's, Target and Alamo Cinema moved in across the street. I tell my DH we'll be able to roll the wheelchairs across the street.

Find yourself a real estate lawyer who knows Sunset Park. And look at the transportation/parking options.

Is this an R train only stop or is the N also there? Is the stop accesible?
Last edited by BarbBrooklyn on Fri Oct 01, 2021 2:32 am, edited 1 time in total.
BarbBrooklyn | "The enemy of a good plan is the dream of a perfect plan."
LittleMaggieMae
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Re: Condo in Brooklyn NY too good to be true?

Post by LittleMaggieMae »

Brooklyn is not on my radar for real estate and I don't live there so there are lots of things I don't k now.

This generates a lot of questions for me:
The seller/sponsor is able to control the Condo Board indefinitely so long as they retain ownership of 1 unit and the commercial space
Are there any codes or zoning in place that determines what kind of businesses can use the space? (Not sure I'd want to live over a bar or an all night pizza place).

I'd be worried that the seller/sponsor might spend the next 10 or 15 years NOT doing maintenance to the building and/or NOT building up a reserve to do maintenance to the building (keeping HOA fees low). It sounds like if there's some issue with the building the seller/sponsor can use who ever they want to fix the issue - why get estimates - they can use who ever they "promised" a favor to and pay them what they want...

I'd be more worried about that - one person having total say over something YOU own... and remember while you think you only own your unit - you actually own a part of the whole building - roof to foundation if you want a healthy, well kept building there will be expenses.

This makes me think "slum lord" - the sponsor seller pulls all the value out of the building and never puts any in....
cbeck
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Re: Condo in Brooklyn NY too good to be true?

Post by cbeck »

I used to live in Park Slope, but ended up buying a condo on the Upper West Side. The sponsor, and his successors after he bellied up, controlled the board for many years even when his remaining ownership interest had shrunk considerably. Sponsors typically want to focus spending on cosmetic changes that will enhance his marketing efforts. They don't want assessments, however necessary, especially since they tend to overstate the condition of the building in the prospestus.

So that's a risk, but a usual one in condo conversions. It's also good that Sunset Park has a topographical elevation of 85 feet, so it won't be the first neighborhood to sink beneath the waves.

Sounds like the OP has done his homework. Have you read the Bylaws carefully to identify all the advantages the sponsor has written in for himself, beyond control of the board?
investorpeter
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Re: Condo in Brooklyn NY too good to be true?

Post by investorpeter »

I previously purchased a condo in Brooklyn, and everything you mentioned, including sponsor control of board seems typical. Assuming this is a relatively small building with 6-7 units (which seems like the case given the neighborhood and description provided), if the sponsor owns 1 unit + the commercial unit, they have significant ownership interest in the building, so it seems reasonable to allow them to have a majority of seats on the board, though of course the tenants should also have representation on the board. If it's a large development with more than 25 units, then indefinite control of the board with only 1 residential unit and 1 commercial space seems excessive. Something else to keep in mind is that sponsor control of board for the first several years is not necessarily a bad thing, especially if the tenants have no experience in how to operate a building, run board meetings, etc. Things could get chaotic if the tenants take control of the building too soon.

It's hard to comment on price without actually seeing the listing, so can't really say whether the price is "suspiciously low". Being the first buyer, you have significant leverage and 10% off ask is perfectly typical. If they accepted your first offer, it probably means they would have accepted lower. I've never heard of such a type of scam where a condo is advertised for sale at a suspiciously low price. That happens a lot with rentals in the city, where scammers on craigslist, etc. take your deposit and application fee, for a suspiciously low-priced rental. But I have never heard or seen of such a scam with a sales listing, though I'm sure it happens. But that doesn't seem to be the case here.

Overall, I think you are just experiencing normal pre-purchase jitters. Seems like you have done due diligence on researching the history of the developer. Make sure you have a good, independent attorney for closing (not one recommended by the developer).
WS1
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Re: Condo in Brooklyn NY too good to be true?

Post by WS1 »

BarbBrooklyn wrote: Thu Sep 30, 2021 4:45 pm I can only relate this to my experience back in 2001.

I was recently divorced and located an apartment in what is now called Downtown Brooklyn (at the time there was no neighborhood here, just projects and LIU, which had built the develepment).

Everyone looked askance and said "you're buying WHERE?"

My attorney, a long time Brooklyn/Court Street legal maven told me this was a good deal. When I questioned buying the parking space that was an option for 15k (the apt was 189k, I think) he said to me "I've seen the plans for that part of Brooklyn. Buy the d@mn space".

The apt is now worth 4x purchase price from 20 years ago. There is NO parking in DWTN BKLYN for love or money.

And Trader Joe's, Taregt and Alamo Cinema moved in across the street. I tell my DH we'll be able to roll the wheelchairs across the street.

Find yourself a real estate lawyer who knows Sunset Park. And look at the transportation/parking options.

Is this an R train only stop or is the N also there? Is the stop accesible?
Can I live in your parking spot? I need a pied-a-terre
Topic Author
lameguy
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Re: Condo in Brooklyn NY too good to be true?

Post by lameguy »

Thanks everyone for the replies here!

To answer some of the questions:
Are there any codes or zoning in place that determines what kind of businesses can use the space? (Not sure I'd want to live over a bar or an all night pizza place).
I am not sure about zoning specifically but the offering plan for the condo does not restrict what usage it will have. Howver from speaking with the seller's agent it is likely to be a doctors office or something to that extent. Since the unit is a block away from a hospital that seems likely thing. In the seller's other buildings, the commercial space became medical facilities, a church, and a beauty products store. I do not think the seller would rent to a bar.
Is this an R train only stop or is the N also there? Is the stop accesible?
The R and N are a couple of blocks away. The N train is maybe a few more blocks away but reasonably walkable. I believe the N train is accessible. I do not believe I can purchase a deed for the parking spot but I may inquire about that. I thin it's something I need to pay an additional charge for instead of getting a deed for it.
...do you have a realtor? What do they say about these questions?
I'm not working directly with a realtor currently but I have consulted with one. On their guidance I asked the seller of their plans on selling vs renting and it appears that the seller expects to be giving units to family or renting out units for the forseeable future. The realtor suggested that this is likely a bad thing and recommended I abandon the purchase.
I previously purchased a condo in Brooklyn, and everything you mentioned, including sponsor control of board seems typical. Assuming this is a relatively small building with 6-7 units (which seems like the case given the neighborhood and description provided), if the sponsor owns 1 unit + the commercial unit, they have significant ownership interest in the building, so it seems reasonable to allow them to have a majority of seats on the board, though of course the tenants should also have representation on the board. If it's a large development with more than 25 units, then indefinite control of the board with only 1 residential unit and 1 commercial space seems excessive. Something else to keep in mind is that sponsor control of board for the first several years is not necessarily a bad thing, especially if the tenants have no experience in how to operate a building, run board meetings, etc. Things could get chaotic if the tenants take control of the building too soon.
I agree with this concept now after identifying the seller's other buildings now. It seems like the seller just wants to retain control but doesn't appear to raise HOA fees significantly.

It seems actually like the sponsor makes at least a portion of his money by giving purchasers loans when they're unable to find financing for new developments. His interest rates are higher than the normal ones so it seems like he gets his cost premium there.

So now I'm grappling with three problems:

1. Being okay with the sponsor putting his family in condo units and renting out other units (this seems to be a major issue)
2. Actually being able to get the loan for this
3. It seems like in the sellers other buildings, purchasers took loans from the seller, and now as they are selling their units they are selling for not much more than they paid for the unit. This seems very odd to me.
Last edited by lameguy on Fri Oct 01, 2021 6:12 pm, edited 3 times in total.
Topic Author
lameguy
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Re: Condo in Brooklyn NY too good to be true?

Post by lameguy »

Sounds like the OP has done his homework. Have you read the Bylaws carefully to identify all the advantages the sponsor has written in for himself, beyond control of the board?
Also posting again because this is a good question.

From my reading, it appears that the most important is sponsor control. Each unit is responsible for their own share of the common charges and all their own utilities. Common charge share is calculated by a percentage of square footage if I recall.
setancre
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Re: Condo in Brooklyn NY too good to be true?

Post by setancre »

Based on my experience owning a co-op in Brooklyn, it is probably going to be near impossible to get a traditional mortgage if the sponsor retains full control of the building, and rents out the other units. Since you don't need a mortgage it may not impact you, but will impact resale.

Also, if the sponsor decides not to maintain the building well, and cheaps out on repairs and infrastructure investments, you will have no recourse, and again, this would impact resale.
cbeck
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Re: Condo in Brooklyn NY too good to be true?

Post by cbeck »

Here's something else to check: does the condo association have any debt? Originally during the conversion boom of the 80's the main distinction between coops and condos was that the building owned by the cooperative association could, and always did, have an underlying mortgage. The coop assn. could borrow money for building upgrades, repairs, etc. Condominium associations could not borrow, because they did not own any real estate, the building itself and the common areas being owned by the unit owners collectively. In those days a coop often carried double the debt load of a condominium, since the condo unit owner carried only his mortgage, while the coop member carried not only his coop loan, i.e. mortgage, buy by inference a share of the underlying mortgage.

Sometime later however the NYS legislature passed a law allowing condominium associations to borrow. It was a bad idea, in my opinion, but there it was. So, it is possible that the sponsor has borrowed money that the condo association will have to pay back in the future. Presumably, any loans would have to be revealed in the plan offering. I don't know how likely it is that there are such loans, but it would be worth checking.
carne_asada
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Re: Condo in Brooklyn NY too good to be true?

Post by carne_asada »

I went through this myself: purchased new construction condo in the NYC area that was fully sold through. The (nicer) condo building next door to me has most of the units still owned by the developer and rented - it re-sells at a significant discount to my building and it's nightmare for current residents as the association is not well funded and buyers can't easily get mortgages. If you are pre-construction (building will be finished 1 year+) then you should expect a bit of a discount but otherwise you have to find out what you are missing if its priced below market and has sat. It could be some externality that isn't obvious like some planned major construction project down the block. But it seems you have already sniffed out some sketchiness with his other buildings and this could be the reason for discount.

One last thing on condos - if it a small building (<10 units) you are carrying a significant risk if there are major issues with the building (either on legal fees to sue the developer or to repair the issue). My building is 20 units and I think that's a great size- it's big enough to distribute cost of the running the building but yet still small enough to have a bit of a community and know your neighbors.
pasadena
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Re: Condo in Brooklyn NY too good to be true?

Post by pasadena »

I can't answer your questions, but the proximity to the hospital caught my eyes. I have a coworker/friend who lives a block from a major hospital in Chicago, and he can hear the ambulance sirens all the time, even though his building is new-ish and supposedly has adequate insulation. And I mean, WE can hear them when we're on a conference call with him - it's become a running joke.

YMMV - he doesn't mind, says he got used to it. I would go crazy in a week.
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lameguy
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Re: Condo in Brooklyn NY too good to be true?

Post by lameguy »

I have a coworker/friend who lives a block from a major hospital in Chicago, and he can hear the ambulance sirens all the time, even though his building is new-ish and supposedly has adequate insulation. And I mean, WE can hear them when we're on a conference call with him - it's become a running joke.
HA! Yeah we're quite noise sensitive so it was a factor for us. It faces away from the main roads so it's reasonably quiet. It is something that's on our radar though.
I went through this myself: purchased new construction condo in the NYC area that was fully sold through. The (nicer) condo building next door to me has most of the units still owned by the developer and rented - it re-sells at a significant discount to my building and it's nightmare for current residents as the association is not well funded and buyers can't easily get mortgages. If you are pre-construction (building will be finished 1 year+) then you should expect a bit of a discount but otherwise you have to find out what you are missing if its priced below market and has sat. It could be some externality that isn't obvious like some planned major construction project down the block. But it seems you have already sniffed out some sketchiness with his other buildings and this could be the reason for discount.

One last thing on condos - if it a small building (<10 units) you are carrying a significant risk if there are major issues with the building (either on legal fees to sue the developer or to repair the issue). My building is 20 units and I think that's a great size- it's big enough to distribute cost of the running the building but yet still small enough to have a bit of a community and know your neighbors.
I think that a lot of people have the same opinion that the likelihood of renters and the sponsor retaining units is enough of a downside to kill this deal. Ultimately, I don't see any reason as to why I couldn't just rent in the building myself if it was going to go rental. Why should I bag hold the mortgage if the others who have sold in the developer's other properties are selling for the same price they paid a few years ago?

It's quite frustrating since I've been looking for a place for quite some time but I think this will have to pass. :(
Saving$
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Re: Condo in Brooklyn NY too good to be true?

Post by Saving$ »

Not familiar with NYC RE, but
...you say seller has expressed a plan to keep half the units and rent them
...you are looking at the potential for you to rent the unit you purchase
...you will be a direct competitor to the seller if you decide to rent your unit
...you state the seller controls the condo association as long as seller owns a unit. That means they can change the condo rules whenever they want. They might want to change the rules to state rentals are not allowed except the units owned by the original developer. That may cause an issue.

Also, the seller saying they hope to rent the commercial space to a medical practice means nothing. If you don't want to live over a bar or restaurant, require them to put that prohibition into the association docs, in a format that the original seller cannot change.
cbeck
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Re: Condo in Brooklyn NY too good to be true?

Post by cbeck »

Saving$ wrote: Sat Oct 02, 2021 8:38 pm Not familiar with NYC RE, but
...you say seller has expressed a plan to keep half the units and rent them
...you are looking at the potential for you to rent the unit you purchase
...you will be a direct competitor to the seller if you decide to rent your unit
...you state the seller controls the condo association as long as seller owns a unit. That means they can change the condo rules whenever they want. They might want to change the rules to state rentals are not allowed except the units owned by the original developer. That may cause an issue.

Also, the seller saying they hope to rent the commercial space to a medical practice means nothing. If you don't want to live over a bar or restaurant, require them to put that prohibition into the association docs, in a format that the original seller cannot change.
The Condo Board cannot change the Bylaws. That requires a vote of the unit owners and I believe it also would require review and approval by the Attorney General. Never heard of it happening. The unit owners have property right to sublet that cannot be abrogated by the Board, whose only recourse is to exercise their first right of refusal over the proposed rental.

Believing that having renters in your building adversely affects anything is just one of those silly things that New Yorkers believe.
Topic Author
lameguy
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Re: Condo in Brooklyn NY too good to be true?

Post by lameguy »

Sorry to necro this thread but I figured that I would share an update for others who search and land on this thread.

I was able to convince the sellers broker into letting me speak directly with the developer/seller. He had reasonable answers on renting versus selling. He said that his main goal was to sell units almost always unless the market turned sour in which case they would convert to rentals. He also said that he had 3 other units with contracts out and was retaining 1 unit for his partner/his own usage. This helped me mitigate my major concerns which were whether or not he would aim to sell units and whether or the loan would be conforming.

From there I considered a few other things based on the previous history of the seller and the current market:
- Seller doesn't seem to raise common charges frequently
- Units seem to sell albeit with very little to no markup
- Interest rates are probably poised to go up
- Current rent is higher than the expected mortgage payments

This seemed to imply to me that the risk here is seemingly low assuming I trust that the developer didn't lie to me. His previous history does not indicate he intentionally did.

Because of all this considered I am currently expecting to go into contract this week and hoping to lock in a low interest rate.
Trapper
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Re: Condo in Brooklyn NY too good to be true?

Post by Trapper »

Sounds great. You did your homework
retire2022
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Re: Condo in Brooklyn NY too good to be true?

Post by retire2022 »

lameguy wrote: Tue Sep 21, 2021 10:20 pm
Op

If you desire to search for zoning, you can look up the building either by address or block and lot.

http://a810-bisweb.nyc.gov/bisweb/bispi00.jsp

additionally you can do a search on ACRIS using block and lot information.

https://a836-acris.nyc.gov/CP/

The mortgage information and current owners are listed and recorded on the NYC ACRIS database.

Commercial units generally support the lowering for operating expense of the building, unless of course the developer/sponsor has control and expects to receive rent on the said commercial unit.

Is the building a HDFC? if it is more, than likely it is a local/state subsidized building and price is reflected in that nature.
brian91480
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Re: Condo in Brooklyn NY too good to be true?

Post by brian91480 »

pasadena wrote: Sat Oct 02, 2021 11:24 am I can't answer your questions, but the proximity to the hospital caught my eyes. I have a coworker/friend who lives a block from a major hospital in Chicago, and he can hear the ambulance sirens all the time, even though his building is new-ish and supposedly has adequate insulation. And I mean, WE can hear them when we're on a conference call with him - it's become a running joke.

YMMV - he doesn't mind, says he got used to it. I would go crazy in a week.
When I was in college, I lived about 50 feet from an Interstate bridge connecting Wisconsin to Minnesota. Huge semi trucks would ramble next to my window at all hours in the middle of the night.

The first few days was total hell. But after a few weeks, I barely noticed and slept through everything. You'd be surprised what the human mind can get used to. I'm guessing your coworker doesn't notice most sounds anymore either.
retire2022
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Re: Condo in Brooklyn NY too good to be true?

Post by retire2022 »

brian91480 wrote: Mon Oct 18, 2021 7:46 pm
pasadena wrote: Sat Oct 02, 2021 11:24 am I can't answer your questions, but the proximity to the hospital caught my eyes. I have a coworker/friend who lives a block from a major hospital in Chicago, and he can hear the ambulance sirens all the time, even though his building is new-ish and supposedly has adequate insulation. And I mean, WE can hear them when we're on a conference call with him - it's become a running joke.

YMMV - he doesn't mind, says he got used to it. I would go crazy in a week.
When I was in college, I lived about 50 feet from an Interstate bridge connecting Wisconsin to Minnesota. Huge semi trucks would ramble next to my window at all hours in the middle of the night.

The first few days was total hell. But after a few weeks, I barely noticed and slept through everything. You'd be surprised what the human mind can get used to. I'm guessing your coworker doesn't notice most sounds anymore either.
Noise meter on a smart phone app can measure the sound on location, a building next to subway or highway according to HUD/National Environmental Protection (NEPA) threshold, should be below 65 decibels.

I would advise the op to do so to put this issue to rest.
setancre
Posts: 79
Joined: Fri Dec 10, 2010 9:55 pm

Re: Condo in Brooklyn NY too good to be true?

Post by setancre »

lameguy wrote: Mon Oct 18, 2021 3:44 pm Sorry to necro this thread but I figured that I would share an update for others who search and land on this thread.

I was able to convince the sellers broker into letting me speak directly with the developer/seller. He had reasonable answers on renting versus selling. He said that his main goal was to sell units almost always unless the market turned sour in which case they would convert to rentals. He also said that he had 3 other units with contracts out and was retaining 1 unit for his partner/his own usage. This helped me mitigate my major concerns which were whether or not he would aim to sell units and whether or the loan would be conforming.

From there I considered a few other things based on the previous history of the seller and the current market:
- Seller doesn't seem to raise common charges frequently
- Units seem to sell albeit with very little to no markup
- Interest rates are probably poised to go up
- Current rent is higher than the expected mortgage payments

This seemed to imply to me that the risk here is seemingly low assuming I trust that the developer didn't lie to me. His previous history does not indicate he intentionally did.

Because of all this considered I am currently expecting to go into contract this week and hoping to lock in a low interest rate.
Make sure you include a financing/mortgage contingency in the offer contract to protect to yourself. If banks/lenders won't lend on the building, better to know now and have an out. You don't want to end up owning it without being to sell down the road. Also be sure you are using an independent local RE attorney, not the developer's recommendation.
Topic Author
lameguy
Posts: 6
Joined: Tue Sep 21, 2021 9:31 pm

Re: Condo in Brooklyn NY too good to be true?

Post by lameguy »

retire2022 wrote: Mon Oct 18, 2021 7:53 pm Noise meter on a smart phone app can measure the sound on location, a building next to subway or highway according to HUD/National Environmental Protection (NEPA) threshold, should be below 65 decibels.

I would advise the op to do so to put this issue to rest.
The unit is in the rear of the building facing the "yard" parking lot but measuring it is a good idea.
setancre wrote: Mon Oct 18, 2021 8:36 pm Make sure you include a financing/mortgage contingency in the offer contract to protect to yourself. If banks/lenders won't lend on the building, better to know now and have an out. You don't want to end up owning it without being to sell down the road. Also be sure you are using an independent local RE attorney, not the developer's recommendation.
Good point! I do have a financing contingency in my contract. It wasn't there originally but my attorney put it in a rider.
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