New York real estate is known for many things: skyscrapers, brownstones, and art deco, to name a few. These days, NYC also has another building variety making the news: ghost condos. Ghost condos are multi-million-dollar endeavors, situated in NY's financial district, that have remained unfinished for years.
The Wall Street Journal recently published an article detailing at least some explanation for these incomplete projects, and it seems the overarching themes are delays and oversupply.
The Skeleton Structures on Billionaire's Row
The luxury condos known as “One Seaport” are situated in lower Manhattan and, despite residing on Billionaire's Row, have sat only partially complete since their conception a decade ago. Since early 2019, construction progress has been tied up in litigation, which has, in turn, resulted in the snowball effect of missed deadlines. Now, building permits have expired, and buyers are entitled to returned deposits. Unfortunately for some would-be buyers, this means a legal battle of their own, in a fight for money they already paid.
“125 Greenwich” tells a story of missed deadlines and defaulted loans. Initiated in 2017, the project was plagued with delays and a lack of buyer interest. Although real estate brokers tried to reduce the price of the condos to stimulate buyer interest, the bank ultimately foreclosed on the 125 Greenwich project. Until a new investment developer comes along, the property will continue to sit unfinished.
The Empty Lot at 45 Broad Street
The empty dirt lot at 45 Broad Street is yet another tale of overly ambitious developers. At least in the case of 45 Broad Street, the project was paused before major construction could begin. Developers put construction on hold just before the Covid-19 shutdowns, citing oversupply of luxury condos. It takes no stretch of the imagination to understand that demand did not increase during the global pandemic.
Call an NYC Real Estate Attorney
The NYC real estate market can be big risk or big reward. If you're facing legal issues related to NY real estate, call the office of Melvin Monachan, Attorney at Law, at (347) 389-1682, or contact us online.