Manhattan House retail sells for $14M less than asking
October, 08, 2008, The Real Deal
O'Connor Capital Partners sold the retail portion of the landmark Manhattan House to Madison Capital for $86 million, $14 million less than the asking price.
The 102,842 square feet of retail, parking and office condominiums includes seven street-level stores and four office spaces. O'Connor Capital has already attracted some new tenants to the building, at 200 East 66th Street, including Staples and Aldo.
Manhattan House is comprised of five 22-story buildings, and was originally designed as a rental building in 1952 by Gordon Bunshaft of Skidmore, Owings and Merrill.
A team led by Dolly Lenz of Prudential Douglas Elliman is marketing the 583 residential condos in the mixed-use complex. The attorney general's office approved the conversion of the building from rentals to condos in August.
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38 comments:
To the Manhattan House Purchasers,
Has anyone closed yet?
Has anyone backed out of their contract?
Prices everywhere are plummeting!
Will this building go into foreclosure?
Will they sell more apartments or will the remaining apartments be rentals?
Will maintenance fees triple?
Will services be cut?
EVERYONE IS CONCERNED!
Please post your comments, suggestions, and information if you are a purchaser so we can help one another before it’s to late.
We purchased an apartment last year and we are now having to secure financing at 50% down! We won't do that. Our broker said that some banks wont finance Manhattan House. Can we band together somehow and maybe get the developer to either finance us, or reduce the cost of the apartments, or pay closing costs? I know the developer can rent the apartments at any time, but the condo board doesnt get control of the building for five years in that case.
Maybe we could let the developer delay closings until the banking industry gets it together.
your right. Who is your broker? What are the reasons the banks won't finance the Manhattan House. The sponsor is recommending Wells Fargo and Chase. We should band together. It's Key!!! Are you an inside buyer., a former tenant? If so, you must know many others that purchased. Delaying closings are key to know if they makegood on the amenities that they promised.
we purchased an apartment early this year,and we are waiting to have our apt be renovated prior to close. Has anyone know if renovation works are proceeding ? and what about amenities?
we signed a purchase agreement as well - it feels that they have stopped all spending on the conversion. the quality of renovations have been misrepresented and the common areas are unacceptable. this is no longer a luxury conversion.
very concerned about the amenties also and whether or not the sponsor will sell more apartments, leaving a minority of ownwers to pay the majority of the carrying costs of the entire building. Where are the new cobblestone driveways, garden restorations exhale spa and gym and childrens room. I don't see any improvements. I can't closeunless I see them. The offering plan guarantees virtually nothing. It's all on their word. Spread thewordif you know any other buyers to log on with comments
Has anyone hired an engineer to inspect their unit -- to make sure the renovations that the Sponsor has promised have been done?
we were supposed to visit the apartment we purchased, this September but we were shown another similar flat as apparently there were work in progress on our apt. During my visit at MH I have not seen any worker though
none of the amenities have been started nor will they give a definitive completion date or show the progress in person. Please ask and comment back. I will not consider closing until I know for sure they will be complete or my apartment will be worth much less. COMMENTS?
the hallways outside of the apartment we contracted were in shambles with all of the piping exposed and the old wallpaper and carpet in place. they said that they did not have a timeline for replacing anything, but that they would wash the old wallpaper. as for the gym and other common areas, they had no timeline for putting these in place. i believe they are conserving their cash and not working on any common areas.
To 8:12 AM, Doing a walkthough in a unit that isn't yours shouldn't count. Also, get an engineer to look at your unit, and the ones around it, before you close. Once you've closed it will be very difficult to get anything done.
We sent our realtor to look at our apartment to make sure all work was done, and to see if the hallways were either renovated, or put back together,(as they were in shambles the last time we were there). She was not allowed access to the hallways, nor the unit, as the sales staff said they were only authorized to show apartments that were currently on the market. She was told to contact the sponsor.
How do we get organized and put some muscle to our concerns?
Has anyone received a 30 day notice of closing?............... I was told my closing would be in December but don't beleive them. If you live in the building can you post something informing others of this blog so we can get more info. Is there a purchasers blog? Need to act quickly! What was the name of the attorney who represented the tenants during their many problems?
We have received the 30 day notice and have completed my first walk-through. The hallways are still a disaster and the other common areas are not complete and the developer will not show them. We will not close at this time since this development seems abandoned.
Would any of you be interested in meeting in the neighborhood to discuss?
Just read everyones comments and my circumstances and concerns are the same. I was hoping to find a blog. I would be willing to meet and discuss the issues with you and all others that have entered into a contract to purchase. Leave info needed and I will contact you.
I am anonymous 3:21PM & 6:01PM. We are not locals, but we will be in the city for the weekend of the 25th. We can get together before if necessary.
The name of the attorney that represented the tenants is Rafael Urquia ll. He may still live in the building,as he was the president of the tenants association.
Maybe one of you locals can check that out. Keep us all posted!
We've left postings for 7:26 pm and 12:08 pm. Can someone (preferably MHTech guy, the blogger) post an email address so that each buyer can send our contact info there offline? Then if (MHTech guy) can redistribute this info to our private email accounts, we can all get in touch and coordinate.
I'm 7:51 PM and live on the UES. What if MH tech guy doesn't respond? Any other ideas? Is anyone on this blog a tenant who is purchasing and is familiar with the attorney Rafael Urquia ll? Do you have a list of other tenants who have gone into contract to direct them to this blog?
Perhaps someone knows how to start a "Manhattan house 200 east 66th street purchasers blog" that would attract more easily. This blog we are on is difficult to find and could possibly be removed? We need a central means of communication. Suggestions?
this is 5:53 am - i've set up an email account mhpurchasers@gmail.com - if you want to send an email there with your contact info (name, email, mobile), I can collect the group's contacts and redistribute to your private email accounts so that we can communicate. (i'm also open to a purchasers blog if someone else can set one up)
From a non-purchasing building occupant: The leaks continue into renovated uninhabited apartments and into the unrenovated tenants' apartments. The flooring of the "Manhattan Club" was torn up recently--I heard there as flooding there too and into the 14th floor sales office. The hallways remain a shambles throughout most of the building with exposed pipes, dirty and torn carpeting and wallpaper, dust etc. Have never seen any gym. Construction workers continue to control the passenger elevators, creating problems with their use and workability. The black book and red herring told everyone that the sponsor reserved the right not to give up its control of the board and to rent units, so no purchaser should expect to gain control of the board anytime soon, let alone in the next 5 years. The mangement continues to put mammoth flower arrangements in the lobby and polishing the lobby floor, to put the best face on the veneer for prospective purchasers.
Why don't the prospective purchasers contact the Attorney General with their complaints?
I asked to see the childrens room, the rooftop exhale spa and gym etc. and was told it was a construction site and they did not have access. Everyone in the sales office tells a different story. Don't think they will deliver what they promised which will effect the quality of our ownwership as well as resale value. When did they rip up the floor of the Manhattan club and what caused it? Since the sales office is on the 14th floor, not directly under the roof, what caused the flood and how extensive was the damage?
Most coops and condo's maintain their commercial space for income to keep the maintenance low. They also have a say in who they rent to. The sponsor sold out; no income to us and they can put any kind of tenant they choose which can be detrimental to us. Who were the attorneys that represented the tenants? Which were the best? Were any of them effective? Was the Attorney General helpful when contacted in the past?
Sounds like the owner needs to raise cash to pay back or to get an extension from the bank/consortium that loaned $700 million which is due on 6/1/08. . . Perhaps the lack of sales of the overpriced apartments during a recession, and the fact it is an older building with leaking pipes and other problems, caused the need for the sale of all retail stores?
Not only will Resident Unit owners pay for those expenses not covered by the reserve fund, but they will do so without the revenues of the commercial units. The boards in other buildings choose who will rent stores and at what rates, so that those rents can offset the buildings' expenses. Not in this building. The Condominium Offering Plan states:
Pg. 91 Residential Unit Owners will not have any interest in the rents, profits or revenues from the rental or use of any space in the Non-Residential Units.
Pg. 92 viii the Non-Residential Unit Owners shall have the right collectively to designate 2 members to the Condominium board.
manhattan housers, you are in for a long time of construction, etc. you will be forced to close before the building's construction is complete, that is just the way it works in a conversion like this Im afraid. you should buy at another conversion instead where there are either lower CCs, better amenities or units are delivered as promised - diamond house, maisoneast, miraval living come to mind.
To all purchasers - Rafael Urquia is the head of the tenants' group, not their attorney. (If you want to contact him just google for his firm.) The lawyer who initially represented the tenants was David Rozenholc. The current attorney is Adam Leitman Bailey. Any purchaser should have done more homework before agreeing to buy in this building!! What were you thinking??? Leaks and floods occur daily throughout the building. The entire deal was leveraged and the developers overpaid. So have you!
To the commenter above me, you should be ashamed of yourself for your anonymous statements to buyers and those in contract.
My name is Adam Leitman Bailey (www.alblawfirm.com) and I am the attorney for the Manhattan House Association. I have been speaking and emailing with many of you. If you are about to close on your apartment or have recently purchased please email me at alb@alblawfirm.com.
Please also read the following articles:
New Home Warranty - An Open Question Seeking an Answer
Source: New York Law Journal
http://www.alblawfirm.com/news/article.php?id=77
Are Buyers of New Condos and Co-Ops Subject to Caveat Emptor
Source: New York Law Journal
http://www.alblawfirm.com/news/article.php?id=4
Enforcing the Contract - Obtaining Down Payment on Specific Performance
Source: New York Law Journal
http://www.alblawfirm.com/news/article.php?id=129
Defining When 'Time Is of the Essence'
New York Law Journal
http://www.alblawfirm.com/news/article.php?id=202
lol.. cha-ching...
Was the less-than-asking price due to a special expect-no-heat discount? A "cool" price for the retail portion of the building. Prospective purchasers, bring your woolies!
I have actually closed on my unit and am very happy with it. The developer has been responsive to any issues / growing pains and has repaired and made good on all issues raised in a timely fashion. The hallways have been cleaned up, but will not be finished until all units on a given floor are complete. It makes sense not to destroy new hallways with ongoing construction work. Gym is finished, and frankly its gorgeous - waiting for the certificate of occupation before it can be used. Work has started on the roof garden, and the driveways will start once landmarks have approved the work. Yes its a work in progress, but that is to be expected as an early purchaser.
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