Gowanus Lounge: Serving Brooklyn

The Day the Magic Died: Greenpoint Condo Goes Bankrupt

February 18th, 2009 · 4 Comments

Mark today on your calendar as an important day in Brooklyn real estate history: The day on which the North Brookyn real estate bloodbath began. (Somebody cue up REM doing “It’s The End of the World” but do not add the words, “and I feel fine.”) Crain’s reports that Magic Johnson’s Viridian condo at 110 Green Street has filed for bankruptcy. It is the first of what will be dozens of developer bankruptcies and we don’t feel particularly smart for having said two years ago this bloodbath would happen. A perceptive chimp could have predicted the horror that is about to begin to unfold in North Brooklyn. Per Crain’s:

According to the filing, the developer is now following an increasingly popular path by converting the Viridian’s units from condos to rental apartments. The company also revealed that it has had talks with Citi-Spaces Real Estate Services about marketing the apartments and with Fannie Mae and other lenders about possible financing. The developer expects to generate rental revenue shortly. “The demand for apartment rentals appears relatively stronger than the demand for condominiums,” the filing said. 110 Green Street filed for bankruptcy in the Eastern District of New York on Feb 5. The developer has two loans on the property, one senior loan for $36 million from Bank of New York and a second for $12 million in mezzanine financing from The Canyon-Johnson Urban Fund. CJUF is a joint venture real estate fund between Canyon Capital Realty Advisors and Mr. Johnson’s Johnson Development Corp. The Viridian is CJUF’s fifth project in New York City where the fund has invested a total of $105 million. Bank of New York has refused to make the final advance on its existing mortgage loan and this has placed a strain on the developer’s cash flow and has contributed to its Chapter 11 filing. Currently, the Viridian is appraised at $39 million.

Word is the building can be had for $65M. You do HATE to see that happen.

Tags: Greenpoint

4 responses so far ↓

  • 1 Laura Hofmann // Feb 18, 2009 at 9:40 pm

    I wonder what’s gonna happen with that fancy assed pool. Heh, maybe the YMCA will buy it!

  • 2 ff // Feb 18, 2009 at 9:54 pm

    Quick! Send in some bailout money! Stimulus funds!!!

  • 3 mikki // Feb 19, 2009 at 9:06 am

    Haha, Laura, then we would have three pools! Up 300% in just a year.

  • 4 Prince Albert Inacan // Feb 19, 2009 at 9:30 pm

    The best thing to happen in Greenpoint in years