NEW YORK CITY — After nearly 6 months of inactivity, Jamestown Properties has restarted the development of be@Schermerhorn, a high-rise condominium tower located in Brooklyn, New York City. The collapse of the credit markets hit many lenders hard, including this project's lender, Wachovia. When Jamestown Properties, the principal equity investor in be@Schermerhorn, was unable to resolve its financial issues with Wachovia regarding the project, construction and pre-sales ceased.
Jamestown Properties' solution to this setback was to acquire the mortgage for be@Schermerhorn from the lender. The developer now plans to restart the project immediately and is on track to complete it by early next year. At the time construction halted, the project was approximately 88 percent complete, and approximately 18 percent of the units had been sold, so Jamestown was confident that, even in the current residential market, there was still demand for condo space in this Brooklyn neighborhood.
“We found, in terms of pre-sale commitments, that there were buyers who wanted what the project offered,” says Michael Phillips, a spokesman with Jamestown Properties. “I think it is well-positioned, well-designed and incredibly well-built.”
In a statement, Matt Bronfman, COO of Jamestown Properties, said, “We believe our ability as a highly liquid investment company, coupled with the seasoned market knowledge of SDS Procida [the project's developer], will deliver a successful project and a successful community.”
Be@Schermerhorn is located at 189 Schermerhorn St. It features 246 units in a mix of studios, one-bedrooms and two-bedrooms. Amenities include a fitness center, a residents' lounge, a landscaped courtyard and a greenhouse. Jamestown plans to restart pre-sales for the project at the beginning of next year.
“For projects to have credibility in this market, they need to begin selling when they have certificates of occupancy and their plan is able to be effective,” Phillips says.
— Coleman Wood