Sixty-five newly-built condos in central Brooklyn are in financial distress or heading towards foreclosure, according to a recent survey conducted by Democratic Assemblyman Hakeem Jeffries. These properties are market-rate residential buildings at least four stories high located in the neighborhoods of Fort Greene, Clinton Hill, Prospect Heights, Crown Heights and Bedford-Stuyvesant.
Recently, the city has moved to convert derelict condos into affordable housing — and even into homeless shelters, in some cases.
That’s what Jeffries wants for these ghostlike, towering condos…
Some projects are completed and unoccupied, while others are stalled. Some of the projects’ developers are also defaulting on their construction loans, says Jeffries, an affordable housing advocate
According to Crain’s the list of properties includes a number of high-profile new developments, such as the glass-wrapped, 30-unit condo at 525 Clinton Avenue, dubbed The Collection, and The Isabella (pictured), a 63-unit block at 545 Washington Avenue in Clinton Hill (which happens to be right near a homeless shelter and a methadone clinic). Both developments are completed but unoccupied, according to the survey. There are 10 active listings at the Isabella, according to Streeteasy.com, while there are no sales listings at The Collection.
Developers of both buildings are in early stages of being foreclosed upon by their lenders, says Jeffries.
Apartment sales in those Brooklyn neighborhoods have dropped 42 percent compared to the same quarter last year.
This article from the Village Voice Archive was posted on August 28, 2009