Informative story in Sunday’s New York Times about condo projects turning to rentals, namely the state law that says after 75 percent of units are sold, “management shifts control to a homeowners’ association.”
It’s definitely worth a read, and particularly timely and relevant in Rahway. Apparently, it’s not uncommon in this market to go from condo to rental:
Developers often decide to switch from condo to rental, or vice versa, depending on which way the market is turning. Mr. Stolar said that he was aware of several condo developers who were contemplating the switch at buildings where sales are going slowly — or are even stalled — right now. And he isn’t the only market watcher to see this as an issue for a number of builders.
Switching to rentals is “a way to create cash flow,” he said, “and the rental market is still strong” compared with the condominium market.
Not only have two projects originally planned as condos shifted to rentals this year, bu
t I’ve been asked a few times whether Sky View at Carriage City Plaza is converting to rentals. Not likely. While individual unit owners can rent their apartments (and several units have been purchased by the same owner, by my count), Silcon Inc. would have to seek approval from the Redevelopment Agency to amend the redevelopment agreement. And I’ve heard nothing to even hint that such a move would be sought — much less gain approval.
With 209 units in Sky View, 75 percent of the building would be 157 units. By my count, almost three dozen units officially have sold and appeared in property transactions, but I’ve heard that as many as 65 percent of the units have closed.
Happy Thanksgiving!
I read this article as well but I didn’t share it here since the discussion lately hasn’t gone in that direction. I thought it was an interesting peek behind the curtain at condo developments. I’ve seen cases where the association owns the leftover units and rents them out. I wonder how the rental market can be described as strong – who can afford $2200 per month for a 2BR apartment in Rahway (or anywhere out in the NJ burbs)… might as well move to Hoboken, Newport, or Park Slope and be close to your fellow laid-off financial sector friends.What percentage of Skyview units are available as rentals? There are a few listed on the MLS, including a couple that are merely overpriced rather than outrageously overpriced – it indicates the sellers have some concept of reality. If it dips a little further, it might be time to loosen the purse strings and call my realtor.
Thought you might like this link to a picture postcard to the “entrance” to Rahway, many years ago.
http://www.lesliehawes.com/wordpress/?p=1940Well, that didn’t work! :)Here’s the link…
I can rent a 2BR in Skyview, a 2BR in River Place or a townhome in RiverWalk right now for all around the same price +/- $100. What are the pros and cons of each option? (e.g. Distance to train, space, amenities, neighbors, etc.) I can also wait for Park Square to open for business. Its a renters paradise in Rahway.
Today’s Star-Ledger features an article about businesses coping with the downturn:http://tiny.cc/k7BpEI've been to the Grub Hut and if they go under, my stomach will be in mourning! The article is not all doom and gloom, although an interesting point raised by one of the interviewed owners is that Main Streets generally attract novice business owners thanks to cheaper rents, however these same novice owners are the first ones to close up shop in a downturn since they don’t have the experience to weather the storm. Bad news for proprietors of new stores, not-as-bad news for established businesses.
has anyone heard anything about someone buying the property on New Brunswick Avenue right infront of Planter's Pointe Townhouse Development. It's two abandoned homes on New Brunswick btwn E.Hazelwood & Drift Way.
ncr, what category will Cuppy’s Cafe fall into? You have to open before you can be forced to close…
A good question. I’m not sure if Cuppy’s Cafe’s business model is collection of franchise fees (exhibit A: Subway) or selling coffee. Who knows, maybe the franchise fee was paid and the operators couldn’t get the credit needed to buy supplies.
The Cuppys franchisor took in mega money and it is alleged that he (Dale Nabors/Morg Morgan) miss appropriated funds and never put it toward the franchisee build out. So A LOT of Cuppys franchisees are stalled trying to find extra $$ to purchase what Cuppys/Elite Manufacturing should have provided in the first place or they are going bankrupt because of the alleged fraud. If you’re really curious check out http://www.UnHappyFranchisee.com For a decent size cafe it should cost a franchisee about $200,000 to get open. We are now approaching the $400,000 mark and if we’re lucky we will open our doors by Friday, December 12th — 6 months behind schedule @ $5,000/month rent.Support your local Cuppys there’s a hard working owner who has no franchise support behind him/her.
Well, in order to support Rahway’s local Cuppy’s, the place has to open first …