Steel began to rise about two weeks ago at The Savoy after months of what appeared to be little tangible activity at the site. Steel for the project had been expected to arrive since February.
Occupancy at one point had been scheduled for June 2007 (according to this December 2006 release), but now is targeted for April 2009, according to Ralph Pascale, sales manager for Maplewood Homes, a division of Dornoch Holdings.
In addition to steel shortages in the construction industry, the project was slowed down by state regulations that require archaeological studies to be done in certain areas. Work is also being done to renovate the sales trailer across the street and remove a pile of dirt from the site, Pascale said.
The four-story project at 1551 Main St. will have 36 two-bedroom and two-bath condos ranging from 1,150 to 2,000 square feet, with street-level retail and underground parking. According to those red banners on fencing at the site (photo left), units will start at $315,000.
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Noticed work had started up again there and was glad to see it. Was worried it might stall into oblivion like some of the Asbury Park projects.So there is some good news and bad news out there for us NJerseyans (per the Star Ledger).The bad news is that our state’s foreclosure rate is among the worst in the nation. The even badder (sic) news is that the counties with the largest share of subprime mortgages in foreclosure are Essex and Union.But wait! There is good news. The article states that within Union County, the towns with the highest concentration of subprimes undergoing foreclosure are Elizabeth, Hillside, Linden, Plainfield, Roselle and Union.NOT Rahway! Woo-hoo!So despite seeing some “Bank Owned” for sale signs and listings here and there, I guess its nothing compared to what these other Union County towns are experiencing. GO Rahway!
Speaking of Rahway developements, here’s some news for everyone on the site. Like many lenders today, Wells Fargo, the preferred lender of Skyview, changed its downpayment requirements for mortgages right before the building was scheduled to open. This allowed buyers to back out of their contract due to the contract terms. Silcon has their attorneys locked down though and has been refusing to give back the customers downpayments. I heard Silcon supposedly is way over leveraged on the building also and that their finances aren’t looking too good. Sounds like lawsuits may be coming down the pike.
Blasphemy?”Rahway boy treated for bullet wound”… and this happened right in our neck of the woods on W. Grand.http://www.mycentraljersey.com/apps/pbcs.dll/article?AID=/20080804/NEWS/80804027When I hear gunshots at night, I just tell myself the kids are playing with leftover fireworks from the 4th of July.
A quick check on hotpads.com will confirm Realist’s statement about foreclosure rates: http://preview.tinyurl.com/59bhe2Regarding the gun violence, I looked at a place near Oliver Street and another on West Grand last year. Good thing I passed – my aim is bad and I don’t know where to get good deals on body armor.$315k for a 2-BR condo in Rahway? Dornoch might want to re-think their prices or consider switching the project to (gasp) rentals. The same money gets a nice place in Hoboken or Jersey City in 2009-10. Assuming you can get a mortgage.
Anonymous,Can you source any of that information? Has it happened to you? Where did you “hear” this nugget of info?BTW, that’s definitely not the first time I’ve read about gunshots reported in the vicinity of Oliver Street.
Mark, I can say for certain that it is occurring because it is happening to me. Silcon’s attorneys have not responded to any phone calls, emails, and letters over the past few weeks. I only want them to honor the contract that we had signed but I guess this is how they do business, but it is not a major surprise as the company has been dishonest throughout the process. I’d prefer to have this settled so we can part ways but if they continue to operate this way then lawsuits, protests and bad publicity will be coming as I do not take kindly to being robbed. I just hope this information proves helpful for any prospective buyers to beware of dealing with Silcon and Skyview.If you need any other sources, feel free to ask Dan Murphy of Wolff & Samson attorneys in West Orange, NJ why they are refusing contact with people who can legally withdraw from the contract or you can contact Wells Fargo, Skyview’s preferred lender, to confirm that they recently increased down payments for condos in the area.
anon – If you are willing to share, are you wanting to back out of your contract because you now can’t afford the unit based on the new down payment standards, or, was this going to be an investment and you now feel that the housing market has soured to the point that you won’t see a decent return?Also, does anyone know if the white labels taped to some of the Skyview windows have any meaning. That is, do the white labeled windows indicate that the unit has already been sold?Finally, if Silcon wants to turn the unsold units into rentals, does it have to get approval from the town?
I actually was very much looking forward to moving into the unit. When I found out that Wells Fargo was changing the terms, I did everything in my power to close on the unit before the change. However, now that the terms have changed, I am no longer financially able to meet the new requirements. I only want Silcon to do what’s fair per my contract and return my money so I can move on with my life. They are no different than a robber in the street that steals your money. It’s downright criminal.
Anonymous – Sorry to hear of your situation. At this point would you have to forefit your initial down payment or just your depositn if you walk? From what you described this could turn into a three-way legal steel cage match.
I have no response from Silcon at all. I have received no communication despite numerous requests. I guess this is how Carlos Silva runs his company. I guess that’s how he pays for his Ferrari that he parks outside his upscale David Drake restaurant, by stealing money from others. It’s disgusting. I do not plan on forfeiting any money. I’ll have no choice but to take legal action to recover the money. Obviously I’d rather not have it come to that but I’m not going to walk away from my money either.
Anon – sorry to hear that Wells Fargo changed your requirements at the last minute. What did they change their requirements too?I am also buying into Skyview and I was working with Wachovia in the early spring and they changed their requirement from 20% to 50% down right before issuing a commitment. That would have put the unit out of reach for me.I scrambled a bit to find another lender especially when I found out that Skyview’s original preferred lender went belly up (I think they had their own mortgage company??) I am working with Wells Fargo now and they have not mentioned anything about going up to 50% but they don’t seem to be very swift either so I am not sure if this will be another 11th hour notice for me.I am not getting a warm fuzzy feeling about the whole Skyview experience. Believe me if I could walk right now I would but I am sure that I would be on the hook form more cash based on the way the contract is written. Some people have moved into the building already. Does anyone know their situation??FYI – the labels on the windows are probably the stickers that come on new windows from the manufacturer. If anything it probably means they have not cleaned those units. Also, Within the contract Skyview resrves the right to rent out the untis it owns. But it does not specify what that quantity is.
I don’t get it. If the banks dont thing the units are worth the listing prices in the mid 200/300’s (which is obviously the case since they are requiring a 50% down payment), then why do any of the buyers think they are worth what Silicon is asking? I’m not a rahway basher, when I look to buy summer next year Rahway will be on my list but I think a lof of buyers in jersey are brainwashed into thinking they have to pay 350k+ for a 2 bedroom condo that has a coffee joint on the first floor. Its obvious that the banks dont think the units are worth the asking becuase if they were, they would finance you for the whole amount.
It’s not that banks think the condos are not worth that value and I haven’t seen any banks demanding 50%, but they have increased to 10,15, or 20% (unless maybe you have bad credit). It doesn’t have so much to do with Skyview or Rahway but the real estate market as a whole. Lenders created this mess by giving mortgages to people who couldn’t afford them and now they are making the real estate market worse by making it almost impossible to obtain a mortgage, even for people with good jobs, good credit, and cash in the bank. But regardless, Skyview should be honoring the contracts and refunding customers if they can legally exit.
If someone was trying to get a mortgage with 5-10% down they were also probably doing a 5yr ARM and were looking to flip right away. Last time i checked a standard 30yr conventional loan down payment for a home without PMI was 20%. That was what I was looking to do with Wachovia.I can assure you that my credit is solid over 750 (sometimes a double edge sword – they want to give you more than you need) The reason Wachovia indicated they wanted more down was that the property did not meet the condiminium, planned unit development project guidelines for my loan – (whatever that means because no one there could explain it in english to me)I agree the banks screwed everybody in the process so people with decent finances are scrambling to try make things work. Still curious what Wells Fargo changed on you at the last minute. I am curious since i still waiting on their final commitment. Would like to be prepared-like calling my attorney.
Anonymous at 10:04 am you wrote;”It’s not that banks think the condos are not worth that value and I haven’t seen any banks demanding 50%, but they have increased to 10,15, or 20% (unless maybe you have bad credit). It doesn’t have so much to do with Skyview or Rahway but the real estate market as a whole.”This means the bank doesnt think the condo is worth the prices being asked. If the builder is asking 300k and Wacko wants 60K downpayment, that means that to Wacko that condo is only worth 240k. I have an over 750 score and a high paying job and could easily afford the monthly mortage at 100% financing, but I dont have 60K in the bank saved, so how am I going to pay 300K for a unit if the bank wont lend me the 300k? If I can afford it why should the bank care? They care becuase THEY DONT THINK ITS WORTH THE $300K!Naturally you think, ok, they will finance 240k if I come up with 60k, so let me find a condo for 240k, but guess what, if i try to buy that condo they want 48K which I dont have. No what do I do. The banks are screwing themselves and with this scenario you can see that the housing is due to continue going down, becuase there are a lot of young professionals like myself who even with great credit scores, and solid high paying jobs, cant get a mortgage without big money down. Damned if you do, damned if you dont.
Dude — Your attitude is a big part of the problem. You DO need to put money down if you want to buy property. You take some risk, the bank takes some risk. That’s how it works.But how can you possibly put down $60k? The old fashioned way … save money for a few years.
This move by Wells Fargo and Silicon is understandable: they’re looking to prevent buyers from backing out of their contracts by forcing buyers to leave more money at the table if they do. If I signed in late 2006 to buy a mid-200s … sorry, low-300s unit after bells and whistles that will at best go for 225k today, and I only put down ten grand, guess what, I’m walking. In the Great Housing Bubble years, this was no biggie since for every buyer who backed out there were dozens looking to get in on the frenzy. Now there are no buyers to speak of, and if Skyview contracts start collapsing, the developer won’t be dining at David Drake for much longer. I feel bad for people like Anon 9:58 who only wanted to honor their deals and move in. I’ve heard of high down payment requirements for investment properties and secondary residences. I still don’t know how a 50% DP can now be required for a primary residence – that’s odd however it may make sense in a Loan to Value calculation. In any event, they’re begging for a lawsuit. I’m no Perry Mason, but I don’t see how altering a deal in this way can be legal.
For Anon 11:11am, the banks don’t even know its Skyview. Call any lender and ask what the downpayment requirement is for a condo in Union county. The downpayment requirements went up on all lenders, regardless of the condo, so it’s not they think the Skyview condos aren’t worth the price…it has nothing to do with that. I do agree with NCR though and that Silcon is headed for trouble operating this way. I’m sure Carlos Silva will still be eating at David Drake though since he owns it.