As per a commenter’s tip, Crain’s is reporting that the Magic Johnson financed condo project at 110 Green Street is bankrupt.
A 130-unit building in Greenpoint, Brooklyn, declares bankruptcy. The property’s lenders include basketball star Magic Johnson.
The company is the owner of 110 Green Street Development, a six-story luxury condo in Greenpoint, Brooklyn, called The Viridian. Sales of its 130 units began in June. In the filing the company noted that the Viridian’s construction coincided with an unprecedented decline in the real estate market generally, and in Williamsburg and Greenpoint specifically.
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.
I already heard that the condo went pretty much rental, but now with the official bankruptcy does this mean it might go bottom dollar? Or even worse, sit unoccupied and become a blight?
The bank can either sell the whole building or rent it out themselves. It might be a while before they hit the market while the bankruptcy goes through.