Riverhouse - 1 River Terrace - BPC - by Polshek Partnership with Ismael Leyva

[goobear78]

I'm a huge fan of Battery Park City, and I would pay a premium to live there, but I wanted to know everyones thoughts on the Pilots and Common charges that BPC & Riverhouse charges.

Did that hurt or hinder your purchase? Were/Are you concerned about them? Do you think that will be an issue in resale? I've heard from people that they are shying away from buying in BPC due to those charges.

I also posted this in the Visionaire forum as these are the two newest buildings in BPC. I wanted to know about this because I'm on the fence about making a purchase in BPC.

[KenNYC]

I'm a huge fan of Battery Park City, and I would pay a premium to live there, but I wanted to know everyones thoughts on the Pilots and Common charges that BPC & Riverhouse charges.

I've been looking at apartments in both Riverhouse and Visionaire, and what worries me more than PILOT or anything else is the fact that this area is, by and large, dead once the clock goes past business hours. Sales are also going damn slow down here, which is something a number of real estate agents have projected (including Ms. Porch). That bodes badly for resales. From what has been posted here, Visinaire is still just above 50% sold, and that is what they were in July as well. Worrysome numbers indeed.

On BPC in general, having lived here for about 8 months now, I have to say the area is very pleasant, and a perfect place (as far as you'll find one in NYC) if you happen to have younger kids etc. But all in all, the area is pretty dead. I very rarely, if ever, find myself staying downtown whether its for going out, for shopping, dining, whatever. Now a $15 cab ride uptown is no biggie if you appreciate the serenity of a quite place in the city, so this is a matter of subjectivity only you can answer.

[Dan Kohn]

We heard a rumor today that the Riverhouse is now in dire straits, with an enormous number of unsold condos. They suggested that a lot of those unsold condos would be put up for rent, and made it out as if the building would be foreclosed soon.

However, rather than scaring us away, it seems like great news for potential renters. We're very happy renting in the Verdesian next door, but would like to have a little more room.

This kind of duplex, 3 bedroom, 1930 sq fr apt going for $9500 seems amazing.
http://www.streeteasy.com/nyc/rental...-city-new-york

The same size unit is selling $3.025 M, which would be an $18 K a month mortgage.
http://www.streeteasy.com/nyc/sale/1...-city-new-york

And this smaller 3 bedroom has dropped from $9875 to $7000 since it went on the market on 1/1.
http://www.streeteasy.com/nyc/rental...-city-new-york

By the time our lease is up in September, we're hoping similar units have dropped even more.

Even if the building went into Chapter 11, it's hard for me to imagine that the existing condo owners would allow the amenities to be affected too much. Any horror stories we should be aware of?

Of course, the pool isn't done yet, and it's a shame that City Bakery has given up. And Teardrop Park South may not be finished for the summer. But Riverhouse remains an amazing property.

[RHowner]

We heard a rumor today that the Riverhouse is now in dire straits, with an enormous number of unsold condos. They suggested that a lot of those unsold condos would be put up for rent, and made it out as if the building would be foreclosed soon.

Even if the building went into Chapter 11, it's hard for me to imagine that the existing condo owners would allow the amenities to be affected too much. Any horror stories we should be aware of?

Of course, the pool isn't done yet, and it's a shame that City Bakery has given up. And Teardrop Park South may not be finished for the summer. But Riverhouse remains an amazing property.

As an owner in the building (and privy to information others are not) I can tell you that the rumor you are hearing is utterly and entirely false. 70% of Riverhouse has been sold and out of that only a handful have not closed yet. Let me repeat that, 70% of the building has been sold - that's more than the aggregate of Visionaire, 225 and 333 Rector.

Perhaps more importantly, the developer has paid off the construction loan. Riverhouse is the only new development in BPC that has done this. Without the liability of a construction loan there is no reason for RH to be in "dire straights".

The amenities in RH are near complete. The pool is finished and will be opening in a week. The last remaining amenity to be finished is the billiards room which is slated to be done in 2 weeks. The furniture is in storage waiting for the flooring to be put down.

City Bakery is back on. They originally had some financing issues, as many businesses did/have, but they have been resolved. The spaces for NY Public Library, Poet's House and New Tear Drop Park have all been turned over to their respective parties so any construction delays have no reflection on the developer/building. However, I was told that the Park would be finished by beginning of summer.

I am very happy with the investment my family has made in Riverhouse. I certainly understand that real estate values have changed over the past year but I am confident in the fact that Riverhouse is a safe investment for the long term. Because of the reasons I mentioned above, Riverhouse hasn't seen, and will not see, additional change in value due to the risk of lack of success or default of the developer. I can't say that for the other new developments in BPC who are only 50% sold or less. Case in point, Visionaire started a rent-to-own program, proving that the developer is in need of cash flow now to pay his debts. I do agree with you Dan that RH is an amazing building, but at the end of the day, whether Riverhouse is right for someone aesthetically or financially it is up for them to decide. Just know that it is as safe of an investment in real estate that one can make at this time.

[Dan Kohn]

Thanks for the detailed response. I agree it's a huge deal that the construction loan has been paid off. That's also wonderful news about City Bakery and Teardrop Park South.

We'll definitely be looking closely at Riverhouse when our lease at the Verdesian is up.

[KenNYC]

That's one of the apartments I was looking at too, it's wonderful, although I have to say the D line caught my eye the most, with absolutely spectacular river views.

If Riverhouse is in that much trouble, there must be serious problems further down south. In August when I was visiting Riverhouse reported sales around 70-75% and Visionaire at 50%. From what people are saying here, the Visionaire is still barely past 50%.

Edit: Seeing the post 2 spots above, I guess no buildings in this area has sold much lately, not surprisingly.

[wdogg]

Not sure where you came up with the "rent to own" statement, but I think you may want to check your sources before you start letting rumors fly around.

[RHowner]

Not sure where you came up with the "rent to own" statement, but I think you may want to check your sources before you start letting rumors fly around.

Wdogg....Without question, my source is reliable (and direct). It is being done through the sponsor, not through an individual owner. To be sure, there are rentals in the building offered by owners as well but those are not what I'm referring to.

[RiverRat]

RHowner, I also own a unit in the Riverhouse. And while I hope you're right, I definitely do not share your optimism. This is due, in part, to the fact that getting any information with respect to even the most basic details about the progress of the building is very difficult. The Board has made exactly one substantive communication to owners, and that was in January. Also, I would be astounded if the park were complete by the beginning of the summer.

However, you have a source and I do not, so I will take your word for the time being. Does your source also have any information about the parking garage? Will that ever open? If so, will it be open to Owners?

EDIT: I should add that despite the above, living here is great. The location is wonderful, the apartments are spacious, and the building staff is excellent. So the sound fundamentals definitely are in place.

[KenNYC]

I would assume the garage is going to be like in all the other buildings in this area, run by some commercial company with a priority to residents for spots, but at normal prices. Which means 650-700 a month for a single space.

[RiverRat]

I would assume the garage is going to be like in all the other buildings in this area, run by some commercial company with a priority to residents for spots, but at normal prices. Which means 650-700 a month for a single space.

One would think so. But at the annual meeting, the Sponsor refused to answer questions about 1) when the garage would open; 2) whether the Sponsor owned the garage; and 3) if/when it opened, would the owners would have access to the garage.

[HudsonNYC]

Wdogg....Without question, my source is reliable (and direct). It is being done through the sponsor, not through an individual owner. To be sure, there are rentals in the building offered by owners as well but those are not what I'm referring to.

I talked to the Visionaire sales office (212) 425-2550 and the sales person told me there is no rent to own program. They did say the sponsor in one particular case made an exception to a buyer in contract who was having difficulty w/ financing. But there is no rent-to-own program.

[Derek2k3]

[Dan Kohn]

We were watching the construction of Teardrop Park South during the spring, but construction has ceased the last month. Anyone know what is up?

[Dan Kohn]

The Battery Park Conservancy Director of Horticulture told me that they'd been having big problems getting the waterproofing fixed. I hadn't realized it until he said it, but the whole park is built on top of the Riverhouse's parking lot.

He said that the developer does not report to the BPC, which creates additional hassles.

Construction is starting to occur again, though, and he predicted it would be finished around Thanksgiving.