When the credit crisis hit and the real estate market all but collapsed, news of disgraced developers became commonplace, their tales more often than not layered with intrigue.
Take Kent Swig, who, after being divorced by his wife, filed an affidavit in May responding to a lawsuit filed by his ex-father-in-law, industry luminary Harry Macklowe, arguing that Mr. Macklowe embarked on a “vendetta” aimed at “starving” him of every last penny.
But as the downfalls of real estate tycoons like Mr. Macklowe, Shaya Boymelgreen, Bruce Eichner and Larry Gluck stack up like so many new developments across Manhattan’s skyline, analysts and the city’s landlords themselves have begun to wonder aloud if there’s a limit to how much real estate can be accumulated.
“A developer’s function is to develop property, and sometimes they develop and develop until they can’t develop anymore,” said appraiser Jonathan Miller of Miller Samuel Inc., a real estate appraisal and consulting firm based in New York City. “Where people fell short was that the market was more powerful than them … the market is brutal, and it has no compassion.”
Ever since the credit crisis hit and the real estate market collapsed, the news has been filled with disgraced developers–including in these very pages. Yet for every plucked chicken, there seems to be an equal number of phoenixes who, year after year, decade after decade, return from the construction graveyard to build again. (The Observer, Read More
When It's Not Your Money
Residents of the Newswalk Condominium have a few surprises planned for New York developer Shaya Boymelgreen.
Mr. Boymelgreen is operating in New York again, and “Shame on Shaya,” a group of Brooklyn residents taking legal action against him, is upping its local campaign in opposition.
Talking to a reporter for Read More
The breakneck rise and fall of New York developer Shaya Boymelgreen unfolds like a Gilded Age novel of social ascendance: young man immigrates to ethnic neighborhood in big city; accidentally takes part in Crown Heights riot of historic importance; strikes up fortuitous friendship with Uzbek diamond billionaire who agrees to bankroll his projects; Read More
Sure, maybe some of Shaya Boymelgreen‘s myriad development projects had a few construction oversights–like piping that sent sewage flowing into the streets, or leaks that eroded concrete beams–but, come on, that was all in the outer boroughs, as Mr. Boymelgreen tried to explain to his architect, Howard L. Zimmerman.
When Mr. Zimmerman met Read More