NORTHEAST DC | In a move most in DC real estate haven’t seen since the real estate crash of the early 2000’s, Kadida Development Group (KDG) and UIP (Urban Investment Partners – The UIP Companies, Inc.) canceled contracts and withdrew listings for Tribeca Condominiums from the market early Wednesday, informing shocked buyers that the nearly-completed building located at 40 N Street NE would be converted to rental apartments.
Many buyers had been under contract for over a year, watching the market and lower interest rates pass them by as they waited for sales & marketing firm Urban Pace to achieve the r30% pre-sales requirement needed for settlements and DCRA approval for a Certificate of Occupancy,
In a scenario like this, everyone but the developer loses. Buyers must start their searches over, most after having paid loan-related and inspection fees they won’t recoup. Agents who worked diligently to get their clients to settlement, the sales and marketing reps who climbed countless flights of stairs over two years of under-construction showings, and the lenders and title company folks who worked on the project all walk away with a deficit.
Losses extend to the neighborhood itself, which feels largely transient with its hotels, rental apartments and commercial spaces. Instead of much-needed condominiums contributing to a sense of permanence and community, the Tribeca neighborhood will gain yet another high-priced luxury apartment building.
The Isaacs Team is working with its Tribeca buyers to identify and contract on alternate properties with the best possible terms. If you’ve been impacted by Tribeca contract cancellation and are not represented by an agent, let’s talk to see how we can help you.
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