The Reel

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For the last two years or so, I’ve cautioned investors about buying in areas which were overdeveloped. Williamsburg was an easy target to mention. In 2006-2007, thousands of units were planned or constructed in the area. Since then many investors have jumped at the chance to convert broken condo projects to either sell them off at a discount or convert them into rentals.

My theory was that as these distressed situations worked their way through the system, there would not be enough demand to absorb them. Furthermore, I thought that those tenants previously priced out of Manhattan would look to return once pricing corrected.

I was wrong on several accounts...

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