There’s been some confusion, and ambiguity, surrounding the Harborview at the Navy Yard auction. As Boston Condo Guy reported in early September (Harborview Navy Yard Fails, Now Luxury Rental), Harborview was yanked from the market as a 224-unit for sale condo development, and was slated to become a luxury rental property. It was recently announced that parties involved with Harborview are inching towards making that a reality.
Why do we say inching? Well, the auction that will be take place on Thursday, November 8, 2007 at 11am is looking for a suitor of the entire development, not the individual condos themselves. The entire development still has to be sold off, and the new owner would then proceed with renting out, or perhaps even selling off, units. In other words, if you are a Buyer looking to acquire an individual Harborview condo at below market rates, do not show up to the auction. The development’s suitor needs to put down $1 million in a cashier’s check the day of the auction, with 10% forthcoming 10 days later.
Paul E Saperstein Co., the party who is handling the auction, is working on behalf of Riemer & Braunstein LLP, who is foreclosing upon Eurohypo AG, who apparently backed Trammell Crow (project developer) to get the work done for them. The mortgage of record is for approximately $95 million, so the auction should fetch somewhere in that area – it’s currently uncertain as to what the outstanding balance actually is, given construction loans and other financing more than likely obtained throughout the development process.
Will the Harborview condos ever be sold off to individual Buyers? The answer to that is more than likely, no, at least in the short term. At this point there has not been any condo documents filed. A new owner could potentially use the property for rental purposes or proceed to move forward in the documentation required for condos. It looks more realistic that Harborview will continue down its course of becoming a luxury rental property, eventually.
For further details, view the Harborview Auction Packet (6.7 MB PDF)
Keith Munsell 
