550 Vanderbilt update: one penthouse left unsold (marketed at 14% off), so sponsor's still in control. A $50K dispute between sponsor and board.

I recently had a look at the 20th Amendment to the 550 Vanderbilt Offering Plan, regarding the only condo building in Atlantic Yards/Pacific Park, at 550 Vanderbilt Avenue.

Filed 8/19/2022, the key information from previous filings sustains, though as of 1/19/22, the building got its Final Certificate of Occupancy.

Notably, though the previously designated Sponsor Control Period is no longer in effect, the Sponsor still controls the condo board.

That's because residential unit owners, who own nearly all of the overall building, control four of seven seats on the board, and as long as the Sponsor still owns at least one unsold apartment, it can designate one of those seats.

And the sponsor controls the three seats designated for the building's three retail spaces.

A financial dispute

One not insignificant--though not enormous--financial dispute has emerged:

Purchasers are advised, however, that as of the date hereof, there is a dispute between Sponsor and the Board regarding approximately $50,000 in charges authorized by the Managing Agent in 2018 for work to be performed in the Building. While Sponsor does not believe that such items are the responsibility of Sponsor, Sponsor nonetheless is working to resolve this issue with the Board. Notwithstanding the existence of this dispute, Sponsor is able to meet its financial obligations for the Unsold Unit.

That's a little confusing, because, presumably, the board majority, controlled by the Sponsor, can squelch concerns.

Otherwise, as of the filing of that amendment, and for the 12-month period previous, the Sponsor was current on all financial obligations due to the Condominium.

Still for sale

More than six years ago, in July 2016, the building was said to be 50% sold. But the more expensive units were harder to sell, and required more discounting.

550 Vanderbilt Avenue #PHE was listed at $5,805,000 in the offering plan, and is now marketed at $4,995,000, a 14% discount. Presumably the recent rise in interest rates doesn't help.

As noted on StreetEasy, at 2,412 square feet, that's $2,070 per square foot, with 7 rooms. 3 beds, and 3.5 baths. Three years ago, they were trying to sell it for $5,000,000.

As shown in the screenshot above right, from the StreetEasy listing, the western view depicts, in the distance, the 535 Carlton (B14) tower at the western end of the block. However, by now, two larger towers, 615 Dean and 595 Dean (B12/B13) have risen, and are being completed.

In other words, it can't be the same view.