KMS COMMERCIAL and solicitors BCM Hanby Wallace are coming in for some flak from Irish investors in a development called Gramercy Green in Manhattan.
The Irish snapped up no less than 83 of the units in this Midtown scheme but they've now been told that they will get their deposits back since the developer has agreed to sell the 290-apartment block to New York University as student digs.
The Irish buyers were informed that their 15 per cent deposits will be refunded, plus an extra amount to cover the currency difference, since the dollar was around 20 per cent stronger when they booked them two years ago. One buyer who contacted The Irish Timeswas extremely irate at the outcome, suggesting that he was losing out on a potential capital gain of 20-30 per cent.
As with most overseas deals, buyers need to pay attention to the small details on the legal documents, particularly in NYC where there are many legal and bureaucratic pitfalls.
In this case it seems, developer JD Carlisle had the legal right to cancel sales and find an alternative use for the apartment building, as the project neared completion.
