2012 Feb 6th

What’s Going On at Hudson Tea?

Word on the street is that the Hudson Tea condo association has sued Toll Brothers for a variety of structural defects.  Still in the early phases, a claim amount has not even been set yet as the engineering firm has not finished it’s job of discovering what’s wrong with the building.  Evidently, there are some structural problems regarding the roof and windows and leaks.

These sort of suits happen more often than you might realize here in Hoboken.  What is interesting is that several reliable mortgage lenders have told me that there will be no money lent to buyers while the litigation is pending.  This is especially so because the amount of damages is so uncertain at this point.

So what do unit owners do?  Well, they can stay put.  If that’s not feasible due to life circumstances, they can try to find tenants.  Hudson Tea has always been a popular complex.  I expect that the longer the suit drags on, the more pressure from unhappy unit owners will be put on the parties to settle.  I’ll keep you posted as I learn more.

Maybe this will prompt Eli to stay put for longer.

  1. teaorcoffee

    I know several people who have sold in this building, even with the litigation going on. It hasn’t seemed to affect sales all that much. There are some units that haven’t sold, but they’ve been priced really high (like one particular unit that was asking $50,000 more than another one sold for two doors down – same view, same floor, same layout and square footage).

  2. Lori Turoff

    From what I’ve been told by quite reliable sources, suit was just filed weeks ago so whomever you know, probably sold before this happened.

  3. Craig

    That’s a crying shame. All that money they overcharge for those units and you’d think buyers would at least get quality construction. No matter what Toll did during the conversion, there’s no hiding the fact that the structure itself (a onetime pre-war factory) is very old and was bound to have issues. What’s that old saying? Oh yes – you can’t put lipstick on a pig.

  4. hobocondoowner

    This seems to be common with buildings that went up in Hoboken in the last 10-20 years. My last building had this issue and lenders would not lend to a building in litigation. The litigation in my former building is over now, but there is now a stigma in the RE market about it. I have heard of REA’s turn down listing units in my building because of it… and I was the first one to sell in several years (lucky me).

  5. Kmac

    I am looking ar buying a unit, my credit is excellent and I am pre qualified. The seller and realtor of the unit wants me to a local mortgage guy because none of the big banks will lend in Hudson. Is this true? Without going into all the details I am getting a very low and preferred rate that the local guy cannot match.

    So I guess I’m moving on. Just wanted to know if others are having issues

  6. Lori

    First of all, if your realtor were worth his or her salt, they should be able to answer this question for you. Maybe you ought to think of working with someone better qualified.

    There is pending litigation at Hudson Tea which means it does not meet Fannie Mae requirements and most banks will not lend because they cannot sell the loan.

  7. 1sttimehomebuyer

    I’m having the same issue in 1200 Grand. The condo assoc will not give me or my realtor any information on the litigation to find out what the implications of the outcome would be. Working on getting a letter through the seller now but its been a pain. Can anyone shed some light?

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