Risks to buying condo rehab vs new build in NYC

[conrad_harris]

We're thinking on purchasing into a new condo re-development project in Lower Manhattan (FiDi and Seaport area). It seems like a good deal for a condo in terms of price. What am I missing? Are there any risks to buying a condo conversion vs a ground up new construction?

I realize the building won't be new. It'll actually be the original landmarked exterior. The interior is gut renovated. Any risks or it seems like too good to be true?

[aslan]

Hi Conrad, this is a great question. Nothing is free in life. What you should find out is whether the condo conversion was a total gut rehab, or whether it was a more cosmetic "botox job."

The reputation of the sponsor is supremely important in my opinion as well. The bigger well known sponsors generally do a good job on their punch lists and delivering a good product, as they care about their brand equity. However, beware if you run across a condo rehab done by a small or unknown sponsor. They may simply be flipping a disaster onto new buyers after doing a light paint job.