Cool Place of the Day

A: Its raining, its dark, its dreary, and as depressing as a Monday can get! So, why not dream what it would be like to have $4,000,000 at my disposal to buy a place like this PH unit at 10 East 14th Street in Union Square. Can someone please buy my blog for $3.8M?

This prewar loft unit was updated as CONTRACT SIGNED on June 6th, 2007 but was just sent out via an e-blast to the brokerage community as available? Perhaps a deal gone bad? Whatever the current status is, if its back on market or not, it's still digs I would like to call my home!

Some details:

10 East 14th Street; Apt. PH-7

First Came on Market: 5/15/2007
Asking Price: $3,995,000
maintenance: $1,902
RE Taxes: $919
Interior Size: 2,466 sft
Exterior Size: 2,000 sft Private Roofdeck (hot tub anyone?)
PPSF: $1,620/sft not including Private Roofdeck
Marketed By: Jon Isaacs of Core Group Marketing

Building Notes:

** The Union Square Lofts is comprised of two distinctive buildings located steps from Fifth Avenue, the South Building at 5 East 13th Street and the North Building at 10 East 14th Street.

** Building features include: High ceilings from 11-14 feet, sequence matched walnut paneling, wide plank flooring, state-of-the-art Kitchens.

Some photos for you to enjoy!

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PH Dreams? Its Yours For Only $18,000,000

A: No one ever said high quality living comes cheap! Check out this new to market Penthouse unit at 135 W 70th street; a 10-ROOM, 5-BR, 5.5-BTH + 2 large terraces asking a wallet emptying $5,455/sft! So, who wants to start a fund to buy this baby?

THE PYTHIAN CONDO (135 West 70th Street)

One of the city's most fabulous buildings, the Pythian is richly decorated in brightly colored, glazed terracotta embellishments depicting figures of antiquity.

It was designed by Thomas W. Lamb, one of the country's foremost designers of movie palaces, most of which, sadly, have been destroyed. One of his other works in New York is the Audubon Theater and Ballroom building on Broadway and 165th Street.

"Hollywood may have had its Grauman's Chinese, but New York has its Pythian Temple! Hidden on an anonymous side street, this opium-smoker's dream is best seen from across the street- or better still from someone's upper floor-apartment to the south," wrote Elliot Wilensky and Norval White in the excellent book, "The A.I.A. Guide to New York City, Third Edition," (Harcourt Brace Jovanovich, 1988).

First Came on Market: 3/19/2007
Asking Price: $18,000,000
maintenance: $3,354
RE Taxes: $3,628
Size: Interior Aprx 3,300 SFT + 2 Large Terraces
PPSF: $5,455
Marketed By: Rina Schafman of BrownHarrisStevens

God I hope there is an Open House so I can check this one out!

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Upper West Side Value

A: If you are looking for a 1BR in a prime location of the Upper West Side near Central Park and with the luxury of a 24HR Doorman and planted roofdeck, check out this 6-day old listing at 200 West 79th Street.

The Gloucester building is located on 79th street between Broadway & Amsterdam Avenue and is a full-time doorman building with a live-in super and porter available 24 hours. The lobby and hallways were just renovated meaning future assesments for this type of work shouldn't be a concern for you.

It's always best to ignore renovations and focus on the 4 things that can NOT be changed about a property: LOCATION, SIZE, VIEWS, & LIGHT. With regard to this property the location is great, the size is fine, the views I'm not sure about, and the light seems great. Not a bad start.

*Note: Your real estate attorney will review all building financials, offering plan, board minutes, and contract of sale before advising you to sign the contract. You should be notified if any major renovations are planned which might lead to future maintenance assesments!

200 West 79th Street; Apt 9B

Size: Aprox 650 Sq. Ft.
# Beds: 1
# Baths: 1
maintenance: $859 (a bit high for apartment size)
Asking: $495K
Price Per Sq. Ft.: $762
Marketed By: Doron Zwickel of Douglas Elliman

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What is a 421a Tax Abatement

A: The 421a Tax Abatement Certificate is a key financial resource used by developers and offered by the city to spur development and keep housing costs reasonable by offering 'temporary relief' in property taxes owed by individual condominium owners or coop shareholders. Although, most new developments in New York City today are either Condo's or Condop's, not Coops (see my post on What is A Condop?). By the way, isn't that the perfect image for this post!

According to the NYC.gov website:

The Cooperative and Condominium Abatement Program provides partial tax relief for condo owners and co-op tenant-shareholders to reduce the disparity in property tax paid between residential Class 2 properties (i.e., condominiums and cooperatives) and Class 1 properties (i.e., one-, two-, and three-family homes), which are assessed at a lower percentage of market value.

Ownership -- Condominium owners and cooperative tenant-shareholders who, as of the applicable taxable status date, may own no more than three dwelling units in any one property. Units held by sponsors or their successors in interest are not eligible.
Other Exemptions -- Properties that already receive a state or local tax exemption or abatement, such as J-51, 421a, or 421b, may not be eligible.

Its important to note that tax abatements are applied for by the developer and granted by the city to offer incentives to developers for building and marketing a new property. Usually, a 10-Year Tax Abatement is granted meaning that the actual property taxes that were assessed to the building and its individual units will get relief for the first 10 years of occupancy. The tax relief is the greatest right when the building is ready for occupancy and then increases every 2 years (20% every 2 years) until the 10 years is up, and at which time the property taxes will have hit their maturity.

Lets take a look at a real-life building for an example of the 421a Tax Abatement and the listings for sale in pre-construction:

205 East 59th New Development

Apt. 9B

#Beds - 2
#Baths - 2
Total Size - 1,368 Sq. Ft.
Maint/CC - $1,626
*RE Taxes - $261
Asking: $2,211,000

Apt. 22A

#Beds - 1
#Baths - 1.5
Total Size - 1,122 Sq. Ft.
Maint/CC - $1,344
*RE Taxes - $216
Asking: $1,799,500

In this New Condo Development on 59th Street the 421a Tax Abatement brought the tax payments down to a very low $200+ for these 2 units. If I do the math and add 20% to this starting figure every 2 years for 10 years, I will reach a mature property tax value of about $650 for Apt. 9B and slightly less for Apt. 22A. So in this new development the 421a Tax Abatement is saving unit owners about $400/month or $5,000 a year for their first 2 years of living at 205 East 59th street.

I know its a bit confusing and that it could also be argued that with the temporary lower monthly expenses the developer is boosting the asking price, but in the end its still a luxury new condo with more amenities than most buildings offer; including:

- 24HR Doorman & Concierge
- Private 5th Floor Landscaped Gardent Terrace
- Fitness Center
- Service Pantry for Catered Events
- Outdoor Stretching Studio on Mahogany Deck For Yoga
- A Whimsical Puppy Park

UrbanDigs Says: For investors who bought early in pre-construction at a good price point, it might be wise to sell your unit halfway into the tax abatement. The logic here is that you are selling the property while there is still tax relief in effect and the monthly expenses are lower than they will be in 5 more years; this should help you get a higher asking price assuming the market hasn't experienced any turbulence. Always remember that as monthly expenses rise, the asking price must be reduced to compensate for affordability.

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One Carnegie Hill: New Condop Update

A: With One Carnegie Hill, 215 East 96th Street, almost finished I see 14 listings currently for sale by those who purchased units last year during pre-contruction. As we get closer to occupancy, planned for Winter 2006, expect more units to be up for sale setting the stage for in-building competition amongst investors. However, this building is NOT entirely made up of sales units, as Related Companies will hold on to a portion of units for rental use.

The Related Companies new condop (A Co-op with Condo Rules/By-Laws) is part residential sales, part rentals with tons of amenities. While the location is right on the cusp of the "Do Not Cross 96th Street" mantra of Upper East Siders, and it is right next to a Mosque (a pretty nice one too), sellers are valuing units for sale here at aproximately $912-$1350/Per Square Foot.

Occupancy for this new building is expected during the Winter of 2006. Based on the description on file:

Over 16,000 Square Feet of ammenities including a private Swim and Health Club, Pet Spa, Aerobic and Yoga studio, Childrens Play Room, His & Her Locker Rooms with saunas and showers, Massage Room, Business center, and outdoor Garden Patio with private Barbecue Areas. Additionally, the roof top sun deck boasts Panoramic views and has an indoor Party Lounge. Kitchens feature luce de Luna granite, porcelain tile floors, stainless appliances and Waterworks fixtures. Bathrooms feature Botticino Marble tub surround, a honed Imperadore Floor, high gloss ebonized cabinet and kohler fixtures. The warm enveloping lobby is designed by Rockwell Group and the entrance is on 96th Street. It features Spanish ambarino pavers, Santos Rosewood Panelled Walls, and a copper leaf vaulted ceiling.

Of the more expensive units listed for sale are:

Apt. 33B
Asking: $1.95M
Size: 1,653 Sq. Ft.
Price Per Sq. Ft: $1,180
Marketed By: Carol Kelly of Corcoran

Apt. 37B
Asking: $1.9M
Size: 1,513 Sq. Ft.
Price Per Sq. Ft: $1,256
Marketed By: Carol Kelly of Corcoran

Apt. 31D
Asking: $900K
Size: 679 Sq. Ft.
Price Per Sq. Ft: $1,325
Marketed By: Carol Kelly of Corcoran

And finally, the 1 Unit in the building priced UNDER $1,000 per square foot:

Apt. 31A
Asking: $805K
Size: 883 Sq. Ft.
Price Per Sq. Ft: $912
Marketed By: Carol Kelly of Corcoran

Related is certainly one of the most popular developers in NYC and you can be assured that their buildings will be very luxurious with great amenities. However, with a cooling market and location that is suspect I'm not sure that these units are going to sell as fast or as high as investors' hoped. They should still make money on the deal, just not as much as they previously thought. Let's see what happens when deals are closed and the first units are flipped.

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More High End Blues - 30 Fifth Ave

A: Wall street bonuses are yet to hit the high end as 30 Fifth Avenue is the next building in the 'High End Blues' franchise. Savvy buyers should keep their eyes open for value as these prices for prime location keep falling!

While its not 5th Avenue next to Central Park, its still prime location south of Union Square between 9th & 10th streets. It is widely recognized as one of the best prewar Gold Coast Village doorman buildings on 5th Avenue near 10th street. Building amenities include 24HR Doorman, spectacular roofdeck, laundry, with a bike room and storage in basement. Pets OK.

Latest word on the price reduction at 30 5th Avenue:

Apt. 15E
On the market since 4/18/2005
Reduced from $1.54M to 1.495M to 1.395M

Reduced $145K
Marketed By: Robert Schartoff of Warburg Realty

With 1,200 sq. ft. of livable space and a price per sq. ft. of $1,162, this apartment is diving closer to a good buying opportunity for those looking into this location.

For comparison, review this brand new 1BR apartment in the same building just put on the market 2 days ago:

Apt. 7H
On the market since 1/24/2006
Priced at $899K

Marketed By: Roseann Barber of Corcoran

While not listed, this 1BR is probably around 700 sq. ft. which would give it a price per sq. ft. of $1,284. Either this is overpriced (since its new the seller could be testing the market) or the reduced apartment for 1.395M all of a sudden looks like a value!

If your a first time buyer looking in NYC be sure to read my post on "How To Find Good Value in this Seller's Market", even though the market has shifted since the post was published to more of a buyers market, at least in terms of pricing pressure.

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Astor Terrace Condo: Upper East

A: I am starting a NEW Category called "Buildings I Like" in the hopes of pointing out exceptional buildings to live in when compared to its peers. I will use quality of service, financial health, location, current pricing levels, and amenities as factors in determining buildings I like! The Astor Terrace Condiminiums is an award-winning luxury building in the upper east side on 2nd Avenue between 93rd & 94th streets.

As for the immediate neighborhood, its changing! Within blocks you now have a Yura Bakery & Restaurant, Blondie's Sports Bar, Brother Jimmy's Bait Shack, Parrot Bay, Don Pedro's, Kebab Turkish Wraps (NEW), Milano's Italian Gourmet, Hokkaido Sushi (NEW), Nicks Pizzeria, Zeytina Fine Foods, Delizia Italian, Tony's Family Style, The Vinegar Factory, Schaller & Weber Meats, Papaya King, Carl Schurz Park & Gracie Mansion, Central Park, 6 Trains at 96th & Lex, new B-Ball & Tennis courts, a newly renovated Rupert Park, Rainbow, and almost anything else you've gotten used to as a new yorker!

The building has its own private driveway between 93rd & 94th streets right off of 2nd avenue, which allows residents to easily drop off, pickup, load the car, or park in its attached garage. Above the underground garage which is right across from the building lobby, is a private gated garden with waterfall for residents to use. At night it becomes a popular place to meet other residents for a bottle of wine.

A 24HR doorman plus concierge provides security and convience for those who live in this very well maintained building. With 3 elevators plus a huge service elevator for move-ins, porters and contractors residents are able to get up and down without much of a wait.

The building reserve fund is still over $1M even with the recent required building inspection and maintenance work that was completed. maintenance costs are relatively low when compared to other buildings without tax abatements, but the service is sure to be of much higher quality. Those who live in Astor Terrace know and tend to stay there for a long time.

All in all I believe this building to be trading at a discount, when I compare it to its peers in the neighborhood. You could expect to spend about $850/Sq. Ft. or under for a 1BR at Astor Terrace, when other condo units are selling closer to $950/Sq. Ft.. In this tight market, buying a property in a good building at a discounted price is a feat very hard to accomplish. So if your looking in the Upper East side be sure to check out whats for sale at this building. Its worth the trip over!

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