Anyone have any info about the lease renegotiation...I'm considering purchasing an apt in the building but am hesitant given the land lease is being renegotiated. Any ideas? Thoughts?

All you need to do is go check out the listings for another land-lease building in that area - 301 East 63rd Street.

Take a look at the number of units for sales, the pricing history and the maintenance for the apartments. I think this will give you your answer...LAND LEASE BAD!

http://www.streeteasy.com/nyc/building/301-east-63-street-manhattan

The land lease matured in August 2010, and the co-op signed a 99-year land lease to 2109. The monthly land rental on a 600 sq ft unit will be roughly $250 per month in when the lease hits its maximum cost sometime in the 2020's (it remains level from then until 2109).

The purchase prices on small units in this building have been $150k+ below comparable buildings. It takes 600 months (50 years) of $250 per month to make up the purchase price difference.

If you are commited to buying in the area, the purchase price difference is effectively an interest-free loan.

does anyone know when the maintence increases in this landlease building? does it adjust every couple of years?

Are there any other issues with this building? It seems cheap relative to the other properties in the area?

Building is cheaper because of land lease coop. Land lease is set until 2109. RiskAverseBuyer lays out the financial impact of the changes to the montlhly fees. Coop board requires complete financials. If you are looking for a place to own for a long time, this is an exceptional value. Price will always be lower than other buildings because of land lease. It won't matter to some people that it is set until 2109. The lobby and hallways were renovated in 2011. Very well run building. Thick walls, little to no noise from neighbors. Units facing rear of building are very quiet.

RiskAverseBuyer, you said the land lease will peak out at $250 for a 600 sq ft unit in the 2020's and stay flat thereafter. Where is it now for such a unit?

Roughly $120 per month

An interesting lease, eh? Rent to the landowner doubles over ten years, then stays flat over the next eighty years. The more usual thing is to reset the rent to market value every ten years or so.

Any ideas why the landowner would front-load (if that's the term) the income stream that way?

Re: Any ideas why the landowner would front-load (if that's the term) the income stream that way?

Landowner is in the last 10 years of his/her life and has little regard for heirs' income?

Also, it is a negotiation.

Any risks of buying in this building now that lease runs till 2109?

Depends on what you pay, as with anything. Here's another version of the lease story, different from what RiskAverseBuyer said: http://www.lambmanagement.com/Success-Stories.asp

Whenever there're issues with a building, you should get the financials before (instead of the usual after) negotiations. You should also have your lawyer and financial advisor go over the actual lease, not just the memorandum of lease that's filed with the city.

Thanks NWT. This is very helpful. Some of the current listings are kind of close to market rate. The monthly maintenance doesn't look too crazy compared to 301 E. 63rd. However, the monthly maintenance could increase dramatically when the annual rent hits $1 million a year.