280 Park Avenue South

We leased in this building for a year while we were doing our co-op search. Loved the location for proximity to transportation, restaurants, groceries etc. However, the building appears to be run on a shoestring. The sponsor still owns many of the apartments and rents them continually. There are sublets from other owners as well as people using it for vacation rentals or b&bs. The soundproofing between apartments is minimal and we were constantly complaining about barking dogs. And often there is a pervasive smell of cigarette smoke in the hallways. The gym is just a room and poorly maintained but the pool has recently been well renovated. We were paying close to $6000 for a two bedroom of about 1100 square feet and when we left, it was rented in a heartbeat so it appears to be rewarding for investors. But since we were searching for a place to live eventually long term, it made us realize the value of a co-op where renting is limited.

rosina. thanks for the feedback. as you mentioned, i am partially concerned about their operating budget so i will do a bit more digging. thanks!

cj, Our understanding is that the sponsor still controls the board and therefore the budget. When they need more money, they just assess. Look at the history of assessments and that might help you get a picture of the finances.

I once looked at this building. I was told that the sponsor needs to sell a minimum number per year... but I think that number is small.

good to know, thanks. it is curious that the building went condo in the 80s and the sponsor still owns a substantial number of units. are they waiting for a market better than 2005? '-)

The broker said something like it is a couple a year...

It seems like the owner is just selling when they hit a certain number like $1300 psf according to their current listings. Could it really be that bad to live here?

I haven't lived in the building, but I think the location is very, very good for someone on the younger side who goes out. Pretty prime territory around there, and close enough to union square without being caught in the mess.... but Park Ave South is right there (and which is getting even better with the gansevort scene building above 23rd), and the whole flatiron set, and access to everywhere else.

The building itself... I didn't love it, but that's what a lot of not cheap buildings in town look like, especially after a few years of wear.

And that is a cool pool...

this is interesting info.
i've been considering buying a few apts in this building.
how have people been able to get loans if the majority is still owned by the developer?

What about the floors/ceiling? Are they thin as well? Do you hear footsteps when people above you are walking?
What about stereo noise? do you hear other people's music especially the base?

I am told that you can get non-fannie financing.it seems to be the cheapest doorman condo in the neighborhood.

@bigmoviebuff, @thelatest - About 1/3 of the building is still owned by the managing agent - these units are rented out for income generation by the sponsor company. They have been slowly selling them off as well, a few units per year. The sponsor units go for low prices because they have not been renovated or updated since the building was constructed over 20 years ago. On StreetEasy, you can look for listings by Alex Maghoub/280 PAS Realty - he handles both sales and rentals for the sponsor. The high % ownership by the sponsor (or any single entity) does make it more difficult to get financing, but not impossible. Some lenders are willing to work in the building and some are not. A competent mortgage broker should be able to steer you to the right lenders. If getting a loan on your own, just tell the loan officer about the building upfront, and see if it is ok for that lender or not.

I wouldn't say it is the cheapest condo in the hood, though the sponsor units do drag down average prices. If you look at recent sales, sponsor/un-renovated units have been going for $1000-$1200/sf, while renovated/updated units or high-floor units are around $1400-$1500 (PHC, 18EF). Immediate neighbors 260 and 254 PAS have been getting higher $/sf... But if you look at older developments nearby, like Madison Green and the Stanford, prices are comparable.

As far as the building budget... Two major assessments have been done recently: one to renovate the gym/pool/locker rooms on the rooftop level, and one to replace a leaking fuel tank and clean up the resulting environmental damage. The building does run with low reserves compared to other established condos... So more assessments are likely if there are other unforeseen expenses.

Hello all, if anyone has any questions 280 Park Avenue South, Gramercy Place, please feel free to contact me anytime. I am a broker and have been specializing in the building for 10 years having sold 35 units in the building and rented more than 40. You can visit my website at 280PAS.com or email me John@280PAS.com. Thanks for your time and consideration.

Best

John Maher
Principal Broker
Maher Group
member REBNY